Sezzle (SEZL) investor relations material

Executive summary

• Achieved strong year-over-year growth in Q1 2026, with GMV up 37.3% to $1.1 billion and total revenue up 29.2% to $135.5 million, driven by increased consumer engagement, higher purchase frequency, and a strategic shift to subscriptions.

• Net income rose 41.9% year-over-year to $51.3 million, with net income margin expanding to 37.9% and adjusted EBITDA margin improving to 52.5%.

• Subscriber base grew 48.4% year-over-year, reaching 714,000–887,000, while active consumers totaled 3.1 million; focus remained on high LTV users and subscription-first strategy.

• Enhanced product suite with launches such as Pay-in-5, BNPL virtual card in Canada, Sezzle Mobile, and expanded Earn Tab; AI initiatives improved operational efficiency and consumer experience.

• Continued strategic shift from checkout-only to all-in-one financial services platform, expanding into deposit accounts, card products, and mobile plans.

Financial highlights

• GMV reached $1,157.5 million in Q1 2026, with total revenue of $135.5 million and gross margin at 74% of revenue.

• Net income was $51.3 million (37.9% margin); adjusted EBITDA was $71.1 million (52.5% margin); diluted EPS rose to $1.47.

• Transaction-related costs as a percentage of revenue decreased to 26.0%, and as a percentage of GMV improved to 3.2%.

• Cash, cash equivalents, and restricted cash totaled $147.4 million at quarter end, with $69 million available under credit line.

• Repurchased $24.8–$25.7 million in common stock during the quarter under a $100 million buyback program.

Outlook and guidance

• FY2026 revenue growth guidance raised to 30–35%, with adjusted net income guidance increased to $180 million and adjusted EPS to $5.10.

• Guidance does not include projections for new products in development.

• Management expects continued growth in GMV and revenue, supported by product innovation and consumer acquisition.