Sezzle (SEZL) investor relations material

Executive summary

• Q2 2026 delivered record GMV of $1.3 billion (up 37.9% YoY) and revenue of $149.7 million (up 51.7% YoY), driven by a 76.4% surge in active subscribers and increased purchase frequency.

• New products SezzleCash and Sezzle Send were launched, expanding the product suite beyond point-of-sale and leveraging AI for rapid development.

• AI integration accelerated product development, improved customer support efficiency, and enhanced platform experience.

• The company received multiple industry accolades for fintech innovation and workplace quality.

• Expanded enterprise merchant partnerships, including Poshmark, Gymshark, Debenhams, Brookshire's Food & Pharmacy, and RockAuto.com.

Financial highlights

• Net income for Q2 2026 was $40.8 million (27.2% margin), with adjusted net income up 58.4% YoY to $39.3 million and adjusted EBITDA at $58.0 million (38.8% margin).

• Revenue less transaction-related costs was 63.5% of total revenue, at the high end of the 55%-65% target.

• Operating income for Q2 2026 was $55.0 million, up 52.3% YoY, representing 36.7% of total revenue.

• Provision for credit losses increased 48.3% YoY to $30.6 million, representing 2.4%-3% of GMV.

• Active subscribers reached 854,000, up 76.4% YoY; MODS totaled 982,000; average purchase frequency hit a record 7.2x.

Outlook and guidance

• FY2026 guidance raised: total revenue growth now expected at the high end of 35%, adjusted net income to $185 million, and adjusted EPS to $5.25.

• Guidance does not include material impact from SezzleCash or Sezzle Send.

• Revenue yield expected to remain flat YoY, with seasonal declines in Q4.

• Management expects continued growth from product innovation, consumer engagement, and expanded merchant partnerships.

• Ongoing investment in marketing and technology to drive future revenue and retention.