Sezzle (SEZL) investor relations material

Business highlights and market overview

• Achieved over $14B in gross merchandise volume and 19M completed sign-ups since inception, with recognition from major media outlets for fintech innovation and credit-building solutions.

• BNPL market in North America is rapidly expanding, forecasted to grow from $156B in 2025 to $288B by 2030, outpacing other payment types in e-commerce.

• Strategic pivot toward subscription-based models has driven higher engagement and order frequency, with 48.4% YoY growth in subscribers.

• Product ecosystem includes Pay-in-4, Pay-in-5, Pay-in-2, long-term lending, virtual cards, and credit-building features, with recent launches of mobile and insurance products.

• Proprietary AI and machine learning models enhance underwriting, fraud detection, and customer support, driving operational efficiency and improved consumer experience.

Financial performance and guidance

• 1Q26 gross merchandise volume grew 37.3% YoY to $3.94B, with total revenue up 29.2% YoY to $135.5M.

• Net income for 1Q26 reached $51.3M, up 41.9% YoY, with an adjusted EBITDA margin of 52.5%.

• Total revenue less transaction-related costs as a percentage of total revenue improved to 74.0% in 1Q26.

• Updated FY2026 guidance projects total revenue growth of 30–35% and adjusted net income of $180M, with adjusted net income per diluted share at $5.10.

• Strong balance sheet with $147.4M in total cash and $196.7M in stockholders’ equity as of March 31, 2026.

Consumer and merchant engagement

• Average quarterly purchase frequency increased to 7.1x in 1Q26, with 887,000 active consumers and 489,000 unique merchants shopped at.

• Repeat usage as a percentage of total orders reached 97.0%, and number of transactions grew 35.8% YoY.

• Earn Tab and gamification features have driven daily engagement and increased BNPL conversion rates.

• Sezzle Up credit-building program reports lower payment failure rates and higher order counts for enrolled consumers.

• Merchants benefit from increased order value, higher ROI, and improved customer retention through integrated and non-integrated solutions.