Sezzle Inc shares tumbled 27.19% in post-market trading Thursday, as investors reacted to the company's second-quarter 2026 results. While the fintech platform delivered headline beats on both revenue and earnings, a sharp sequential decline in profitability from the prior quarter rattled market sentiment.

The company reported total revenue of $149.7 million, up 51.7% year-over-year and above analyst estimates of $135.1 million. Adjusted net income per diluted share came in at $1.13, exceeding the consensus estimate of $1.03. Sezzle also raised its full-year 2026 guidance, lifting adjusted net income per diluted share to $5.25 from $5.10 and targeting total revenue growth at the high end of its prior range of 35%. However, the second-quarter adjusted EPS of $1.13 marked a more than 20% drop from the $1.47 recorded in the first quarter, a deceleration that overshadowed the year-over-year improvements and fueled significant profit-taking after the stock's prior rally.

Despite robust growth in active subscribers and gross merchandise volume, the market focused on the quarter-over-quarter earnings contraction and higher operating expenses, including a near-doubling of marketing spend. The sell-off underscores elevated investor expectations following a strong first quarter and a year-to-date rally of over 170% prior to the release.