Press Release: Sezzle Reports First Quarter 2026 Results

Dow Jones
May 07
   -- GMV increased 37.3% YoY to $1.1 billion, supported by record average 
      quarterly purchase frequency of 7.1x 
 
   -- Total Revenue grew 29.2% YoY to $135.5 million, representing 12.2% of GMV 
 
   -- Net Income and Adjusted Net Income1 increased 41.9% and 41.5% YoY to 
      $51.3 million and $50.0 million, respectively; Net Income per Diluted 
      Share2 and Adjusted Net Income per Diluted Share2 were $1.47 and $1.43, 
      respectively 
 
   -- Adjusted EBITDA1 was $71.1 million, with Adjusted EBITDA Margin reaching 
      52.5% 
 
   -- The Company increased FY2026 guidance across all metrics: Total Revenue 
      Growth to 30-35% from 25-30%, Adjusted Net Income1 to $180.0 million from 
      $170.0 million, and Adjusted Net Income Per Diluted Share2 to $5.10 from 
      $4.70 

MINNEAPOLIS, May 06, 2026 (GLOBE NEWSWIRE) -- Sezzle Inc. $(SEZL)$ (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended March 31, 2026.

"This quarter's results demonstrate the impact of the consumer engagement strategy we advanced throughout 2025," stated Charlie Youakim, Sezzle Executive Chairman and CEO. "Average quarterly purchase frequency reached a new Company high of 7.1x and Active Subscribers grew 48.4% year over year, reflecting the growing value consumers see in Sezzle. The engagement flywheel we built is working, and our strong first quarter performance gives us the confidence to raise FY2026 Adjusted Net Income guidance to $180 million and Adjusted Net Income per Diluted Share guidance to $5.10."

First Quarter 2026 Highlights

   -- Gross Merchandise Volume (GMV) increased 37.3% YoY to $1.1 billion, 
      supported by higher overall consumer purchase frequency and continued 
      platform engagement. Average purchase frequency reached a quarterly 
      record of 7.1x, up from 6.1x in 1Q25. 
 
   -- Total Revenue reached a quarterly high of $135.5 million, up 29.2% YoY 
      and equal to 12.2% of GMV. 
 
   -- Monthly On-Demand & Subscribers (MODS) totaled 887,000 (rounded to the 
      nearest thousand) as of March 31, 2026, up 34.8% YoY. Active Subscribers 
      increased 48.4% YoY, while Monthly On-Demand users declined sequentially, 
      reflecting a subscription-first acquisition strategy and the seasonal 
      moderation that typically follows the fourth-quarter holiday shopping 
      period. 
 
   -- Total Operating Expenses rose 20.9% YoY to $66.5 million, primarily 
      reflecting higher marketing spend. As a share of Total Revenue and GMV, 
      Operating Expenses fell 3.3 and 0.8 percentage points to new Company lows 
      of 49.1% and 6.0%, respectively. 
 
   -- Transaction Related Costs3 improved to a Company-low 3.2% of GMV, down 
      from 3.8% in 1Q25. Provision for Credit Losses contributed most to the 
      improvement, contracting to 1.2% of GMV from 1.6% in 1Q25 on sustained 
      favorable consumer repayment performance. 
 
   -- Operating Income increased 38.4% YoY to $69.0 million. Operating Margin 
      expanded 3.3 percentage points YoY to 50.9% of Total Revenue and held at 
      6.2% of GMV. 
 
   -- Total Revenue Less Transaction Related Costs3 increased 35.8% YoY to 
      $100.3 million and reached 74.0% of Total Revenue, up 3.6 percentage 
      points YoY. As a percentage of GMV, the metric was 9.0%, compared with 
      9.1% in 1Q25. 
 
   -- Non-Transaction Related Operating Expenses3 increased 27.5% YoY to $34.3 
      million, with marketing expense accounting for $11.2 million versus $5.3 
      million in 1Q25 in support of subscriber acquisition, retention, and 
      engagement initiatives. As a percentage of Total Revenue, the metric 
      declined 0.3 percentage points YoY to 25.3%. 
 
          -- Corporate Strategic Project Costs for the quarter totaled $0.3 
             million, covering professional services tied to the ongoing 
             antitrust litigation and bank charter application. 
 
   -- Net Income jumped 41.9% YoY to $51.3 million, a new Company quarterly 
      high. Net Income Margin expanded 3.4 percentage points to 37.9%, with 
      Earnings per Diluted Share4 of $1.47 versus $1.00 in 1Q25. 
 
          -- Adjusted Net Income5 increased 41.5% YoY to $50.0 million in 1Q26, 
             or 36.9% of Total Revenue, translating to $1.43 per Diluted Share6 
             compared to $0.98 in 1Q25. 
 
   -- Adjusted EBITDA5 grew 38.3% YoY to $71.1 million. Adjusted EBITDA Margin 
      reached 52.5% of Total Revenue, 3.5 percentage points above 1Q25. 

Balance Sheet and Liquidity

   -- As of March 31, 2026, Sezzle had $147.4 million of cash, cash equivalents, 
      and restricted cash, $26.9 million of which was restricted. 
 
   -- The Company had $145.5 million outstanding on its $225.0 million credit 
      facility as of quarter end. 
 
   -- During 1Q26, the Company repurchased $24.8 million of common stock under 
      its $100.0 million share repurchase program. 

Guidance

The Company is raising its FY2026 guidance as follows:

 
                    2026 Guidance     2026 Guidance      2026 Updated 
                   (November 2025)   (February 2026)       Guidance 
-----------------  ----------------  ----------------  ----------------- 
Total Revenue 
 Growth                Not provided          25%--30%           30%--35% 
Adjusted Net 
 Income(5)             Not provided           $170.0M            $180.0M 
Adjusted Net 
 Income Per 
 Diluted 
 Share(5)                     $4.35             $4.70              $5.10 
 
 

Initiatives Update

   -- Sezzle continued to advance its strategy of moving beyond checkout to 
      become a broader part of consumers' everyday spending. During 1Q26, the 
      Company rolled out Pay-in-5 to consumers, while the Earn Tab continued to 
      gain traction as a daily engagement hub, generating 4.8 million visits 
      since its June 2025 launch. 
 
   -- Subsequent to quarter end, Sezzle launched Agentic Commerce, a closed-end 
      BNPL virtual card solution in Canada, and Sezzle Mobile. Additionally, 
      Sezzle expanded its long-term lending functionality across its product 
      suite. These launches broaden Sezzle's payments, shopping, and 
      financial-services capabilities, creating more reasons for consumers to 
      engage with Sezzle in their everyday lives. 

Upcoming Investor Events

   -- Sezzle Management will participate in the upcoming investor events: 
 
          -- May 14, 2026: 21st Annual Needham Technology, Media, & Consumer 
             Conference 
 
          -- May 18, 2026: J.P. Morgan 2026 Global Technology, Media, and 
             Communications Conference 
 
          -- May 20, 2026: B. Riley Securities 2026 Annual Investor Conference 
 
          -- June 17, 2026: Needham Non-Deal Roadshow 
 
          -- June 23, 2026: Northland Growth Conference 2026 

Quarterly Conference Call and Presentation

The Company will host its first quarter earnings conference call on May 6, 2026, at 5:00pm ET.

To register for the call, please navigate to: https://dpregister.com/sreg/10208550/103e1a867dc

All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=eVoVHHdR

Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until May 13, 2026. To access the replay dial 1-855-669-9658 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 4160608.

In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.

1Q26 GAAP Operating Results

 
                                      For the three months ended 
($ in thousands)          Mar. 31, 2026      Mar. 31, 2025     YoY Difference 
----------------------  -----------------  -----------------  ---------------- 
Total Revenue            $    135,539       $    104,912            29.2% 
Operating Expenses       $     66,503       $     55,017            20.9% 
Operating Expenses as 
 % of Total Revenue              49.1%              52.4%            (3.3 ppt) 
Operating Expenses as 
 % of GMV                         6.0%               6.8%            (0.8 ppt) 
Operating Income         $     69,036       $     49,895            38.4% 
Operating Income as % 
 of Total Revenue                50.9%              47.6%              3.3 ppt 
Operating Income as % 
 of GMV                           6.2%               6.2%              0.0 ppt 
Net Income               $     51,303       $     36,164            41.9% 
Net Income as % of 
 Total Revenue                   37.9%              34.5%              3.4 ppt 
Net Income per Diluted 
 Share                   $       1.47       $       1.00            47.0% 
 
 

1Q26 Non-GAAP Operating Results(7)

 
                                      For the three months ended 
($ in thousands)          Mar. 31, 2026      Mar. 31, 2025     YoY Difference 
----------------------  -----------------  -----------------  ---------------- 
Non-Transaction 
 Related Operating 
 Expenses                $     34,308       $     26,899            27.5% 
Non-Transaction 
 Related Operating 
 Expenses as % of 
 Total Revenue                   25.3%              25.6%            (0.3 ppt) 
Transaction Related 
 Costs                   $     35,210       $     31,032            13.5% 
Transaction Related 
 Costs as % of Total 
 Revenue                         26.0%              29.6%            (3.6 ppt) 
Transaction Related 
 Costs as % of GMV                3.2%               3.8%            (0.6 ppt) 
Total Revenue Less 
 Transaction Related 
 Costs                   $    100,329       $     73,880            35.8% 
Total Revenue Less 
 Transaction Related 
 Costs as % of Total 
 Revenue                         74.0%              70.4%              3.6 ppt 
Total Revenue Less 
 Transaction Related 
 Costs as % of GMV                9.0%               9.1%            (0.1 ppt) 
Adjusted EBITDA          $     71,133       $     51,446            38.3% 
Adjusted EBITDA Margin           52.5%              49.0%              3.5 ppt 
Adjusted Net Income      $     49,993       $     35,340            41.5% 
Adjusted Net Income 
 Margin                          36.9%              33.7%              3.2 ppt 
Adjusted Net Income 
 per Diluted Share       $       1.43       $       0.98            45.9% 
 
 

Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures

Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses

 
                                           For the three months ended 
($ in thousands)                       March 31, 2026       March 31, 2025 
-----------------------------------  -------------------  ------------------ 
Operating expenses                     $         66,503    $       55,017 
    Transaction expense                         (18,520)          (15,317) 
    Provision for credit losses                 (13,675)          (12,801) 
-----------------------------------  ---  -------------       ----------- 
Non-transaction related operating 
 expenses                              $         34,308    $       26,899 
===================================  ===  =============       =========== 
 
 

Reconciliation of Operating Expenses to Transaction Related Costs

 
                                           For the three months ended 
($ in thousands)                       March 31, 2026       March 31, 2025 
-----------------------------------  -------------------  ------------------ 
Operating expenses                     $         66,503    $       55,017 
    Personnel                                   (14,667)          (15,048) 
    Third-party technology and data              (4,415)           (3,374) 
    Marketing, advertising, and 
     tradeshows                                 (11,246)           (5,346) 
    General and administrative                   (3,980)           (3,131) 
    Net interest expense                          3,015             2,914 
-----------------------------------  ---  -------------       ----------- 
Transaction related costs              $         35,210    $       31,032 
===================================  ===  =============       =========== 
 
 

Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs

 
                                           For the three months ended 
($ in thousands)                       March 31, 2026       March 31, 2025 
-----------------------------------  -------------------  ------------------ 
Operating income                       $         69,036    $       49,895 
    Personnel                                    14,667            15,048 
    Third-party technology and data               4,415             3,374 
    Marketing, advertising, and 
     tradeshows                                  11,246             5,346 
    General and administrative                    3,980             3,131 
    Net interest expense                         (3,015)           (2,914) 
-----------------------------------  ---  -------------       ----------- 
Total revenue less transaction 
 related costs                         $        100,329    $       73,880 
===================================  ===  =============       =========== 
 
 

Reconciliation of Net Income to Adjusted EBITDA

 
                                             For the three months ended 
                                       --------------------------------------- 
($ in thousands)                         March 31, 2026       March 31, 2025 
-------------------------------------  -------------------  ------------------ 
Net income                               $          51,303   $       36,164 
    Depreciation and amortization                      436              274 
    Income tax expense                              14,686           10,842 
    Equity and incentive-based 
     compensation                                    1,321            1,273 
    Other (income) expense, net                         32              (25) 
    Corporate strategic projects(1)                    340                4 
    Net interest expense                             3,015            2,914 
-------------------------------------  ---  --------------      ----------- 
Adjusted EBITDA                          $          71,133   $       51,446 
=====================================  ===  ==============      =========== 
 

(1) Adjusted prior periods to include corporate strategic project costs.

Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share

 
                                           For the three months ended 
($ in thousands, except for per 
share numbers)                         March 31, 2026       March 31, 2025 
-----------------------------------  -------------------  ------------------ 
Net income                             $         51,303    $       36,164 
    Discrete tax benefit(1)                      (1,682)             (803) 
    Corporate strategic projects(1)                 340                 4 
    Other (income) expense, net                      32               (25) 
-----------------------------------  ---  -------------       ----------- 
Adjusted net income                              49,993            35,340 
    Diluted weighted-average shares 
     outstanding                                 34,932            36,171 
-----------------------------------  ---  -------------       ----------- 
Adjusted net income per diluted 
 share(2)                              $           1.43    $         0.98 
===================================  ===  =============       =========== 
 

(1) Adjusted prior periods to include the windfall/shortfall to income tax expense for equity-based compensation and corporate strategic project costs.

(2) Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, effected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

Contact Information

 
  Jack Fagan                       Erin Foran 
   Investor Relations               Media Inquiries 
   +1 651 240 6001                  +1 651 403 2184 
   InvestorRelations@sezzle.com     erin.foran@sezzle.com 
 
 

About Sezzle Inc.

Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services--connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.

For more information visit sezzle.com.

Consolidated Balance Sheets

 
                                                      As of 
                                      March 31, 2026     December 31, 2025 
(in thousands, except per share 
amounts)                               (unaudited)           (audited) 
-----------------------------------  ----------------  --------------------- 
Assets 
Current Assets 
      Cash and cash equivalents, 
       including amounts held by 
       variable interest entity 
       ("VIE") of $39,979 and 
       $25,921, respectively          $      120,448    $          64,054 
      Restricted cash, current, 
       including amounts held by 
       VIE of $4,701 and $8,245, 
       respectively                            4,745                8,413 
      Notes receivable                       282,761              283,400 
      Allowance for credit losses            (19,794)             (28,505) 
-----------------------------------      -----------       -------------- 
      Notes receivable, net, 
       including amounts held by 
       VIE of $247,006 and 
       $237,062, respectively                262,967              254,895 
      Other current assets                    23,030               24,502 
-----------------------------------      -----------       -------------- 
      Total current assets                   411,190              351,864 
-----------------------------------      -----------       -------------- 
Non-Current Assets 
      Internally developed 
       intangible assets, net                  3,743                3,331 
      Operating right-of-use assets              628                  665 
      Restricted cash, non-current            22,193               30,134 
      Deferred tax asset                      15,721               13,615 
      Other assets                               830                  620 
-----------------------------------      -----------       -------------- 
Total Assets                          $      454,305    $         400,229 
===================================      ===========       ============== 
 
Liabilities and Stockholders' 
Equity 
Current Liabilities 
      Merchant accounts payable       $       57,568    $          56,374 
      Other payables, including 
       amounts held by VIE of $7 
       and $1,476, respectively               21,969                6,908 
      Deferred revenue                         5,669                5,431 
      Other current liabilities, 
       including amounts held by 
       VIE of $1,075 and $0, 
       respectively                           27,396               21,053 
-----------------------------------      -----------       -------------- 
      Total current liabilities              112,602               89,766 
-----------------------------------      -----------       -------------- 
Non-Current Liabilities 
      Operating lease liabilities                609                  661 
      Line of credit, net of 
       unamortized debt issuance 
       costs of $1,128 and $1,268, 
       respectively, held by VIE             144,372              139,991 
Total Liabilities                            257,583              230,418 
-----------------------------------      -----------       -------------- 
 
Stockholders' Equity 
      Common stock and additional 
       paid-in capital, $0.00001 
       par value; 750,000 shares 
       authorized; 34,940 and 
       35,130 shares issued, 
       respectively; 33,594 and 
       33,798 shares outstanding, 
       respectively                          194,210              194,890 
      Treasury stock, at cost: 
       1,346 and 1,332 shares, 
       respectively                          (25,000)             (24,072) 
      Accumulated other 
       comprehensive loss                       (761)                (683) 
      Accumulated earnings 
       (deficit)                              28,273                 (324) 
-----------------------------------      -----------       -------------- 
Total Stockholders' Equity                   196,722              169,811 
-----------------------------------      -----------       -------------- 
Total Liabilities and Stockholders' 
 Equity                               $      454,305    $         400,229 
===================================      ===========       ============== 
 
 

Consolidated Statements of Operations and Comprehensive Income (unaudited)

 
                                     For the three months ended March 31, 
                                ---------------------------------------------- 
(in thousands, except per 
share amounts)                           2026                    2025 
Total revenue                    $         135,539       $         104,912 
 
Operating Expenses 
      Personnel                             14,667                  15,048 
      Transaction expense                   18,520                  15,317 
      Third-party technology 
       and data                              4,415                   3,374 
      Marketing, advertising, 
       and tradeshows                       11,246                   5,346 
      General and 
       administrative                        3,980                   3,131 
      Provision for credit 
       losses                               13,675                  12,801 
------------------------------      --------------          -------------- 
      Total operating expenses              66,503                  55,017 
------------------------------      --------------          -------------- 
 
Operating Income                            69,036                  49,895 
------------------------------      --------------          -------------- 
 
Other Income (Expense) 
      Net interest expense                  (3,015)                 (2,914) 
      Other income (expense), 
       net                                     (32)                     25 
      Income before taxes                   65,989                  47,006 
------------------------------      --------------          -------------- 
 
      Income tax expense                    14,686                  10,842 
 
Net Income                                  51,303                  36,164 
------------------------------      --------------          -------------- 
 
Other Comprehensive (Loss) 
Income 
      Foreign currency 
       translation adjustment                  (78)                     93 
 
Total Comprehensive Income       $          51,225       $          36,257 
==============================      ==============          ============== 
 
Net income per share*: 
    Basic                        $            1.52       $            1.07 
    Diluted                                   1.47                    1.00 
 
Weighted-average shares 
outstanding*: 
    Basic                                   33,764                  33,852 
    Diluted                                 34,932                  36,171 
 
          -- Effective March 28, 2025, we performed a 6-for-1 stock split of 
             the Company's common stock, effected through a stock dividend. 
             Share and per-share amounts have been retroactively adjusted. 

Consolidated Statements of Cash Flows (unaudited)

 
                                     For the three months ended March 31, 
                                ---------------------------------------------- 
                                                            (As restated) 
(in thousands)                           2026                    2025 
Operating Activities: 
    Net income                   $          51,303       $          36,164 
    Adjustments to reconcile 
    net income to net cash 
    provided from operating 
    activities: 
      Depreciation and 
       amortization                            436                     274 
      Provision for credit 
       losses                               13,675                  12,801 
      Provision for other 
       credit losses                         6,855                   3,956 
      Discount on notes 
       receivable                             (345)                 (1,224) 
      Equity based 
       compensation and 
       restricted stock 
       vested                                1,321                   1,273 
      Amortization of debt 
       issuance costs                          241                     109 
      Impairment losses on 
       long-lived assets                        --                      66 
      Gain on sale of fixed 
      assets                                     2                      -- 
      Deferred income taxes                 (2,106)                  5,289 
    Changes in operating 
    assets and liabilities: 
      Other assets                          (5,374)                 (4,385) 
      Merchant accounts 
       payable                               1,322                  (3,631) 
      Other payables                        15,074                   2,779 
      Other liabilities                      6,329                    (898) 
      Deferred revenue                         240                    (109) 
      Operating leases                           5                      15 
------------------------------      --------------          -------------- 
Net Cash Provided from 
 Operating Activities                       88,978                  52,479 
------------------------------      --------------          -------------- 
 
Investing Activities: 
    Purchases and originations 
     of notes receivable, net 
     of proceeds from 
     repayments                            (21,404)                  6,358 
    Purchase of property and 
     equipment                                (351)                    (27) 
    Internally developed 
     intangible asset 
     additions                                (738)                   (281) 
------------------------------      --------------          -------------- 
Net Cash (Used for) Provided 
 from Investing Activities                 (22,493)                  6,050 
------------------------------      --------------          -------------- 
 
Financing Activities: 
    Proceeds from line of 
     credit                                100,000                  15,000 
    Payments to line of credit             (95,760)                (49,200) 
    Payments of debt issuance 
     costs                                    (100)                    (10) 
    Proceeds from stock option 
     exercises                                 111                     540 
    Repurchase of common stock             (25,746)                 (2,444) 
Net Cash Used for Financing 
 Activities                                (21,495)                (36,114) 
------------------------------      --------------          -------------- 
 
Effect of exchange rate 
 changes on cash                              (205)                    144 
Net increase in cash, cash 
 equivalents, and restricted 
 cash                                       44,990                  22,415 
Cash, cash equivalents, and 
 restricted cash, beginning of 
 period                                    102,601                  98,310 
------------------------------      --------------          -------------- 
Cash, cash equivalents, and 
 restricted cash, end of 
 period                          $         147,386       $         120,869 
==============================      ==============          ============== 
 
 

Consolidated Statements of Cash Flows (unaudited) (continued)

 
                                       For the three months ended March 31, 
                                    ------------------------------------------ 
                                                             (As restated) 
(in thousands)                                2026                  2025 
Noncash investing and financing 
activities: 
    Conversion of accrued 
     profit-sharing incentive plan 
     liabilities to stockholders' 
     equity                           $               --    $            2,301 
 
Supplementary disclosures: 
    Interest paid                     $            3,795    $            3,217 
    Income taxes paid                                 87                    94 
 
 

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our management's current expectations and projections about future events and financial trends affecting the financial condition of our business.

Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including the timing and nature of anticipated new products, our business strategy, future operations, financial performance or other future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Applicable risks and uncertainties include, among others: impact of the "buy-now, pay-later" ("BNPL") industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers, and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; our ability to comply with the applicable requirements of Visa and other payment processors; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; the impact of litigation, regulatory investigations and actions, and compliance issues on our business; significant and sudden declines or volatility in the trading price of our common stock and market capitalization; and other factors identified in the "Risk Factors" section of our most recent Annual Report on Form 10-K (the "Annual Report") and the Company's subsequent filings filed with the SEC. Investors should not place undue reliance on forward-looking statements contained in this press release, including any accompanying attachments or oral forward-looking statements that we or persons acting on our behalf may issue, which, except as otherwise noted, speak only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, any accompanying materials, or oral forward-looking statements made in connection with this press release.

Non-GAAP Financial Measures

To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:

          -- Total revenue less transaction related costs is defined as GAAP 
             total revenue less transaction related costs. Transaction related 
             costs is the sum of GAAP transaction expense, provision for credit 
             losses, and net interest expense less certain non-recurring 
             charges as detailed in the reconciliation table of GAAP operating 
             income to non-GAAP total revenue less transaction related costs 
             above. We believe that total revenue less transaction related 
             costs is a useful financial measure to both management and 
             investors for evaluating the economic value of orders processed on 
             the Sezzle Platform. 
 
          -- Non-transaction related operating expenses is defined as the sum 
             of GAAP personnel; third-party technology and data; marketing, 
             advertising, and tradeshows; and general and administrative 
             operating expenses. We believe that non-transaction related 
             operating expenses is a useful financial measure to both 
             management and investors for evaluating our management of 
             operating expenses not directly attributable to orders processed 
             on the Sezzle Platform. 
 
          -- Adjusted EBITDA is defined as GAAP net income, adjusted for 
             certain charges including depreciation, amortization, equity and 
             incentive--based compensation, and corporate strategic project 
             costs, as well as net interest expense as detailed in the 
             reconciliation table of GAAP net income to adjusted EBITDA. We 
             believe that this financial measure is a useful measure for 
             period-to-period comparison of our business by removing the effect 
             of certain non-cash and non-recurring charges, as well as funding 
             costs, that may not directly correlate to the underlying 
             performance of our business. 
 
          -- Adjusted EBITDA margin is defined as Adjusted EBITDA divided by 
             GAAP total revenue. We believe that this financial measure is a 
             useful measure for period-to-period comparison of our business' 
             unit economics by removing the effect of certain non-cash and 
             non-recurring charges, as well as funding costs, that may not 
             directly correlate to the underlying performance of our business. 
 
          -- Adjusted net income is defined as GAAP net income, adjusted for 
             certain charges including discrete tax items, fair value 
             adjustments on warrants, losses on the extinguishment of our lines 
             of credit, corporate strategic project costs, and other income and 
             expense, as detailed in the reconciliation table of GAAP net 
             income to adjusted net income. We believe that this financial 
             measure is useful for period-to-period comparison of our business 
             by removing the effect of certain charges that, in management's 
             view, does not correlate to the underlying performance of our 
             business during a given period. 
 
          -- Adjusted net income margin is defined as Adjusted net income 
             divided by GAAP total revenue. We believe that this financial 
             measure is a useful measure for period-to-period comparison of our 
             business by removing the effect of certain charges that, in 
             management's view, does not correlate to the underlying 
             performance of our business during a given period. 
 
          -- Adjusted net income per diluted share is defined as non-GAAP 
             adjusted net income divided by GAAP weighted-average diluted 
             shares outstanding. We believe that this financial measure is a 
             useful measure for period-to-period comparison of shareholder 
             return by removing the effect of certain charges that, in 
             management's view, does not correlate to the underlying 
             performance of our business during a given period. 

(MORE TO FOLLOW) Dow Jones Newswires

May 06, 2026 16:01 ET (20:01 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10