Here are 1-3 brief analogies for Sezzle (SEZL):

• The independent version of PayPal's 'Pay in 4' service for online shopping.
• An Affirm for smaller, interest-free installment payments.
• Like Klarna, but primarily focused on interest-free 'buy now, pay later' payment options.

• Buy Now, Pay Later (BNPL) Installment Payment Service: Enables consumers to split their purchases into four interest-free payments over six weeks, paid directly to Sezzle.
• Merchant Payment Processing Solutions: Provides businesses with an integrated payment option at checkout, allowing them to offer Sezzle's BNPL service to their customers and receive full payment upfront.
• Sezzle Up Subscription Service: An optional premium program for consumers designed to help improve financial health through credit reporting and provide exclusive benefits and features.

Sezzle (SEZL) primarily sells its "Buy Now, Pay Later" (BNPL) services to other companies, specifically merchants. These merchants integrate Sezzle into their online and in-store checkout processes to offer installment payment options to their end consumers.

Sezzle's merchant customer base is highly diversified, encompassing thousands of businesses across various sectors, including fashion, beauty, home goods, electronics, and health & wellness. Due to this broad diversification, no single merchant customer is typically identified or disclosed by Sezzle as "major" in the sense of contributing a disproportionately significant percentage (e.g., >10%) of its total revenue.

While Sezzle does not publicly identify specific "major customers" in its financial filings, here are examples of prominent merchant companies that utilize Sezzle as a payment solution:

• Fashion Nova (Private Company)
• Rue21 (Private Company)
• Shoebacca (Private Company)
• Old Time Pottery (Private Company)

Charlie Youakim Executive Chairman & CEO

Charlie Youakim is a serial technology entrepreneur with over 15 years of experience in growing fintech companies. He co-founded Sezzle in 2016 and played a key role in designing its technology architecture and driving its growth. Prior to Sezzle, in 2010, Youakim founded Passport, a software and payments service that developed mobile payment apps for parking and disrupted the transportation industry with white-label systems and digital wallets. He later used the proceeds from the sale of Passport in 2015 to fund Sezzle.

Karen Hartje Chief Financial Officer

Karen Hartje joined Sezzle as Chief Financial Officer in May 2018. She is an accomplished CFO with extensive experience in finance, accounting, and strategic planning, with a proven track record of driving profitable growth. Before Sezzle, Hartje was an early finance leader at Bluestem Brands, where she was responsible for leading the company from relaunch to $2 billion in sales, which resulted in a successful acquisition. She has also held senior leadership positions at U.S. Bank and Lenders Trust, and started her career with KPMG. Karen Hartje advised Sezzle on November 1, 2025, of her intention to resign as CFO for personal reasons, and will continue to serve under a consulting agreement to ensure a smooth transition.

Paul Paradis Executive Director & President

Paul Paradis is a co-founder of Sezzle, which was established in 2016. He became the company's first President in 2020.

Amin Sabzivand Chief Operating Officer

Amin Sabzivand serves as the Chief Operating Officer at Sezzle.

Kerissa Hollis General Counsel and Secretary

Kerissa Hollis holds the position of General Counsel and Secretary at Sezzle.

Key Risks to Sezzle (SEZL)

1. Credit Risk and Risky Lending Practices: Sezzle faces significant credit risk due to its exposure to high-risk clients and a potential increase in loan defaults. Hindenburg Research alleged that Sezzle extends "extremely risky loans through a struggling platform that is rapidly losing customers and merchants," funding these with expensive capital. Filings indicate Sezzle borrows at a 12.65% interest rate to lend to subprime borrowers who may not have access to traditional credit. Sezzle's 2025 guidance projects higher credit loss provisions due to a strategy of "opening the funnel" to more consumers, and the proportion of lowest-quality (C-rated) loans in its portfolio increased by 22% in 2025 to 29%. An increase in defaults could materially and adversely affect the business.
2. Intense Competition and Market Share Erosion: The "Buy Now, Pay Later" (BNPL) sector is highly competitive with low barriers to entry. Sezzle competes directly with other BNPL providers such as Affirm, Klarna, and Zip, as well as with larger financial institutions like Block, PayPal, and traditional banks that possess significantly deeper financial resources. This competitive landscape makes increased competition likely and poses a risk of new entrants disrupting Sezzle's business and decreasing its market share. Some reports suggest that Sezzle's aggressive marketing spending indicates struggles with competition, and the company has seen a decline in active customers and merchants since 2021.
3. Regulatory Scrutiny and Evolving Regulations: Sezzle is subject to regulatory risks, including changes in laws and regulations specifically applicable to the BNPL industry in the United States and Canada. For instance, New York has implemented stricter compliance requirements for BNPL providers, which could lead to increased operational costs and limitations on product flexibility. Furthermore, Sezzle is under investigation by a shareholder rights firm following allegations of risky lending practices. The company is also involved in an antitrust lawsuit against Shopify, claiming anti-competitive practices that favor Shopify’s own BNPL service.

Increased Integration of BNPL by Tech Giants and Established Financial Institutions

Large technology companies and incumbent financial institutions are increasingly integrating their own Buy Now, Pay Later (BNPL) options directly into their existing platforms and payment ecosystems. Companies like Apple (with Apple Pay Later), PayPal (with Pay in 4), and major credit card networks (e.g., Visa Installments, Mastercard Installments) are leveraging their vast customer bases, existing merchant relationships, and strong financial infrastructure to offer BNPL services. This trend of integrated BNPL as a native feature accelerates competition, potentially reducing the need for merchants and consumers to adopt standalone BNPL services like Sezzle. This could lead to reduced merchant adoption, lower transaction volumes, and downward pressure on merchant fees, eroding Sezzle's market share and profitability.

Heightened Regulatory Scrutiny and Potential Restrictions on BNPL Services

Financial regulators globally, including the Consumer Financial Protection Bureau (CFPB) in the U.S. and the Financial Conduct Authority (FCA) in the UK, are intensifying their scrutiny of the Buy Now, Pay Later industry. Concerns include potential consumer debt accumulation, lack of transparent disclosures, and insufficient creditworthiness assessments. Formal inquiries, reports (such as the CFPB's findings on BNPL lending), and ongoing legislative discussions indicate a clear path toward potential new regulations. These regulations could impose stricter lending standards, require more extensive and costly compliance measures (e.g., full credit checks), cap late fees (a potential revenue stream), or mandate more rigorous reporting. Such changes could increase Sezzle's operational costs, reduce approved transaction volumes, and fundamentally alter the 'light-touch' appeal and business model of BNPL.

Sezzle Inc. (SEZL) primarily operates within the Buy Now Pay Later (BNPL) market, offering payment solutions that allow consumers to pay for purchases in interest-free installments. The company's main products and services, including the Sezzle Platform, Sezzle Up, Sezzle Premium, and Sezzle Virtual Card, all fall under the BNPL umbrella. Sezzle's key operating regions are the United States and Canada.

Addressable Markets for Sezzle's Main Products or Services (Buy Now Pay Later)

United States

The Buy Now Pay Later (BNPL) market in the United States was valued at approximately USD 65.2 billion in 2024. Other estimates suggest a valuation of USD 235.94 billion in 2024, projected to increase to USD 541.32 billion by 2035, at a compound annual growth rate (CAGR) of 7.84% from 2025 to 2035. Another source reported the market size at USD 170.32 billion in 2025, with projections to reach USD 367.85 billion by 2030, growing at a CAGR of 16.65%. Additionally, the BNPL payment market in the United States is expected to grow by 12.2% annually to reach approximately US$122.26 billion in 2025.

Canada

The Canadian Buy Now Pay Later (BNPL) market generated a revenue of USD 315.0 million in 2024 and is expected to reach USD 3,035.4 million by 2033, exhibiting a CAGR of 28.9% from 2025 to 2033. Another report valued the Canadian BNPL market at USD 1.96 billion in 2023, with a prediction to reach USD 24.17 billion by 2030, demonstrating a CAGR of 35.5% from 2024 to 2030. More recent data indicates that the BNPL payment market in Canada is expected to grow by 12.0% annually to reach US$7.50 billion in 2025. The market is further projected to expand from its 2024 value of USD 6.69 billion to approximately USD 11.32 billion by the end of 2030, with a CAGR of 8.6% during 2025-2030.

Expected Drivers of Future Revenue Growth for Sezzle (SEZL)

1. Shift to a Subscription-First Approach: Sezzle is strategically prioritizing subscription products, such as "Sezzle Anywhere," over its traditional on-demand offerings. This pivot is driven by the higher lifetime value, increased predictability, and improved profitability associated with subscribers, who demonstrate significantly greater purchase frequency compared to non-subscribers. Management expects this shift to enhance core financial metrics and drive more sustainable revenue growth.
2. Product Innovation and New Features: Continuous development and launch of new products and features are central to Sezzle's growth strategy. Recent introductions and ongoing initiatives include the "On-Demand" product (in collaboration with WebBank), "Sezzle Balance," "Money IQ," the "Earn tab," "Sezzle Arcade," discount programs, browser extensions, and price comparison tools. These innovations aim to enhance user experience, engagement, and retention, thereby fueling revenue growth.
3. Strategic Partnerships: Key partnerships, such as the collaboration with WebBank, are expected to significantly contribute to future revenue. This partnership has enabled Sezzle to standardize regulatory procedures nationally, simplify operations, and offer more flexible payment options, like "On-Demand." Sezzle is also actively expanding its merchant network, including new enterprise-level merchant integrations, to broaden its market presence.
4. Leveraging Artificial Intelligence (AI): Sezzle is investing in AI to drive operational efficiency and scalability. AI-driven tools are being implemented for credit risk assessment, developing customer support chatbots, and facilitating more efficient product launches. This integration of AI is expected to enhance the company's ability to scale its services and manage costs effectively, contributing to profitability and revenue growth.
5. Expansion of Consumer Base and Engagement: Sezzle focuses on increasing its active consumer base and enhancing consumer purchase frequency. Initiatives such as the "On-Demand" product, strategic partnerships, and ongoing product enhancements are designed to attract new users and encourage existing users to transact more frequently. The growth in Monthly On-demand & Subscribers (MODS) and increased purchase frequency are indicators of this driver's impact on revenue.

Share Repurchases

• Sezzle authorized a flexible stock buyback program of up to $50 million on March 10, 2025, with no fixed expiration date.
• Under this program, Sezzle repurchased 678,529 shares for $23.5 million during the second quarter of 2025.

Share Issuance

• Sezzle declared a six-for-one stock split in the form of a stock dividend on March 10, 2025, making ownership more accessible to investors and employees.
• Each stockholder of record on March 21, 2025, received five additional shares for every share held, with split-adjusted trading commencing March 31, 2025.
• The number of shares outstanding as of November 2025 was 33,733,000, reflecting a 1.39% increase from 2024.

Inbound Investments

• No information available regarding large inbound investments made in Sezzle by third-parties.

Outbound Investments

• No information available regarding strategic investments made by Sezzle in other companies.

Capital Expenditures

• Sezzle's projected capital expenditures are $4 million for 2025, $5 million for 2026, and $8 million for 2027.
• Capital expenditures are forecasted to remain at approximately 1% of revenue from 2025 through 2029.