What Happened?
Shares of buy-now-pay-later service Sezzle (NASDAQCM:SEZL) jumped 6.2% in the afternoon session after investor optimism grew regarding the company's strong growth figures and a valuation that appeared attractive relative to its future prospects.
The fintech company's fundamentals drew attention, with reports highlighting its impressive performance. Over the previous year, Sezzle's revenue had increased by 88.74%, and its Earnings Per Share (EPS) grew by 17.05%. Projections for the coming years also looked solid, with analysts anticipating average yearly EPS growth of 24.42% and revenue growth of 43.69%. Beyond the growth story, the company's financial health was noted as very good, with a strong balance sheet that suggested no near-term bankruptcy risk.
This combination of rapid growth and financial stability made its valuation seem low to some market watchers. Discussions pointed to a low PEG ratio and a forward price-to-earnings multiple of around 14, suggesting the stock was priced cheaply when its high growth rate was considered. This sentiment was supported by a broader positive outlook for the fintech industry, which was expected to have a defining year built on stronger foundations.
Is now the time to buy Sezzle? Access our full analysis report here.
What Is The Market Telling Us
Sezzle’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 9% on the news that the company's Board of Directors authorized an additional $100 million stock repurchase program. This move demonstrated the company's confidence in its financial stability and its commitment to enhancing shareholder value. The new program followed the completion of a previous $50 million stock repurchase initiative. Stock buybacks can be a positive sign for investors because they reduce the number of shares available, which can help boost the stock's price. Sezzle's Executive Chairman and CEO, Charlie Youakim, stated that the authorizations reflected the company's "strong financial position and long-term conviction in the business.".
Sezzle is up 6.6% since the beginning of the year, but at $69.48 per share, it is still trading 61.9% below its 52-week high of $182.16 from July 2025. Investors who bought $1,000 worth of Sezzle’s shares at the IPO in August 2023 would now be looking at an investment worth $5,142.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.
