Sezzle Inc (SEZL) Stock Forecast & Price Target

Sezzle Inc's revenue in FY24 demonstrated a robust growth rate of 70.1% year-over-year, significantly boosted by a rise in subscription revenue, which increased from 19% to 30% of total revenue. Additionally, the company's overall consumer purchase frequency improved notably, reaching 6.5 times in 3Q25, coupled with a substantial increase in its subscriber base, which rose from 529,000 to 784,000 during the same period. Sezzle's positive outlook is further supported by projected revenue growth of 25-30% year-over-year in FY26 and an anticipated adjusted net income of $170 million, both surpassing consensus estimates, along with the potential for additional revenue from new product launches.

Sezzle Inc. faces a declining trend in revenue as reflected in the projection of RTLC as a percentage of revenue, which is anticipated to decrease to 58% in FY26 and further to 57.1% in FY27, primarily due to rising provision expenses associated with business growth. The company operates in a competitive landscape where the failure to attract and retain customers or merchant partners poses significant risks to its growth prospects. Additionally, adverse macroeconomic factors, such as rising interest rates and increased market uncertainty, could hinder Sezzle's ability to drive GMV growth and impact its overall profitability through potential challenges in funding agreements.