Sezzle Inc (SEZL) Stock Forecast & Price Target

Sezzle Inc. has demonstrated substantial revenue growth, achieving a 70.1% year-over-year increase in FY24, driven notably by a rise in subscription revenue, which increased to 30% of total revenue from 19% in FY23. The company's total subscriber count reached 784,000 in 3Q25, a significant rise from 529,000 in the prior year, contributing to an overall increase in purchase frequency to 6.5 times. Looking ahead, Sezzle is projecting a revenue growth of 25-30% year-over-year for FY26, alongside an expected adjusted net income of $170 million, indicating strong ongoing financial performance and potential for further growth through new product developments.

Sezzle Inc. is projected to face a decline in its revenue-to-loan-cost (RTLC) ratio, decreasing to 58% in FY26 and 57.1% in FY27, primarily due to rising provisions to support its growth. The company operates in a highly competitive sector, where challenges in customer and merchant retention could adversely affect its growth prospects. Moreover, the current macroeconomic conditions, including rising interest rates and increased uncertainty, may impede customer interactions with merchants, further jeopardizing Sezzle's growth in gross merchandise volume (GMV) and overall profitability.