Sezzle Inc. (SEZL): A Bull Case Theory

We came across a bullish thesis on Sezzle Inc. on Next’s Substack by Next 100 Baggers. In this article, we will summarize the bulls’ thesis on SEZL. Sezzle Inc.’s share was trading at $179.25 as of June 30^th. SEZL’s trailing and forward P/E were 60.33 and 54.05 respectively according to Yahoo Finance.

Sezzle Inc. (SEZL) is an under-the-radar fintech company operating in the U.S. and Canada’s Buy Now, Pay Later (BNPL) space, offering interest-free installment plans to consumers while monetizing through merchant fees. What sets Sezzle apart is its purpose-driven approach to financial empowerment, providing tools like payment rescheduling, budgeting features, and financial literacy rewards. Despite its early-stage feel, Sezzle has transitioned into a rare profitable compounder in the BNPL space.

In Q1 2025, it posted standout results—123% YoY revenue growth, 34% net margins, a 300% EPS beat, and raised full-year guidance by 50%. With a forward P/E of ~27x and EV/EBITDA of ~14x, Sezzle is still trading at a steep discount to less profitable peers like Affirm and Klarna. Founder-CEO Charlie Youakim owns 44% of shares, and management remains tightly aligned through equity-based incentives and a recently executed $25M buyback.

From a loss of $1.20 in FY22, the company is now guiding to $3.25 EPS in FY25, with positive free cash flow and a 50% revenue CAGR since 2020. Its scalable, capital-light model—with gross margins at 60% and minimal dilution (2.1% share growth over five years)—resembles that of a software business more than a typical fintech.

Sezzle is gaining market share in a $10T TAM and remains vastly underpenetrated. Risks include regulatory changes, credit cycles, and margin pressures from big tech entrants, but its proprietary underwriting, fast loan cycles, and strong balance sheet mitigate these. With 6:1 upside/downside and multiple near-term catalysts, Sezzle presents a rare fintech opportunity.

Previously we covered a bullish thesis on Sezzle Inc. by Next’s Substack in May 2025, which highlighted its evolution into a profitable, founder-led BNPL compounder. The company’s stock price has appreciated approximately by 99% since our coverage. This is because the growth thesis played out. Next 100 Baggers shares a similar view but emphasizes Sezzle’s SaaS-like model and earnings durability.

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Disclosure: None. This article was originally published at Insider Monkey.