SEZL Stock Clocks Worst Day In A Year On Mixed Analyst Actions, Cautious H2 Guidance

• The company, however, signaled moderating expansion in the second half of the year.
• Executives indicated revenue growth would slow to about 30% in the second half. 
• Keefe Bruyette & Woods lowered its price target on Sezzle to $155 from $190 while B. Riley increased it to $196.

Shares of Sezzle (SEZL) plunged 34% on Friday, extending losses from the previous session’s after-hours selloff and clocking its worst day in a year, as investors weighed a more cautious growth outlook for the rest of the year despite a strong quarterly beat.

The sell-off came after the buy-now-pay-later company reported second-quarter results on Thursday that topped estimates and raised full-year guidance, yet signaled moderating expansion in the second half of the year.

Mixed Analyst Reactions After The Report

Keefe Bruyette & Woods lowered its price target on Sezzle to $155 from $190 while maintaining a Market Perform rating. In contrast, B. Riley raised its target to $196 from $141 and kept a Buy rating, citing higher estimates following the Q2 beat and remaining a buyer of the stock.

Both price targets, however, represent a potential upside of 31%-66% from the stock’s closing price.

Record Quarter, But Growth Concerns

Sezzle posted revenue of $149.7 million, up 51.7% year-over-year and well above the roughly $135–136 million consensus. Adjusted earnings reached $1.13 per share, beating the $1.03 estimate. Gross merchandise volume hit a record $1.3 billion, rising 37.9%, while active subscribers surged 76.4% to 854,000.

Net income climbed 47.7% to $40.8 million. The company also reported adjusted core profit of $58 million with a 38.8% margin.

Guidance Raised But H2 Moderation Flagged

Management lifted full-year 2026 revenue growth guidance to 35%, the high end of the prior range, adjusted net income to $185 million from $180 million, and adjusted EPS to $5.25 from $5.10. However, executives indicated revenue growth would slow to about 30% in the second half and that the elevated revenue yield seen in Q2 would normalize near 11.4%.

That combination of strong current results and tempered forward expectations tempered a steep decline in the stock.

How Did SEZL Retail Traders React?

On Stocktwits, retail sentiment around SEZL rose from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘extremely high’ levels.

A Stocktwits user highlighted the good earnings report and dismissed the selloff.

Another termed the stock as oversold.

A third user said the stock is at an “excellent entry point” after Friday.

SEZL stock has gained 86% year-to-date. 

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