As people look for ways to navigate high living costs, some of them are turning to buy now, pay later (BNPL) services like Sezzle (SEZL +0.33%). This payment model lets people break everyday purchases into four installment payments, and the demand for this service transformed Sezzle from a penny stock to a multibillion-dollar fintech company in less than three years.
It’s down by 65% from all-time highs, but rising revenue and profits suggest long-term gains are possible at current levels. Here’s what you should know about Sezzle as it continues to gain market share in one of the hottest fintech trends.
Image source: Getty Images.
How Sezzle makes money
Sezzle makes most of its money from high merchant fees, but it also makes some revenue from consumer fees and subscription services. If a customer makes their four payments in full on their due dates, they won’t have to pay any fees. However, a Sezzle subscription can unlock higher spending limits and other perks, so some people will pay for a monthly plan.
Today’s Change
(0.33%) $0.21
Current Price
$63.91
Key Data Points
Market Cap
$2.2B
Day’s Range
$60.34 – $66.05
52wk Range
$24.86 – $186.74
Volume
11K
Avg Vol
765K
Gross Margin
72.87%
Merchants contend with higher transaction fees because Sezzle and other buy-now-pay-later companies bring them more business. The ability to break any purchase into a smaller one makes it easier for customers to spend money, similar to how credit cards work. Sezzle helps people break free from 20% to 30% APR credit card debt and offers an attractive alternative to endless interest payments.
The BNPL industry is still growing rapidly. Grand View Research projects a 27% compound annual growth rate (CAGR) through 2033, and Sezzle is a clear leader. The fintech leader’s 32.2% year-over-year revenue growth in the fourth quarter shows it is outpacing the industry’s growth rate, but its 66.1% revenue growth in full-year 2025 suggests some deceleration. Sezzle anticipates 25% to 30% revenue growth in 2026.
Sezzle is expanding into new markets
The BNPL industry has been Sezzle’s claim to fame, but it is tapping into other verticals to increase the average lifetime value per customer. Sezzle is preparing to submit a bank charter application, which will allow it to offer additional financial products and reduce its reliance on partner banks. This move can boost profit margins while introducing new products.
Sezzle also has a waitlist for competitively priced wireless service on the AT&T network, starting at $29.99 per month. It’s called Sezzle Mobile, and the company aims to deliver tangible savings on everyday bills, such as phone expenses.
Sezzle told investors in its Q4 2025 presentation that agentic commerce, enhanced long-term lending, user community, and receiptscanning and rewards are set for fiscal 2026 launches. While investors should strictly view Sezzle as a fintech company, it seems eager to expand in adjacent industries. Its strong financial growth and $102.6 million in cash and cash equivalents give it the foundation to explore new opportunities.
