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Sezzle Q1 2025 Earnings Report
Sezzle reported strong first quarter 2025 results, with significant year-over-year growth in revenue, operating income, and net income, leading to raised full-year 2025 guidance.
Key Takeaways
Sezzle Inc. announced robust first quarter 2025 financial results, driven by increased subscriber engagement and consumer purchase frequency. The company reported a 123.3% year-over-year increase in total revenue to $104.9 million and a 260.6% increase in operating income to $49.9 million. Net income more than quadrupled to $36.2 million, leading to a significant raise in its 2025 net income guidance to $120 million.
Gross Merchandise Volume (GMV) reached $808.7 million in 1Q25, a 64.1% YoY increase, driven by higher subscriber and on-demand user engagement.
Total Revenue grew 123.3% YoY to a new quarterly high of $104.9 million, with Total Revenue as a percentage of GMV rising to 13.0%.
Operating Income jumped 260.6% YoY to $49.9 million, and Net Income more than quadrupled YoY to $36.2 million.
The company raised its FY2025 Net Income guidance by nearly 50% to $120.0 million and Total Revenue Growth guidance to 60-65%.
Forward Guidance
Sezzle has significantly raised its full-year 2025 guidance for Net Income, Adjusted Net Income, and Total Revenue Growth, reflecting stronger consumer activity and improved repayment trends.
Positive Outlook
- Net Income and Adjusted Net Income guidance raised to $120.0 million from $80.4 million.
- Net Income and Adjusted Net Income per Diluted Share guidance increased to $3.25 from $2.21.
- Total Revenue Growth guidance updated to 60-65% from 25-30%.
- Total Revenue Less Transaction Related Costs as a percentage of Total Revenue guidance raised to 60%-65% from 55%-60%.
- Anticipates an effective tax rate of 25% for FY2025.
Historical Earnings Impact
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