The market was looking for roughly $133M-$138M of quarterly revenue and about $1.00-$1.05 of EPS. Sezzle delivered $149.7M of revenue, a clear top-line beat versus published estimates, while the presentation also showed 51.7% year-over-year revenue growth and 37.9% GMV growth.
| Metric | 2Q25 | 2Q26 | Change / expectation |
|---|---|---|---|
| Total revenue | $98.7M | $149.7M | +51.7% YoY; above ~$133M-$138M consensus |
| GMV | $927.0M | $1,278.5M | +37.9% YoY |
| Net income | $27.6M | $40.8M | +47.7% YoY |
| Adjusted net income | $24.8M | $39.3M | +58.4% YoY |
| Adjusted EBITDA | $38.4M | $58.0M | 38.8% margin |
| FY2026 revenue growth guide | 30%-35% | 35% | Raised from 30%-35% |
| FY2026 adjusted net income guide | $180.0M | $185.0M | Raised by $5.0M |
| FY2026 adjusted net income per diluted share | $5.10 | $5.25 | Raised by $0.15 |
This was more than a record quarter; monetization improved alongside volume. Revenue increased faster than GMV, and total revenue less transaction-related costs rose to 63.5% of revenue from 61.1% a year earlier, indicating better economics after transaction costs. Adjusted net income grew 58.4%, outpacing revenue growth. (YoY Progression Overview) (Total Revenue Less Transaction Related Costs)
Credit performance remained inside the company’s planned range, avoiding the main downside risk. Provision for credit losses was $30.6M, or 2.4% of GMV, versus the stated FY2026 guidance range of 2.5%-3.0%. Transaction-related costs nevertheless increased to $54.6M from $38.4M, so the earnings beat was not solely a cost-cutting result. (Transaction Related Costs) (Provision for Credit Losses)
The second guidance increase is the clearest forward signal in the filing. Management moved the full-year revenue-growth target from 30%-35% to 35%, adjusted net income from $180M to $185M, and adjusted EPS from $5.10 to $5.25. That matters more than the quarter alone because it suggests the outperformance is being carried into the rest of 2026 rather than treated as a one-quarter benefit. (2026 Guidance)
The net read is a genuine beat, not merely favorable company framing. Q2 revenue exceeded the published range of expectations, profitability grew faster than revenue, credit losses stayed controlled, and the company raised every disclosed full-year target. The filing’s main caveat is that the underlying results and guidance had already been publicly discussed before this August 12 presentation, making the information partly known rather than a fresh surprise.
Read the original 8-K on SEC EDGAR ↗