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Is Sezzle (SEZL) Using Subscriptions to Trade Growth for Stability in Its Core Model?

Simply Wall St · 5d ago
  • In late December 2025, Northland Securities analyst Michael Grondahl reaffirmed a positive view on Sezzle as management outlined a shift back toward subscription-based offerings such as Anywhere and Premium, while continuing to serve price-sensitive and lower-credit users through on-demand products.
  • This move toward a stronger subscription focus highlights Sezzle’s attempt to build more predictable revenue and deepen customer engagement, while refining risk profiling and underwriting discipline across its user base.
  • We’ll now examine how Sezzle’s renewed emphasis on subscription-based services could reshape the company’s investment narrative and long-term appeal.

Find companies with promising cash flow potential yet trading below their fair value.

Sezzle Investment Narrative Recap

To own Sezzle, you need to believe it can turn strong BNPL demand into durable, profitable growth by shifting more users into higher-margin subscriptions while keeping credit losses and marketing spend under control. The renewed focus on Premium and Anywhere directly supports the key near term catalyst of improving unit economics, but it does not remove the biggest current risk, which is elevated credit exposure as Sezzle serves more price-sensitive and lower-credit customers.

One recent announcement that stands out alongside this subscription pivot is Sezzle’s inclusion in the S&P 600 and S&P Composite 1500, which may bring additional attention from institutional investors. That index inclusion, combined with management’s push toward a more subscription-heavy mix, could amplify the impact of any future updates on profitability, credit performance, or user migration away from lower-margin On-Demand offerings.

Yet while the subscription push may support more stable revenue, investors should still be aware of...

Read the full narrative on Sezzle (it's free!)

Sezzle's narrative projects $885.4 million revenue and $232.2 million earnings by 2028.

Uncover how Sezzle's forecasts yield a $108.50 fair value, a 67% upside to its current price.

Exploring Other Perspectives

SEZL 1-Year Stock Price Chart
SEZL 1-Year Stock Price Chart

Eighteen fair value estimates from the Simply Wall St Community span about US$8.80 to US$267.23, showing how far apart individual views on Sezzle can be. Against this wide range, Sezzle’s renewed subscription focus and higher guidance for 2025 earnings highlight how closely future profitability, credit losses and marketing efficiency could shape which of these valuations prove more realistic, so it is worth exploring several of these viewpoints in detail.

Explore 18 other fair value estimates on Sezzle - why the stock might be worth over 4x more than the current price!

Build Your Own Sezzle Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Sezzle research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free Sezzle research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sezzle's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.