Sezzle Q4 EPS Jumps 26% to $1.21, Revenues Climb 32% to $129.9M
Sezzle delivered Q4 adjusted EPS of $1.21, beating estimates by 26% and up from $0.73 a year earlier, while revenues rose 32% to $129.87 million, topping forecasts by 1.2%. Shares have underperformed this year, down 4.5% versus the S&P 500’s 0.7% gain, as forecast revisions remained unfavorable.
1. Q4 Earnings and Revenue Growth
Sezzle reported adjusted EPS of $1.21 in Q4, up from $0.73 a year earlier, representing a 26% beat over the $0.96 consensus. Revenue rose 32% to $129.87 million, surpassing estimates by 1.24% and marking the fourth consecutive quarter of top-line surprises.
2. Earnings Surprise Consistency
Sezzle has outperformed EPS estimates in each of the past four quarters, including a 9.23% surprise in Q3. Revenue estimates have been exceeded in all four periods, reflecting stable demand across its transaction services.
3. Share Performance and Future Outlook
Despite strong results, Sezzle shares have declined 4.5% year-to-date against a 0.7% S&P 500 gain. Current consensus for Q1 forecasts EPS of $1.16 on $127.47 million in revenue, and full-year consensus stands at $4.33 on $563.21 million, suggesting tempered growth expectations.
4. Industry Position and Risks
Sezzle operates in the Financial Transaction Services industry, positioned in the bottom 32% of peers. Unfavorable forecast revisions have prompted a sell-side rating, highlighting competitive pressures and potential margin constraints.