Q2 2026 Sezzle Inc Earnings Call Transcript
Key Points
- Record Q2 GMV of $1.3 billion, up 37.9% year-over-year, with total revenue up 51.7% to $149.7 million.
- Active subscribers surged 76.4% year-over-year to 854,000, with record quarterly purchase frequency of 7.2 times.
- New products like Sezzle Cash and Sezzle Send are driving engagement and virality, with Sezzle Cash already showing strong uptake (10% of new subscribers use it as first transaction).
- AI integration is improving efficiency, with a chatbot deflecting 68% of consumer inbounds and an AI shopping assistant boosting click-through rates by 3.6 times.
- Raised full-year guidance for revenue growth to 35% and adjusted net income to $185 million, reflecting strong momentum.
- Marketing spend more than doubled year-over-year to $19.4 million, with plans to pull back in Q3 due to comfort levels with ROI.
- Provision for credit losses is expected to rise in Q3 and Q4 due to seasonality and new user acquisition, potentially exceeding 3% of GMV in some quarters.
- Revenue yield is projected to decline sequentially for the remainder of 2026, with Q4 as the seasonal low point.
- Guidance excludes material upside from Sezzle Cash and zero contribution from Sezzle Send, indicating uncertainty around new product contributions.
- The antitrust lawsuit and bank charter process are ongoing, with discovery expected through 2027, adding potential legal and regulatory costs.
( Operators Instructions )
Please note, this event is being recorded.
I would now like to turn the conference over to Charlie Yoakin, CEO and Executive Chairman. Please go ahead.
Thank you, and good afternoon, everyone, and welcome to Sezzle's second quarter 2026 earnings call.
I'm Charlie Yoakin, CEO and Executive Chairman of Sezzle. I'm joined today by our CFO, Lee Brady, my co-founder and company President, Paul Paradis, and head of IR in corporate development, Jack Fagan.
In conjunction with this conference call, we filed our earnings announcement with the SEC and have posted it along with our earnings presentation on our investor website at sezzle.com.
To retrieve the documents, please go to the Investor Relations section of our website.
Please be advised of the cautionary note on forward-looking statements and the reconciliation of GAAP to non-GAAP measures included in the presentation, which also covers our statements on today's call.
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