The buy now, pay later relief trade broadened Friday morning after Bloomberg reported that Stripe and Advent International walked away from a takeover of PayPal Holdings valued at more than $50 billion.
Sezzle and its fintech rival SoFi offer contrasting growth engines, valuations and risk profiles as investors weigh focus against scale and diversification.
SEZL Send turns P2P transfers into a low-cost growth channel, with more than 100,000 users already on its waitlist.
Sezzle is rated a strong buy after a 34% post-earnings drop, despite maintaining robust 30% H2 2026 revenue growth guidance. SEZL's subscription-driven BNPL model delivers operational leverage, predictable recurring revenue, and improved credit risk management versus peers. Recent credit agreement lowers financing costs to SOFR + 3.86%, supporting future net income and margin expansion.
SEZL expands beyond BNPL with SezzleCash, seeing early adoption as it tests a new path to boost engagement and wallet share.
Sezzle is up nearly 90% this year, with Klarna down 50% in a price return divergence that reflects a gap in profitability between the two firms. SEZL will report an adjusted EPS of $5.25 per share for its full year 2026 and is trading at a modest price-to-earnings multiple of 22.7x. KLAR's profitability is early stage. KLAR grew subscribers 8x versus a year ago to 2 million, with its Klarna Card reaching 6.5 million active users. SEZL realized a 76.4% year-over-year increase in active subscribers.
Sezzle fell 20% post-Q2 despite beating revenue and EPS estimates and raising full-year guidance for the third time. Sequential earnings decline and increased expenses reflect seasonality and deliberate marketing spend, not underlying business deterioration. SEZL's subscriber growth accelerated, margins remained strong, and new products like SezzleCash and Sezzle Send offer potential upside and risk.
SEZL's AI push is set to reshape shopping and development as automation drives productivity and product creation.
SEZL's subscriber base surges 76.4% in Q2 2026 as heavier usage, new products and marketing fuel growth.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Klarna Group (NYSE:KLAR | KLAR Price Prediction) stock is sliding midday Monday, with shares down 7% to $19.38 ahead of the buy now, pay later (BNPL) firm's second-quarter report.
Sezzle Inc. (SEZL) could produce exceptional returns because of its solid growth attributes.