What happened?

Shares of buy-now-pay-later service Sezzle (NASDAQCM:SEZL) jumped 19.2% in the morning session after the company reported third-quarter 2026 revenue of $166.5 million, marking a 42.6% year-over-year increase and beating Wall Street expectations. 

According to a company press release, Sezzle generated third-quarter revenue of $166.5 million, up 42.6% year over year, while adjusted earnings reached $1.37 per share. Both results beat Wall Street consensus estimates, with revenue exceeding the projected $155.7 million by 6.9% and adjusted profit topping expectations of $1.29 per share by 6.3%. Management raised its full-year adjusted earnings guidance to $7.20 per share at the midpoint, representing a 37.1% increase. Pre-tax profit for the quarter rose to $61.42 million, yielding a 36.9% margin.

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What is the market telling us

Sezzle’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. But moves this big are rare even for Sezzle and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 22 days ago when the stock dropped 7.1% on the news that September consumer price inflation accelerated to 3.7% and core inflation topped estimates, reigniting concerns over Federal Reserve interest rate hikes. 

Sezzle is up 143% since the beginning of the year, but at $158.67 per share, it is still trading 15.8% below its 52-week high of $188.55 from July 2026. Investors who bought $1,000 worth of Sezzle’s shares at the IPO in August 2023 would now be looking at an investment worth $11,723.

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