Sezzle Beat on Revenue and Raised Guidance. Its Stock Lost a Third of Its Value in a Day.

Sezzle's second-quarter revenue rose 51.7% year over year to $149.7 million, a quarterly record.

The 2026 outlook now calls for 35% revenue growth, management's third guidance increase this year.

Buy now, pay later (BNPL) company Sezzle (NASDAQ: SEZL) closed at $178.53 on Thursday. By Friday's close, the stock was at $118.02 -- a one-day decline of 33.89% that wiped out about $2 billion of market value. The whole company was worth about $6 billion at Thursday's close and just under $4 billion a day later.

The report that triggered it, released Thursday evening, didn't look like that kind of news. Second-quarter revenue rose 51.7% year over year to $149.7 million -- a record, and ahead of analysts' estimates. Net income came in at $40.8 million, up 47.7%, and earnings per diluted share reached $1.17, from $0.78 a year earlier.

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Active subscribers surged 76.4% to 854,000, the largest year-over-year gain in the company's history. And management raised its full-year guidance for the third time this year.

So why did a quarter that strong cost the stock a third of its value? Much of it comes down to the second half the new guidance implies, and to where the stock was trading when the report landed.

Measured against a year ago, the second quarter was Sezzle's best. Gross merchandise volume, or GMV (the total dollar value of purchases financed on the platform), grew 37.9% year over year to $1.3 billion. Non-GAAP (adjusted) net income rose 58.4% to $39.3 million, and adjusted EBITDA reached $58 million, a 38.8% margin.