B.Riley Raised Target Price on Sezzle (SEZL) to $99, Due to Massive Q4

Sezzle Inc. (NASDAQ:SEZL) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

B.Riley, on February 26, increased its target price on Sezzle by 30.3% to $99 (from $76) and reiterated the firm’s Buy recommendation on the stock. The target price update comes a day after Sezzle released its Q4 2025 earnings report, which showed a massive overperformance relative to analysts’ expectations.

In the 4th quarter, Sezzle grew its diluted earnings per share by 73% YoY to $1.21, surpassing the street consensus estimate of $0.96. This earnings beat was primarily driven by a rapid growth in both active user count and average purchase frequency per user, as well as modest implied growth in average transaction value. Combined, these factors led to 30+% growth in total transaction volume, which translated to similar growth in revenue.

Profit margin improvement was also a key factor, with a 10+ percentage point improvement in adjusted EBITDA margins. Transaction-related costs, as a percentage of revenue, fell as higher volumes meant more favorable unit economics. Credit costs also improved significantly, due to better-than-expected repayment rates.

Sezzle Inc. (NASDAQ:SEZL) operates a digital payment platform, which enables bank-to-bank fund transfers between consumers and businesses. The company is based in Minneapolis, MN, and was founded in January 2016 by Charlie G. Youakim, Killian Brackey, and Paul V. Paradis.

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Disclosure: None.