# EDGAR Filing Document

**Accession Number:** 0001662991
**File Stem:** 0001662991-25-000213
**Filing Date:** 2025-8
**Character Count:** 49268
**Document Hash:** faee92719dc5522507fc172e0103c4bf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001662991-25-000213.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001662991-25-000213

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250807

**ITEM INFORMATION**: Termination of a Material Definitive Agreement

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sezzle Inc.
- **CENTRAL INDEX KEY:** 0001662991
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 810971660
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41781
- **FILM NUMBER:** 251194704

**BUSINESS ADDRESS:**
- **STREET 1:** 700 NICOLLET MALL
- **STREET 2:** SUITE 640
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402
- **BUSINESS PHONE:** 651-240-6001

**MAIL ADDRESS:**
- **STREET 1:** 700 NICOLLET MALL
- **STREET 2:** SUITE 640
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402

?xml version='1.0' encoding='ASCII'? szl-20250807

---

| | |
|:---|:---|
| **UNITED STATES** | **UNITED STATES** |
| **SECURITIES AND EXCHANGE COMMISSION** | **SECURITIES AND EXCHANGE COMMISSION** |
| | WASHINGTON, D.C. 20549 |
| | **FORM 8-K** |
| | **CURRENT REPORT** |
| **Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** | **Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** |

---

Date of Report (Date of earliest event reported): August 7, 2025

**Sezzle Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-41781** | **81-0971660** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer<br>Identification No.) |

---

**700 Nicollet Mall**

**Suite 640**

**Minneapolis, MN 55402**

(Address of principal executive offices, including zip code)

**+1 (651) 240 6001**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
| Common Stock, par value $0.00001 per share | SEZL | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 1.02. Termination of a Material Definitive Agreement.**

On August 7, 2025, B Lab Company ("B Lab") acknowledged the decision by Sezzle Inc. (the "Company") to forego recertification as a certified B Corporation. The Company's B Corporation certification will expire effectively immediately.

The Company's B Corporation certification initially became effective March 22, 2021. The certification required the Company to meet certain standards of social and environmental performance, accountability, and transparency. The certification was subject to a recertification process administered by B Lab every three years. The Company elected to forego recertification as part of its ongoing evaluation of its corporate governance and sustainability initiatives. This decision was not the result of any dispute or disagreement with B Lab. The expiration of the B Corporation certification is not expected to have a material impact on the Company's business, operations, or financial condition.

**Item 2.02. Results of Operations and Financial Conditions.**

On August 7, 2025, Sezzle Inc. (the "Company") issued a press release announcing its second quarter financial results for the period ending June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in this Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing by the Company, under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

**(d) Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press Release dated August 7, 2025](szl-20250807ex9901.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **SEZZLE INC.** | **SEZZLE INC.** |
| Dated: August 7, 2025 | By: | /s/ Charles Youakim |
|  |  | Charles Youakim |
|  |  | Chief Executive Officer |

---

## Exhibit 99.1

![group1534.jpg](group1534.jpg)

August 7, 2025

**Sezzle Reports Second Quarter 2025 Results**

*Investments Fuel Quarterly High for GMV and Monthly On-Demand & Subscribers*

**Sezzle Inc. (NASDAQ:SEZL)** (**Sezzle** or **Company**) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended June 30, 2025.

*"We're scaling with intention. It's not just about growing fast, but investing the right way,"* noted Charlie Youakim, Sezzle Executive Chairman and CEO*. "The product features and marketing initiatives we've rolled out are driving stronger engagement and broader adoption. With GMV up 74% year-over-year and Monthly On-Demand and Subscribers (MODS) at an all-time high, we're seeing early proof that our focused investments are paying off."*

**<u>Second Quarter 2025 Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross Merchandise Volume (GMV) hit a new Company high of $927.0 million, up 74.2% YoY, driven by higher engagement from both Subscriber and On-Demand users. The new suite of app enhancements and features are proving effective, with consumers averaging 6.1 purchases in the quarter compared to 4.8 from the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Revenue rose 76.4% YoY to $98.7 million, supported by strong On-Demand growth, ongoing WebBank synergies, and sustained consumer activity. Total Revenue as a percentage of GMV reached 10.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle's Monthly On-Demand & Subscribers (MODS) reached 748,000 (rounded to the nearest thousand), up from 658,000 last quarter, driven by targeted marketing initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Operating Expenses grew to $62.6 million, up 59.5% YoY. However, these expenses represented a smaller portion of Total Revenue—down 6.8 points to 63.4%—demonstrating the Company's scalable cost structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transaction Related Costs<sup>1</sup> as a percentage of GMV declined from 4.5% to 4.1% YoY, resulting from improved payment processing efficiency, increased consumer adoption of ACH payments, and lower funding costs. These gains were partially offset by a higher provision for credit losses,

<sup>1</sup> See appendix for a reconciliation of non-GAAP financial measures.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

------

![group1534.jpg](group1534.jpg)

reflecting the Company's stated underwriting strategy aimed at accelerating growth. In absolute terms, Transaction Related Costs<sup>2</sup> increased 61.7% YoY to $38.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total Revenue Less Transaction Related Costs<sup>2</sup> grew 87.2% YoY to $60.3 million, representing 6.5% of GMV and 61.1% of Total Revenue—up 0.4 and 3.5 percentage points YoY, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-Transaction Related Operating Expenses<sup>2</sup> increased 50.4% YoY to $27.7 million, driven by significant growth in marketing spend ($8.8 million) compared to the prior year ($1.0 million). Nonetheless, Non-Transaction Related Operating Expenses declined as a percentage of Total Revenue by 4.8 points to 28.1%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating Income reached $36.1 million in 2Q25, up 116.1% YoY, with Operating Margin expanding by 6.8 points YoY to 36.6% of Total Revenue and 80bps YoY to 3.9% of GMV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle achieved Net Income of $27.6 million in 2Q25, representing 28.0% of Total Revenue. The 7.1% YoY decline stemmed from a swing of a $16.1 million income tax benefit in 2Q24 (driven by the release of the valuation allowance against our deferred tax asset) to a $5.1 million income tax expense in 2Q25. As a result, Earnings per Diluted Share<sup>3</sup> fell 4.9% from $0.82 to $0.78.

oAdjusted Net Income<sup>2</sup>, which excludes the impact of certain charges including discrete items, jumped 91.8% YoY to $24.4 million, or 24.7% of Total Revenue. On a diluted per-share basis<sup>3</sup>, Adjusted Net Income rose 97.1% YoY to $0.69.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA<sup>2</sup> rose 106.0% YoY to $37.9 million and accounted for 38.4% of Total Revenue, a 5.5 percentage point improvement from 2Q24.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the quarter, the Company spent $23.5 million to acquire 678,529 shares under its $50 million common stock repurchase plan announced on March 10, 2025.

**<u>Balance Sheet and Liquidity</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of June 30, 2025, Sezzle had $120.0 million of cash and cash equivalents, $31.0 million of which was restricted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company had an outstanding principal balance of $131.3 million on its $150.0 million credit facility as of quarter end.

<sup>2</sup> See appendix for a reconciliation of non-GAAP financial measures.

<sup>3</sup> Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

------

![group1534.jpg](group1534.jpg)

**<u>FY2025 Guidance</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company is providing the following guidance for FY2025:

oTotal Revenue Growth: 60-65%.

oTotal Revenue Less Transaction Related Costs<sup>4</sup> as a percentage of Total Revenue: 60%-65%.

oAdjusted Net Income<sup>4</sup> of $120.0 million and Adjusted Net Income per Diluted Share<sup>5</sup> of $3.25.

oYear-to-date Net Income has exceeded Adjusted Net Income by $4.1 million, as discrete items have lowered the effective tax rate below 25%. To the extent that continues in the second half of 2025, Net Income is expected to differ from Adjusted Net Income.

oThe Company anticipates an effective tax rate of 25% for the second half of FY2025, excluding any discrete items.

oAdjusted EBITDA<sup>4</sup>: $170.0-$175.0 million.

**<u>Initiatives Update</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle continues to introduce a range of new features to enhance consumer experience across the full journey from discovery to checkout—supporting our dual strategy of consumer acquisition and retention.

oIn the last year, the Company introduced new products and features such as the Earn Tab, On-Demand, Pay-in-5<sup>6</sup>, Express Checkout, Browser Extension, Wishlist, Price Comparison, Products Tab, Money IQ, and Sezzle Balance. These additions have broadened engagement across the platform and enriched the consumer experience, which is reflected through a healthy Net Promoter Score<sup>7</sup> of 75.

<sup>4</sup> See appendix for a reconciliation of non-GAAP financial measures.

<sup>5</sup> Per diluted share figures reflect 6-for-1 common stock split effective March 28, 2025.

<sup>6</sup> Pi5/Pi4/Pi2 loans are originated by WebBank except loans in Iowa and Puerto Rico.

<sup>7</sup> Net Promoter Score (NPS) last 30-days as of June 30, 2025.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

------

![group1534.jpg](group1534.jpg)

**<u>Awards and Accolades</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle's focus on building a responsible, consumer-aligned platform earned national recognition in 2025. The Company was named one of the *World's Top Fintech Companies* by CNBC, *Best Companies to Work For* by U.S. News & World Report, and *America's Best Online Platforms* by Newsweek.

**<u>Forgoing B Corp Certification</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle has elected to forgo recertification of its B Corporation certificate as part of its continued evolution. The Company remains a Public Benefit Corporation and is committed to advancing its mission of financial empowerment and stakeholder impact. Sezzle will continue to publish annual sustainability reports to maintain transparency around its business practices and stakeholder commitments.

**<u>Upcoming Events</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sezzle Management will participate in the upcoming investor conferences:

oAugust 11, 2025: Oppenheimer 28th Annual Technology, Internet & Communications Conference.

oAugust 14, 2025: 7th Annual Needham FinTech & Digital Transformation Virtual 1×1 Conference.

oSeptember 10, 2025: B. Riley Securities 8th Annual Consumer & TMT Conference.

**<u>Quarterly Conference Call and Presentation</u>**

The Company will host its second quarter earnings conference call on August 7, 2025, at 5:00pm ET.

To register for the call, please navigate to: https://dpregister.com/sreg/10201705/ffa540284c

All participants can access the webcast using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=DBf1gUM9

Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until August 14, 2025. To access the replay dial 1-877-344-7529 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 1939323.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

------

![group1534.jpg](group1534.jpg)

In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

------

![group1534.jpg](group1534.jpg)

**<u>2Q25 GAAP Operating Results</u>**

---

| | | | |
|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **Jun. 30, 2025** | **Jun. 30, 2024** | **YoY Difference** |
| Total Revenue | $98702 | $55969 | 76.4% |
| Operating Expenses | $62616 | $39270 | 59.4% |
| Operating Expenses as % of Total Revenue | 63.4% | 70.2% | (6.8 ppt) |
| Operating Expenses as % of GMV | 6.8% | 7.4% | (0.6 ppt) |
| Operating Income | $36086 | $16699 | 116.1% |
| Operating Income as % of Total Revenue | 36.6% | 29.8% | 6.8 ppt |
| Operating Income as % of GMV | 3.9% | 3.1% | 0.8 ppt |
| Net Income | $27604 | $29702 | (7.1)% |
| Net Income as % of Total Revenue | 28.0% | 53.1% | (25.1 ppt) |
| Net Income per Diluted Share | $0.78 | $0.82 | (4.9)% |

---

**<u>2Q25 Non-GAAP Operating Results</u>**<sup>8</sup>

---

| | | | |
|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **Jun. 30, 2025** | **Jun. 30, 2024** | **YoY Difference** |
| Non-Transaction Related Operating Expenses | $27727 | $18434 | 50.4% |
| Non-Transaction Related Operating Expenses as % of Total Revenue | 28.1% | 32.9% | (4.8 ppt) |
| Transaction Related Costs | $38390 | $23747 | 61.7% |
| Transaction Related Costs as % of Total Revenue | 38.9% | 42.4% | (3.5 ppt) |
| Transaction Related Costs as % of GMV | 4.1% | 4.5% | (0.4 ppt) |
| Total Revenue Less Transaction Related Costs | $60312 | $32222 | 87.2% |
| Total Revenue Less Transaction Related Costs as % of Total Revenue | 61.1% | 57.6% | 3.5 ppt |
| Total Revenue Less Transaction Related Costs as % of GMV | 6.5% | 6.1% | 0.4 ppt |
| Adjusted EBITDA | $37908 | $18408 | 105.9% |
| Adjusted EBITDA Margin | 38.4% | 32.9% | 5.5 ppt |
| Adjusted Net Income | $24362 | $12701 | 91.8% |
| Adjusted Net Income Margin | 24.7% | 22.7% | 2.0 ppt |
| Adjusted Net Income per Diluted Share | $0.69 | $0.35 | 97.1% |

---

<sup>8</sup> See appendix for a reconciliation of non-GAAP financial measures.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**<u>Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures</u>**

*Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses*

---

| | | |
|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **June 30, 2025** | **June 30, 2024** |
| **Operating expenses** | $**62616** | $**39270** |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction expense | (14243) | (10742) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | (20646) | (10094) |
| **Non-transaction related operating expenses** | $**27727** | $**18434** |

---

*Reconciliation of Operating Expenses to Transaction Related Costs*

---

| | | |
|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **June 30, 2025** | **June 30, 2024** |
| **Operating expenses** | $**62616** | $**39270** |
| &nbsp;&nbsp;&nbsp;&nbsp;Personnel | (11681) | (12737) |
| &nbsp;&nbsp;&nbsp;&nbsp;Third-party technology and data | (3428) | (2180) |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing, advertising, and tradeshows | (8772) | (995) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | (3846) | (2522) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest expense | 3501 | 2911 |
| **Transaction related costs** | $**38390** | $**23747** |

---

*Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs*

---

| | | |
|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **June 30, 2025** | **June 30, 2024** |
| **Operating income** | $**36086** | $**16699** |
| &nbsp;&nbsp;&nbsp;&nbsp;Personnel | 11681 | 12737 |
| &nbsp;&nbsp;&nbsp;&nbsp;Third-party technology and data | 3428 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing, advertising, and tradeshows | 8772 | 995 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 3846 | 2522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest expense | (3501) | (2911) |
| **Total revenue less transaction related costs** | $**60312** | $**32222** |

---

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

*Reconciliation of Net Income to Adjusted EBITDA*

---

| | | |
|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands)* | **June 30, 2025** | **June 30, 2024** |
| **Net income** | $**27604** | $**29702** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 324 | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 5068 | (16123) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity and incentive-based compensation | 1498 | 1462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (87) | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of line of credit |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest expense | 3501 | 2911 |
| **Adjusted EBITDA** | $**37908** | $**18408** |

---

*Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share*

---

| | | |
|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** |
|<br>*($ in thousands, except for per share numbers)* | **June 30, 2025** | **June 30, 2024** |
| **Net income** | $**27604** | $**29702** |
| &nbsp;&nbsp;&nbsp;&nbsp;Discrete tax benefit<sup>(1)</sup> | (3155) | (17210) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of line of credit |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income) expense, net | (87) | (51) |
| **Adjusted net income** | **24362** | **12701** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted-average shares outstanding | 35507 | 36147 |
| **Adjusted net income per diluted share**<sup>(2)</sup> | $**0.69** | $**0.35** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Adjusted prior periods to include the windfall/shortfall to income tax expense for equity-based compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**<u>Contact Information</u>**

---

| | |
|:---|:---|
| **Lee Brading, CFA**<br>Investor Relations<br>+1 651 240 6001<br>InvestorRelations@sezzle.com | **Erin Foran**<br>Media Enquiries<br>+1 651 403 2184<br>erin.foran@sezzle.com |

---

**<u>About Sezzle Inc.</u>**

Sezzle is a forward-thinking fintech company committed to financially empowering the next generation. Through its purpose-driven payment platform, Sezzle enhances consumers' purchasing power by offering access to point-of-sale financing options and digital payment services—connecting millions of customers with its global network of merchants. Centered on transparency, inclusivity, and ease of use, Sezzle empowers consumers to manage spending responsibly, take charge of their finances, and achieve lasting financial independence.

For more information visit sezzle.com.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
|<br>**(in thousands, except per share amounts)** | **June 30, 2025**<br>**(unaudited)** | **December 31, 2024**<br>**(audited)** |
| **Assets** | | |
| **Current Assets** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $88943 | $73185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash, current, including amounts held by variable interest entity ("VIE") of $8,608 and $4,096, respectively | 10559 | 4850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable | 208555 | 190665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (23615) | (26103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable, net, including amounts held by VIE of $160,840 and $152,174, respectively | 184940 | 164562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables, net | 4025 | 3629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 23066 | 11393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 311533 | 257619 |
| **Non-Current Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internally developed intangible assets, net | 2777 | 2442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating right-of-use assets | 735 | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash, non-current | 20467 | 20275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset, net of $4,058 and $3,742 valuation allowance, respectively | 14420 | 16905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 620 | 331 |
| **Total Assets** | $**350552** | $**298372** |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchant accounts payable | $60478 | $68967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 2828 | 7455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 4261 | 4234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 21307 | 25021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 88874 | 105677 |
| **Non-Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 759 | 823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Line of credit, net of unamortized debt issuance costs of $799 and $1,008, respectively, held by VIE | 130501 | 103992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities | 20 | 45 |
| **Total Liabilities** | **220154** | **210537** |
| **Stockholders' Equity\*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock and additional paid-in capital, $0.00001 par value; 750,000 shares authorized; 35,237 and 34,786 shares issued, respectively; 34,015 and 33,735 shares outstanding, respectively | 193541 | 188589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock subscriptions: 7 and no shares subscribed, respectively | (44) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost: 1,222 and 1,051 shares, respectively | (16507) | (9391) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (766) | (1588) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (45826) | (89775) |
| **Total Stockholders' Equity** | **130398** | **87835** |
| **Total Liabilities and Stockholders' Equity** | $**350552** | $**298372** |

---

\*Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**Consolidated Statements of Operations and Comprehensive Income (unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended June 30,** | **For the three months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|<br>**(in thousands, except per share amounts)** | **2025** | **2024** | **2025** | **2024** |
| Total revenue | $98702 | $55969 | $203614 | $102947 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personnel | 11681 | 12737 | 26729 | 23762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction expense | 14243 | 10742 | 29560 | 22529 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third-party technology and data | 3428 | 2180 | 6802 | 4337 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing, advertising, and tradeshows | 8772 | 995 | 14118 | 1650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 3846 | 2522 | 6977 | 4902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 20646 | 10094 | 33447 | 15234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 62616 | 39270 | 117633 | 72414 |
| **Operating Income** | **36086** | **16699** | **85981** | **30533** |
| **Other Income (Expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest expense | (3501) | (2911) | (6415) | (6993) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 87 | 51 | 112 | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustment on warrants |  |  |  | (1261) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of line of credit |  | (260) |  | (260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before taxes | 32672 | 13579 | 79678 | 21979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) | 5068 | (16123) | 15910 | (15730) |
| **Net Income** | **27604** | **29702** | **63768** | **37709** |
| **Other Comprehensive Income (Loss)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | 729 | (75) | 822 | (74) |
| **Total Comprehensive Income** | $**28333** | $**29627** | $**64590** | $**37635** |
| **Net income per share\*:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.82 | $0.87 | $1.89 | $1.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.78 | $0.82 | $1.80 | $1.05 |
| **Weighted-average shares outstanding\*:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 33733 | 33961 | 33792 | 33952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 35507 | 36147 | 35510 | 35880 |

---

\*Effective March 28, 2025, we performed a 6-for-1 stock split of the Company's common stock, affected through a stock dividend. Share and per-share amounts have been retroactively adjusted.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**Consolidated Statements of Cash Flows (unaudited)**

---

| | | |
|:---|:---|:---|
| | **For the six months ended June 30,** | **For the six months ended June 30,** |
|<br>**(in thousands)** | **2025** | **2024** |
| **Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $63768 | $37709 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 598 | 474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 33447 | 15234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for other credit losses | 8523 | 2599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity based compensation and restricted stock vested | 2771 | 2367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 219 | 315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustment on warrants |  | 1261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment losses on long-lived assets | 66 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of fixed assets | (16) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of line of credit |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 2485 | (16845) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable | (53796) | (4140) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | (8917) | (2052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (11606) | (1177) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchant accounts payable | (8931) | (2554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | (4645) | 2736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | (1496) | (3348) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 22 | 1299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | 30 | 44 |
| **Net Cash Provided from Operating Activities** | **22522** | **34218** |
| **Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (431) | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;Internally developed intangible asset additions | (897) | (748) |
| **Net Cash Used for Investing Activities** | **(1328)** | **(774)** |
| **Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from line of credit | 95000 | 46727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments to line of credit | (68700) | (71727) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of debt issuance costs | (10) | (1005) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock option exercises | 3564 | 238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from warrant exercises |  | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock subscriptions collected related to stock option exercises |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (30663) | (14345) |
| **Net Cash Used for Financing Activities** | **(809)** | **(40040)** |
| Effect of exchange rate changes on cash | 1274 | (111) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 20385 | (6596) |
| Cash, cash equivalents, and restricted cash, beginning of period | 98310 | 70699 |
| **Cash, cash equivalents, and restricted cash, end of period** | $**119969** | $**63992** |
| **Noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of accrued profit-sharing incentive plan liabilities to stockholders' equity | $2301 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of warrant liabilities to stockholders' equity |  | 2229 |
| **Supplementary disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $7036 | $7149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | 25169 | 1527 |

---

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**<u>Forward Looking Statements</u>**

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.

Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: impact of the "buy-now, pay-later" ("BNPL") industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and gross merchandise value (GMV); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and our election to forego B Corporation recertification and other factors identified in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Annual Report") and the Company's subsequent filings filed with the SEC. You are encouraged to read the Company's Annual Report and other filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

**<u>Non-GAAP Financial Measures</u>**

To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we present the following non-GAAP financial measures: Total revenue less transaction related costs; transaction related costs; non-transaction related operating expenses; adjusted net income; adjusted net income margin; adjusted net income per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue less transaction related costs is defined as GAAP total revenue less transaction related costs. Transaction related costs is the sum of GAAP transaction expense, provision for credit losses, and net interest expense less certain non-recurring charges as detailed in the reconciliation table of GAAP operating income to non-GAAP total revenue less transaction related costs above. We believe that total revenue less transaction related costs is a useful financial measure to both management and investors for evaluating the economic value of orders processed on the Sezzle Platform.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-transaction related operating expenses is defined as the sum of GAAP personnel; third-party technology and data; marketing, advertising, and tradeshows; and general and administrative operating expenses. We believe that non-transaction related operating expenses is a useful financial measure to both management and investors for evaluating our management of operating expenses not directly attributable to orders processed on the Sezzle Platform.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA is defined as GAAP net income, adjusted for certain non-cash and non-recurring charges including depreciation, amortization, equity and incentive–based compensation, and merger-related costs, as well as net interest expense as detailed in the reconciliation table of GAAP net income to adjusted EBITDA. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA margin is defined as Adjusted EBITDA divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business' unit economics by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.<br>

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income is defined as GAAP net income, adjusted for certain charges including discrete tax items, fair value adjustments on warrants, losses on the extinguishment of our lines of credit, and other income and expense, as detailed in the reconciliation table of GAAP net income to adjusted net income. We believe that this financial measure is useful for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income margin is defined as Adjusted net income divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income per diluted share is defined as non-GAAP adjusted net income divided by GAAP weighted-average diluted shares outstanding. We believe that this financial measure is a useful measure for period-to-period comparison of shareholder return by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.

Additionally, we have included these non-GAAP measures because they are key measures used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of resources. Therefore, we believe these measures provide useful information to investors and other users of this press release to understand and evaluate our operating results in the same manner as our management and board of directors. However, non-GAAP financial measures have limitations, should be considered supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. These limitations include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue less transaction-related costs is not intended to be measures of operating profit or cash flow profitability as they exclude key operating expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transaction related costs exclude significant expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-transaction related operating expenses exclude significant expenses, including transaction expense and provision for credit losses, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.<br>

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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![group1534.jpg](group1534.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and adjusted EBITDA margin exclude certain recurring, non-cash charges such as depreciation, amortization, and equity and incentive–based compensation, which have been, and will continue to be for the foreseeable future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and adjusted EBITDA margin excludes net interest expense, which has a significant impact on our GAAP net income, working capital, and cash.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income, adjusted net income margin, and adjusted net income per diluted share excludes certain charges such as losses on the extinguishment of our lines of credit, fair value adjustments on our warrants, other income and expense, and discrete tax items which have been, and may be in the future, recurring GAAP expenses.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Long-lived assets being depreciated or amortized may need to be replaced in the future, and these non-GAAP financial measures do not reflect the capital expenditures needed for such replacements, or for any new capital expenditures or commitments.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• These non-GAAP financial measures do not reflect income taxes that may represent a reduction in cash available to us.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

Because of these limitations, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP financial measures should be considered alongside other financial performance measures, including net income and other financial results presented in accordance with GAAP. We encourage you to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Sezzle Inc. (NASDAQ:SEZL) \| sezzle.com \| 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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