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    Does Sezzle’s Expansion Into Gymshark And Follett Stores Reshape The Bull Case For SEZL?

    Simply Wall St·09/05/2026 05:21:32
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    • In September 2026, Sezzle Inc. announced that its flexible payment options became available to shoppers at Gymshark in the U.S., across Debenhams Group Holdings’ brands (including Debenhams, boohoo, MAN, PrettyLittleThing, and Karen Millen), and in Follett Higher Education Group-operated campus stores serving more than 7,500,000 students at over 1,000 college locations.
    • This expansion into both fashion retail and higher education broadens Sezzle’s reach across everyday spending and essential student purchases, potentially deepening user engagement and transaction volumes across diverse spending categories.
    • We’ll now examine how Sezzle’s expansion into Follett’s large college store network may influence its existing investment narrative and risk balance.

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    Sezzle Investment Narrative Recap

    To own Sezzle, you need to believe its buy now, pay later model can keep attracting engaged users while controlling credit losses and marketing spend. The Follett rollout could support near term volume and engagement, but it does not clearly change the key near term catalyst, which remains efficient user growth, or the biggest risk, which is elevated credit losses as Sezzle broadens its risk tolerance.

    Among recent announcements, the June launch of Sezzle Points and expanded Pay in 5 is particularly relevant here. These features may matter for how effectively Sezzle can deepen spending with Follett’s 7.5 million eligible students and, over time, encourage movement from lower margin On Demand usage into higher value tiers, which sits at the heart of the current margin improvement and earnings growth catalyst.

    Yet against this growth story, investors still need to weigh the possibility that rising credit losses and heavier marketing spend could...

    Read the full narrative on Sezzle (it's free!)

    Sezzle's narrative projects $926.3 million revenue and $287.4 million earnings by 2029. This requires 24.4% yearly revenue growth and about a $139.1 million earnings increase from $148.3 million today.

    Uncover how Sezzle's forecasts yield a $163.67 fair value, a 36% upside to its current price.

    Exploring Other Perspectives

    SEZL 1-Year Stock Price Chart
    SEZL 1-Year Stock Price Chart

    By contrast, the most cautious analysts were assuming about US$906.4 million in 2029 revenue and US$342.4 million in earnings, and worry that heavy marketing and lower margin user growth could still fall short of justifying today’s enthusiasm, especially if competitive and credit risks look different after this latest merchant expansion.

    Explore 11 other fair value estimates on Sezzle - why the stock might be worth as much as 58% more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.