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MINNEAPOLIS - Sezzle Inc. (NASDAQ:SEZL), a digital payment platform currently valued at $4.4 billion, has initiated legal proceedings against Shopify Inc., claiming federal and state antitrust violations. The lawsuit, filed today in the U.S. District Court for the District of Minnesota, accuses Shopify of monopolistic practices that limit competition for buy now, pay later (BNPL) services on its e-commerce platform. According to InvestingPro data, Sezzle has demonstrated remarkable growth with a 91.69% revenue increase over the last twelve months.
The Company seeks an injunction to halt Shopify’s alleged anticompetitive behavior, which it contends restricts consumer choice and undermines fair market competition. Furthermore, Sezzle is pursuing treble damages as part of the legal action. InvestingPro analysis indicates the company is currently trading above its Fair Value, with strong financial health metrics and a "GREAT" overall rating. InvestingPro subscribers have access to 12 additional key insights about Sezzle’s market position and growth potential.
Charlie Youakim, Sezzle’s Chairman and CEO, emphasized the company’s dedication to a competitive and consumer-friendly payments landscape, stating, "This action is an important step in ensuring that merchants and consumers have access to diverse and innovative payment solutions of their choice."
In a business update, Sezzle disclosed that for the first quarter of 2025, revenue generated from Shopify’s platform constituted less than 5% of its total revenue. Additionally, Sezzle has reaffirmed its fiscal 2025 guidance, which was initially provided on May 7, 2025. The company maintains a strong financial position with a current ratio of 2.62, indicating ample liquidity to meet short-term obligations. Analysts tracked by InvestingPro project continued profitability for the fiscal year 2025, with detailed analysis available in the comprehensive Pro Research Report.
Sezzle is recognized for its commitment to financial empowerment, providing consumers with flexible financing options and digital payment services. The company aims to facilitate responsible spending and financial independence through its platform.
The information in this report is based on a press release statement from Sezzle. It should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ significantly. Investors are advised to consider these risks and uncertainties carefully. For a deeper understanding of Sezzle’s financial position and market outlook, investors can access comprehensive analysis and valuation metrics through InvestingPro’s detailed research reports, which cover over 1,400 US equities.
In other recent news, Sezzle Inc. reported a notable financial performance for the first quarter of 2025, with a significant increase in both revenue and net income, surpassing market expectations. The company’s revenue reached $104.9 million, marking a 123% year-over-year increase, while net income rose to $36.2 million, reflecting a 286% growth compared to the same period last year. This strong performance led Sezzle to raise its 2025 revenue growth guidance to 60-65% and earnings per share guidance to $3.25. The company attributes its growth to new product launches and expanded merchant partnerships. Sezzle’s partnership with WebBank has also begun to show positive financial benefits, contributing to the company’s improved revenue yield. The firm has introduced new financial products like "Pay in Five" and auto couponing, designed to enhance consumer experience and loyalty. These developments come as Sezzle continues to expand into new merchant categories, including grocery and bill payments, which were previously slow to adopt the Buy Now, Pay Later model.
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