Sezzle Inc. · NASDAQ:SEZL
Sezzle — Investor Presentation (May 2025)
45 slides from Sezzle's investor presentation, May 9, 2025
Slide 1: The Responsible Way to Pay – Investor Presentation May 2025
@sezzle The Responsible Way to Pay Investor Presentation May 2025
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements ‘This presentation (the "Presentation’) contains summary information about the activities of Sezale as ofthe date ofthis Presentation. The information in this Presentation is of a general nature and does net purport to be complete and t
Slide 3: Sezzle at a Glance
Sezzle at a Glance
Slide 4: Prized BNPL Platform
Prized BNPL Platform @ ‘Announced 6-for-1 Since Inception? panic Pesan @ Launch of WebBank Partnership . & On-Demand $IOBt+ Gross Merchandise Volume a & Nasdaq Listing =a (Delisted from ASX Jan '24) 16M =- Completed Sign-Ups |) 1! Quarter of Profitability (initiatives Announced in Mar '22) _ aie of
Slide 5: Financial Snapshot
Financial Snapshot 1Q25 Results Performance & Guidance 9 FY2024 FY2025 GMV Growth (YoY) 64.16 Actuals Guidance Total Revenue Growth (YoY) 123.3% Total Revenue Growth (YoY) 70.1% 60-65% Net Income’! $36.2M NetIncome $80.4m $120.0 Net Income Margin 54.5% Net Income Per Diluted Share? $2.2] $3.25 Total
Slide 6: The Markets We Serve
The Markets We Serve
Slide 7: The Nascent and Growing BNPL Market
The Nascent and Growing BNPL Market Buy Now, Pay Later (BNPL) represents less than 2% Sezzle represents less than 1% of North America’s Total Commerce Transaction Value of North America’s Total BNPL Market Other . : Voy Payment ia Products . 3% BNPL & POS $257B errs North America 2 Total BNPL Market
Slide 8: U.S. Consumer Credit Market Snapshot
U.S. Consumer Credit Market Snapshot Younger generations struggle with below average credit scores 2024 U.S. FICO Distribution® 28% 21% 23% 16% : i Poor Fair Good Very Exceptional 300-879 580-669 670-739 740-799 800-850 2024 Average FICO by Generation® 760 746 Silent Baby Boomers GenerationX Millenn
Slide 9: Why Millions of Consumers Choose Sezzle
Why Millions of Consumers Choose Sezzle Increasing financial inclusion by providing credit to those who often face challenges in accessing traditional credit options ~ 78% of Sezzle consumers are ages between ~ — 47 (Gen Z & Millennial) icy | 2 40% of BNPL users would leave carts without BNPL offere
Slide 10: Unlocking Growth For Our Merchant Partners
Unlocking Growth For Our Merchant Partners Driving traffic and incremental revenue through a frictionless checkout experience and customized marketing capabilities Merchant Benefits <6 Months Payback period Up to 57%’ Average Order Value Lift NlO% Return on Investment (ROI) / @sezzle | Investor Pres
Slide 11: Robust & Expanding Product Ecosystem
Robust & Expanding Product Ecosystem
Slide 12: Initial Business Model / Expanding Our Ecosystem
Initial Business Model Expanding Our Launched in 2Q22 Ecosystem Launched in 2Q23 Launched in 4Q24 Ashopify §— GMevento | Wier athcounence comment ID (ia commence Justi? Direct & Virtual Card Integration Economics for Sezzle: + Merchant discount rate (MDR) + Interchange revenue (VC integration) @ sez
Slide 13: Comprehensive Suite of Payment Options
Comprehensive Suite of Payment Options Offering a full suite of payment options, allowing consumers to choose based on their schedule and needs Pay-in-Full Pay-in-5 (beta) @sezzle Complete your order —— Example: $100 Purchase —— 25% 25% 25% 25% $25 $25 $25 $25 Time of Week Week Week purchase 2 4 6 @
Slide 14: First Product Launch with WebBank
First Product Launch with WebBank On-Demand Pay Later Just Got More Flexible How it Works Benefits for Sezzle eco Shop any brand in the Tan. Sezzle app or anywhere® ao Early data supports greater consumer activation as non- subscribers can shop anywhere® “> Pay Service Fee? at the point Enhances the
Slide 15: 658,000 Monthly On-Demand & Subscribers
658,000 Monthly On-Demand & Subscribers’ (MODS*) Engagement Fueling Growth @sezzle =| Sezzle On-Demand Premium (subscription) @anywhere Anywhere (subscription) Pay-in-4 anywhere Visa is Access to 350+ Premium Pay-in-4 anywhere Visa is accepted, with a one-time Merchants through Affiliate accepted in
Slide 16: Helping Consumers Build Credit History through Sezzle Up
Helping Consumers Build Credit History through Sezzle Up Start Your Journey to Better Credit equirax ipetion wok You're almost there @sezzle | Investor Presentation The first BNPL platform in North America to offer credit reporting optionality through short-term installments in the U.S. & Canada *.
Slide 17: Propelling Growth through a Bank Partner
Propelling Growth through a Bank Partner WebBank Partnership (6 sezzle IW] WebBank "A STEEL PARTNERS COMPANY Launch of unified fees P Streamlined regulatory * WebBank is a Utah-chartered h industrial bank approac * Entered 5-year strategic partnership program on August 26", 2024; launched September
Slide 18: Expanding Reach & Consumer Impact through Innovation
Expanding Reach & Consumer Impact through Innovation Potential Future Products Subscription (2022 & 2023) Gy . . Credit Reportin . alue Direct Nie bh 9 “y¥* Lifetime M as customer Financial Tools Shopping Tools if ) Increasing re PY sauer Marketplace = Beatin e RA O poy-in- Price Comparisons remium
Slide 19: Product Expansions
Product Expansions Winning Over Consumers Introducing More Financial Tools While Improving the Shopping Experience Pay-in-5 (beta) Providing Consumers additional flexibility with a new payment option at checkout @ sezzle | Investor Presentation Sezzle Balance Simplifying the repayment process for Co
Slide 20: Building Consumer Connections through Strategic Marketing
Building Consumer Connections through Strategic Marketing Customer Acquisition & Retention “a Personalized Product Marketplace Daily deals, curated collections, and unrivaled Sezzle exclusive offers Timely & Relevant Campaigns In-store signage, geo-targeted offers, and moments of purchase intent Ne
Slide 21: Growing Profitably Through Strong Execution
Growing Profitably Through Strong Execution
Slide 22: Early Focus on Profitability
Early Focus on Profitability Beginning in FY2022 Ea Revenue Initiatives + Introduced Sezzle Premium * Offbboarded or renegotiated pricing with merchants and network partners * Affiliate merchant enhancements i} Cost Initiatives + Improved credit underwriting * Reduction in workforce (RIF) * Ceased p
Slide 23: Initiatives Drive Profitability
Initiatives Drive Profitability Initiatives Exceeding Expectations Million 2022 Net Loss @ sezzle | Investor Presentation $66.2M 2024 Adjusted Net Income $5.6M 2023 Adjusted Net Income $120.0M 2025 Adjusted Net Income Guidance 2023 Net Income 2024 Net Income 2025 Net Income Net Impact of the Profita
Slide 24: Robust & Proprietary In-House Underwriting Strategy
Robust & Proprietary In-House Underwriting Strategy Sezzle Proprietary & 0 34 party ML Models 3°¢ party ML Models oo Fraud Fraud Existing Consumers Sezzle Proprietary Model (4"* generation) be Sezzle Proprietary Model fey i Unecunitng, Underwriting Sezzle Model te more Brodie nve ine FIED Tor Spendi
Slide 25: Controlled Underwriting to Optimize Growth & Profitability
Controlled Underwriting to Optimize Growth & Profitability Approval rates increased in the 2H24 for both repeat and new Consumers... Approval Rates Repeat Consumer ——=New Consumer ee een Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25, @ sezzle | Investor Presentation ..While the outstanding balanc
Slide 26: Total Revenue Less Transaction Related Costs: Positioned for All Conditions
65.0% 60.0% 55.0% 50.0% 45.0% Total Revenue Less Transaction Related Costs as a % of Total Revenue 40.0% 0.00% @ sezzle | Investor Presentation Positioned for All Conditions LTM 1025 >@ point margin expansion & $1.2B GMV increase {@um raz LTM 1023 1,00% 2.00% 3.00% 4.00% Provision for Credit Losses
Slide 27: YoY Progression Overview
YoY Progression Overview \ Total Revenue Net Income Adjusted Net Income! Adjusted EBITDA Margin? Total Revenue Less Transaction Related Costs® as a % of Total Revenue Non-Transaction Related OpEx* as a % of Total Revenue 1924 $47.0M $8.0M $9.4M 31.9% 55.3% 34.5% 1Q25 $104.9M $36.2M $36.1M 49.0% 70.4
Slide 28: YoY Engagement Metrics
YoY Engagement Metrics Monthly On-Demand & Subscribers (MODS!) Quarterly Purchase Frequency (Average) cs I oa. *2°7! ss YoY * YoY Active? Consumers Repeat Usage as a % of Total Orders (Cumulative) +5.49 + co I <0 | 154% || on IT cn |*0 BP: YoY YoY Unique Merchants* Shopped at by Consumers 1025 346,0
Slide 29: QoQ Engagement Metrics
Last Twelve Months (LTM) QoQ Engagement Metrics Quarterly Purchase Frequency (Average) Active! Consumers Unique Merchants? Shopped at by Consumers 2024 4Q24 1925 2,725,000 2,734,000 7 il i a 2024 4Q24 1025 346,000 31,000 274,000 a ai | 2a24° 3Q24 4Q24 1025 +0.6x QoQ +0.3% QoQ +35k QoQ "Active is def
Slide 30: Gross Merchandise Volume (GMV) & Total Revenue
Gross Merchandise Volume (GMV) & Total Revenue @sezzle | Investor Presentation Gross Merchandise Volume (GMV) { +64.1% YoY }-—, $855.4 $808.7 $659.9 $492.7 $532.2 [J 1024 2024 3024 4024 = GMV ($ in millions) Total Revenue 1924 2Q24 3Q24 4Q24 (mms Total Revenue ($ in millions) |. ——% of GMV 1925 $104
Slide 31: Transaction Related Costs
Transaction Related Costs’ Transaction Related Costs is non-GAAP financial For a @ sezzle | Investor Presentation As a % of GMV $43.9 1924 2Q24 3Q24 4Q24 1925 sums Transaction Related Costs ($ in millions) % of GMV As a % of Total Revenue $43.9 1024 2Q24 3Q24 4Q24 1Q25 mmm Transaction Related Costs
Slide 32: Transaction Related Costs Components
Transaction Related Costs’ Transaction Expense 2.0% 1.9% 1.9% 1.9% $16.1 $15.3 : Z 7 a LI 1924 2Q24 3Q24 4Q24 1Q25 seem Transaction Expense ($ in millions) % of GMV Transaction Related @ sezzle | Investor Presentation Provision for Credit Losses $15.4 $12.8 $10.1 $1 ia | 1Q24 2Q24 3Q24 4Q24 1925 st
Slide 33: Total Revenue Less Transaction Related Costs
Total Revenue Less Transaction Related Costs’ Total Revenue Less Transaction Related Costs is @sezzle | Investor Presentation As a % of GMV 1Q24 2Q24 3Q24 4Q24 1Q25 lum Total Revenue Less Transaction Related Costs ($ in millions) % of GMV As a % of Total Revenue $54. 3 = = = ao 1924 2Q24 3Q24 4Q24 1
Slide 34: Non-Transaction Related Operating Expenses
% of Total Revenue $26.9 $26.9 $21.0 1924 2Q24 3Q24 4Q24 1925 N on -Tr ansa cti on sms Non-Transaction Related Operating Expenses ($ in millions) Re | a ted O pe ra ti Al 9g Total Revenue Less Transaction Related Costs vs. Non-Transaction Related OpEx Expenses: _[sn9) | $54.3 eA '% of Total Revenue
Slide 35: Net Income & Adjusted Net Income
Net Income & Adjusted Net Income Net Income $36.2 $29.7 $25.4 $15.4 $8.0 i 1024-2024. 3024. 40241025 ‘=m Net Income ($ in millions) % of Total Revenue @sezzle | Investor Presentation Adjustments Adjusted Net Income! $26.5 $1.4 $1.8 $11 — — ——— $73 ($0.0) $13.1 $9.4 1924-2024. 3024. 4024-1025 1924-20
Slide 36: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA’ Adjusted EBITDA isa nor Adjusted Net Income is a non-GAAP financial n @sezzle | Investor Presentation Net Income & Adjusted Net Income? $36.2 $36.1 $29'7 neat 3 “ss 4826.5 1024 2024 3024 4024 1025 |= Net Income ($ in millions) ™ Adjusted Net Income (¢ in millions) Non-G
Slide 37: Select Balance Sheet & Cash Flow Metrics
Select Balance Sheet & Cash Flow Metrics Balance Sheet Unaudited Audited Unaudited $ in Thousands Mar 31, 2024 Dec 31, 2024 Mar 31, 2025 Key Assets SN Cash and cash equivalents! $77,785 $73,185 $88,893 Restricted cash $4,400 $25,125 $31,976 Total cash $82,185 $98,310 $120,869 Total notes receivables
Slide 38: Outlook
Outlook 2024 Actual 2025 Guidance Updated 2025 Guidsioa Total Revenue 70% Growth 25% — 30% i] 60% — 65% Total Revenue Less Transaction Related Costs! ee e568 | esha as a % of Total Revenue Effective Income Tax Rate (16.6%)? ~25% ~25% Net Income | $78.5M | $80.4M ] $120.0M Net Income Per Diluted Shar
Slide 39: Appendices
Appendices
Slide 40: Appendix I: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix |: Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs For the three months ended (in $ thousands) March 31, 2025 December 31,2024 September 30, 2024 June 30, 2024 March 31, 2024 Operating income $ 49,895 $
Slide 41: Appendix II: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix II: Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of Operating Expenses to Transaction Related Costs For the three months ended (in $ thousands) March 31, 2025 December 31,2024 _ September 30, 2024 June 30, 2024 March 31, 2024 Operating expenses $ 55,017 $ 67,353 $ 49
Slide 42: Appendix III: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Ill: Reconciliation of GAAP to Non-GAAP Financial Measures Reconciliation of Net Income to Adjusted Net Income ended (in $ thousands: except per share amounts) March 31, 2025 December 31,2024 September 30, 2024 June 30, 2024 March 31,2024 _ December 31, 2024 Net income $ 36.164 $ 25,367 $ 1
Slide 43: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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-trans
Slide 44: Non-GAAP Financial Measures (Cont.)
Non-GAAP Financial Measures (Cont.) ‘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 a
Slide 45: Thank You
@sezzle | Investor Presentation Thank You Lee Brading, CFA SVP, Corporate Development & Investor Relations InvestorRelati zzle.com Erin Foran Media & PR MediaRelations@sezzle.com 45