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Home/News Feed/Sezzle up 88% in 2026 as Klarna falls 50%, reflecting profit gap in buy now, pay later sector

SEZL

$119.13

+$0.16 +0.13%

Sezzle up 88% in 2026 as Klarna falls 50%, reflecting profit gap in buy now, pay later sector

Analyst Insights

24 Aug 2026

Seeking Alpha

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Neutral

In 2026, buy now, pay later companies Sezzle and Klarna showed contrasting stock performances, with Sezzle rising 88% and Klarna dropping 50%. Sezzle's stronger profitability, with an adjusted EPS of $5.25 projected for 2026 and a price-to-earnings ratio of 22.7, contrasts with Klarna's early-stage profitability despite rapid subscriber growth. Both firms maintain healthy credit quality, though Klarna's provision for credit losses is lower at 0.52% of GMV compared to Sezzle's 2.4%. This divergence highlights investor preference for profitability over growth in this sector.

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