Sezzle Inc. (SEZL) shares plunged 22.62% in after-hours trading on Thursday, shortly after the company released its second quarter 2026 financial results and updated its full-year guidance.

The company reported strong quarterly metrics, with total revenue climbing 51.7% year-over-year to $149.7 million, gross merchandise volume rising 37.9% to $1.3 billion, and active subscribers surging 76.4% to 854,000. Net income increased 47.7% to $40.8 million, and adjusted net income per diluted share came in at $1.13. Sezzle also raised its fiscal 2026 outlook, now projecting total revenue growth at the high end of its prior range at 35% and adjusted net income per diluted share of $5.25, up from the previous $5.10.

Despite the positive results and guidance raise, Sezzle shares experienced a sharp decline in the after-hours session. The earnings release was published at 4:01 PM ET, with the stock moving sharply lower shortly thereafter.