On August 7, Sezzle Inc fell 28.86% in after-hours trading, trading at $127.87/share, with turnover of $18.717 million.
The sell-off was triggered by the company's Q2 earnings report. While Sezzle posted adjusted EPS of $1.17, beating the consensus estimate of $1.03 by approximately 14%, and revenue of $149.7 million surpassed the $135.1 million estimate by over 10%, Q2 adjusted EPS declined more than 20% sequentially from Q1's $1.47. The company also raised its full-year adjusted EPS guidance to $5.25 from $5.10, above the analyst consensus of $5.12.
However, the sharp sequential contraction in profitability weighed heavily on sentiment. Following Q1 results in May, the stock had surged approximately 20%, significantly elevating market expectations. Despite the year-over-year beat, the deceleration in earnings momentum and the notable quarter-over-quarter decline triggered substantial profit-taking pressure among investors who had bought into the earlier rally.
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