Sezzle Shares Plunge 28% After Antitrust Suit Against Shopify

Introduction

Sezzle Inc (NASDAQ: SEZL) is a publicly traded financial technology company founded in 2016 and headquartered in Minneapolis, Minnesota. Known in South Korea as “세즐,” Sezzle provides an interest-free “buy now, pay later” platform that enables shoppers to split purchases into four installments over six weeks. The stock closed at $100.1080 on August 8, 2025, reflecting a 28.15% decline on the day, with a trading volume of 1,482,238 shares.

Corporate Structure and Operations

Sezzle employs between 201 and 500 staff across its Minneapolis headquarters and regional offices in Toronto and São Paulo. Under the leadership of Executive Chairman and CEO Charlie Youakim, the company has expanded its operations beyond the United States and Canada to include India and Brazil. As of March 31, 2025, Sezzle reported:

• $2.9 billion in gross merchandise volume over the prior 12 months
• 2.7 million active consumers
• 658,000 monthly on-demand subscribers (MODS)

The platform assesses each transaction individually—using a soft credit check, order history, and purchase amount—to evaluate credit risk without impacting a customer’s FICO score.

Buy Now Pay Later by Blake Wisz

Recent Developments and News

• On June 9, 2025, Sezzle filed an antitrust lawsuit against Shopify in a federal court in Minnesota, alleging that Shopify’s marketplace practices have negatively impacted Sezzle’s business.
• On December 30, 2019, the California Department of Business Oversight determined that Sezzle’s point-of-sale financing constituted consumer loans in that state.
• In February 2022, Sezzle entered into a merger agreement with Zip Co valued at A$491 million, which was mutually terminated in July 2022. Zip Co paid Sezzle US $11 million to cover transaction-related costs.

Financial and Strategic Analysis

Sezzle has raised over US $47 million in equity prior to its initial public offering and US $30 million at the IPO. It maintains a US $100 million debt facility from Bastion Capital. The company’s revenue primarily derives from merchant fees and optional consumer subscriptions—such as Sezzle Premium and Sezzle Anywhere—that extend virtual-card financing to non-integrated merchants. Key strategic strengths include:

• A diversified funding structure combining equity and debt
• A repeat-customer model that allows for financing of larger purchases
• Subscription services that generate recurring revenue

However, the stock’s volatility—evidenced by a 28.15% decline—highlights its sensitivity to legal developments and market conditions in the buy-now, pay-later sector.

Market Position and Industry Context

Sezzle competes with firms like Afterpay, Affirm, and Klarna in the global BNPL market. As the only publicly traded BNPL provider to reincorporate as a Public Benefit Corporation on June 1, 2020, Sezzle emphasizes financial inclusion and transparency. By June 2021, the platform had over 10 million user sign-ups and more than 48,000 merchants. Partnerships with major retailers—including Target—have expanded its merchant network, while ongoing regulatory actions in California and legal proceedings against Shopify represent challenges for the company.

tl;dr

Sezzle’s shares fell 28.15% to $100.1080 on August 8, 2025, following the announcement of the antitrust lawsuit against Shopify. With $2.9 billion in GMV and 2.7 million active users as of March 31, 2025, Sezzle continues to operate its BNPL platform amid regulatory scrutiny. The outcomes of the Shopify litigation and potential new regulations will influence the company’s future performance.