Spotting Winners: Sezzle (NASDAQ:SEZL) And Personal Loan Stocks In Q3

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Atlanticus Holdings and the best and worst performers in the personal loan industry.

Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders.

The 10 personal loan stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.3%.

Luckily, personal loan stocks have performed well with share prices up 10% on average since the latest earnings results.

Weakest Q3: Atlanticus Holdings

Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.

Atlanticus Holdings reported revenues of $419.8 million, up 36.1% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates.

Jeff Howard, President and Chief Executive Officer of Atlanticus stated, “This quarter, we produced significant organic growth and profitability, and completed a transformational acquisition. The acquisition of Mercury Financial substantially increases our scale, enhances our technology, adds to our origination capabilities, and brings on new team members to facilitate the continued growth of our business as we pursue our goal of Empowering Better Financial Outcomes for Everyday Americans.

Interestingly, the stock is up 12.1% since reporting and currently trades at $60.55.

Best Q3: Dave

Named after the biblical David fighting financial Goliaths, Dave is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.

Dave reported revenues of $150.7 million, up 63% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Dave pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.3% since reporting. It currently trades at $189.

Enova

Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.

Enova reported revenues of $802.7 million, up 16.3% year on year, in line with analysts’ expectations. Still, its results were good as it locked in an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Enova delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 40.1% since the results and currently trades at $159.70.

Read our full analysis of Enova’s results here.

FirstCash

Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.

FirstCash reported revenues of $935.6 million, up 11.7% year on year. This result topped analysts’ expectations by 9.3%. It was a stunning quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 13.5% since reporting and currently trades at $168.12.

Read our full, actionable report on FirstCash here, it’s free.

LendingClub

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

LendingClub reported revenues of $266.2 million, up 31.9% year on year. This number beat analysts’ expectations by 3.9%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 20.6% since reporting and currently trades at $19.92.

Read our full, actionable report on LendingClub here, it’s free.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at personal loan stocks, starting with Affirm .

Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders.

The 10 personal loan stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.3%.

Luckily, personal loan stocks have performed well with share prices up 10% on average since the latest earnings results.

Affirm

Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.

Affirm reported revenues of $933.3 million, up 33.6% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Interestingly, the stock is up 10% since reporting and currently trades at $72.37.

We think Affirm is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q3: Dave

Named after the biblical David fighting financial Goliaths, Dave is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.

Dave reported revenues of $150.7 million, up 63% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Dave delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.3% since reporting. It currently trades at $189.

Weakest Q3: Atlanticus Holdings

Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.

Atlanticus Holdings reported revenues of $419.8 million, up 36.1% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 12.1% since the results and currently trades at $60.55.

Read our full analysis of Atlanticus Holdings’s results here.

Nubank

With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.

Nubank reported revenues of $4.17 billion, up 41.8% year on year. This result beat analysts’ expectations by 3.4%. It was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and EPS in line with analysts’ estimates.

The stock is up 6.8% since reporting and currently trades at $16.71.

Read our full, actionable report on Nubank here, it’s free.

Sezzle

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Sezzle reported revenues of $116.8 million, up 67% year on year. This number surpassed analysts’ expectations by 10.1%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Sezzle scored the fastest revenue growth among its peers. The stock is up 11.7% since reporting and currently trades at $73.98.

Read our full, actionable report on Sezzle here, it’s free.

Check out the companies making headlines yesterday:

Nubank : Digital banking platform Nubank rose by 4.9% on Monday as it hit an all-time high amid positive analyst commentary and strong investor confidence. See our full article here.

Comfort Systems : HVAC and electrical contractor Comfort Systems rose by 3% on Monday after investor confidence grew as the company capitalized on the AI boom and increasing demand from data centers, supported by strong recent financial performance. See our full article here.

Upwork : Online work marketplace Upwork rose by 3.2% on Monday after Jefferies named the company one of its preferred small-cap stocks. See our full article here.

Teledyne : Digital imaging and instrumentation provider Teledyne rose by 2.2% on Monday after its subsidiary, Teledyne FLIR OEM, announced the launch of Tura, a new thermal camera designed for advanced driver-assistance systems (ADAS) and autonomous vehicles (AVs). See our full article here.

Is now the time to buy Teledyne? Access our full analysis report here.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Credit Acceptance and the rest of the consumer finance stocks fared in Q3.

Consumer finance companies provide loans and credit products to individuals. Growth drivers include increasing consumer spending, financial inclusion initiatives in developing markets, and digital lending platforms reducing distribution costs. Challenges include credit risk during economic downturns, regulatory scrutiny of lending practices, and intensifying competition from traditional banks and fintech firms offering innovative credit solutions.

The 21 consumer finance stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.9%.

Luckily, consumer finance stocks have performed well with share prices up 13% on average since the latest earnings results.

Credit Acceptance

Founded in 1972 by Donald Foss to serve customers overlooked by traditional lenders, Credit Acceptance provides auto financing solutions that enable car dealers to sell vehicles to consumers with limited or impaired credit histories.

Credit Acceptance reported revenues of $405.1 million, up 5.9% year on year. This print fell short of analysts’ expectations by 19.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates.

Credit Acceptance delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 1.6% since reporting and currently trades at $460.70.

Read our full report on Credit Acceptance here, it’s free for active Edge members.

Best Q3: Nelnet

Starting as a student loan servicer in the 1970s and evolving through the changing landscape of education finance, Nelnet provides student loan servicing, education technology, payment processing, and banking services while managing a portfolio of education loans.

Nelnet reported revenues of $427.4 million, up 47.5% year on year, outperforming analysts’ expectations by 14.9%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Nelnet achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $132.53.

Weakest Q3: Atlanticus Holdings

Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers.

Atlanticus Holdings reported revenues of $419.8 million, up 36.1% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 23.3% since the results and currently trades at $66.60.

Read our full analysis of Atlanticus Holdings’s results here.

OneMain

Dating back to 1912 and formerly known as Springleaf, OneMain Holdings provides personal loans, auto financing, and credit cards to nonprime consumers who have limited access to traditional banking services.

OneMain reported revenues of $1.27 billion, up 9.8% year on year. This result beat analysts’ expectations by 2.8%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.

The stock is up 25.8% since reporting and currently trades at $70.12.

Read our full, actionable report on OneMain here, it’s free for active Edge members.

Sezzle

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Sezzle reported revenues of $116.8 million, up 67% year on year. This number surpassed analysts’ expectations by 10.1%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Sezzle delivered the fastest revenue growth among its peers. The stock is up 5.3% since reporting and currently trades at $69.78.

Read our full, actionable report on Sezzle here, it’s free for active Edge members.

What Happened?

Shares of buy-now-pay-later service Sezzle (NASDAQCM:SEZL) jumped 6.2% in the afternoon session after investor optimism grew regarding the company's strong growth figures and a valuation that appeared attractive relative to its future prospects. 

The fintech company's fundamentals drew attention, with reports highlighting its impressive performance. Over the previous year, Sezzle's revenue had increased by 88.74%, and its Earnings Per Share (EPS) grew by 17.05%. Projections for the coming years also looked solid, with analysts anticipating average yearly EPS growth of 24.42% and revenue growth of 43.69%.Beyond the growth story, the company's financial health was noted as very good, with a strong balance sheet that suggested no near-term bankruptcy risk. 

This combination of rapid growth and financial stability made its valuation seem low to some market watchers. Discussions pointed to a low PEG ratio and a forward price-to-earnings multiple of around 14, suggesting the stock was priced cheaply when its high growth rate was considered. This sentiment was supported by a broader positive outlook for the fintech industry, which was expected to have a defining year built on stronger foundations.

What Is The Market Telling Us

Sezzle’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock gained 9% on the news that the company's Board of Directors authorized an additional $100 million stock repurchase program. This move demonstrated the company's confidence in its financial stability and its commitment to enhancing shareholder value. The new program followed the completion of a previous $50 million stock repurchase initiative. Stock buybacks can be a positive sign for investors because they reduce the number of shares available, which can help boost the stock's price. Sezzle's Executive Chairman and CEO, Charlie Youakim, stated that the authorizations reflected the company's "strong financial position and long-term conviction in the business.".

Sezzle is up 6.6% since the beginning of the year, but at $69.48 per share, it is still trading 61.9% below its 52-week high of $182.16 from July 2025. Investors who bought $1,000 worth of Sezzle’s shares at the IPO in August 2023 would now be looking at an investment worth $5,142.