Sezzle AI Push: Can Automation Boost Service and Productivity?

Sezzle Inc. SEZL is pushing AI deeper into its business, and the early numbers suggest the effort is affecting customer service and internal productivity. In the second quarter of 2026, the company reported that its AI support chatbot deflected 68% of consumer inbounds and achieved higher customer satisfaction than human agents.

The consumer side is showing gains. Sezzle’s AI shopping assistant generated a 3.6 times higher product click rate than the control group and was live for 80% of Sezzle Anywhere users. Management plans to expand the tool to all consumers, tying AI more closely to engagement and shopping activity.

Inside the company, AI is increasingly integrated into daily operations. Sezzle reported that 88% of new code was AI-developed, while 30% of merged code received an added AI review layer. Developer productivity rose 20% quarter over quarter, and 98% of support tickets were automatically graded through its AutoQA process.

These efficiency gains come as Sezzle is growing. In the second quarter of 2026, revenues rose 51.7% year over year to $149.7 million, while adjusted EBITDA reached $58 million with a 38.8% margin. Active subscribers increased 76.4% to 854,000, and average quarterly purchase frequency climbed to a record 7.2 times.

Management is also using AI to speed product development. Sezzle said the upcoming Sezzle Send product was built largely with AI by a small team in weeks rather than months. Sezzle Send already had approximately 100,000 prospective users on its wait list, giving investors another data point to watch, as AI moves from support tools into product creation.

How Are Its Competitors Faring?

Klarna Group plc KLAR is pushing AI beyond customer support and into the core of its payments and shopping operations. The company is using AI to automate service, personalize recommendations, improve marketing and raise employee productivity. Its AI assistant quickly became a major service channel, handling about two-thirds of customer-service chats within its first month.

Affirm AFRM is embedding artificial intelligence across underwriting, servicing, engineering, pricing and merchant promotions, making AI a broader operating tool rather than a standalone feature. Its AdaptAI platform uses real-time data to tailor financing incentives and improve conversion, with early deployments producing nearly a 10% incremental improvement in merchant conversion rates.

SEZL’s Price Performance, Valuation & Estimates

Shares of Sezzle have outperformed in the past three months compared with the broader industry and the S&P 500 Index.

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From a valuation standpoint, Sezzle’s shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 19.1X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 18.85X.

Image Source: Zacks Investment Research

Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.

Image Source: Zacks Investment Research

Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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