Key insights
- Sezzle's antitrust lawsuit against Shopify partially advances, with claims of monopolization and unlawful restraint of trade proceeding. While the ruling is procedural, it introduces uncertainty for Shopify and potentially benefits Sezzle. However, the overall market impact on US equities is limited.
MINNEAPOLIS - Sezzle Inc. (NASDAQ:SEZL) announced today that the United States District Court for the District of Minnesota issued an order granting in part and denying in part Shopify Inc.’s motion to dismiss Sezzle’s antitrust lawsuit, according to a press release statement.
The court allowed several of Sezzle’s claims to proceed, including monopolization and attempted monopolization under Section 2 of the Sherman Act, unlawful restraint of trade under Section 1 of the Sherman Act, parallel claims under the Minnesota Antitrust Law of 1971, and a claim under the Minnesota Deceptive Trade Practices Act.
The court dismissed without prejudice Sezzle’s unlawful tying claim under Section 1 of the Sherman Act and the corresponding portion of Sezzle’s state-law antitrust claim. The remaining claims will move forward.
The case, captioned Sezzle, Inc. v. Shopify, Inc., File No. 25-cv-2395 (ECT/SGE), is pending in the United States District Court for the District of Minnesota. The court’s ruling is procedural in nature and does not constitute a finding of liability against Shopify.
Sezzle operates a digital payment platform that offers point-of-sale financing options and payment services to consumers and merchants. The company, valued at $3.4 billion, has demonstrated strong momentum with revenue growth of 46% and profitability over the last twelve months. The stock has surged 59% year-to-date, trading at $99.63. According to InvestingPro, which offers comprehensive analysis through its Pro Research Report for SEZL and 1,400+ other US equities, analysts predict continued profitability this year.
In other recent news, Sezzle Inc. reported financial results for the first quarter of 2026 that exceeded earnings expectations. The company achieved an adjusted earnings per share (EPS) of $5.10, surpassing the prior guidance of $4.70, and recorded revenue of $135.5 million. Alongside these results, Sezzle raised its full-year guidance, indicating a strong start to the fiscal year. Additionally, Sezzle announced a new $300 million receivables funding facility with Mesirow Alternative Credit, effectively doubling its original $150 million facility and including a $75 million accordion feature.
In analyst updates, Needham raised its price target for Sezzle to $122 from $94, maintaining a Buy rating on the stock. The firm cited the company’s strong gross merchandise volume growth, a higher take rate, and better-than-expected credit performance as reasons for the revised target. These developments reflect positively on Sezzle’s strategic initiatives and financial health.
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