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Sezzle Sues Shopify for Antitrust Violations

Sezzle Inc. (NASDAQ: SEZL) has filed a lawsuit against Shopify Inc. in the U.S. District Court for the District of Minnesota, alleging federal and state antitrust violations. The lawsuit claims that Shopify has been engaging in monopolistic and anticompetitive business practices to stifle competition for "buy now, pay later" service options on its e-commerce platform.

For the first quarter of 2025, revenue associated with gross merchandise volume attributable to Shopify's e-commerce platform represented less than 5.0% of Sezzle's total revenue. This suggests that Sezzle is not heavily reliant on Shopify's e-commerce platform for its revenue.

Despite this legal action, Sezzle is reaffirming its fiscal 2025 guidance, which was initially provided in its 1Q25 earnings release on May 7, 2025. This indicates that the company remains confident in its performance and outlook for the fiscal year, despite the legal challenges it is facing.

Sezzle's decision to file this lawsuit and its relatively low dependency on Shopify's e-commerce platform for revenue demonstrate the company's commitment to addressing anticompetitive practices and its confidence in its ability to navigate this legal dispute while continuing to meet its financial targets. As a result of these announcements, the company's shares have moved -7.81% on the market, and are now trading at a price of $121.84. For the full picture, make sure to review Sezzle's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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