Sezzle Inc. 8-K

What Happened
Sezzle Inc. (SEZL) filed an 8-K on March 20, 2026, reporting that it has dismissed Baker Tilly US, LLP as its independent registered public accounting firm. The Audit Committee participated in and approved the decision. Baker Tilly’s audit reports for the consolidated financial statements for the fiscal years ended December 31, 2025 and 2024 contained no adverse or qualified opinions, but its report on internal control as of December 31, 2025 noted the Company did not maintain effective internal control over financial reporting due to a material weakness previously disclosed in Sezzle’s 2025 Form 10‑K.

Key Details

• Filing date: March 20, 2026; dismissal of Baker Tilly US, LLP as independent registered public accounting firm.
• Audit scope: Baker Tilly’s audit reports for years ended Dec 31, 2025 and 2024 were unqualified (no adverse or disclaimer opinions).
• Internal control: Baker Tilly reported a material weakness in internal control over financial reporting as of Dec 31, 2025 related to design/maintenance of controls evaluating classification of cash flows tied to notes receivable (previously disclosed in the 2025 Form 10‑K).
• Disagreements/reportable events: The company reported no disagreements with Baker Tilly during the two most recent fiscal years and through March 16, 2026, and no reportable events other than the noted material weakness. Baker Tilly is authorized to respond to inquiries from Sezzle’s successor auditor.

Why It Matters
A change in independent auditor is a material governance event investors watch because it can affect audit continuity and oversight. The company has no qualified audit opinions on its financial statements, which is positive, but the disclosed material weakness in internal controls — specifically around cash flow classification for notes receivable — highlights a control issue that Sezzle needs to remediate. Investors should monitor subsequent filings for (1) identification of the successor auditor, (2) remediation steps and timelines for the material weakness, and (3) any impacts on financial reporting or filing schedules.