March 20 - Sezzle, the buy now, pay later company, has terminated its relationship with independent auditor Baker Tilly and has selected PricewaterhouseCoopers (PwC) to serve as its external auditor for 2026, the company said in a filing on Monday.
In the same filing, Sezzle disclosed that it identified a material weakness in its internal controls relating to how cash flows connected to notes receivable were classified for fiscal 2024 and fiscal 2025. The disclosure specifies that the material weakness affects the company’s control environment around classification of those cash-flow items.
The filing also noted that Baker Tilly’s audit opinions for the 2024 and 2025 fiscal years were unqualified and did not include any adverse opinion or disclaimer. Nevertheless, Baker Tilly stated that Sezzle’s internal control over financial reporting was ineffective as of December 31, 2025, because of the identified material weakness.
Sezzle said there were no disagreements with Baker Tilly during the two most recent fiscal years or in the subsequent interim period. The company added that the decision to dismiss Baker Tilly was approved by its audit committee.
The appointment of PwC is contingent on completion of standard client acceptance and engagement procedures. The company’s filing did not provide additional detail about remediation plans or timelines for addressing the disclosed material weakness, beyond the statements noted above.
Context and next steps
The filing frames the auditor change alongside the material weakness disclosure and confirms that prior-year audit opinions were unqualified. It also reports the auditor’s conclusion that internal control over financial reporting was ineffective as of the end of 2025. The audit committee approved the dismissal, and the new engagement with PwC awaits routine onboarding steps.
Summary of disclosures
- Sezzle dismissed Baker Tilly and appointed PwC for 2026.
- Sezzle disclosed a material weakness concerning classification of cash flows related to notes receivable for fiscal 2024 and 2025.
- Baker Tilly’s audit opinions for those years were unqualified, but the auditor stated the company’s internal control over financial reporting was ineffective as of December 31, 2025.
- The audit committee approved the dismissal; PwC’s appointment is subject to completion of standard client procedures.