Stock Markets March 20, 2026

Sezzle Replaces Auditor Baker Tilly with PwC for 2026 After Control Weakness Disclosure

Buy-now-pay-later firm flags material weakness in cash-flow classifications as audit committee approves auditor change pending standard onboarding steps

By Caleb Monroe SEZL
Sezzle Replaces Auditor Baker Tilly with PwC for 2026 After Control Weakness Disclosure
SEZL

Sezzle said it has dismissed independent auditor Baker Tilly and named PricewaterhouseCoopers (PwC) as its auditor for 2026, according to a corporate filing. The company disclosed a material weakness in internal controls tied to 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 concluded that Sezzle's internal control over financial reporting was ineffective as of December 31, 2025. The audit committee approved the dismissal; the PwC appointment remains subject to completion of routine client acceptance procedures.

Key Points

  • Sezzle dismissed independent auditor Baker Tilly and named PwC as auditor for 2026, subject to standard client acceptance procedures.
  • The company reported a material weakness in controls over classification of cash flows tied to notes receivable for fiscal years 2024 and 2025.
  • Baker Tilly's audit opinions for 2024 and 2025 were unqualified, yet the auditor concluded Sezzle's internal control over financial reporting was ineffective as of December 31, 2025.

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.

Risks

  • Material weakness in financial controls - affects corporate governance and financial reporting in the consumer finance and buy-now-pay-later sector.
  • Auditor transition and pending completion of standard client procedures - introduces near-term uncertainty around audit continuity for the company.
  • Internal control ineffectiveness finding - may complicate investor and stakeholder confidence in the company's financial reporting until remediation is demonstrated.

More from Stock Markets

Musk Offers to Pay TSA Salaries as Funding Deadlock Worsens Airport Delays Mar 21, 2026 Market Movers: Geopolitical Volatility and Chip-Related Shifts Drive This Week's Stock Stories Mar 21, 2026 Macy's Confronts Murky 2026 Outlook as Jefferies Flags Cautious Guidance Ahead of Q4 Results Mar 21, 2026 Hyatt's Chair Exit Revives Merger Talk in Global Hotel Sector Mar 21, 2026 Investor Demand Hits $25 Billion for EA Buyout Debt as Credit Markets Remain Tense Mar 20, 2026