Zip Stock Earnings Reports

Zip reported its strongest financial year in FY'25, driven primarily by rapid U.S. momentum and improved ANZ performance. Key results: cash EBTDA (cash earnings) rose 147% to $170.3m, total income exceeded $1bn (up 23.5%), TTV was $13.1bn (up 30.3%), cash gross profit was $509m (up 34%), and net bad debts improved to ~1.5% of TTV. The U.S. now represents ~71% of TTV and delivered over 100% cash earnings growth, with active customers +11% and strong increases in transactions and spend per active user. ANZ returned to TTV growth (5.5% FY / 13.2% H2) with product innovations (Zip Plus, personal loans) and improved portfolio yields and excess spread. Balance sheet and funding: no corporate debt at 30 June, available cash improved to $137.8m (and $230.8m as at 31 July after U.S. funding enhancements), facility headroom ~$509m, new/upsized funding facilities (AU $400m warehouse, US $300m ABS, upsized US facility) and further U.S. warehouse expected. Strategic priorities and initiatives: potential dual listing on Nasdaq (subject to approvals), expanded AI and product innovation (Fearless Frontiers, Money Coach), Pay-in-8 and rollout of Pay-in-2 in the U.S., channel/embedded partnerships (Google, Stripe, Adyen), and continued cost discipline. FY'26 guidance highlights: revenue margin ~8% (reflecting U.S. mix), cash net transaction margin 3.8–4.2%, operating margin 16–19%, U.S. TTV growth expected at least 35% (USD terms), and cash EBTDA as a percentage of TTV above FY'25 (i.e., >1.3%). Management reiterated strong credit discipline with U.S. loss rates within a 1.5–2% of TTV target range, and said reporting will evolve to better reflect Pay-in-8 seasoning. Regulatory environment was described as benign overall, with continued monitoring of state-level developments in the U.S. Investors should watch: U.S. TTV and customer engagement trajectory, funding/refinancing outcomes (impacting margins), execution on Pay-in-2/embedded/channel partnerships, potential Nasdaq dual listing progress, and how loss-reporting/metrics evolve as Pay-in-8 matures.