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Zip Co Limited (ASX:ZIP)

ALERT: Price-sensitive ASX Announcement for ZIP
Current share price for ZIP : $1.995 -2.425 (-54.86%)+
Announcement
Release
20 Oct 2025 8:24AM
Price at Release
$4.420
Full Release
download
Summary
Zip Co Limited announced significant growth in its first quarter of FY26, with a record cash EBITDA of $62.8 million, a 98.1% increase from 1Q25. The company's total transaction volume reached $3.9 billion, reflecting a 38.7% increase from the previous year. Revenue rose to $321.5 million, a 32.8% increase, and active customer numbers grew by 5.3% to 6.4 million. Zip expanded its merchant base to 87.5k and improved operating leverage, achieving a 19.5% operating margin. The U.S. market showed strong performance with a 47.2% increase in transaction volume and a 51.2% rise in revenue. Zip continued to optimize its funding portfolio and announced an increase in its on-market buy-back program to $100 million. It also expects its U.S. transaction volume to grow by more than 40% for FY26 and is considering a dual listing on the Nasdaq.
Key Points
  • Record cash EBITDA of $62.8 million, up 98.1% year-on-year.
  • Total transaction volume of $3.9 billion, up 38.7% from 1Q25.
  • Revenue increased to $321.5 million, a 32.8% rise from the previous year.
  • Active customers reached 6.4 million, up 5.3% year-on-year.
  • Merchant base expanded to 87.5k, with a 9.1% increase.
  • Operating margin improved to 19.5% with strong U.S. market performance.
  • U.S. transaction volume and revenue increased by 47.2% and 51.2% respectively.
  • Cash net transaction margin of 4.0%, with a focus on capital efficiency.
  • Increased on-market buy-back program to $100 million.
  • Expecting over 40% growth in U.S. transaction volume for FY26.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.