ZIP Co Limited (ASX: ZIP) has delivered exceptional financial results for the 12 months ended 30th June 2025, reporting cash EBTDA growth of 147.0% to $170.3 million. The digital financial services company announced the outstanding results, demonstrating significant operational momentum and market expansion.
ZIP Co FY25 Key Financial Highlights:
- Cash EBTDA: $170.3 million (up 0% vs FY24)
- Total Transaction Volume (TTV): $13.1 billion (up 3% vs FY24)
- Total Income: $1,081.1 million (up 5% vs FY24)
- Operating Margin:8% (vs 7.9% in FY24)
- Transactions:0 million (up 22.1% vs FY24)
- Active Customers:3 million (up 4.6% vs FY24)
US Business Drives Exceptional Performance
The standout performer was ZIP Co’s US operations, which delivered TTV growth of 41.6% year-on-year to US$6.0 billion. This growth significantly outpaced the broader market expansion of comparable instalment products at 30-32%, while maintaining credit losses within the company’s target range of 1.5-2.0% of TTV.
“It has been a defining year for ZIP with cash earnings growing by 147.0% to $170.3 million,” said Cynthia Scott, ZIP Group CEO and Managing Director. “We achieved several milestones including delivering over $1 billion in total income and our US business generated over $100 million of cash earnings.”
US Market Performance:
- TTV Growth:6% year-on-year to US$6.0 billion
- Revenue Growth:0% to $657.9 million
- Active Customers:25 million (up 11.0%)
- Average Spend per Customer: Up 27.6%
- Transactions per Customer: Up 20.3%
NASDAQ Dual Listing Consideration
ZIP Co announced it is considering a dual listing on the NASDAQ while maintaining its primary listing on the Australian Securities Exchange. The potential move reflects the company’s significant growth opportunity in the US, which now represents over 80% of divisional cash earnings.
ZIP Share Price on ASX
“Consistent with our objective to maximise long-term shareholder value, ZIP is considering a dual listing on the NASDAQ, supporting the Company’s significant growth opportunity and growing investor interest in the US,” Scott explained. Offshore institutional investors currently comprise approximately 16% of ZIP’s issued capital.
Product Innovation and Market Expansion
The company’s ‘Pay-in-Z’ platform expansion through its ‘Pay-in-8’ instalment solution proved successful, comprising 18% of TTV in Q4 FY25. The business plans to introduce ‘Pay-in-2’ in the first half of FY26 to further support customers with everyday needs.
In Australia and New Zealand, the rollout of ZIP Plus generated strong unit economics, with ZIP Plus customers transacting 52% more often than ZIP Pay customers. The company also launched ZIP Personal Loan in January 2025, targeting cars, holidays, and renovations.
Strategic Partnerships Strengthen Market Position
ZIP’s strategic partnerships continued expanding during FY25, including high-profile collaborations with Cathay Pacific and the Xero-Stripe integration for small business invoice payments. The company also went live for all businesses on Stripe in the US during August 2025.
Financial Strength and Capital Management
ZIP significantly strengthened its balance sheet during FY25, repaying all corporate debt after raising $267.1 million in new equity. Available cash increased to $137.8 million as at 30th June 2025, up from $80.4 million in the previous year.
The company launched an on-market share buyback program for up to $50 million in April 2025, repurchasing 14.8 million shares for total consideration of $29.8 million during the year.
ZIP Co FY26 Guidance and Outlook
Looking ahead, ZIP Co provided upgraded guidance for FY26, expecting continued strong performance across key metrics:
FY26 Guidance (Subject to Market Conditions):
- US TTV Growth: Greater than 35% (in USD)
- Group Revenue Margin: Circa 8%
- Group Cash Net Transaction Margin:8% – 4.2% (upgraded)
- Group Operating Margin:0% – 19.0% (upgraded)
- Group Cash EBTDA as % of TTV: Greater than 1.3%
Credit Performance and Risk Management
The company demonstrated disciplined credit management with Group net bad debts reducing to 1.5% of TTV from 1.7% in FY24. This improvement occurred despite significant volume growth, highlighting the effectiveness of ZIP’s risk management systems and artificial intelligence tools.
Market Leadership and Recognition
ZIP’s market position remains strong, with the company maintaining customer loyalty evidenced by high repeat transaction rates. The business recorded customer Net Promoter Scores of +68 and +57 in the US and ANZ, respectively, alongside achieving an 81% Group employee engagement score.
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Investor Outlook
ZIP Co Limited has demonstrated exceptional execution across its strategic priorities, delivering substantial growth while maintaining operational discipline. The outstanding FY25 results, combined with strong FY26 guidance and potential NASDAQ listing, position the company as a leading player in the global buy now, pay later sector.
The Company’s focus on the US market, where it significantly outpaced competitor growth rates, combined with product innovation and strategic partnerships, creates multiple pathways for continued value creation. As ZIP approaches its next growth phase with enhanced financial flexibility and market recognition, the company appears well-positioned to capitalise on the expanding digital payments landscape.
