Zip (ZIP) investor relations material

Executive summary

• Achieved record FY26 results with cash EBTDA of $268.9m, up 57.9% year-over-year, and statutory net profit after tax of $116.4m, up 45.7%, exceeding guidance and marking the 12th consecutive quarter of profitability.

• Total transaction volume (TTV) grew 27.2% to $16.7b, with US TTV up 42.5% to $8.6b, now representing 76% of group TTV.

• Active customers increased 3.7% to 6.5m and merchants grew 13.8% to 97.4k, with over 112m transactions processed.

• U.S. credit losses declined to 1.67% of TTV in Q4, within the 1.5%-2% target range, reflecting strong credit performance.

• Well positioned for growth, focusing on innovation, AI-powered operations, and platform scalability.

Financial highlights

• Total income increased 24.6% to $1,347.4m; cash gross profit up 26.2% to $642.3m; cash EBTDA up 57.9% to $268.9m.

• Operating margin expanded by 420bps to 20.0%; cash net transaction margin steady at 3.9%.

• Statutory net profit after tax reached $116.4m, up 45.7% year-over-year.

• Interest expense as a percentage of TTV improved to 1.3%; net bad debts at 1.77%-1.8% of TTV.

• Available cash and liquidity at year-end was $246.5m, up from the prior year.

Outlook and guidance

• FY27 guidance targets cash EBTDA of $340m, up 26% year-over-year.

• US TTV expected to grow at least 30% in USD terms; group operating margin targeted at 20%-22%.

• Group revenue margin projected at ~8%, with cash net transaction margin between 3.8%-4.0%.

• Continued focus on capital management, including potential US dual listing, further share buybacks, and innovation.