Zip (ZIP) H1 2025 earnings summary

Executive summary

• Achieved record financial performance in H1 FY25, with group cash EBTDA up 117% year-over-year to $67.0m, driven by strong US expansion and disciplined execution.

• Total transaction volume (TTV) reached $6.2b, up 23.9% year-on-year, with the US now contributing 70% of TTV.

• Active customers increased to 6.3m (+1.5% YoY), and merchants on the platform rose to 81.9k (+7.6% YoY).

• Repaid all corporate debt and completed $1.1b refinancing in Australia; upsized US funding facility to US$300m.

• Launched new products in ANZ, including Zip Plus, Pay-in-8, Pay-in-Z, and Personal Loans, and expanded partnerships in key verticals.

Financial highlights

• Total income rose 20% year-over-year to $514.0m, with cash gross profit up 30.1% to $235.5m and group cash EBTDA up 117% to $67.0m.

• Net profit after tax from continuing operations was $23.0m, lower than prior year due to one-off gains in FY24.

• Net bad debts written off as a percentage of TTV at 1.6%, the lowest in two years.

• Operating margin increased by 584 basis points to 13%.

• Cash, cash equivalents, and restricted cash increased to $527.0m, with available cash and liquidity at $195.5m.

Outlook and guidance

• FY25 cash EBTDA expected to be at least $147m, in line with H1 performance and two-year targets.

• FY25 revenue margin will reflect a higher US portfolio weight and strong Australian yield.

• Cash OpEx growth for FY25 targeted at ~10% above FY24, with disciplined investment.

• US TTV growth momentum continues into January 2025, expected to outperform market growth rates.

• Focus remains on sustainable growth, product innovation, and operational excellence in core markets.