Zip (ZIP) H2 2025 earnings summary

Executive summary

• Achieved record FY25 results with cash EBTDA up 147% to $170.3m, total income surpassing $1b, and operating margin nearly doubling to 15.8%, driven by significant US expansion and strengthened customer engagement across 6.3m customers.

• US business delivered over 100% growth in cash earnings, now representing over 80% of divisional cash earnings and 71% of TTV, with TTV up 43.9% YoY.

• ANZ returned to TTV growth with a 5.5% annual increase, launched new products, and maintained strong credit performance.

• Customer engagement and transaction frequency increased, with 93m transactions processed, valued at $13.1b (up 30.3%).

• Considering a dual listing on NASDAQ to support US growth and investor interest, subject to board and regulatory approvals.

Financial highlights

• TTV reached $13.1b (+30.3% YoY), total income $1,081.1m (+23.5% YoY), and cash gross profit $509.0m (+34.0% YoY).

• Statutory NPAT from continuing operations was $79.9m; underlying NPAT (excluding non-recurring items) was $49.7m.

• Revenue margin at 8.3% (down 45bps YoY), reflecting increased US contribution.

• Net bad debts improved to 1.5% of TTV (-14bps YoY), the lowest in two years.

• Cash net transaction margin increased to 3.9% (+11bps YoY); business interest expense as a percentage of TTV improved by 35bps to 1.6%.

Outlook and guidance

• FY26 guidance: US TTV growth expected above 35% (USD); group revenue margin around 8%.

• Cash net transaction margin range increased to 3.8%-4.2%; operating margin upgraded to 16%-19%.

• Cash EBTDA as a percentage of TTV expected to exceed FY25’s 1.3%.

• Focus on AI-powered innovation, capital structure optimization, and scaling through partnerships and digital channels.

• FY26 guidance subject to market conditions and regulatory approvals for dual listing.