Zip (ZIP) Q3 2026 TU earnings summary

Executive summary

• Achieved record cash EBTDA of $65.1m in 3Q26, up 41.5% year-over-year, with operating margin expanding to 19.4% from 16.5% in 3Q25.

• Total transaction volume (TTV) reached $4.0b, up 22.4% year-over-year, and total income increased 20.2% to $335.2m.

• Upgraded FY26 Group cash EBTDA guidance to no less than $260.0m, reflecting strong third quarter performance.

• US TTV growth accelerated to 43.1% year-over-year in USD, with active customers up 9.0% and merchants up 17.9%.

• ANZ business delivered profitable growth, with revenue up 5.0% and receivables up 8.7% year-over-year.

Financial highlights

• Revenue for 3Q26 was $332.2m, up 20.2% year-over-year, but down 2.2% sequentially from 2Q26.

• Cash EBTDA reached $65.1m, up 41.5% year-over-year.

• Operating margin expanded to 19.4%, up 292bps year-over-year.

• Net bad debts as a percentage of TTV were 1.9%, compared to 1.6% in 3Q25, remaining within management targets.

• Active customers at quarter end were 6.5m, up 3.5% year-over-year.

Outlook and guidance

• FY26 Group cash EBTDA guidance upgraded to no less than $260.0m, equivalent to $271.0m on a constant currency basis.

• US TTV growth expected to exceed 40% (in USD) for FY26.

• Group revenue margin targeted at circa 8%, cash net transaction margin between 3.8%-4.2%, and operating margin above 18%.

• Group cash EBTDA as a percentage of TTV expected to be greater than 1.4%.