FY25 Results Update
| Stock | ZIP Co Ltd (ZIP.ASX) |
|---|---|
| Release Time | 22 Aug 2025, 9:11 a.m. |
| Price Sensitive | Yes |
Zip Co Ltd reports outstanding FY25 results, considers Nasdaq listing
- Cash EBTDA of $170.3m, up 147.0% vs FY24
- Operating margin of 15.8%, up from 7.9% in FY24
- Total transaction volume (TTV) of $13.1b, up 30.3% vs FY24
Zip Co Limited (ASX: ZIP) has announced its full-year results for the 12 months ended 30 June 2025 (FY25), reporting outstanding performance with significant growth in the US market and strong operating leverage. Key highlights include cash EBTDA of $170.3m (up 147.0% vs FY24), operating margin of 15.8% (vs 7.9% in FY24), total transaction volume (TTV) of $13.1b (up 30.3% vs FY24), and total income of $1,081.1m (up 23.5% vs FY24). The US business delivered exceptional results, with TTV increasing 41.6% year-on-year to US$6.0b, outpacing the broader market growth. The ANZ business also returned to year-on-year TTV growth, up 5.5%, driven by growth in Zip Plus and increased customer engagement. Zip continued to innovate and expand its product offerings, including scaling the 'Pay-in-8' instalment solution in the US and launching Zip Personal Loan in ANZ. The company has also strengthened its balance sheet, repaying all corporate debt and launching a $50m on-market share buyback program. Consistent with its objective to maximize long-term shareholder value, Zip is considering a dual listing on the Nasdaq, which is expected to support the company's significant growth opportunity in the US and growing investor interest.
In FY26, Zip expects to deliver: - US TTV growth greater than 35% (in USD), balancing profitability and loss performance - Group revenue margin of circa 8% - Group cash net transaction margin upgraded to between 3.8% - 4.2% - Group operating margin upgraded to between 16.0% - 19.0% - Group cash EBTDA as a % of TTV to be greater than 1.3%
While the operating environment continues to evolve, particularly in the US, the business is well placed to build on the results achieved in FY25. Zip will continue to enhance its value propositions, grow and innovate attractive products, and ensure its systems and processes can support additional scale, supported by the acceleration of AI tools.