1H FY26 Results Update
| Stock | ZIP Co Ltd (ZIP.ASX) |
|---|---|
| Release Time | 19 Feb 2026, 8:41 a.m. |
| Price Sensitive | Yes |
Zip Co Ltd reports 1H FY26 results with strong earnings growth
- Record cash EBTDA of $124.3m (up 85.6% vs 1H25)
- Significantly improved operating margin of 18.7% (vs 13.0% in 1H25)
- Record total transaction volume (TTV) of $8.4b (up 34.1% vs 1H25)
Zip Co Limited (ASX: ZIP) announced its half-year results for the six-months ended 31 December 2025 ('1H26'). The company reported record cash EBTDA of $124.3m (up 85.6% vs 1H25), significantly improved operating margin of 18.7% (vs 13.0% in 1H25), and record total transaction volume (TTV) of $8.4b (up 34.1% vs 1H25). Total income increased to $664.0m (up 29.2% vs 1H25), with revenue margin of 7.9% (vs 8.2% in 1H25) due to higher US contribution (now 75% of TTV). The US business delivered outstanding performance, with TTV and revenue growth of 44.2% and 46.4% respectively. Active customers increased by 9.7% (+407k) year on year to 4.6m. The ANZ business also saw momentum acceleration, with TTV up 9.7% year on year, and revenue and Australian receivables returning to growth. Zip continued to deliver strong unit economics and significant operating leverage, with the Group's operating margin expanding 569bps to 18.7%. The company completed a $100m on-market share buyback and continues to consider a dual listing on a US stock exchange. Following a strong first half, Zip has upgraded its FY26 guidance for operating margin and cash EBTDA as a % of TTV while reconfirming its other target ranges.
For FY26, Zip expects to deliver: US TTV growth greater than 40% (in USD), Group revenue margin of circa 8%, and Group cash net transaction margin between 3.8% - 4.2%. The company has also upgraded guidance for FY26, including Group operating margin greater than 18.0% (previously 16.0% - 19.0%) and Group cash EBTDA as a % of TTV greater than 1.4% (previously greater than 1.3%).
Following a strong start to the year and accelerated momentum, the business is well placed to deliver future growth. The company will continue to enhance its value propositions, grow and innovate customer focused products, and ensure its systems and processes can support additional scale.