• Significant margin expansion driven by material operating leverage
• Well positioned in both Australia/NZ and US markets to deliver next phase of growth
• Delivering strongly against strategic priorities with product innovation and platform investment

Zip Co Limited (ASX: ZIP) reported its 1H FY26 results, reflecting accelerated momentum and disciplined execution across both the Australia/New Zealand (ANZ) and United States (US) markets. The company delivered significant margin expansion, driven by material operating leverage, with total transaction volume (TTV) growing 34.1% YoY, cash EBTDA increasing 85.6% YoY, and operating margin expanding 569bps YoY to 18.7%. The US business continued its strong execution, with 44.2% YoY growth in TTV (in USD) and a 69.5% YoY increase in cash EBTDA (in USD), while the ANZ business also saw a 69.6% YoY increase in cash EBTDA. Zip made progress on its strategic priorities, including expanding its Pay-in-Z platform, piloting new features like Money Coach, and scaling the use of AI across the group. The company also strengthened customer engagement, with annual average transactions per customer increasing 19.9% in the US and 23.4% in ANZ. Zip continued to invest in platforms for scale, including establishing a new US$283.4m warehouse facility at a lower margin and issuing a $400m ABS bond at an improved margin of 1.37% in Australia. The company also completed a $100m on-market equity share buyback. Zip remains committed to operating sustainably and responsibly, with initiatives focused on financial inclusion, customer wellbeing, environmental impact, and inclusion and talent management.