• Record cash EBTDA of $65.1m, up 41.5% year-on-year
• Significant operating margin expansion to 19.4%
• Upgraded FY26 Group cash EBTDA guidance to no less than $260.0m

Zip Co Limited (ASX: ZIP) announced its third quarter update for the three-month period ended 31 March 2026 ('3Q26'). The company reported record cash EBTDA of $65.1m, up 41.5% year-on-year, with significant operating margin expansion to 19.4%. Total transaction volume (TTV) grew to $4.0b, up 22.4% year-on-year, while total income increased 20.2% to $335.2m. The US business continued to perform strongly, with TTV and revenue growth accelerating to 43.1% and 43.3% respectively. Net bad debts remained steady at 1.86% of TTV, with the company forecasting losses to decline to below 1.75% in 4Q26. The ANZ business also delivered profitable growth, with revenue and Australian receivables up 5.0% and 8.7% year-on-year respectively. Following the strong third quarter performance, Zip has upgraded its FY26 Group cash EBTDA guidance to be no less than $260.0m, while reconfirming each of its other FY26 target ranges.

Zip upgrades its FY26 Group cash EBTDA guidance to be no less than $260.0m. On a constant currency basis, this would equate to no less than $271.0m. Zip also reconfirms its FY26 guidance, expecting to deliver: US TTV growth greater than 40% (in USD), Group revenue margin of circa 8%, Group cash net transaction margin between 3.8% - 4.2%, Group operating margin greater than 18.0%, and Group cash EBTDA as a % of TTV greater than 1.4%.

Following a strong third quarter performance and continued momentum, Zip has upgraded its FY26 Group cash EBTDA guidance. The company remains focused on balancing profitability and credit loss performance in the US, while continuing to drive profitable growth in the ANZ region.