Zip (ZIP) investor relations material

Executive summary

• Delivered record cash earnings of AUD 124.3 million, up 86% year-on-year, with significant operating margin expansion to 18.7% and net profit after tax of AUD 52.4 million, more than doubling year-on-year.

• Achieved sustainable, profitable growth at scale with strong operating leverage, particularly in the US market, which now represents 75% of total transaction volume (TTV).

• Group TTV reached AUD 8.4 billion, up 34.1% year-on-year, and active customers increased 4.1% to 6.6 million; merchant partners grew 10.5% to 90.6k.

• Completed a $100 million on-market share buyback, reflecting strong balance sheet and positive cash flows.

Financial highlights

• Total income grew 29.2% year-over-year to $664.0 million, with cash gross profit up 33.5% to $314.3 million and cash EBTDA up 85.6% to $124.3 million.

• Statutory net profit after tax increased 127.6% to $52.4 million.

• Cash net transaction margin (NTM) held at 3.8%, with interest expense as a percentage of TTV improving to 1.3%.

• Net bad debts were 1.7% of TTV, within management targets.

• Cash, cash equivalents, and restricted cash increased 37.1% to $537.0 million.

Outlook and guidance

• Upgraded FY26 guidance: US TTV growth expected to exceed 40% (USD), with operating margin above 18% and cash EBTDA as a percentage of TTV above 1.4%.

• Revenue margin targeted at circa 8% of TTV, cash NTM at 3.8–4.2%.

• Second half cash EBTDA expected to be broadly in line with the first half.

• Focus remains on sustainable growth and profitability in core markets, with continued investment in product innovation and risk management.