Zip (ZIP) H2 2025 earnings summary

Executive summary

• Achieved record financial performance with cash earnings up 147% to $170.3 million, total income surpassing $1 billion, and TTV up 30.3% year-over-year, driven by disciplined execution and strong customer engagement across 6.3 million customers.

• U.S. business delivered over 100% growth in cash earnings, exceeding $100 million for the first time, now representing over 80% of divisional cash earnings, with TTV up 43.9% year-over-year.

• ANZ returned to TTV growth with a 5.5% annual increase and 13.2% in the second half, supported by product innovation and strong credit performance.

• Customer engagement and transaction frequency increased in both regions, with 93 million transactions processed, valued at $13.1 billion.

• Considering a dual listing on NASDAQ to support growth and investor interest in the U.S., subject to board and regulatory approvals.

Financial highlights

• Cash gross profit rose 34% to $509 million; operating margin nearly doubled to 15.8%.

• Statutory net profit after tax was $79.9 million; underlying net profit after tax (adjusted for one-off items) was $49.7 million.

• Revenue margin was 8.3%, reflecting increased U.S. contribution; TTV reached $13.1 billion (+30.3% YoY).

• Net bad debts as a percentage of TTV improved by 14 basis points to 1.5%, the lowest in two years.

• Business interest expense as a percentage of TTV improved by 35 basis points to 1.6%.

Outlook and guidance

• FY26 guidance: U.S. TTV growth expected at least 35% in USD terms; revenue as a percentage of TTV expected at ~8%.

• Cash net transaction margin range increased to 3.8%-4.2%; operating margin upgraded to 16%-19%.

• Cash EBITDA as a percentage of TTV expected to exceed FY25’s 1.3%.

• Focus on AI-powered innovation, capital structure optimization, and scaling through partnerships and digital channels.

• Continued investment in new product launches, with measured opex and capital management.