Zip (ZIP) Q1 2025 TU earnings summary

Executive summary

• Group Cash EBTDA reached $31.7m, up 233.7% year-over-year, driven by strong US performance.

• Total Transaction Volume (TTV) was $2.8b, up 22.8% year-over-year, with revenue of $239.9m, up 18.8%.

• US business saw TTV of US$1,301.8m (up 42.8%) and revenue of US$92.1m (up 43.9%) year-over-year.

• Active customers at quarter end were 6.08m, with 80.1k merchants on the platform.

Financial highlights

• Revenue margin was 8.5% (vs 8.8% in 1Q24); cash transaction margin improved to 3.9% (vs 3.6%).

• Net bad debts were 1.6% of TTV, down from 1.9% in 1Q24.

• US revenue grew 40.5% year-over-year and 13.0% sequentially; ANZ revenue grew 1.5% year-over-year.

• Transactions totaled 21.3m, up 18.1% year-over-year.

Outlook and guidance

• Focus remains on growth, engagement, product innovation, and operational excellence for FY25.

• Continued transition to next-generation financial services, with new product launches and marketing planned.