Zip (ZIP) Q1 2026 TU earnings summary

Executive summary

• Achieved record cash EBTDA of $62.8m, up 98.1% year-over-year, with strong operating leverage and disciplined execution driving operating margin to 19.5% from 13.1% in 1Q25.

• Total transaction volume (TTV) reached $3.9b, up 38.7% year-over-year, and total income grew 32.8% to $321.5m.

• Active customers increased 5.3% to 6.4m, and merchants on the platform rose 9.1% to 87.5k.

Financial highlights

• Revenue for 1Q26 was $318.5m, up 32.8% year-over-year and 11.3% sequentially; US revenue grew 55.1% year-over-year to $213.1m, ANZ revenue up 2.9% to $105.4m.

• TTV in the US rose 51.0% year-over-year to $2,934.1m, while ANZ TTV increased 11.1% to $968.4m.

• Transactions totaled 26.0m, up 21.9% year-over-year; US transactions up 33.0%, ANZ up 11.7%.

• Net bad debts as a percentage of TTV remained stable at 1.6% year-over-year.

• Cash net transaction margin (NTM) improved to 4.0% from 3.9% in 1Q25.

Outlook and guidance

• Upgraded FY26 US TTV growth expectation to above 40% (in USD), with other FY26 targets reconfirmed.

• Continued focus on growth, engagement, product innovation, and platform scalability.

• Considering a dual listing on Nasdaq, subject to board and regulatory approvals.