Zip Co Shares Jumped More than 20% On Thursday After The Buy-Now-Pay-Later Provider delivered Impressive Full-Year 2025 Results and Provided Optimistic Guidance for Continued Growth, Driven Primarily by Its Rapidly Expanding Us Operations.
Strong Financial Performance Across Key Metrics
The Australian Fintech Reported Total Transaction Value (TTV) emerged 30.3% to $ 13.1 Billion for the 12 mounting Eded June 30, 2025, While Total Inome Climbed 23.5% to $ 1.08 billion. Cash Gross Profit Rose 34% to $ 509 Million, Demonstating the Company’s Improctional Efficiety and Scale Benefits.
Most signantly, Cash Ebitda Jumped 147% to $ 170.3 Million, with the cash Ebitda Margin Expanding Dramatically to 15.8% from 7.9% in the prior year. The Company Swung to a A Net Profit of $ 66 Million, UP $ 66.6 Million from The Previous Year’s Loss, Marking A Crucial Milestone in its Path Toward Sustained Profitability.
US Division Powers Growth
The Stellar Results Were Largely Driven by Zip’s Us Operations, Which Generated Revenue Growth of 46% to $ 657.9 Million and Now Represe Over 80% of Divisional Cash Earnings. US Active Customers Increase 11% to 4.25 Million, While The Division Captured 71% of Total Transaction Value.
In contrast, The Australia and New Zealand Division Saw Revenue Decline 0.9% to $ 413.7 Million, With Active Customers Falling 6.8% to 2.04 Million, Highlighting The Divergent Performance Between Zip’s Mature Home Markets and ITS Expanding Us Reponce.
Management Reveled It is exploring a dual listing on the nasdaq WHILE MAINTAING ITS PRIMARY ASX LISTING, A MOVE DESIGNED TO SUPPORT ITS SIGNANT US GROWTH OPPORTING AND ATTRACT American Institutional Investors. Currently, Offshore Institutional Investors Buy 16% of Zip’s Issued Capital.
OPTIMISTIC FY26 OUTLOOK
ZIP PROVIDED BULLISH GUIDANCE FOR FISCAL 2026, EXPECTING US TTV GROWTH TO EXCCEED 35% IN US DOLLAR TERMS WHILE BALANCING PROFITABILITY AND CREDIT PERFORMANCE. The Company Upgraed ITS Cash Net Transaction Margin Expectation to 3.8%-4.2%and Raised ITS Group Operating Margin Guidance to 16%-19%.
Group Cash Ebitda As a Percentage of TTV is speech to Exceed 1.3%, While The Group Revenue Margin is projected Around 8%, Reflecting the Continued Growth of the Higher-Volume But Lower-Margin Us Business.
The Strong Results Demonstrate Zip’s Successful Transition from A Growth-At-Lall-Costs Model To One Emphasizing Profitable Expansion and Improved Unit Economics, Positioning The Company Well for Sustaned Success in The Competitive Bnpl Market.
