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Highlights

  • Cash EBTDA of ZIP rose 147% year-on-year to AUD 170.3 million in FY25 with operating margin nearly doubling.

  • Total transaction volume reached AUD 13.1 billion, up 30.3% compared to FY24.

  • Zip considering a Nasdaq dual listing to support US growth, where 71% of TTV is generated.

Zip Co Limited (ASX:ZIP) announced its financial results for the year ended 30 June 2025 (FY25), reporting significant year-on-year growth in profitability, transaction volumes, and customer activity. Shares of Zip traded 22.1% higher at AUD 3.81 per share on 22 August morning following the release.

For FY25, the company reported Cash EBTDA of AUD 170.3 million, up 147% from the prior year. The operating margin increased to 15.8%, compared with 7.9% in FY24. Total transaction volume (TTV) grew 30.3% to AUD 13.1 billion, driven largely by growth in the US, which now contributes 71% of overall TTV.

Total income for the year stood at AUD 1,081.1 million, up 23.5% from FY24, with revenue margin at 8.3% compared to 8.7% in the prior year. Zip processed 93 million transactions during the period, a 22.1% increase from FY24. Net bad debts improved to 1.5% of TTV from 1.7% in the prior year. Cash gross profit reached AUD 509 million, up 34%, while active customers increased 4.6% to 6.3 million. The company’s merchant network also expanded to 85,500 partners, representing growth of 7.9%.

On the balance sheet, Zip repaid all corporate debt and associated exit fees following an equity raise of AUD 267.1 million in the first half of the year. As of 30 June 2025, the company held cash of AUD 137.8 million, up from AUD 80.4 million at the end of FY24. In April 2025, Zip also launched an on-market share buyback program for up to AUD 50 million; during FY25, 14.8 million shares were repurchased for AUD 29.8 million.

Receivables financing remained a key focus. In the US, Zip increased its funding facility to USD 300 million in October 2024 and added short-duration capacity in July 2025. In Australia, approximately AUD 2 billion of receivables funding facilities were refinanced, extending the tenor to 20 months and lowering margins. The company also secured a cornerstone AUD 400 million warehouse facility in May 2025 with a five-year tenor.

Operating costs for FY25 were AUD 338.4 million, up 10.2% year-on-year. Marketing spend represented 0.4% of TTV, with an emphasis on customer acquisition in the US. Investments were also made in risk management systems, processes, and artificial intelligence to support scaling.

Looking ahead, Zip is considering a dual listing on the Nasdaq while retaining its primary listing on the ASX. The move, still subject to board and regulatory approvals, aims to broaden investor access, particularly as US operations now generate more than 80% of divisional cash earnings.

For FY26, Zip targets US TTV growth of more than 35% (in USD), a group revenue margin of approximately 8%, and an upgraded group operating margin between 16% and 19%. Cash net transaction margin is projected in the range of 3.8% to 4.2%, with group Cash EBTDA as a percentage of TTV expected to exceed 1.3%.