Highlights

  • Zip achieved record cash EBITDA of AUD 62.8 million for 1Q26, up 98.1% compared to 1Q25.
  • Total transaction volume reached AUD 3.9 billion, representing a 38.7% increase year-on-year.
  • Active customers grew to 6.4 million, while the number of merchants on Zip’s platforms rose to 87,500.

Zip Co Limited (ASX: ZIP) has released its first quarter results for the three-month period ending 30 September 2025 (1Q26). The company reported record cash EBITDA of AUD 62.8 million, a 98.1% increase compared to the same period in FY25. Total income rose to AUD 321.5 million, up 32.8% year-on-year, while total transaction volume (TTV) reached AUD 3.9 billion, marking a 38.7% increase versus 1Q25.

The company processed 26.0 million transactions during the quarter, an increase of 21.9% from 1Q25. Revenue margin stood at 8.2%, slightly lower than the 8.6% achieved in 1Q25, driven by higher contributions from the US market. Cash net transaction margin (NTM) improved to 4.0% from 3.9% in the prior corresponding period. Net bad debts remained stable at 1.6% of TTV.

Operating leverage contributed to an improvement in operating efficiency, with the operating margin—calculated as cash EBITDA divided by total income—rising to 19.5% compared to 13.1% in 1Q25. Active customers increased to 6.4 million, up 5.3% year-on-year, and the number of merchants on Zip’s platforms expanded to 87,500, up 9.1% from 1Q25.

Capital Management Initiatives

Zip announced an increase in its on-market share buy-back program, raising the limit from AUD 50 million to AUD 100 million. The buy-back commenced in late April 2025.

The expansion of the share buy-back aligns with Zip’s capital management framework and is supported by the company’s balance sheet, ongoing operating cash flow, and outlook for profitable growth.

Outlook and Future Initiatives

Following the start to the financial year, Zip now expects US TTV growth for FY26 to exceed 40% in USD, up from the previous guidance of greater than 35%. The company reconfirms the remainder of its FY26 targets as previously announced in August 2025 and will provide updates with the release of its 1H26 results.