Image source: Shutterstock

Highlights

  • FY25 cash EBTDA surged to $46.0 million, up from $7.9 million in FY24.

  • Total transaction value (TTV) hit $12.1 billion, with the US market contributing 73%.

  • $50 million share buyback program underway, with 3.9 million shares already repurchased.

Zip Co Limited (ASX:ZIP) has announced a strong set of financial and operational results for FY25, reporting a record cash EBTDA of $46.0 million, up sharply from $7.9 million in FY24. The company’s strategic focus on scaling its U.S. business and improving financial discipline is beginning to yield significant returns.

The total transaction value (TTV) for the year surged to $12.1 billion, underscoring Zip’s growing market penetration and customer engagement. The platform processed 88.2 million annual transactions from a base of 6.3 million active customers, reinforcing its relevance as a major player in the buy-now-pay-later (BNPL) space.

A major driver of this growth has been the U.S. market, which now accounts for a commanding 73% of Zip’s TTV. 

In a bid to deliver shareholder value, Zip also launched a $50 million share buyback program during the year. To date, 3.9 million shares have been repurchased, signaling strong confidence in the company’s outlook and balance sheet. Zip confirmed that no material changes have occurred in its credit loss performance.

Outlook: FY25 and Beyond

Looking forward, Zip reaffirmed its FY25 guidance, projecting cash EBTDA of at least $153.0 million. The company stated it remains on track to achieve its two-year target ranges, buoyed by operational efficiency, solid customer retention, and geographic scale. Management highlighted stable cash and liquidity levels, which will support the company’s continued investment in growth while maintaining a conservative financial posture.