Key Highlights

  • Zip Co reported Q1 FY27 total transaction Volume of A$4,603.7 million, up 18.0 per cent, and Revenue of A$373.4 million, up 17.2 per cent.
  • Cash EBTDA was A$65.0 million, up 3.4 per cent, and adjusted cash EBTDA was A$75.1 million, up 19.5 per cent.
  • The company reconfirmed FY27 guidance including group cash EBTDA of A$340 million, and its Annual General Meeting is on 19 November 2026.

Zip Co Limited (ASX:ZIP) reported unaudited first-quarter FY27 results showing total transaction volume (TTV) of A$4,603.7 million, up 18.0 per cent on the prior corresponding period, and revenue of A$373.4 million, up 17.2 per cent. The company reconfirmed its FY27 guidance, which it said remains subject to market conditions.

On a constant-currency basis TTV rose 25.0 per cent and revenue 23.4 per cent. Revenue Margin was 8.2 per cent, flat on the year, and transactions rose 21.8 per cent to 31.6 million. Cash EBTDA was A$65.0 million, up 3.4 per cent, while adjusted cash EBTDA, which excludes A$10.1 million of operating expenses tied to an external Fraud event in the United States, was A$75.1 million, up 19.5 per cent. Operating Margin was 17.3 per cent, or 20.0 per cent adjusted, compared with 19.5 per cent a year earlier.

Net Bad Debts were 1.97 per cent of TTV, against 1.65 per cent a year earlier. Active customers were 6.4 million, broadly flat on the year and down 1.7 per cent on the previous quarter. The group totals include New Zealand, which Zip is winding down and expects to complete by the end of calendar 2026.

United States

Zip Co (ASX:ZIP) reported US revenue of US$183.7 million, up 32.0 per cent, and TTV of US$2,569.4 million, up 34.1 per cent. Transactions rose 38.0 per cent to 18.8 million, and active customers rose 6.9 per cent to 4.7 million. Spend per customer increased 30.2 per cent to US$1,958 a year.

Net bad debts were 1.93 per cent of TTV, within the company's 1.5 to 2.0 per cent target range, and net bad debts written off rose to US$49.5 million from US$29.0 million. Zip said the fraud event cost US$7.2 million and temporarily slowed TTV and new-customer growth in July and August, and that TTV grew 41 per cent year on year in September. It also plans to offer Zip Cash, a same-day cash Loan product, to select customers over the holiday season.

Australia

Australian revenue was A$111.5 million, up 8.3 per cent, on TTV of A$952.4 million, up 3.6 per cent. Receivables rose 11.8 per cent to A$2,333.2 million. Annualised net bad debts were 3.51 per cent, compared with 3.33 per cent in September 2025 and 3.83 per cent in June 2026. Active customers fell 6.9 per cent to 1.7 million, while merchants rose 9.3 per cent to 64.0 thousand.

Funding and capital

Zip reported total cash of A$452.0 million, with A$224.4 million of available cash and liquidity. Its Australian facilities had a A$2,422.5 million limit with A$2,186.6 million drawn, and US facilities had a US$858.6 million limit with US$468.2 million drawn. During the quarter it priced a US$300.0 million two-year securitisation, its first US asset-backed issuance, at a fixed Yield of 5.68 per cent, and in October raised a US Facility limit to US$583.4 million.

Under a buyback of up to A$50 million over 12 months, 7.6 million shares had been bought for A$15.7 million by 30 September. Separately, the employee share trust bought 9.7 million shares for A$23.7 million in September to offset dilution from Equity plans.

Guidance and next dates

Zip reconfirmed FY27 guidance of US TTV growth above 30 per cent in US dollars, a group revenue margin of about 8 per cent, cash net transaction margin of 3.8 to 4.0 per cent, US net bad debts of 1.5 to 2.0 per cent of TTV, a group operating margin of 20 to 22 per cent and group cash EBTDA of A$340 million, up 26 per cent. It forecast second-quarter US net bad debts to be below the first quarter and in the top half of the target range.

The company listed its annual general meeting for 19 November 2026, after investor conferences on 28 October and 10 November.