Zip Co Limited

Zip reported group cash gross profit of $642 million, cash EBTDA of $269 million, statutory NPAT of $116 million, and underlying NPAT more than doubled. Group TTV grew over 27% to $16.7 billion, and cash net transaction margin was 3.9%; interest expense as a percentage of TTV improved 34 basis points to 1.3%. Available cash and liquidity ended at $247 million, operating cash inflows were $257 million, and nonoperating cash outflows were $148 million. In the U.S., TTV rose 42.5% to USD 8.6 billion, revenue rose over 44% to USD 613 million, cash earnings rose 51% to USD 155 million, and operating margin reached 25%. Management guided FY27 to group cash EBTDA of $340 million, cash NTM of 3.8% to 4%, operating margin of 20% to 22%, and at least 30% U.S. TTV growth in USD terms.

Cynthia Scott framed the year as proof that Zip has achieved sustainable, profitable growth at scale, saying the company exceeded FY26 guidance and is now entering a new phase of growth and innovation. Her tone was confident and disciplined: she emphasized operating leverage, AI deployment, stronger products, and capital management as the next priorities. She also pointed to continued shareholder returns through buybacks and discussed keeping optionality for a future U.S. dual listing.

Gordon Bell focused on the mechanics of the financial performance: cash gross profit of $642 million, cash EBTDA of $269 million, statutory NPAT of $116 million, and operating margin expansion to 20%. He highlighted funding and liquidity improvements, including $247 million of available cash and liquidity, a new USD 283 million U.S. warehouse facility, Australian cost of funds reduced to 6.4%, and refinancing of more than $2.5 billion of Australian receivables over two years. He also outlined FY27 capital actions, including an additional on-market buyback of up to AUD 50 million, continued offsetting of equity incentive dilution, and a possible share consolidation subject to approval.

Analysts pressed on Pay-in-2 penetration, customer growth, bad debt ranges, margin guidance, U.S. facility refinancing, and the share consolidation. Management said Pay-in-2 was 1% of annual TTV and 3% in Q4, is still early, and is mainly meant to deepen engagement and support recurring spend, while U.S. loss management remains in the 1.5% to 2.0% range. On margins and funding, Gordon said the FY27 cash NTM guide is supported by refinancing benefits but partly offset by higher base rates, and the U.S. ABS refinancing should lower spreads materially once priced; details on the share consolidation will come with the AGM notice.