Zip Co Surges 147% in Earnings, Eyes Nasdaq Dual Listing Amid US Boom

Robust Financial Performance

Zip Co Limited (ASX, ZIP) has reported an impressive FY25, with cash earnings before tax, depreciation, and amortisation (EBTDA) soaring 147% to $170.3 million. This surge was underpinned by a 30% increase in total transaction volume (TTV) to $13.1 billion and a near doubling of operating margin to 15.8%. Total income also crossed the $1 billion mark, reflecting strong revenue growth despite a slight dip in revenue margin due to the expanding US footprint.

US Market, The Growth Engine

The US business emerged as the powerhouse, now accounting for 71% of Zip’s TTV. It posted a remarkable 41.6% growth in TTV (in USD), outpacing the broader buy-now-pay-later market. Active US customers rose 11% to 4.3 million, with increased engagement driven by innovative products like the 'Pay-in-8' instalment plan and expanded merchant partnerships including Google Pay and Stripe integrations. Non-discretionary spending categories such as groceries and healthcare fueled this momentum, highlighting Zip’s role in everyday financial management for American consumers.

ANZ Market and Product Innovation

In Australia and New Zealand, Zip returned to TTV growth of 5.5%, supported by the rollout of Zip Plus and the launch of Zip Personal Loan. These products have driven higher customer engagement and improved portfolio yields. The ANZ segment also benefited from strategic merchant additions and collaborations with Google Wallet, enhancing payment convenience and security.

Strengthening the Balance Sheet and Operational Efficiency

Zip has strengthened its financial position by repaying all corporate debt and increasing cash reserves to $137.8 million. The company also initiated a $50 million on-market share buyback, repurchasing nearly 15 million shares. Operationally, Zip improved cost discipline while investing in AI-driven risk management and scaling funding facilities in both the US and ANZ to support growth.

Looking Ahead, Nasdaq Dual Listing and FY26 Guidance

Reflecting its US growth ambitions and rising investor interest, Zip is considering a dual listing on the Nasdaq. This move aims to maximise shareholder value and enhance access to capital markets. For FY26, Zip projects US TTV growth exceeding 35%, improved margins, and continued innovation, particularly with new instalment products and AI integration. While market conditions and regulatory environments remain dynamic, Zip appears well-positioned to sustain its growth trajectory.