The Zip Co Ltd (ASX: ZIP) share price is on fire today.
Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed yesterday trading for $3.12. In earlier trade, shares just surged to $3.92 each, up a blistering 25.6%. At time of writing in later morning trade on Friday, shares are changing hands for $3.82 apiece, up 22.3%.
That's an even more impressive feat considering the ASX 200 is down 0.1% at this same time.
Here's what's grabbing ASX investor interest today.
Image source: Getty Images
Zip share price rockets on FY 2025 growth
Investors are sending the Zip share price flying higher following the release of the company's decidedly strong full year results for the 12 months to 30 June (FY 2025).
Zip reported full year cash earnings before tax, depreciation and amortisation (EBTDA) of $170.3 million, up a whopping 147.0% year-on-year.
The ASX 200 BNPL stock also improved its operating margin to of 15.8% from 7.9% in FY 2024.
Total transaction volume (TTV) increased by 30.3% year-on-year to $13.1 billion, while total income of $1.08 billion was up 23.5%.
And the Zip share price will be catching strong tailwinds with the company reporting a 34.0% year-on-year increase in its cash gross profit to $509 million.
One of the few core metrics to go backwards was Zip's revenue margin of 8.3%, down from 8.7% the prior year. The company said this was driven by a higher US contribution, which now makes up 71% of its TTV.
Pleasingly, net bad debts fell to 1.5% of TTV over the 12 months, down from 1.7% in FY 2024.
And the number of merchants on Zip's platform increased by 7.9% over the year to 85,500.
During the year, the company repurchased $29.8 million shares as part of its $50 million on-market buyback, launched in April.
As at 30 June, Zip had available cash of $137.8 million, up from $80.4 million on 30 June 2024.
What did management say?
Commenting on the results sending the Zip share price rocketing today, CEO Cynthia Scott said, "It has been a defining year for Zip with cash earnings growing by 147.0% to $170.3 million."
Scott added:
We achieved several milestones including delivering over $1 billion in total income and our US business generated over US$100 million of cash earnings. Disciplined execution and strong unit economics underpinned our performance, with Group operating margin almost doubling within 12 months to 15.8%.
What's ahead for the Zip share price?
Looking to what could impact the ASX 200 BNPL stock in the year ahead, Scott said:
We are well placed to deliver on our refreshed FY26 guidance and next horizon of growth, as we execute our strategic priorities of growth and engagement, product innovation, and platforms for scale, and fulfil our purpose of unlocking financial potential, together.
In FY 2026 Zip said it expects to deliver US TTV growth greater than 35% (in US dollars), with group revenue margin of around 8%.
The company also upgraded the FY 2026 outlook for its operating margin to between 16.0% and 19.0%, compared to 15.8% in FY 2025.
And Zip expects its cash EBTDA as a percentage of TTV to be greater than 1.3%.
With today's outsized intraday gains factored in, the Zip share price is up 79% in a year and up an eye-popping 224% from its recent 7 April closing lows.
