Zip Co Ltd (ASX: ZIP) shares are down 3.3% to $3.65 following the company's annual general meeting (AGM) today.
The buy now, pay later (BNPL) stock has tumbled 23% over the past month, with several experts recommending we buy the dip.
Group CEO and managing director Cynthia Scott told investors today that Zip remains on track to achieve its upgraded FY26 guidance.
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Zip share price falls despite CEO assurances
In a speech, Scott reiterated that the BNPL provider delivered record profitability amid macroeconomic uncertainty in FY25.
Looking ahead, Scott said:
We remain on track for our FY26 results to all be within target ranges as previously announced to the market in August and will report on progress at our first half results in February.
Scott said Zip had three strategic priorities for FY26; growth and engagement, product innovation, and platforms for scale.
She recapped 1Q FY26 results, commenting:
In the first quarter of FY26, your company continued to deliver sustainable, profitable growth at scale, with record cash earnings of $62.8 million, up 98.1% year on year, reflecting an operating margin of 19.5%.
The US business delivered year-on-year TTV and revenue growth (in USD) of 47.2% and 51.2% respectively, with customer growth of 12.2% (+483k) year on year providing strong momentum into the holiday trading period.
The ANZ business saw a return to revenue and Australian receivables growth with double-digit growth in TTV.
Scott said Zip had executed strategic partnerships in both the US and Australia/New Zealand (ANZ) to drive future growth.
In the US, we scaled volumes and merchants through Google Pay, and integrated with autofill on Google Chrome in August 2025. Zip also became available to all businesses on Stripe in the US in August 2025, which is yielding early results.
In Australia, we integrated with Xero Invoicing via Stripe, enabling small businesses on the Xero platform with a Stripe account to add Zip's flexible payment solutions directly on their invoices.
Scott said Zip had optimised its funding to improve capital efficiency, cost of funds, funding capacity, and flexibility in both regions.
The US business enhanced its short term funding capacity with its third-party bank partner.
In Australia we completed a new $300m bond issue and have continued to see tightened spreads on new Zip issuance.
Dual listing still an option, but no chance of dividends
Zip chair, Diane Smith-Gander AO, said management was still considering a secondary sharemarket listing in the US.
Smith-Gander said:
The potential dual listing remains subject to Zip Board approval and the completion of a number of required processes, including obtaining regulatory approvals in the US, and is subject to market and other conditions.
The chair ruled out any possibility of dividends in the near future, commenting:
We currently intend to retain any future earnings to finance the growth and development of our business, and we do not anticipate that we will declare or pay any cash dividends in the foreseeable future.
Zip share price snapshot
Zip has been an interesting ASX turnaround story after the company decided three years ago to abandon its mass global growth strategy in favour of achieving profitability in a few key markets.
This seems to be playing out well, with investors' faith somewhat restored as evidenced by Zip shares ripping 110% in FY25.
This made Zip the third fastest riser among ASX 200 financial shares in FY25.
The stock maintained its momentum in early FY26, but began declining after the company released its 1Q FY26 results on 20 October.
Potentially, some investors have taken profits after a long hard road.
The Zip share price fell 93% over three years from its record high in February 2021 to February 2024.
The stock hit a 10-year low of 26.5 cents on 6 October 2023.
Top broker Macquarie has just initiated coverage on Zip shares with a buy rating and a 12-month price target of $4.85.
