The Zip Co Ltd (ASX: ZIP) share price is in focus today after the company reported record cash EBTDA of $124.3 million, up 85.6% on the prior corresponding period, and total income of $664 million, a 29.2% increase.
Image source: Getty Images
What did Zip report?
- Cash EBTDA rose to $124.3 million, up 85.6% year-on-year
- Total income reached $664.0 million, up 29.2% vs 1H25
- Total transaction volume (TTV) hit $8.4 billion, an increase of 34.1%
- Operating margin improved to 18.7% (from 13.0% in 1H25)
- Net bad debts were 1.7% of TTV, in line with management targets
- Active customers grew to 6.6 million (+4.1%), with merchants up 10.5% to 90,600
What else do investors need to know?
Zip saw strong momentum in both its US and ANZ businesses. The US delivered significant transaction and revenue growth, supported by new merchant signings and technology partnerships. Active customers in the US rose nearly 10%, with expanded offerings like Pay-in-2 contributing to engagement.
In Australia and New Zealand, revenue and receivables returned to growth, aided by new feature launches and strategic integrations. The company completed a $100 million on-market share buyback and reported a strengthened balance sheet, with $239 million in available cash and liquidity as at 31 December 2025.
What did Zip management say?
Chief Executive Officer and Managing Director Cynthia Scott said:
Zip continues to increase profitability at scale, driving cash earnings growth of 85.6% and significant operating margin expansion during the half… We are well-positioned to continue executing against our FY26 strategic priorities and delivering profitable growth at scale. Following a strong first half, Zip has upgraded its FY26 guidance for operating margin and cash EBTDA as a % of TTV while reconfirming its other target ranges.
What's next for Zip?
Looking ahead, Zip aims to keep building its US presence, with CEO Cynthia Scott set to relocate to the United States in the second half of 2026 to support this focus. The business reconfirmed its FY26 guidance for revenue margin and TTV growth while providing upgraded targets for operating margin and cash EBTDA as a percentage of TTV.
Zip will also continue to enhance its products and technology, with further rollouts of features like 'Money Coach' and expanded AI-driven customer experiences. Subject to favourable market conditions, the company is considering a potential dual listing in the US.
Zip share price snapshot
Over the past 12 months, Zip shares have risen 10%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
