The Zip Co Ltd (ASX: ZIP) share price is in focus today after the company posted record FY26 cash EBTDA of $268.9 million, up 57.9%, and a material increase in net profit after tax to $116.4 million, up 45.7% on the prior year.
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What did Zip Co Limited report?
- Record cash EBTDA of $268.9 million, up 57.9% vs FY25
- Total revenue rose 24.7% to $1,336.1 million
- Operating margin expanded to 20.0%, from 15.8% last year
- Total transaction volume (TTV) increased 27.2% to $16.7 billion
- Net profit after tax of $116.4 million, up 45.7%
- Active customers grew to 6.5 million, a 3.7% lift year on year
What else do investors need to know?
Zip continued to deliver strong growth in the US, with total transaction volume and revenue up over 42% in local currency. In Australia and New Zealand, the company reported improved revenue and Australian receivables growth, led by its Zip Plus product, while announcing a wind down of its New Zealand operations to sharpen focus on Australia.
The business strengthened its funding platforms with new note issuances and warehouse facilities, increasing available cash and liquidity to $246.5 million. Zip also completed $150 million of share buybacks and announced a further on-market buyback of up to $50 million for FY27.
Looking ahead, Zip is considering a share consolidation to reduce the number of shares on issue and is exploring the possibility of a dual listing on a US stock exchange, should market conditions support this.
What did Zip Co management say?
Zip Group CEO and Managing Director, Cynthia Scott, said:
Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model.
Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.
We delivered strong credit outcomes, strengthened our funding platforms and embedded AI across our people, processes and products. We also returned $150 million to shareholders through share buybacks and continue to optimise our capital structure, with new capital management initiatives announced today. Looking ahead, we are focused on executing on our FY27 strategic priorities to drive growth and innovation, and investing for long-term scale.
What's next for Zip Co?
Looking forward, Zip aims to deliver group cash EBTDA of $340 million in FY27, up 26% on FY26, while targeting an operating margin of 20%–22%. US transaction volume is expected to grow by more than 30% (in USD), with a group revenue margin around 8%.
Management says it remains committed to scaling through further product innovation, AI integration, and capital management initiatives. Investors can also expect ongoing updates on potential share consolidation plans and any move towards a US dual listing.
Zip Co share price snapshot
The Zip Co share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 15%.
