The Zip Co Ltd (ASX: ZIP) share price is in focus today after the company delivered its first quarter FY27 results, with total transaction volume jumping 18% and cash EBTDA rising 3.4%.
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What did Zip report?
- Total transaction volume (TTV) grew to $4.6 billion, up 18% on 1Q26
- Total income rose to $376.1 million, up 17% year on year
- Cash EBTDA of $65.0 million, up 3.4%, or $75.1 million (up 19.5%) excluding a US fraud event
- Transactions increased 21.8% to 31.6 million
- Active customers steady at 6.4 million; merchants up 10.4% to 96,600
- Net bad debts at 1.97% of TTV (up from 1.65% in 1Q26)
What else do investors need to know?
Zip grew its US business rapidly this quarter, with US transaction volume and revenue up over 30% in US dollars. Customer engagement set new records, as transactions per customer jumped 27% in the US and 14.2% in Australia, and spend per customer also increased year on year.
Despite the positive operational performance, the business absorbed $10.1 million in extra operating expenses related to a contained external fraud incident in the US. Excluding these one-off costs, profitability would have shown even stronger momentum. The company also progressed its $50 million on-market share buyback, repurchasing $15.7 million worth of shares during the period.
What did Zip management say?
Zip Group CEO and Managing Director, Cynthia Scott, said:
Customers are choosing to use Zip more often, driving strong top line growth, with transactions per customer up 27.0% in the US and 14.2% in Australia, positioning us well ahead of the second-quarter holiday season… We have reconfirmed all of our FY27 guidance metrics including Group cash EBTDA of $340 million (up 26% year on year), and remain focused on executing on our strategic priorities to drive growth and innovation, and invest for long-term scale.
What's next for Zip?
Zip reconfirmed its FY27 guidance, targeting US transaction volume growth above 30% and a Group cash EBTDA of $340 million, representing 26% year-on-year growth. Management is also focused on keeping credit losses in line with their target and expanding operating margins across the group.
The company is rolling out new product offerings, including "Zip Cash" in the US and enhancements to its Australian digital products, and remains committed to disciplined capital management with continued share buybacks and optimising its funding base.
Zip share price snapshot
Over the past 12 months, Zip shares have fallen 48%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.
