Buy-now, pay-later provider Zip Co Ltd posted a record statutory net profit after tax of A$116.4 million for the 12 months ended June 30, up 45.7% from the prior year, as total revenue rose 24.7% to A$1.34 billion.
Group transaction volume increased 27.2% to A$16.65 billion, with U.S. dollar-denominated volume surging 42.5%. The U.S. now accounts for 76% of total transactions, up from 70% a year earlier. Revenue in Australia and New Zealand grew 4.6% to A$432.9 million, while U.S. revenue jumped 37.3% to A$903.1 million.
Cash earnings before tax, depreciation and amortization (EBTDA) rose 57.9% to A$268.9 million, lifting the operating margin by 420 basis points to 20%. Net bad debts increased to 1.77% of transaction volume from 1.52%, remaining within the company’s target range.
Zip did not declare a dividend but completed on-market share buybacks totaling A$150 million during the year. The company also announced a new buyback program of up to A$50 million for fiscal 2027 and may pursue a share consolidation subject to shareholder approval at the 2026 annual meeting. Zip continues to evaluate a potential dual listing on a U.S. exchange.
For fiscal 2027, Zip forecast cash EBTDA of A$340 million, representing 26% growth, with operating margins expected to expand to between 20% and 22%. U.S. transaction volume growth is projected to exceed 30% in U.S. dollar terms.
