Zip Co’s shares fell 8.5% to A$2.79 on Friday, reversing part of a nearly 19% gain recorded on August 20 after the company reported full-year FY26 results.
The buy-now, pay-later provider posted a record A$268.9 million in group cash earnings before interest, tax, depreciation and amortisation (EBTDA), up 57.9% from the prior year. Statutory net profit after tax increased 45.7% to A$116.4 million. U.S. operations drove the majority of the growth in earnings.
The company’s FY27 guidance calls for approximately A$340 million in cash EBTDA. Zip also filed a notification for an on-market share buyback on August 20, a move that coincided with the stock’s initial surge.
The broader market showed little direction, with the ASX 200 index slipping 0.1% during the session.
