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Zip Co (ASX:ZIP) has advanced +19% higher in Friday afternoon trade as investors responded with alacrity to its FY25 results.
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Let’s be clear – the results are worth celebrating: Cash EBTDA came in at a whopping $170.3 million, up 147.0% from FY24, marking a clear turning point for the business.
With total income cracking the $1 billion mark ($1,081.1m, up 23.5%), and total transaction volume (TTV) soaring to $13.1 billion (up 30.3%), Zip Co has come out and declared FY25 as the company’s biggest ever.
“It has been a defining year for Zip,” said CEO Cynthia Scott. “We achieved several milestones, including delivering over $1b in total income and our U.S. business generated over US$100m of cash earnings. Disciplined execution and strong unit economics underpinned our performance.”
A huge part of that success came from the U.S. business, which now accounts for +71% of Zip’s global TTV. The U.S. team delivered standout growth with TTV up +41.6% and revenue up +43.7% (in USD), smashing industry benchmarks.
“The momentum we see in our U.S. business reflects the strength of our offering for the millions of underestimated Americans we serve,” Ms Scott added.
Customer engagement also surged, with 6.3 million active customers globally (up 4.6%) and a total of 93 million transactions (up 22.1%). Meanwhile, Zip added new household-name merchants like GameStop, Tire Agent, and FanBasis, and expanded across Google Pay, Chrome Autofill, and Stripe integrations.
In ANZ, TTV returned to growth, rising 5.5%, with products like Zip Plus driving customer engagement. Portfolio yield on Australian receivables rose to 19.3%, and net bad debts dropped to 1.5% of TTV, solid results pointing to effective credit management.
Zip also repaid all corporate debt and is actively progressing a $50 million on-market share buyback program. And there’s more to come: Zip is exploring a dual listing on the Nasdaq to tap into growing U.S. investor interest.
“We are well placed to deliver on our refreshed FY26 guidance, as we continue to grow, innovate, and scale, we’re unlocking financial potential,” Scott highlighted.
ZIP has been up 19.4% at $3.72 in afternoon trade.
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