The news: Zip’s total transaction volume (TTV) spiked 30.3% YoY in fiscal 2025 (ended June 30, 2025), driven by momentum in its US business.
- Cash before taxes, depreciation, and amortization (EBTDA) more than doubled YoY to AUD 170.3 million ($109.38 million), a 147% increase.
- Total transaction value hit AUD 13.1 billion ($8.42 billion).
- Transaction volume was up 22.1% YoY to 93 million.
- Net bad debts decreased YoY to 1.5% of TTV, down from 1.7% in FY24.
Diving into US results: Zip’s gains were supported by a surge in US adoption. US TTV and revenues grew 41.6% and 43.7%, respectively. US consumers turned to Zip to finance purchases in everyday categories like grocery, education, and health purchases.
While consumers predominantly shopped with Zip online, in-store spend represented 23% of TTV, thanks to Zip Card growth. Key merchant partnerships like GameStop as well as embedded opportunities through Google Pay and Stripe helped to boost Zip’s use at checkout.
Due to the strong results, Zip updated its guidance, anticipating US TTV growth greater than 35% for fiscal year 2026.
US listing: Propelled by a strong US performance, Zip also contemplated a dual listing on Nasdaq in addition to its Australian Securities Exchange listing.
The BNPL player views the US listing as an opportunity to support its US growth and more easily satisfy US investor interest: 16% of its institutional investor base being offshore from Australia.