The Zip Co Ltd (ASX: ZIP) share price jumped more than 20% after reporting its FY25.
Zip is a leading buy now, pay later business in Australia, New Zealand and the US.
Zip FY25 result
Let’s take a look at what the business reported in its FY25 result in the 12 months to 30 June 2025:
- Total transaction value (TTV) rose 30.3% to $13.1 billion
- Total income rose by 23.5% to $1.08 billion
- Cash gross profit rose 34% to $509 million
- Cash EBTDA (similar to EBITDA – explained, with interest) grew 147% to $170.3 million
- Net profit up $66.6 million to $66 million
The company posted improvements across the board, which has clearly excited investors.
The number of active customers increased 4.6% to 6.3 million and the number of merchants on the platform increased 7.9% to 85,500.
US growth is powering the result, which saw revenue growth of 46% to $657.9 million and ANZ revenue actually declined 0.9% to $413.7 million. US active customers rose 11% to 4.25 million and ANZ active customers declined 6.8% to 2.04 million.
While the revenue margin declined from 8.7% in FY24 to 8.3% in FY25 due to a higher US contribution (which is now 71% of TTV), the company’s cash transaction margin improved to 3.9%, up from 3.8%.
The cash EBTDA margin (compared to total income), increased to 15.8% to FY25, up from 7.9% in FY24.
NASDAQ listing?
Zip said it’s considering a dual listing on the NASDAQ, while maintaining its primary listing on the ASX, a dual listing is expected to support Zip’s significant growth opportunity in the US, which now represents over 80% of divisional cash earnings.
Offshore institutional investors currently comprise 16% of Zip’s issued capital.
Outlook for the Zip share price
Zip said it expects US TTV growth to be greater than 35% in US dollar terms as it balances profitability and loss performance. US TTV performance in July 2025 “tracked in line with FY25”.
The group revenue margin is expected to be around 8%, which would represent a further decline, but reflects the growth of the US division.
Zip’s cash net transaction margin expectation has been upgraded to between 3.8% to 4.2%, while the group operating margin was upgraded to between 16% to 19%.
The group cash EBTDA as a percentage of TTV to be greater than 1.3%.
The outlook is clearly positive, though the Zip share price has already reacted, so I wouldn’t call it an attractive buy.
It’s a great sign that profitability is expected to improve and TTV could continue growing strongly. I’d be happy as a shareholder.
