Zip Asx is in focus after Zip Co Ltd posted record cash EBTDA of $65. 1 million and upgraded its FY26 guidance following a strong third quarter. The update, released in the Australia and New Zealand market context, also pointed to continued customer growth, stronger US momentum, and fresh product activity in Australia and New Zealand. Management said the latest quarter showed profitable growth at scale, with execution remaining disciplined across both markets.
Record quarter puts Zip Asx back in the spotlight
cash EBTDA rose 41. 5% year on year, while operating margin expanded to 19. 4%, up 292 basis points. Zip Asx also said US transaction volume is expected to rise more than 40% in FY26, with group operating margins forecast to stay above 18%.
In the US business, total transaction value and revenue each increased by more than 43% year on year in local currency. Credit losses in the US stayed within target ranges, and management expects them to fall below 1. 75% of total transaction value in the fourth quarter.
In Australia and New Zealand, Zip launched ZMobile, which the company described as a new capital-light revenue stream. Zip also started an on-market share buy-back of up to $50 million in March and had already acquired $21 million of shares by the end of the quarter.
Management highlights profitability, funding and AI
Group CEO and Managing Director Cynthia Scott said Zip’s business model continued to drive increased profitability at scale, pointing to record cash earnings and stronger operating leverage. She said momentum continued across both markets, supported by deepened customer engagement and disciplined execution.
Zip Asx also highlighted funding progress, including a successful $300 million note issue in Australia and ongoing refinancing work in the US. 95% of employees are using enterprise-grade AI tools, and that AI initiatives remain part of its push to improve customer experience and operational efficiency.
The upgrade lifts FY26 group cash EBTDA guidance to at least $260 million and reaffirms key target ranges for the year. Management said it will continue balancing profitable growth, credit control, and new product rollout.
What the numbers say about Zip Asx right now
Over the past 12 months, Zip shares have risen 23%, ahead of the S&P/ASX 200 Index, which has gained 15% over the same period. That comparison adds to the sense that investors are watching whether recent operating strength can continue into the next phase of guidance delivery.
The latest results also show why Zip Asx remains a closely watched name in the buy now, pay later space: customer growth is still present, margins are improving, and the company is leaning on both product expansion and funding discipline. The next focus will be whether the stronger quarter can carry through to the rest of FY26, especially as Zip Asx targets lower US credit losses and continued margin strength.
