Australia's Zip Payments Considers Dual Nasdaq Listing

Zip Co Limited (ASX: ZIP) reported a sharp increase in earnings for the 12 months ended 30 June 2025, alongside confirmation that it is considering a dual listing on the Nasdaq.

The company recorded cash EBTDA of USD 170.3 million, up 147% on the prior year. Total income rose 23.5% to USD 1.08 billion, supported by a 30.3% increase in total transaction volume (TTV) to USD 13.1 billion. Operating margin nearly doubled to 15.8% compared with 7.9% in FY24. Zip reported cash gross profit of USD 509 million, up 34% year on year, and a cash net transaction margin of 3.9%. Active customers increased 4.6% to 6.3 million, with 85,500 merchants on its platform, a 7.9% rise. Net bad debts as a percentage of TTV improved to 1.5% from 1.7% a year earlier.

“It has been a defining year for Zip with cash earnings growing by 147.0% to USD 170.3 million. We achieved several milestones including delivering over USD 1 billion in total income and our US business generated over USD 100 million of cash earnings. Disciplined execution and strong unit economics underpinned our performance, with Group operating margin almost doubling within 12 months to 15.8%,” said Cynthia Scott, Zip Group Chief Executive Officer and Managing Director.

“Our customers remain at the centre of everything we do. The momentum we see in our US business – which delivered TTV and revenue growth (in USD) of 41.6% and 43.7% respectively – reflects the strength of our offering for the millions of underestimated Americans we serve, who choose Zip to manage their cash flow and everyday spending. In ANZ we scaled new, innovative products such as Zip Plus to drive engagement, supporting a return to TTV growth. Our disciplined credit decisioning saw Group net bad debts reduce to 1.5% of TTV. We also strengthened our balance sheet having repaid all corporate debt and have been actively progressing our USD 50 million on-market share buyback program,” she added.

“Consistent with our objective to maximise long-term shareholder value, Zip is considering a dual listing on the Nasdaq, supporting the Company’s significant growth opportunity and growing investor interest in the US,” Scott said.

Zip’s US business reported TTV of USD 6.0 billion, up 41.6% on the prior year, outpacing the broader buy now, pay later market. Active customers increased 11% to 4.3 million, with average spend per customer rising 27.6%. The business added merchants such as Heritage Grocers, Tire Agent, Take 5 Oil Change, GameStop and Cato, while partnerships with Google and Stripe expanded its distribution.

“We are a more efficient and scalable business. Our focus on cost discipline while driving significant top line growth supported cash earnings growth and operating margin expansion. We achieved strong results on our refinancing in Australia and are in advanced stages to establish new warehouse arrangements in the US, which will deliver future savings,” said Gordon Bell, Zip Group Chief Financial Officer.