Cash EBTDA More Than Doubles as Zip Strengthens Market Position
Zip Co Limited (ASX: ZIP) has delivered a blockbuster first half for FY25, with cash EBTDA surging 117.1% to $67 million. The standout performer? The U.S. market, where Zip’s total transaction volume (TTV) soared 40.3% year-on-year, making up 70% of the company’s total.
Key Financial Highlights
- Cash EBTDA: $67.0M (+117.1% YoY)
- TTV: $6.2B (+23.9% YoY)
- Total income: $514.0M (+19.8% YoY)
- Cash gross profit: $235.5M (+30.1% YoY)
- Cash net transaction margin: 3.8% (vs 3.6% YoY)
- Active customers: 6.3M (+1.5% YoY)
- Merchants on platform: 81.9K (+7.6% YoY)
CEO Cynthia Scott: “A Standout Half-Year for Zip”
Zip CEO Cynthia Scott credited the U.S. holiday shopping boom and disciplined execution for the company’s record financials.
“Our U.S. business continues to outperform the market, with deeper customer engagement and exceptional transaction growth,” Scott said. “We’ve strengthened our balance sheet, expanded our product offerings, and positioned Zip for long-term sustainable growth.”
Scott reaffirmed Zip’s FY25 target of at least $147 million in cash EBTDA, highlighting cost discipline and strategic expansion as key drivers.
Regional Performance
U.S. Market – The Powerhouse
- TTV up 40.3% YoY to US$2.9B, fueled by record holiday sales.
- Customer engagement skyrocketed, with average spend per user up 33.1% and transaction frequency up 29.8%.
- Expansion into in-store shopping, with major new merchants like GameStop, Major League Baseball Ticketing, and Vivid Seats.
ANZ Market – Back to Growth
- After 18 months of margin-focused consolidation, the ANZ business returned to growth in Q2.
- December TTV in Australia rose 10% YoY, aided by the launch of Zip Plus and Zip Personal Loans.
- New merchant partnerships included Cathay Pacific, Lagardère Travel Retail, and James Pascoe Group (Prouds, Angus & Coote, Goldmark).
Strengthened Balance Sheet and Operational Efficiencies
- Cleared all corporate debt after raising $267.1M in equity from institutional and retail investors.
- Cash reserves surged to $195.5M (from $80.4M in June 2024).
- Operating costs reduced to 2.7% of TTV (from 3.0%), despite strategic marketing investments.
Leadership and Outlook
- Peter Gray, Zip’s ANZ CEO & Co-Founder, transitions to Head of Strategic Growth to accelerate expansion.
- Soraya Alali joins as ANZ CEO (starting May 2025), bringing 20+ years of experience in financial services.
- Zip reaffirms carbon-neutral status for the fourth consecutive year.
Looking ahead, Zip is laser-focused on scaling its U.S. dominance, further product innovation, and expanding into new verticals.
