Zip Co (ASX: ZIP) has unveiled a $50 million on-market share buy-back program, underlining its confidence in the business and commitment to delivering value for shareholders.
The buy-back is expected to kick off around 23 April 2025 and will run for up to 12 months, offering the company flexibility to repurchase shares when market conditions make it compelling.
Balance sheet strength drives move
According to Zip, the decision reflects its solid balance sheet, strong operating cash flows, and positive outlook for profitable growth across its core markets — Australia, New Zealand, and the US.
Group CEO Cynthia Scott said the buy-back aligns with Zip’s capital management framework, which balances returning capital to shareholders with the need to preserve financial strength and flexibility for future opportunities.
“Zip will maintain a strong balance sheet following completion of the Buy-Back with ongoing flexibility to pursue future growth opportunities,” she said.
Shareholder value front and centre
The company noted that the number of shares repurchased will depend on various factors, including market conditions and capital deployment opportunities. Importantly, Zip retains the right to vary, suspend, or end the program if circumstances change.
In line with regulatory requirements, the company will:
- Not pay more than 5% above the 5-day VWAP for any shares bought back
- Ensure the buy-back does not exceed 10% of issued capital over 12 months
Results brought forward
In tandem with the announcement, Zip has brought forward the release of its Q3 FY25 results update to 16 April 2025, ahead of the planned buy-back start date.
This move positions Zip to update the market on its latest financial performance just before the buy-back begins, which could help investors better understand the company’s rationale and timing.
Founded in 2013, Zip has become a key player in the digital payments space, offering flexible credit options and building a large customer and merchant network across ANZ and the US.
