AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Zip (ZIP) lifts FY25 cash EBTDA guidance to $160 million
- US transaction value grew over 40% year-on-year in May
- Over $22 million allocated to share repurchase program
Zip Co Ltd (ASX:ZIP) has captured investor attention with a significant 14% surge in its share price following a robust FY25 performance update. The company's May 2025 trading report and revised guidance have further cemented its standing as one of the more resilient financial technology names within the S&P/ASX200.
Strong May Performance Sparks FY25 Upgrade
In a trading update that reflected its momentum, Zip revealed strong performance metrics, particularly from its US operations. Notably, its total transaction value (TTV) growth continued to accelerate across both primary markets. The US segment stood out with year-over-year TTV growth exceeding 40% in USD terms.
Alongside these gains, Zip reported that credit loss performance remained consistent with Q3 FY25 trends, suggesting sustained underwriting discipline and improving consumer repayment behaviour.
Share Repurchase in Focus
Reinforcing shareholder value, Zip disclosed that it has acquired approximately 12.3 million of its own shares, investing $22.6 million so far under its $50 million on-market buyback initiative. This approach supports fundamental metrics such as earnings per share (EPS), and reflects a strategic capital management stance designed to reward long-term holders.
Revised FY25 Guidance Offers Optimism
Encouraged by its operational performance, Zip raised its FY25 cash EBTDA target from $153 million to at least $160 million. The company remains confident in achieving results aligned with its two-year target range, highlighting a strong operational rhythm despite broader macroeconomic uncertainties.
CEO and Managing Director Cynthia Scott pointed to the ongoing momentum, particularly in the US market, as a signal of the robustness of Zip’s strategy and execution. She highlighted the sustained TTV growth as a key pillar of this revised guidance.
Zip in Context of ASX200 and Broader Themes
Zip's resurgence aligns with broader trends seen across the ASX200, where tech-oriented and consumer credit firms have recently outperformed. While growth-oriented players like Zip command attention, investors may also consider the relative stability and income potential offered by ASX dividend stocks as a diversification option.
As Zip builds on its recovery narrative, its share price performance will be closely watched. Should positive economic indicators persist, and Zip continues executing to plan, further upside potential remains on the table—especially within the context of the evolving fintech landscape.
