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Highlights
Zip Co (ASX:ZIP) achieved significant earnings growth driven by expansion in the United States
The company introduced new product offerings including Pay-in-8 and Zip Plus to enhance customer engagement
Management is assessing a Nasdaq dual listing alongside its current ASX presence
Zip Co (ASX:ZIP) operates in the buy now, pay later sector within the Australian market and is part of the s&p asx 200. The company reported notable progress in earnings for FY25, supported by stronger performance in the United States and improving efficiencies across its operations.
Growth across regions
The United States division delivered the strongest contribution with transaction activity surpassing prior years and outpacing broader industry levels. Consumer engagement expanded as average spending and transaction frequency both advanced. In-store usage also rose significantly with the support of a physical card, while new merchant partnerships in grocery, automotive services and entertainment enhanced customer reach.
In Australia and New Zealand, Zip Plus demonstrated increased adoption, reflecting higher customer activity compared to earlier products. The business also secured new partnerships in travel, healthcare and retail. Wallet functionality was enhanced through collaboration with a global technology firm, further integrating Zip services into everyday transactions.
Product expansion and innovation
Product innovation remained a priority with the Pay-in-8 instalment service in the United States contributing meaningfully to growth. This option offered flexible repayment structures and attracted demand for larger order values. Plans are underway for the rollout of Pay-in-2, aimed at further supporting everyday purchases.
In Australia, the launch of Zip Personal Loan earlier in the financial year supported categories such as vehicle purchases, home upgrades and travel. Receivables in Zip Plus also grew steadily as customers using the product transacted more frequently than those using earlier credit options.
Operational efficiency and financial discipline
The company emphasised efficiency through disciplined cost management, while also expanding its financing arrangements. In the United States, facility limits were extended and additional short-duration capacity was added. In Australia, new long-term facilities were secured, strengthening funding stability for receivables.
Zip also reduced corporate debt during the year and undertook a share buyback program, reflecting its balance sheet flexibility. Marketing investments and artificial intelligence initiatives were scaled to drive customer engagement and platform efficiency. Net Promoter Scores highlighted strong customer satisfaction across both the United States and Australia.
Dual listing review
Alongside its presence on the Australian Securities Exchange, Zip is reviewing the possibility of a Nasdaq dual listing. The United States now contributes the majority of the group’s divisional earnings, and management highlighted the alignment of a US market listing with its operational scale in the region.
Outlook for the business
The company released new guidance for FY26 that includes further expansion in United States transaction activity, revenue margin stability and operating margin progression. Management also highlighted product innovation, customer engagement and scalable platforms as the central themes for the next phase of growth.
Frequently Asked Questions
- What sector does Zip Co (ASX:ZIP) operate in?
Zip Co operates in the buy now, pay later sector within the financial technology industry. - What new products did Zip Co launch recently?
Zip Co introduced Pay-in-8 in the United States and Zip Plus along with Zip Personal Loan in Australia. - Why is Zip Co reviewing a Nasdaq dual listing?
The review is linked to the growing scale of its United States operations and increased interest in the region.
