Highlights:

• FY26 revenue increased 25% to AU$1.34 billion, while statutory net profit rose 46% to AU$116.4 million.
• Record cash earnings reached AU$268.9 million, supported by stronger operating leverage across the US and ANZ.
• Zip announced a new AU$50 million on-market share buy-back, adding another potential catalyst for shareholders.

Profitability Takes Centre StageZip Co Limited (ASX: ZIP) delivered a strong FY26 performance, with the company’s shares surging 17.248% to $3.025. The company’s annual results, released on 20 August 2026, showed revenue from ordinary activities rising 25% to AU$1.34 billion, while statutory net profit after tax climbed 45.7% to AU$116.4 million. The results were reported in Zip’s FY26 Annual Report and Appendix 4E.

The bigger story emerged from cash earnings. Zip reported record Group cash earnings of AU$268.9 million, up 57.9% year on year, while its operating margin expanded by 420 basis points to 20.0%. Total transaction volume increased 27.2% to AU$16.7 billion, with 6.5 million active customers and 97,400 merchants across the platform.US Growth Remains the Key EngineThe United States continued to provide substantial momentum for Zip. US transaction volume rose 42.5% in USD terms to US$8.6 billion, while revenue increased 44.3% to US$613.1 million. Active customers reached 4.6 million, while merchant numbers climbed 24.6% to 30,800. Cash EBTDA advanced 51.4% to US$154.7 million, highlighting the growing contribution of the US business.

The company also reported stronger engagement, with transactions per active customer increasing 23.1% in the US. Credit performance remained within management’s targeted range, with US net bad debts at 1.7% of TTV.ANZ Delivers a Profitability Step-UpZip’s ANZ operations also recorded a significant improvement. Revenue increased 4.6% to AU$432.9 million, while receivables rose 9.4% to AU$2.31 billion. Cash EBTDA almost doubled to AU$69.5 million, representing a 98.6% increase, while the operating margin expanded to 15.9%.Buy-Back Adds Another CatalystAdding to the positive momentum, Zip announced a new on-market buy-back program of up to AU$50 million. The program is scheduled to commence on 14 September 2026 and end on 14 September 2027. The company has proposed buying back up to 79.68 million ordinary shares, with no shareholder approval required. With record profitability, strong US growth, improving ANZ earnings and a new capital management initiative, Zip enters FY27 from a stronger position. The key question for investors will be whether the company can maintain this growth trajectory while continuing to deliver disciplined credit management and operating leverage.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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