Zip Co Ltd reports record cash earnings amid market volatility

Zip Co Ltd has reported strong financial results despite its share price falling more than 50% over the past year. The fintech company reported total income of $1.35 billion, a 24.6% increase for FY25, and record cash EBTDA of $268.9 million, up 57.9%.

Total transaction volume (TTV) rose 27.2% to $16.7 billion, with significant growth in the US market, where volume increased by 42.5%. CEO Cynthia Scott noted that US growth is being driven by non-discretionary expenditure in categories such as health, education, auto, and transport. The company is targeting cash earnings of $340 million for FY27.

Analysts at UBS have maintained a buy rating on Zip shares, suggesting the current price may present a buying opportunity. Meanwhile, Hub24 Ltd is also noted in market discussions, with its shares trading at a price-sales ratio of 16.39x, which is above its five-year average of 13.32x.