# Zip Co Ltd financial performance and US fraud incident

> Live situation record from CLSTR: https://clstr.news/situations/zip-co-ltd-financial-performance-and-fraud-incident
> Updated: 2026-10-26T00:57:53.000Z. Sources: 5. Developments: 3.

Zip Co Ltd reported strong FY25 results, including a 24.6% increase in total income to $1.35 billion and record cash EBITDA of $268.9 million. This growth was supported by a 27.2% rise in total transaction volume (TTV), driven largely by a 42.5% increase in the US market. CEO Cynthia Scott noted that US growth was fueled by non-discretionary spending in sectors such as health, education, and transport.

However, the company has faced significant share price volatility following a disappointing FY27 first-quarter update and the disclosure of a coordinated fraud event in the United States. This “external fraud event” involved individuals using legitimate credentials to execute unpaid transactions, costing the company approximately US$7.2 million (A$10.1 million) in cash operating expenses and bad debts. The incident impacted TTV and new customer growth during July and August.

Despite these challenges, Zip reported that Q1 FY27 TTV grew 18% to $4.6 billion and total income rose 17% to $376 million. While net bad debts increased to 1.97% of TTV, up from 1.65% the previous year, shares recently rebounded by more than 14% following a record sell-off. Analysts from UBS and Macquarie have maintained bullish views, suggesting the price drop presents a buying opportunity. To manage share price movements, Zip has announced a $50 million on-market share buyback and plans to seek shareholder approval for a one-to-five share consolidation at its upcoming AGM on November 19.

## Timeline

### 2026-10-26: Zip Co shares rebound after record sell-off following US fraud incident

Zip Co shares rebounded 14% after a massive sell-off triggered by a A$10.1 million coordinated fraud event in the US, despite reporting strong quarterly transaction growth.

2 sources. https://clstr.news/cluster/zip-co-shares-rebound-after-record-sell-off-following-us-fraud-incident

### 2026-10-22: Zip Co Ltd shares face volatility following fraud event and quarterly update

Zip Co Ltd shares have faced pressure following a US-based fraud event costing US$7.2 million and a first-quarter update showing increased net bad debts despite growth in total transaction volume.

4 sources. https://clstr.news/cluster/zip-co-ltd-shares-face-volatility-following-fraud-event-and-quarterly-update

### 2026-10-11: Zip Co Ltd reports record cash earnings amid market volatility

Zip Co Ltd reports record cash earnings of $268.9 million and 27.2% growth in transaction volume, despite a significant decline in share price over the last year.

2 sources. https://clstr.news/cluster/zip-co-ltd-reports-record-cash-earnings-amid-market-volatility

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Cite as: Zip Co Ltd financial performance and US fraud incident. CLSTR, https://clstr.news/situations/zip-co-ltd-financial-performance-and-fraud-incident