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Zip Co Ltd financial performance and US fraud incident
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2026-10-23 01:02 UTC → 2026-10-26 05:31 UTC ·
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Zip Co Ltd financial performance and US fraud incident
Zip Co Ltd initially reported strong financial results for FY25, 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, particularly 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 later has faced significant share price volatility following a disappointing FY27 first-quarter update for FY27 and the disclosure of a coordinated fraud event in the United States. This external “external fraud event” involved coordinated individuals using legitimate credentials to execute unpaid transactions, costing the company approximately US$7.2 million (A$10.1 million) in cash operating expenses. While US transaction volume 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 41% year-on-year in September, 18% to $4.6 billion and total income rose 17% to $376 million. While net bad debts rose increased to 1.97% of total transaction volume, TTV, up from 1.65% in the previous year's corresponding period. 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.
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- 2026-10-26 05:31 UTC Zip Co Ltd financial performance and US fraud incident
- 2026-10-23 01:02 UTC Zip Co Ltd financial performance and fraud incident
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