Zip Co (ASX:ZIP) has delivered a robust third-quarter update for the period ended March 31, characterised by record earnings and accelerated growth in the United States.
The financial services company reported a record cash EBTDA of $65.1 million, marking a 41.5% increase compared to the same period last year.
The performance was underpinned by a substantial expansion in operating margins, which climbed to 19.4%, and a 20.2% rise in total income to $335.2 million.
A primary driver of this quarter’s success was the US market, where total transaction volume rose by 43.1% in USD terms.
Despite the rapid expansion, management maintained credit quality, with US net bad debts remaining steady at 1.86% of TTV.
Group-wide, TTV reached $4.0 billion, supported by a growing ecosystem of 6.5 million active customers and nearly 94,000 merchants.
In the ANZ region, the company continued to focus on profitable growth, highlighted by the April announcement of "ZMobile" in Australia, aimed at diversifying revenue streams.
Group CEO Cynthia Scott attributed the results to a resilient business model and disciplined execution, particularly noting the strength of customer engagement.
Following the strong quarterly performance, Zip has officially upgraded its FY26 group cash EBTDA guidance to a minimum of $260 million.