Zip Co reaches $4.6B transaction volume
- Total transaction volume increased 18.0% year-on-year to $4.6 billion in the first quarter of financial year 2027.
- Group cash EBITDA grew 3.4% to $65 million despite absorbing $10.1 million in US external fraud costs.
- Growth was heavily driven by the US division, where transaction volume surged 34.1% in local currency terms.
Zip Co (ASX:ZIP) delivered an 18% increase in total transaction volume to $4.6 billion for the three months ended Sept. 30.
The transaction surge expands upon prior momentum, while total revenue increased 17.0% year-on-year to $376.1 million.
"Customers are choosing to use Zip more often, driving strong top line momentum, with transactions per customer up 27.0% in the US and 14.2% in Australia, positioning us well ahead of the second-quarter holiday season," said Zip Co Managing Director Cynthia Scott.
Operating expenses included a $10.1 million impact from an external fraud event in the US, though adjusted cash EBITDA rose 19.5% to $75.1 million when excluding these costs.
The company reaffirmed its full-year guidance for Group cash EBITDA of $340 million.
Following the announcement, the Zip Co share price was unchanged at $2.07.
The financial services firm operates a buy now, pay later platform serving 6.4 million active customers and 96.6 thousand merchants across its core Australian and US markets.
To support future operations, the company stated that it is establishing a asset-backed security issuance in the US while executing a $50 million on-market share buyback.
