Zip Co Limited (ASX:ZIP) Upgrades FY25 Guidance Amid Strong May Performance
Financial Performance
Zip Co Limited reported continued strong performance in May 2025, with total transaction volume (TTV) growth maintaining momentum across both Australia and the US markets. Year-on-year TTV growth in the US exceeded 40%, and there were no material changes to credit loss performance since Q3 2025 in either market.
Guidance Upgrade
Based on ongoing strong performance, Zip has upgraded its FY25 guidance, now expecting to deliver cash EBTDA of at least $160 million, up from the previous forecast of at least $153 million. The company remains on track to achieve its FY25 results within the two-year target ranges announced in February 2025.
Share Buy-Back Program
In line with its capital management framework, Zip has repurchased 12.3 million shares for a total of $22.6 million as part of its on-market share buy-back program, which has a maximum allocation of $50 million.
Executive Comments
Cynthia Scott, Zip Group CEO and Managing Director, stated, “Zip’s momentum has continued throughout May, particularly in the US where TTV has continued to grow above 40% year on year, reflecting the resilience of our business model and disciplined execution of our strategy. Following our continued strong performance, we have upgraded our FY25 guidance to deliver cash EBTDA of at least $160m.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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