Zip Reconfirms FY27 Cash EBTDA Guidance of $340m

Zip (ASX:ZIP)'s first quarter update reconfirms its FY27 guidance after customers transacted more often, even as an external fraud event in the US added costs and slowed growth in July and August.

Total transaction volume (TTV) grew 18.0% to $4.6b, with US TTV up 34.1% in USD. Total income rose 17.0% to $376.1m and the revenue margin held at 8.2%. Transactions rose 21.8% to 31.6m. Cash EBTDA was $65.0m, up 3.4%, including $10.1m of operating expenses relating to the fraud event. Excluding these costs, adjusted cash EBTDA was $75.1m, up 19.5%. Net bad debts were 1.97% of TTV, compared with 1.65% in 1Q26, and the cash net transaction margin was 3.8%, compared with 4.0%. Active customers were 6.4m and merchants 96.6k. Zip US established a two-year US$300.0m securitisation, its first Asset Backed Security issuance, at a fixed rate yield of 5.68%. Reconfirmed FY27 guidance includes Group cash EBTDA of $340m, US TTV growth greater than 30% in USD and a Group operating margin of between 20% - 22%, against 17.3% in the quarter.

Figures are based on unaudited management financials and guidance is subject to market conditions. Zip has lodged a claim with its insurer for the fraud event, and the release does not say whether any amount will be recovered.