Zip shares soar on growth, Nasdaq listing consideration
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More news: Buy now pay later provider Zip has seen its share price soar after announcing that it is considering listing on the Nasdaq to support its “significant growth opportunity” in the US, where more than 80% of divisional cash earnings are generated.
At 10:34am AEST, shares in Zip surged 25.3% to $3.91, with the stock up 31.7% in the year to date.
RBC Capital Markets analyst Jack Lynch said Zip has posted a “strong FY25 result”, with cash EBTDA had come in ahead of consensus, according to Visible Alpha, and US customer growth was up 11% on the previous corresponding period.
Lynch also said that the FY26 guidance of more than 1.3% cash EBTDA margin “could prove conservative given 4Q25 cash EBTDA margins were at 1.6%”.
E&P Financial Group analyst Annabel Khun highlighted that the US active customer count of about 4.3 million was ahead of the consensus expectation of 4.2 million.
What they said: “We would expect support for the stock today all else equal given the strength of the US result,” Khun said.
Zip posts $80 million net profit on strong US growth, mulls Nasdaq listing
The news: Buy now pay later provider Zip has posted a $79.89 million full-year net profit, a massive increase on the previous year, as it reports strong growth in its US market and flagged it is considering a dual listing on the Nasdaq.
The numbers: The FY25 net profit figure came in ahead of the market consensus estimate of $54.8 million, according to Visible Alpha, and ahead of the $3.7 million posted in FY24. Revenue came in at $1.07 billion, which was 23% higher than the $867.98 million in the previous year.
Cash EBTDA was $170.3 million in FY25, up 147% compared to FY24, as the number of active customer incrased by 4.6% to 6.3 million. The number of merchants on Zip's platform grew by 7.9% to about 85,500.
The context: Zip is considering dual listing on the Nasdaq to support the company's "significant growth opportunity" in the US, which now represents over 80% of divisional cash earnings. The company also flagged that it has seen increasing US investor interest with offshore institutional investors holding 16% of Zip's issued capital.
Zip highlighted that total transaction value for the US business increased by 41.6% year on year, which it said outpaced the broader market growth of comparable instalment products at between 30% to 32%.
Total transaction value growth in the US was predominantly driven by non-discretionary categories like grocery, education and health as well as in-store spend. Zip also added several new merchants in "targeted verticals".
The ANZ business also posted total transaction value growth of 5.5%. Zip also rolled out new partnerships to integrate with Google Pay and Google Chrome, among other Google services.
The source: ASX
