Zip shares surge on reaffirmed guidance
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The news: Shares in Zip were more than 11% higher in afternoon trade after the buy now, pay later lender reaffirmed its earnings guidance and reported strong growth in US transactions.
The numbers: In a presentation to the Macquarie Australia Conference, Zip reconfirmed guidance for cash EBTDA of at least $153 million in the 2025 fiscal year.
It also said momentum in total transaction value (TTV) growth is continuing across its two core markets — Australia and New Zealand, and the US — with US TTV lifting 40% year on year in April, even as the operating environment in the country "continues to evolve".
The company's share price was 11.58% higher at $1.80 at 2.10pm AEST.
The context: Zip noted in the presentation that there had been a "significant turnaround" in the group's profitability in the last two years, driven partly by US growth.
In early April, the company announced an up to $50 million share buyback, reflecting the strength of its balance sheet.
The source: Macquarie conference presentation
