Zip Co Ltd's stock price has increased by 19% to A$3.07 following the release of its annual earnings report. The company's cash EBTDA was A$268.9 million, a 57.9% increase from the previous year, while statutory net profit after tax rose 45.7% to A$116.4 million. Both figures exceeded market expectations. The US business was a key driver of the results, generating A$903.1 million in revenue, up 37.3% year-on-year, and accounting for the majority of the group's total revenue of A$1,336.1 million.
Strong Revenue Growth
The total revenue represented a 24.7% increase from the prior year. The results also surpassed Zip's own upgraded guidance of at least A$260 million in cash EBTDA.
Future Outlook
Looking ahead, the company's forecast of approximately 26% earnings growth for FY2027 has given investors confidence in the durability of the recovery, contributing to the stock's bullish re-rating.
