Shares in Zip Co experienced a significant surge, climbing 23.4 per cent to reach a 52-week high in early trading, following positive assessments from analysts. Zip Co is a global buy now, pay later company, offering consumers accessible and flexible payment solutions. RBC Capital Markets analyst Jack Lynch noted that Zip’s 2025 results exceeded expectations, particularly highlighting the fourth-quarter cash earnings margin of 1.6 per cent, which surpassed full-year guidance.
Lynch pointed to robust growth in the US market, where active customers increased by 11 per cent. Zip’s management is considering a dual Nasdaq listing. This strategic move reflects the considerable growth opportunities the payments provider sees in the United States. The company anticipates US total transaction value (TTV) growth exceeding 35 per cent in the 2025–2026 financial year.
Further guidance includes group cash net transaction margins of 3.8–4.2 per cent and an operating margin of 16–19 per cent. Revenue margin compression in Zip’s Australia and New Zealand (ANZ) business is anticipated due to promotional activities, with revenue margins for the 2025–26 financial year projected to be around 8 per cent.
Lynch also forecasts Zip’s full-year cash earnings margin to exceed 1.3 per cent. However, he suggested that this projection might be conservative, given the company’s strong performance in the fourth quarter.
