Full Year 2025 Zip Co Ltd Earnings Call Transcript
Key Points
- Zip Co Ltd (ZIZTF) reported the strongest financial performance in its history, with cash earnings growth of 147%.
- The company achieved over $1 billion in total income, with significant contributions from the US business.
- Customer engagement strengthened, with average spend and transactions per customer increasing across 6.3 million customers.
- The US business delivered over 100% growth in cash earnings, exceeding USD100 million for the first time.
- Zip Co Ltd (ZIZTF) maintained strong credit performance, with net bad debts as a percentage of TTV improving by 14 basis points.
- The revenue margin declined due to the increased contribution from the US business, which has a lower product margin compared to ANZ.
- The company faces potential regulatory challenges in the US, particularly with state-based regulations like the New York BNPL Act.
- There is a need to manage operating expenses carefully, as the company plans to invest in growth and innovation.
- The dual listing on Nasdaq is subject to board approval and regulatory processes, which could delay potential benefits.
- The company needs to continue balancing customer acquisition costs with maintaining strong credit performance.
Thank you for standing by, and welcome to the Zip Co Limited FY25 results. (Operator Instructions)
I'll now hand the conference over to Director of Investor Relations and Sustainability, Vivienne Lee. Please go ahead.
Thanks, operator. Good morning, and thanks, everyone, for joining us for the presentation of the FY25 results. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora Nation, and pay our respects to elders past and present. This conference is also being webcast and will be available on Zip's website.
I'm joined today by Zip's Group CEO and Managing Director, Cynthia Scott; Group CFO, Gordon Bell; and US CEO, Joe Heck. Cynthia will present our FY25 Group highlights and ANZ business performance. Joe will then cover the US business, and Gordon will provide details of the financial results. Cynthia will then conclude with remarks regarding our FY26 strategy and outlook, and the
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