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Zip Co's gross profit for the
six
months ended in Dec. 2025 was A$564 Mil. Zip Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2025 was A$797 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Zip Co's gross profit for the
six
months ended in Dec. 2025 was A$564 Mil. Zip Co's Revenue for the
six
months ended in Dec. 2025 was A$658 Mil. Therefore, Zip Co's Gross Margin % for the quarter that ended in Dec. 2025 was 85.63%.
Zip Co had a gross margin of 85.63% for the quarter that ended in Dec. 2025 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Zip Co was 66.93%. The lowest was 37.04%. And the median was 57.80%.
Zip Co (ASX:ZIP) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Zip Co had a gross margin of 85.63% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Zip Co Gross Profit Related Terms
Zip Co Gross Profit Historical Data
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The historical data trend for Zip Co's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Zip Co's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zip Co Gross Profit vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where Zip Co's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$797 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Zip Co's Gross Margin % for the quarter that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Zip Co (ASX:ZIP) has a Gross Profit of A$797 Mil as of Dec. 2025. Gross Profit equals net sales less total cost of goods sold. View historical data on Zip Co and its competitors.
Is Zip Co's Gross Profit too high?
Zip Co's current Gross Profit is A$797 Mil. Overall, Zip Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Gross Profit compare to V and MA?
Zip Co's Gross Profit of A$797 Mil can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Credit Services company?
A good Gross Profit depends on the Credit Services industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on Zip Co and its competitors. Zip Co's current Gross Profit is A$797 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.10, compared to a current price of A$2.78 — trading 32.4% above its estimated fair value. The current Gross Profit is A$797 Mil. Zip Co's overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current Gross Profit is A$797 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$2.78 is trading 32.4% above its estimated GF Value™ of A$2.10.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Gross Profit: A$797 Mil
GF Value™: A$2.10 vs. price of A$2.78 (32.4% above fair value)
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
66GF Score
Get the complete analysis for ASX:ZIP
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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