Zip Co (ASX:ZIP) Interest Expense: A$-224 Mil (TTM As of Dec. 2025)

What is Zip Co Interest Expense?

Zip Co ASX:ZIP -2.78% 62 Interest Expense is A$-224 Mil as of Dec. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review.

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Zip Co's interest expense for the six months ended in Dec. 2025 was A$ -113 Mil. Its interest expense for the trailing twelve months (TTM) ended in Dec. 2025 was A$-224 Mil.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income(EBIT) by its Interest Expense. Zip Co's Operating Income for the six months ended in Dec. 2025 was A$ 174 Mil. Zip Co's Interest Expense for the six months ended in Dec. 2025 was A$ -113 Mil. Zip Co's Interest Coverage for the quarter that ended in Dec. 2025 was 1.54. The higher the ratio, the stronger the company's financial strength is. Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Zip Co (ASX:ZIP) Interest Expense Explanation

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Zip Co's Interest Expense for the six months ended in Dec. 2025 was A$-113 Mil. Its Operating Income for the six months ended in Dec. 2025 was A$174 Mil. And its Long-Term Debt & Capital Lease Obligation for the six months ended in Dec. 2025 was A$2,539 Mil.

Zip Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2025 )	/	Interest Expense (Q: Dec. 2025 )
	=	-1	*	174.179	/	-113.278
	=	1.54

* 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.

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Zip Co Ltd interest coverage is 1.49, which is low.

Zip Co Interest Expense Historical Data

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The historical data trend for Zip Co's Interest Expense can be seen below:

Zip Co Interest Expense Chart

Zip Co Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Jun25

Interest Expense

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-69.20

-109.56

-273.94

-270.33

-249.43

Zip Co Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Interest Expense	Get a 7-Day Free Trial															-148.07	-122.27	-138.51	-110.92	-113.28

62GF Score

Zip Co Ltd ASX:ZIP

Interest Expense is just one metric. See GF Score™, valuation, warning signs, and more.

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Zip Co Interest Expense Calculation

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Interest Expense 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$-224 Mil.

Frequently Asked Questions Learn more about Interest Expense →

What does a Interest Expense of A$-224 Mil mean?

Zip Co (ASX:ZIP) has a Interest Expense of A$-224 Mil as of Dec. 2025. Interest Expense is the amount a company pays on its long-term debt. View historical data on Zip Co and its competitors.

Is Zip Co's Interest Expense too high?

Zip Co's current Interest Expense is A$-224 Mil. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Zip Co's Interest Expense compare to V and MA?

Zip Co's Interest Expense of A$-224 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 Interest Expense for a Credit Services company?

A good Interest Expense depends on the Credit Services industry context. However, Interest Expense 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 Interest Expense mean?

A high Interest Expense can signal that a stock is expensive relative to its fundamentals. Interest Expense is the amount a company pays on its long-term debt. View historical data on Zip Co and its competitors. Zip Co's current Interest Expense is A$-224 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$2.07, compared to a current price of A$3.15 — trading 52.2% above its estimated fair value. The current Interest Expense is A$-224 Mil. Zip Co's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Interest Expense calculated?

Interest Expense is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current Interest Expense is A$-224 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$3.15 is trading 52.2% above its estimated GF Value™ of A$2.07. GuruFocus considers Zip Co to be Significantly Overvalued.

Key valuation signals for ASX:ZIP:

Interest Expense: A$-224 Mil
GF Value™: A$2.07 vs. price of A$3.15 (52.2% above fair value)
GF Score™: 62/100 with 7 warning signs

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 Co Business Description

Industry Financial Services Credit Services

Comparable Companies ASX:LFG ASX:LFS ASX:CCP ASX:PPM ASX:SVR ASX:HUM ASX:FSA ASX:PLT ASX:PNC ASX:HMY V MA AXP COF BOM:500034 PYPL AFRM SYF NSE:SHRIRAMFIN SOFI

Other Exchanges ZIZTF:USA YRRA:Germany

Address 126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website https://www.zip.co

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.

62GF Score

Get the complete analysis for ASX:ZIP

Interest Expense is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$3.15

Price

A$2.07

GF Value

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