Zip Co (FRA:YRRA) Interest Expense: €-126.9 Mil (TTM As of Dec. 2025)

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Director of Data and Quant Analytics at GuruFocus
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FRA:YRRA Zip Co Ltd FRA:YRRA
72 GF Score
Price €1.51
GF Value €1.27
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Zip Co Interest Expense?

Zip Co FRA:YRRA +8.55% 72 Interest Expense is €-126.9 Mil as of Dec. 2025. GuruFocus rates FRA:YRRA with a GF Score™ of 72/100 and a GF Value™ of €1.27 (Modestly 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 € -64.3 Mil. Its interest expense for the trailing twelve months (TTM) ended in Dec. 2025 was €-126.9 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 € 98.8 Mil. Zip Co's Interest Expense for the six months ended in Dec. 2025 was € -64.3 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  (FRA:YRRA) Interest Expense Explanation

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. The higher, the better.

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 €-64.3 Mil. Its Operating Income for the six months ended in Dec. 2025 was €98.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the six months ended in Dec. 2025 was €1,441.0 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*98.836/-64.279
=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

* Premium members only.

The historical data trend for Zip Co's Interest Expense 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.

Zip Co Interest Expense Chart

Zip Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Expense
Get a 7-Day Free Trial Premium Member Only Premium Member Only -43.91 -72.83 -169.70 -166.76 -140.79

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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -90.88 -75.42 -83.77 -62.61 -64.28
FRA:YRRA
72GF Score
Zip Co Ltd FRA:YRRA
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 €-126.9 Mil.

* 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.

Frequently Asked Questions Learn more about Interest Expense →
What does a Interest Expense of €-126.9 Mil mean?
Zip Co (FRA:YRRA) has a Interest Expense of €-126.9 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 €-126.9 Mil. Overall, Zip Co has a GF Score™ of 72/100 and is considered Modestly 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 €-126.9 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 €-126.9 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 (FRA:YRRA) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.27, compared to a current price of €1.51 — trading 18.9% above its estimated fair value. The current Interest Expense is €-126.9 Mil. Zip Co's overall GF Score™ is 72/100 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 (FRA:YRRA), the current Interest Expense is €-126.9 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 (FRA:YRRA) Overvalued in 2026?

Based on GuruFocus' analysis, Zip Co stock appears to be overvalued. The current stock price of €1.51 is trading 18.9% above its estimated GF Value™ of €1.27. GuruFocus considers Zip Co to be Modestly Overvalued.

Key valuation signals for FRA:YRRA:

  • Interest Expense: €-126.9 Mil
  • GF Value™: €1.27 vs. price of €1.51 (18.9% above fair value)
  • GF Score™: 72/100 with 7 warning signs

No single metric tells the full story. See the FRA:YRRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Zip Co Business Description

Other Exchanges ZIZTF:USAZIP:Australia
Address 126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000
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.
72GF Score

Get the complete analysis for FRA:YRRA

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

€1.51
Price
€1.27
GF Value