Zip is sticking to its FY26 group EBTDA target of at least $260 million and management points to rapid expansion in the US arm as the key engine, with that market now driving the bulk of customer activity. Strong recent trading gives the company room to reaffirm guidance rather than dial expectations back and investors watching the buy now, pay later sector get a rare dose of clarity.
Across the March quarter, Zip’s total transaction volume climbs 22.4% year on year to $4 billion and shows customers are spending more through its platform. Group cash EBTDA jumps even faster, up 41.5% to $65.1 million, which suggests operating leverage is kicking in as scale increases.
Total income rises 20.2% to $335.2 million over the same period and active customers edge 3.5% higher to 6.5 million. The mix here matters because revenue and earnings are now growing meaningfully faster than headline customer numbers.
Growth in the US division underpins that performance and the business is becoming Zip’s main customer hub by a wide margin. As of March, the US base reaches 4.6 million active customers compared with 1.9 million across Australia and New Zealand.
April US transaction volume alone posts more than 40% year on year growth and extends the trend into the current quarter. Credit outcomes in the US track in line with internal expectations and are projected to improve to below 1.7% of transaction volume in the fourth quarter, which is critical for sustaining margins.
