Zip Co Ltd. (ZIP) AI Stock Analysis

• Market Cap: AU$1.88B
• Dividend Yield: N/A
• Average Volume (3M): 11.39M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 2.57
• Revenue Growth: 23.69%
• EPS Growth: 116.67%
• Country: AU
• Employees: 985
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.04
• Shares Outstanding: 1,270,683,600
• 10 Day Avg. Volume: 11,500,778
• 30 Day Avg. Volume: 11,385,252
• PEG Ratio: 0.03
• Price to Book (P/B): 5.58
• Price to Sales (P/S): 3.69
• P/FCF Ratio: -57.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.13
• Price Target Upside: 73.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): AU$1.34B

• Rating: 55 Neutral
• Price Target: AU$1.50 ▼(-36.97% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back mainly by weak cash-flow performance and still-high leverage, alongside a negative longer-term technical setup and a high P/E. These are partly offset by a strong earnings call showing significant margin/profitability improvement and upgraded margin guidance.

Positive Factors

U.S. Market Momentum

Rapid U.S. transaction and revenue growth demonstrates durable geographic diversification and scale in the largest payments market. Sustained >40% U.S. TTV growth and expanding U.S. cash EBITDA improve revenue mix, supporting long-term top-line resilience and optionality for local product expansion.

Margin Expansion & Profitability

Material margin improvement and a large increase in cash EBITDA point to structurally better unit economics and operating leverage. Higher operating margins reduce dependence on growth to deliver profits and provide a more durable earnings base through cycles and product mix shifts.

Funding, Liquidity & Capital Management

Established ABS facilities, a U.S. warehouse and improved liquidity materially strengthen funding diversity and maturity profile. Combined with cash reserves and completed buyback, this underpins funding stability for receivables and signals disciplined capital allocation over the medium term.

Negative Factors

Elevated Leverage

Despite improvement, a debt-to-equity ratio above 3 indicates meaningful leverage that can constrain flexibility if loss rates or funding costs rise. Persistently thin equity financing limits shock absorption and raises refinancing sensitivity over multiple quarters.

Negative Operating & Free Cash Flow

Negative operating and free cash flow signal the company still converts earnings unevenly into cash. Over several quarters this impairs capacity to self-fund receivables growth, increases reliance on external funding, and can magnify stress if funding markets tighten.

Product Loss & Provisioning Risk (Pay‑in‑8)

Higher-loss, longer-duration products and rising U.S. provisions create sustained credit risk if adoption grows. A persistent shift toward riskier products or faster U.S. growth without lower unit economics could depress margins and require higher capital or provisions across multiple reporting periods.

Zip Co Ltd. Business Overview & Revenue Model

Company Description

Zip Co Limited provides digital retail finance and payments solutions to consumers, and small and medium sized merchants (SMEs) in Australia, Canada, the Czech Republic, Mexico, New Zealand, Poland, Saudi Arabia, Singapore, South Africa, Turkey, the United Arab Emirates, the United Kingdom, and the United States. It operates through five segments: APAC, Americas, EMEA, Zip Business, and Corporate. The company offers unsecured loans and lines of credit to SMEs. In addition, the company offers Buy Now Pay Later services, which offer line of credit and installment products to consumers through online and in-store. The company was formerly known as ZipMoney Limited and changed its name to Zip Co Limited in December 2017. Zip Co Limited was incorporated in 2009 and is headquartered in Sydney, Australia.

How the Company Makes Money

Zip makes money primarily through a combination of merchant-related revenue and customer-related revenue generated from transactions processed on its platform. (1) Merchant fees: When a customer uses Zip to pay a merchant, Zip typically earns a fee from the merchant for facilitating the sale and providing the payment solution; this is generally a key revenue stream for BNPL providers because it monetizes merchant acquisition, conversion, and basket-size benefits. (2) Customer fees and interest/finance charges (product-dependent): Depending on the specific product, market, and customer terms, Zip can generate revenue from customer-facing charges such as account fees, late fees, and/or interest or other finance charges on certain credit products. (3) Other/ancillary revenue: Zip may also earn revenue from other platform-related sources (e.g., fees associated with payment processing or other value-added services), but specific categories and materiality are not provided here. Zip’s earnings are influenced by transaction volume (total merchant sales), active customers and merchants, credit performance (loss rates), funding costs used to finance receivables, and partnerships/integrations that drive merchant acceptance and customer usage; however, specific named partnerships or their quantitative contribution is null.

Zip Co Ltd. Financial Statement Overview

Summary

Income statement strength (revenue growth 12.75%, strong gross margin 62.28%, solid EBIT/EBITDA margins) is offset by balance-sheet leverage risk (debt-to-equity still high at 3.42) and weak cash-flow quality (negative operating and free cash flow).

Income Statement

Zip Co Ltd. has shown a strong revenue growth rate of 12.75% in the latest year, indicating a positive trajectory. The gross profit margin is healthy at 62.28%, reflecting efficient cost management. However, the net profit margin is relatively low at 7.46%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are solid at 25.64% and 31.74%, respectively, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 3.42 from a high of 25.45, showing better leverage management, but it remains relatively high, indicating potential financial risk. Return on equity has improved to 11.26%, reflecting better profitability, but the equity ratio is low, suggesting limited asset financing through equity.

Cash Flow

Zip Co Ltd. faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net income with free cash flow.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.23B	1.07B	874.02M	688.00M	597.65M	394.37M
Gross Profit	562.58M	667.43M	580.69M	336.80M	354.19M	166.93M
EBITDA	180.09M	340.15M	359.86M	-159.91M	-97.83M	-324.28M
Net Income	109.24M	79.89M	3.66M	-383.74M	-1.11B	-678.15M
Balance Sheet
Total Assets	3.98B	3.50B	3.18B	3.43B	3.42B	3.33B
Cash, Cash Equivalents and Short-Term Investments	541.56M	396.23M	357.52M	283.11M	303.56M	331.71M
Total Debt	2.55B	2.42B	2.42B	3.05B	2.88B	2.25B
Total Liabilities	3.32B	2.80B	2.78B	3.31B	3.10B	2.32B
Stockholders Equity	664.10M	709.52M	398.53M	119.87M	322.27M	1.01B
Cash Flow
Free Cash Flow	-9.93M	-69.30M	255.06M	-249.59M	-781.93M	-901.31M
Operating Cash Flow	-8.82M	-49.81M	272.54M	-225.03M	-752.42M	-887.91M
Investing Cash Flow	-19.98M	-19.49M	12.03M	-30.48M	-97.07M	-8.25M
Financing Cash Flow	88.35M	108.26M	-208.33M	236.59M	820.14M	1.19B

Zip Co Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ZIP, the sentiment is Negative. The current price of 2.38 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 2.37, and below the 200-day MA of 3.24, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 13.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ZIP.

Zip Co Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PLT	64 Neutral	AU$136.66M	6.29	72.15%	―	19.38%	―
HUM	56 Neutral	AU$352.51M	6.25	7.83%	2.84%	7.64%	463.49%
ZIP	55 Neutral	AU$1.88B	20.16	15.91%	―	23.69%	116.67%
PNC	52 Neutral	AU$100.17M	2.59	23.10%	―	-0.51%	―
LFS	52 Neutral	AU$1.05B	11.50	7.72%	6.60%	14.81%	―
MME	43 Neutral	AU$67.44M	-1.10	-43.76%	―	-9.56%	-392.31%

Zip Co Ltd. Corporate Events

Zip Co Updates Market on Progress of On-Market Share Buy-Back

Zip Co Ltd has updated the market on its ongoing on-market share buy-back program, confirming that it repurchased 1,246,633 ordinary fully paid shares in the most recent trading day. This brings the total number of shares bought back under the current program to 3,432,797, as the company continues to actively reduce its share count.

The latest notification, dated 19 March 2026, follows the initial buy-back announcement made on 20 February 2026 and a prior daily update on 18 March 2026. The continued execution of the on-market buy-back signals management’s focus on capital management and may support earnings per share and shareholder value over time.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Updates Market on Daily On‑Market Share Buy‑Back

Zip Co Ltd has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that 1,443,333 shares were repurchased on the previous trading day, with no shares bought back before that date under this notification cycle.

The disclosure, dated 17 March 2026, forms part of Zip’s daily buy-back notifications to the ASX, reflecting active execution of its capital management strategy. This level of buy-back activity may affect the company’s share count and could signal management’s confidence in the business to existing and prospective investors.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Australian Retirement Trust Ceases to Be Substantial Holder in Zip Co

Australian superannuation investor Australian Retirement Trust has notified Zip Co Ltd that it has ceased to be a substantial shareholder in the company as of 11 March 2026. The change, disclosed via a statutory substantial holder notice, indicates that one of Zip’s significant institutional investors has reduced its holding below the substantial ownership threshold, potentially altering the company’s institutional shareholder mix and influencing perceptions of its support from large long-term investors.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co CEO Cynthia Scott Reshapes Equity Holdings as Performance Rights Vest

Zip Co Ltd has disclosed changes to CEO Cynthia Scott’s interests in the company’s securities, detailing a conversion of previously held performance rights into fully paid ordinary shares. The adjustments involve both direct and indirect holdings, including transfers via the Zip Co employee share trust, but do not reflect any change in beneficial ownership for a portion of the shares.

The notice shows the expiry of certain performance rights as they vest and are replaced by ordinary shares, simplifying Scott’s equity position while maintaining her overall economic exposure to the company. This restructuring of executive equity holdings underscores ongoing alignment between management and investors, without signaling any net disposal of shares that might alter market perceptions of insider confidence.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Issues 1.5 Million New Shares on Conversion of Unquoted Securities

Zip Co Limited has notified the market of the issue of a total of 1,508,159 ordinary fully paid shares following the exercise or conversion of previously unquoted options or other unquoted convertible securities. The new shares, issued in two tranches on 9 March and 13 March 2026, reflect ongoing conversion activity that modestly expands the company’s equity base and may signal continued use of equity-linked incentives or financing structures for stakeholders.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Director Kevin Moss Increases Indirect Shareholding

Zip Co director Kevin Moss, whose interests are held indirectly through the Kevin Moss and Magdalena Dragon-Moss Revocable Trust, has increased his holding in the company. The trust acquired 20,325 fully paid ordinary shares in an on-market trade on 23 February 2026 (U.S. date), taking his total interest to 49,575 shares for a cash consideration of about US$23,054.65.

The transaction, disclosed in an Appendix 3Y filing, reflects a significant boost in Moss’s personal exposure to Zip Co’s equity. While the notice is primarily procedural, the director’s additional investment may be viewed by investors as a signal of confidence in the company’s prospects and could modestly influence market sentiment around the stock.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Director Andrew Stevens Lifts Indirect Shareholding

Zip Co director Andrew Stevens has increased his indirect holding in the company through Alochan Pty Limited as trustee for Sharetrust. Following an on-market purchase of 16,600 fully paid ordinary shares for $31,208 on 20 February 2026, his total indirect interest rose to 153,667 shares.

The transaction, disclosed in an Appendix 3Y notice, reflects additional director exposure to Zip Co’s equity without any simultaneous disposals. The company confirmed the trade did not occur during a closed period requiring prior written clearance, indicating routine portfolio adjustment rather than an exceptional governance event.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Director Meredith Scott Increases Shareholding in On-Market Trade

Zip Co Ltd director Meredith Scott has increased her direct holding in the company through an on-market purchase of fully paid ordinary shares. Following the transaction, dated 20 February 2026, her stake rose from 55,144 to 60,671 shares, while her 95,354 restricted rights under the NED Equity Plan remained unchanged.

The acquisition, valued at $9,948.60, reflects continued insider investment in the company’s stock and may be viewed as a signal of confidence in Zip Co’s prospects. No changes were reported in any related contracts or derivative interests, and the trade did not occur during a closed period, indicating it proceeded under standard governance procedures.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Director Diane Smith-Gander Lifts Indirect Shareholding via On-Market Purchase

Zip Co director Diane Smith-Gander has increased her indirect holding in the company through her superannuation fund vehicle, DSG Pty Ltd as trustee for the DSG Superannuation Fund. As both a director of the trustee and a member of the fund, she holds an indirect interest in the additional fully paid ordinary shares.

On 20 February 2026, Smith-Gander acquired 26,041 Zip fully paid ordinary shares via an on-market trade for a total consideration of $49,209.69. Following this transaction, her indirect holding rose to 223,515 fully paid ordinary shares, while her interests in NED Equity Plan restricted rights remained broadly unchanged, signalling continued alignment with shareholder interests.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co director Cynthia Scott increases equity stake via new share purchases

Zip Co has disclosed a change in the equity holdings of director Cynthia Scott, detailing acquisitions of fully paid ordinary shares on 20 February 2026. The filing outlines her extensive existing portfolio of performance rights and shares, signalling continued alignment of executive incentives with shareholder interests and the company’s long-term share performance.

Scott acquired a total of 53,342 Zip ordinary shares in two on-market transactions worth just over $100,500, adding to her prior direct and indirect holdings. The updated register of performance rights with staggered vesting dates and nil exercise price underscores Zip’s reliance on equity-based remuneration to retain key executives and support its strategic growth objectives.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.20 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Launches On-Market Share Buyback Program

Zip Co Ltd. has announced a new on-market share buyback of its ordinary fully paid shares listed on the ASX under the code ZIP. The program, disclosed through an Appendix 3C filing dated 20 February 2026, signals that the company intends to repurchase stock on the exchange as part of its capital management strategy.

The buyback may indicate management’s confidence in the company’s valuation and future prospects, and could be earnings-per-share accretive if executed at prevailing market prices. Existing shareholders may benefit from a reduced share count and potentially improved capital efficiency, while the move underscores Zip’s efforts to optimise its balance sheet in a competitive fintech landscape.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co launches up to $50m on-market share buy-back

Zip Co Limited has announced an on-market share buy-back of up to $50 million of its ordinary shares, with the program expected to start around 6 March 2026 and run for up to 12 months. The scale and timing of purchases will depend on market conditions, the company’s share price and alternative uses of capital, with the buy-back capped at 10% of issued capital and prices limited to no more than 5% above the recent volume-weighted average price.

Management framed the buy-back as part of a disciplined and balanced capital management strategy aimed at maximising shareholder value while maintaining investment in growth and sustainable profitability. The move signals confidence in Zip’s balance sheet and long-term strategy, and indicates the company currently has surplus capital it is prepared to return to shareholders, which may support the stock and refine its capital structure over the next year.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Issues 172,695 New Shares on Conversion of Unquoted Securities

Zip Co Ltd has notified the market of the issue of a total of 172,695 new ordinary fully paid shares following the exercise or conversion of previously unquoted options or other unquoted convertible securities. The new shares, issued on 17 and 22 December 2025, modestly increase Zip’s share capital and reflect the ongoing conversion of incentive or convertible instruments into listed equity, incrementally affecting existing shareholders’ dilution and signalling continued engagement with its equity-based funding and remuneration structures.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Issues 2.67 Million Unquoted Performance Rights Under Employee Incentive Scheme

Zip Co Limited has notified the market of the issue of 2,670,063 unquoted performance rights under its employee incentive scheme, with an issue date of 23 December 2025. The new securities, which are not intended to be quoted on the ASX, underscore the company’s continued use of equity-based compensation to attract and retain staff, further aligning employees’ interests with long-term shareholder value and the company’s strategic growth objectives.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Sets Date and Investor Call for 1H FY26 Results

Zip Co Limited has scheduled the release of its half-year financial results for the period ended 31 December 2025 on 19 February 2026, and will host a conference call and webcast that morning at 10:00am AEDT to discuss the figures. Investors and other stakeholders can register online to access the webcast, slide presentation and conference call, with Q&A available only via the call line, underscoring the company’s ongoing engagement with the market ahead of a key update on its operational and financial performance.

The most recent analyst rating on (AU:ZIP) stock is a Buy with a A$4.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.

Zip Co Cancels 5.4 Million Shares Under On-Market Buy-Back

Zip Co Ltd has cancelled 5,414,105 ordinary fully paid shares as part of an on-market share buy-back, effective 19 December 2025. The reduction in issued capital through the buy-back is likely to marginally improve earnings per share and may signal management’s confidence in the company’s valuation, with implications for existing shareholders through a more concentrated equity base.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$3.00 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.