Zip Co Ltd. (ZIP) AI Stock Analysis

• Market Cap: AU$2.03B
• Dividend Yield: N/A
• Average Volume (3M): 11.39M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 2.61
• 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): N/A
• Revenue Forecast (FY): N/A

• 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

Margin and Cash Earnings Expansion

Sustained margin expansion and record cash earnings reflect durable improvements in underlying unit economics and expense discipline. Higher operating margin (>18%) and sizable cash EBITDA growth suggest the business can convert scale into recurring profitability, improving resilience over the next several quarters.

Strong Transaction and Customer Growth (Scale)

Robust TTV and transaction growth demonstrate sustained customer engagement and merchant acceptance, underpinning revenue and fees over time. Scale in transactions supports operating leverage, cross-sell opportunities and network effects that can defend market share and improve lifetime customer monetization.

Improved Funding & Liquidity

Securing multi-year ABS and a U.S. warehouse strengthens funding diversity and reduces refinance risk. Material available liquidity plus longer-dated facilities improve ability to fund receivables and support growth, limiting short-term funding stress and enabling strategic expansion, especially in the U.S. market.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow indicate the business still consumes cash despite improved profitability metrics. Over months this can constrain reinvestment, require ongoing reliance on external funding, and increase sensitivity to funding costs and macro liquidity conditions.

High Leverage Remains

Although leverage has materially reduced, a debt-to-equity above 3x signals continued balance-sheet risk. High leverage limits flexibility for M&A or adverse cycles, raises fixed financing costs, and elevates vulnerability to rate moves or funding market tightening over the medium term.

Higher Losses from Longer-Duration Product & Provisions

Longer-duration products materially increase credit risk and loss volatility; capping Pay-in-8 at ~20% manages but does not eliminate this elevated loss profile. Rising U.S. provisions and 1.7% net bad debts indicate credit costs could pressure margins and require ongoing provisioning discipline.

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 Co Ltd. generates revenue primarily through merchant fees and consumer charges. When consumers utilize Zip's BNPL services, merchants pay a percentage of the transaction value as a fee, which constitutes a significant portion of Zip's revenue stream. Additionally, Zip may charge consumers late fees or interest on certain products, contributing to its earnings. The company has also established partnerships with a wide range of retailers, enhancing its market presence and driving transactions through its platform. Furthermore, Zip's expansion into international markets and the introduction of new financial products are key factors that bolster its revenue potential.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.07B	874.02M	688.00M	597.65M	394.37M
Gross Profit	667.43M	580.69M	336.80M	354.19M	166.93M
EBITDA	340.15M	359.86M	-159.91M	-97.83M	-324.28M
Net Income	79.89M	3.66M	-383.74M	-1.11B	-678.15M
Balance Sheet
Total Assets	3.50B	3.18B	3.43B	3.42B	3.33B
Cash, Cash Equivalents and Short-Term Investments	396.23M	357.52M	283.11M	303.56M	331.71M
Total Debt	2.42B	2.42B	3.05B	2.88B	2.25B
Total Liabilities	2.80B	2.78B	3.31B	3.10B	2.32B
Stockholders Equity	709.52M	398.53M	119.87M	322.27M	1.01B
Cash Flow
Free Cash Flow	-69.30M	255.06M	-249.59M	-781.93M	-901.31M
Operating Cash Flow	-49.81M	272.54M	-225.03M	-752.42M	-887.91M
Investing Cash Flow	-19.49M	12.03M	-30.48M	-97.07M	-8.25M
Financing Cash Flow	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: Positive
• RSI: Positive
• 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 below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.87, and below the 200-day MA of 3.27, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 28.47 is Positive, neither overbought nor oversold. The STOCH value of 2.93 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	67 Neutral	AU$167.12M	4.76	95.31%	―	19.38%	―
HUM	56 Neutral	AU$330.01M	11.82	7.83%	2.84%	7.64%	463.49%
ZIP	55 Neutral	AU$2.03B	18.87	14.42%	―	23.69%	116.67%
PNC	52 Neutral	AU$112.09M	7.40	12.72%	―	-0.51%	―
LFS	46 Neutral	AU$956.55M	10.29	5.01%	6.60%	14.81%	―
MME	43 Neutral	AU$93.43M	-1.85	-42.59%	―	-9.56%	-392.31%

Zip Co Ltd. Corporate Events

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.

Zip Co Limited Completes AUD 99.99 Million Share Buy-Back

Zip Co Limited, a company operating within the financial services industry, specializes in offering payment solutions, including digital payment options and buy-now-pay-later services, aimed at consumers and businesses. The company has completed an on-market buy-back of 34,907,277 ordinary fully paid shares for a total consideration of AUD 99.99 million, signaling a potential move to optimize capital allocation, enhance shareholder value, and strengthen its market presence.

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 Ltd. Updates on Share Buy-Back Progress

Zip Co Ltd. has announced an update regarding its ongoing share buy-back program. As of December 17, 2025, the company has repurchased a total of 34,906,287 ordinary fully paid securities, with 837,342 bought back on the previous day. This buy-back initiative is part of Zip Co’s strategy to optimize its capital structure and potentially enhance shareholder value.

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 Ltd. Updates on Share Buy-Back Progress

Zip Co Ltd. has announced an update regarding its ongoing share buy-back program, reporting that a total of 664,740 ordinary fully paid securities were bought back on the previous day, adding to the cumulative total of 33,404,205 securities repurchased. This buy-back initiative is part of Zip Co Ltd.’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting the company’s commitment to optimizing its financial operations.

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 Ltd. Updates Director’s Securities Holdings

Zip Co Ltd. announced changes in the director’s interest in securities, specifically involving Cynthia Scott. The changes include the acquisition and disposal of performance rights and fully paid ordinary shares, reflecting adjustments in the director’s holdings. These changes are part of routine updates to the company’s records and do not indicate any immediate impact on the company’s operations or market position.

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 Ltd. Issues New Ordinary Securities

Zip Co Ltd. has announced the issuance of 10,118 ordinary fully paid securities as of December 8, 2025. This move reflects the company’s ongoing strategy to manage its equity structure and potentially strengthen its financial position, which could have implications for its market competitiveness and stakeholder interests.

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 Ltd. Issues New Performance Rights to Employees

Zip Co Ltd. announced the issuance of 1,798,424 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to align employee interests with corporate performance, potentially impacting its operational dynamics and stakeholder engagement.

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 Ltd. Announces Cessation of Securities via Buy-Back

Zip Co Ltd. announced the cessation of 5,545,784 ordinary fully paid securities due to an on-market buy-back, effective November 27, 2025. This move is part of the company’s capital management strategy, potentially impacting its financial structure and market perception by reducing the number of shares outstanding, which could influence shareholder value and market positioning.

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 Ltd. Updates on Buy-Back Program

Zip Co Ltd. has announced an update regarding its ongoing buy-back program, reporting the acquisition of 1,116,798 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 32,287,407. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its commitment to optimizing financial performance and market positioning.

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 Ltd. Updates on Share Buy-Back Progress

Zip Co Ltd. has announced an update on its ongoing share buy-back program, revealing that it has repurchased a total of 650,000 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 31,637,407. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, reflecting confidence in its financial position and future prospects.

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 Limited Director Increases Shareholding

Zip Co Limited has announced a change in the director’s interest, with Andrew Stevens acquiring an additional 55,000 fully paid ordinary shares through an on-market trade, bringing his total to 137,067 shares. This acquisition reflects a strategic move that could potentially influence the company’s market perception and stakeholder confidence, as it indicates a strengthened commitment from its leadership.

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 Ltd. Updates on Buy-Back Program

Zip Co Ltd. has announced an update on its ongoing buy-back program, revealing that a total of 910,815 ordinary fully paid securities were bought back on the previous day, adding to the 29,493,172 securities already repurchased. This buy-back initiative is part of Zip Co’s strategy to optimize its capital structure and potentially enhance shareholder value, reflecting its commitment to strengthening its market position and delivering value to stakeholders.

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 Ltd. Updates on Daily Buy-Back Progress

Zip Co Ltd. has announced a daily update on its ongoing buy-back program, reporting the repurchase of 284,602 ordinary fully paid securities on the previous day, bringing the total to 29,208,570 securities bought back to date. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:ZIP) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Zip Co Ltd. stock, see the AU:ZIP Stock Forecast page.