ZIP –25.38%: released a mixed quarterly result today, with solid growth in the U.S but lagging significantly in the ANZ market, its biggest contributor to revenue and earnings.
- U.S Total Transaction Value (TTV) growth of 25% year on year
- U.S customer base growth of 5.5% in 2Q25 after 9 quarters of flat/negative growth
- Revenue margin weaker than expected in AU/NZ
- Net transaction margin declining 0.3% QoQ despite higher margin ZIP Plus product
While U.S growth is strong, it was in line with market expectations. The ANZ business will need significant marketing spend to boost revenue and this cost will hit the bottom line. We’ll need to see further decline in the share price, or proof of recovery in revenue at the next quarterly before we consider it more seriously, having exited back in December, taking a solid profit around ~$3.
MM remains neutral on ZIP
Add To Hit List
