ZIP +4.3%: Shares surged +12% to their highest level since late 2021 in early trade before losing steam, after another strong quarterly update that reinforced momentum of the turnaround story that we’ve watched unfold over the last 12-18 months.
- Revenue of $318.5mn (+32.8% YoY)
- Transaction Volume of $3.90bn (+38.7% YoY)
- Cash EBTDA of $62.8mn (+98.1% YoY)
The U.S. segment remains the key growth engine, and we wrote back in August that management’s ability to control bad debts while driving top-line expansion is key – they have delivered on that this quarter with the upsize in their buyback to $100mn demonstrating a level of comfortability with the balance sheet and liquidity.
Cash EBITDA is tracking comfortably toward the ~$230mn FY26 target and if quarterly momentum continues, the business looks increasingly capable of meeting or exceeding expectations.
- We continue to hold the stock in the Emerging Companies Portfolio
MM remains long and bullish ZIP
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