Slide 1: FY25 Results Presentation
For personal use only FY25 Results Presentation Zip Co Limited 22 August 2025
Slide 2: Disclaimer and important notices
Disclaimer and important notices For personal use only The information contained in this presentation has been prepared by Zip Co Limited ACN 139 546 428 This presentation may contain certain “forward looking statements”. Forward risks, uncertainties (Company). and other factors, many of which are o
Slide 3: FY25 highlights
For personal use only 01. FY25 highlights Our customers use Zip for everyday 3 spend
Slide 4: FY25 results underpinned by significant US growth
TTV ($b) Total income1 ($m) Revenue margin (% of TTV) +30.3% YoY +23.5% YoY -45bps YoY For personal use only 13.1 8.7% 8.3% 10.1 1081.1 Reflects 875.1 higher US Outstanding contribution (now 71% of TTV) FY25 results underpinned FY24 FY25 FY24 FY25 FY24 FY25 by significant US growth and Active custom
Slide 5: Strong credit outcomes and cost discipline delivered operating leverage
Cash EBTDA ($m) Cash gross profit ($m) +147.0% YoY +34.0% YoY For personal use only 170.3 509.0 380.0 Strong credit 69.0 outcomes and cost discipline delivered significant operating FY24 FY25 FY24 FY25 leverage at scale Net bad debts (% of TTV) Cash net transaction margin (%) with operating -14bps Y
Slide 6: Sustainably profitable with high growth US business and significant opportunity
Sustainably profitable with high growth US business and significant opportunity For personal use only US TTV (US$b) and Group cash EBTDA ($m) and YoY growth (%) operating margin (%) Two-sided revenue model with +42.9% 18.2% deep customer, merchant and +40.3% channel partnerships +43.0% +31.2% 13.0%
Slide 7: Record profitability amidst macroeconomic uncertainty
Record profitability amidst macroeconomic uncertainty For personal use only Group cash EBTDA ($m) US cash EBTDA ($m) ANZ cash EBTDA ($m) +147.0% +105.3% +5.9% YoY growth YoY growth YoY growth 170.3 1 158.5 69.0 77.2 33.0 35.0 13.9 (24.1) (48.2) FY23 FY24 FY25 FY23 FY24 FY25 FY23 FY24 FY25 Continued
Slide 8: Zip delivered against its FY25 strategic priorities
Zip delivered against its FY25 strategic priorities For personal use only Growth and engagement Product innovation Operational excellence Scale and enhance core products Unlocking new customer and Strengthening core platforms and and partnerships market segments for growth balance sheet to support s
Slide 9: ESG highlights: commitment to operate sustainably and responsibly
ESG highlights: commitment to operate sustainably and responsibly For personal use only Financial inclusion Inclusion, talent Environmental ESG and customer management and impact governance wellbeing community +68 81% Group employee Continued to measure US customer NPS engagement score Scopes 1, 2 a
Slide 10: Outstanding results: group summary
Outstanding results: group summary For personal use only FY25 FY24 Change Total transaction volume $13,095.0m $10,051.2m +30.3% Total income $1,081.1m $875.1m +23.5% 1 Revenue margin 8.3% 8.7% (45bps) Cash gross profit $509.0m $380.0m +34.0% Net cash transaction margin 3.9% 3.8% +11bps Net bad debts
Slide 11: Consideration of Nasdaq listing
Consideration of Nasdaq listing For personal use only • Zip is considering a dual listing on the Nasdaq, while maintaining its primary listing on the Australian Securities Exchange • Zip’s objective is to maximise long-term shareholder value, and it is expected that a dual listing will support Zip’s
Slide 12: ANZ performance
For personal use only 02. ANZ performance Select merchants added in FY25: “I love Zip Pay! It’s flexible, easy to use pretty much anywhere, minimal fees – it’s got us through in a pinch a few times and has been easy to get caught back up. Love that we get a card number making it even more flexible a
Slide 13: ANZ: Returned to TTV growth with strong credit performance
ANZ: Returned to TTV growth with strong credit performance and accelerated product innovation For personal use only Key performance metrics (AUD) Growth and engagement FY25 FY24 Change • TTV returned to growth driven by momentum in Zip Plus and increased TTV $3.7b $3.6b +5.5% customer engagement; av
Slide 14: AU: Actively managed the portfolio to deliver yield and excess spread expansion
AU: Actively managed the portfolio to deliver yield and excess spread expansion For personal use only Book performance (excess spread)1 Arrears rate and net bad debts1,2 (% of AU consumer receivables) (% of AU consumer receivables) 19.3% 20 18.4% 5.0 4.7 4.0 15 5.4% 4.0 3.7 8.7% 3.0 10 2.0 5 1.0 0 0
Slide 15: AU: Comprehensive suite of fully-regulated products and services
AU: Comprehensive suite of fully-regulated products and services providing flexibility for customers For personal use only Up to $1.5k interest Up to $8k no-to-low Up to $50k with partnered Between $5k and $50k with free with a interest account with a merchants with built-in a 1% p.a. rate drop afte
Slide 16: ANZ: Investment in innovation and operational excellence
ANZ: Investment in FY25 in innovation and operational excellence to drive scalability for future growth For personal use only Further investment in Zip Plus, including rolling out to external customers, and launched Zip Personal Loan Strengthened risk management, fraud and cyber platforms Zigi now h
Slide 17: ANZ: Strategic assets provide strong platform for future growth
ANZ: Strategic assets provide strong platform for future growth For personal use only Strategic assets FY26+ focus Scale platform with a customer base ü representing c. 10% of the Australian adult population and 60,800 merchants Drive customer growth and engagement across the portfolio Enhance the e
Slide 18: US performance
For personal use only 03. US performance Select merchants added in FY25: “I tell the Zip team all the time, it is one of the best decisions we have ever made as an organisation. The Zip folks are so dedicated to what they’re doing, it makes our job that much easier.” – Douglas Raymond, Head of Busin
Slide 19: US: Cash earnings growth >100% with significant operating leverage
US: Cash earnings growth >100% with significant operating leverage For personal use only Key performance metrics Growth and engagement (AUD unless stated otherwise) • Significant revenue growth and above-market TTV growth¹ driven by strengthened FY25 FY24 Change customer engagement with commensurate
Slide 20: US: Executing in an early-stage BNPL market
US: Executing in an early-stage BNPL market For personal use only Significant headroom for US BNPL market growth, adoption is still in the early stages compared to more established markets4 US$12.8t1 US payments market1 <2% of total payments 84% in-store, 16% e-commerce 6% of e-commerce US US$160b 1
Slide 21: US: Growth in new customers along with deeper engagement
US: Growth in new customers along with deeper engagement For personal use only Active customers (m, last 12 months) Growing our customer base while delivering commensurate losses 4.3 • Delivered year on year active 4.2 customer growth for the first time since FY22, up 11.0% 4.0 4.0 • Active customer
Slide 22: US: Customer engagement continues to deepen
US: Customer engagement continues to deepen with increased frequency and spend For personal use only Transactions per active customer (#) Newer customer cohorts are spending at an accelerated rate (US$ spend per customer in first 12 months of purchase) +62% 400 Growth driven by acquiring customers d
Slide 23: US: We serve a resilient customer base
US: We serve a resilient customer base that uses Zip to pay for everyday needs and manage their cash flow For personal use only Zip serves 4.3m of the Majority of TTV derived from predominantly non-discretionary spend. Every 100m+ everyday Americans1 category has grown since FY22 with targeted verti
Slide 24: US: Active credit management supports profitable growth
US: Active credit management supports profitable growth For personal use only • Differentiated underwriting capability for the underestimated American US monthly cohorts, 120-day bad debt performance delivering strong TTV growth and (% of cohort TTV) losses within target range • Proven expertise hav
Slide 25: US: Well positioned to continue delivering above-market growth
US: Well positioned to continue delivering above-market growth For personal use only FY25 strategic initiatives FY26+ focus Expansion of Pay-in-Z with the ü Refined customer and merchant value propositions 2 launch of Pay-in-2 in 1H26 to support customers with their everyday needs ü Strategic market
Slide 26: Financial performance
For personal use only 04. Financial performance Our customers use Zip for automotive maintenance 26
Slide 27: Strong financial results with all metrics within two year target ranges
Strong financial results with all metrics within their two year target ranges For personal use only FY24 result FY25 result Two-year target range Within target (announced August 2024) Revenue margin (Total income as a % of TTV) 8.7% 8.3% 8.0% - 9.0% ü Cash NTM (% of TTV) 3.8% 3.9% 3.5% - 4.0% ü Oper
Slide 28: Income statement
Income statement Revenue growth and continued cost management delivered a step change in cash EBTDA For personal use only • TTV and total income increased by 30.3% and $m FY25 FY24 Change % 23.5% respectively, driven by significant growth in the US and a return to TTV growth in ANZ Revenue 1,071.6 8
Slide 29: Unit economics
Unit economics Cash net transaction margin improved 11bps from continued credit management and lower funding costs For personal use only 1 TTV and revenue margin1 TTV Total income 8.9% $13.1b $1.1b 8.5% 8.2% 8.3% +30.3% +23.5% $1.9 $1.9 $1.9 $1.6 $4.4 $5.0 Cash gross profit Cash NTM $3.1 $3.4 $509.0
Slide 30: Operating efficiency
Operating efficiency Disciplined investment in the period to drive future customer and volume growth For personal use only Change FY24 FY23 2 % • Focus on cost discipline and disciplined execution $m FY25 FY24 Change % supported strong cash earnings growth and resulted in operating margin expanding
Slide 31: Operating margin increased to 15.8% underpinned by disciplined execution
Operating margin increased by 787 bps to 15.8% underpinned by disciplined execution For personal use only FY25 vs FY24 movements in operating margin (Cash EBTDA as % of total income) 0.4% 15.8% 3.8% 3.7% 7.9% FY24 Cash Cost of Sales Cash Operating Expenses Other FY25 Total Improvement 31
Slide 32: Liquidity
Liquidity Liquidity levels remain strong benefiting from strong cash earnings growth For personal use only Cash at 30 June 2025 ($m) FY25 movements in available cash and liquidity ($m) 391.6 +30.5 170.3 (19.5) 26.9 137.8 18.5 137.8 80.4 (242.7) (120.3) (29.6) Reported cash Restricted cash Unavailabl
Slide 33: Funding
Funding Material improvements in duration, investor diversification and cost of funds For personal use only ANZ Receivables funding Maturity profile ($m) • Portfolio weighted average margin reduced following lower margins achieved on circa $2.0b of receivables refinancing in AU driven by strong 900
Slide 34: Strategic funding initiatives reflect Zip's enhanced business performance
Strategic funding initiatives reflect Zip’s enhanced and sustainable business performance For personal use only $400m $300m US New Variable Funding New AU bond issued funding Note 5 (AU) (2025-1) progress • Inaugural five-year deal maturing • Settled on 10 July 2025 • Added short duration funding in
Slide 35: Capital management
Capital management Zip’s capital management framework underpins our ambition to maximise long-term value and For personal use only shareholder returns Guidelines • Zip will prioritise preserving a strong balance sheet • Invest capital in attractive growth opportunities Zip’s corporate strategy and/o
Slide 36: Strategy and outlook
For personal use only 05. Strategy and outlook Our customers use Zip for healthcare 36
Slide 37: Our journey: proven track record of execution
Our journey: proven track record of execution For personal use only Pre-FY23 FY23-24 FY25 Strengthen the foundations Delivering sustainable profitability Positioning for future growth • Focused on top line growth • Exited non-core markets • Delivered outstanding financial results • Fostered customer
Slide 38: Zip today: strategically placed to deliver long-term value
Zip today: strategically placed to deliver long-term value For personal use only Purpose Unlocking financial potential, together To bring exceptional experiences, innovation and partnership Mission to every financial journey Values Customer First Own It Change the Game Stronger Together 38
Slide 39: Zip will execute on three clear priorities in FY26
Zip will execute on three clear priorities in FY26 For personal use only Growth and Product Platforms engagement innovation for scale Secure new commercial Accelerate innovation through Further enhance credit partnerships Fearless Frontiers™ decisioning platforms Accelerate channel Launch AI-powered
Slide 40: Leveraging AI to accelerate our strategy
Leveraging AI to accelerate our strategy For personal use only AI Powered AI Powered AI Powered Workforce Processes Products Unlocking more Optimising processes to Enhancing current products from every role scale with efficiency Enabling new revenue streams 40
Slide 41: Zip's incubation lab will support the next horizon of growth
Zip’s incubation lab will support the next horizon of growth Establishing a dedicated team focused on long-term product innovation and unlocking new profit pools For personal use only FEARLESS FRONTIERS™ Zip has identified several high-quality opportunities to explore Test Explore AI-driven products
Slide 42: Outlook
Outlook Well positioned to build on the outstanding results delivered in FY25 For personal use only FY25 FY26 result FY26 focus areas target range1 • US TTV growth expected to be greater than 35% (in USD) over FY26, balancing profitability and loss performance1 Revenue (Total income as a 8.3% • US T
Slide 43: Q&A
For personal use only Q&A Our customers use Zip for travel 43
Slide 44: Appendix
For personal use only Appendix Our customers use Zip for pet 44 care
Slide 45: Detailed unit economics
Detailed unit economics For personal use only $m FY25 FY24 Change % TTV 13.1b 10.1b +30.3 1 Total income 1,081.1 875.1 +23.5 2 Interest expense (214.2) (199.3) (7.5) 3 Net bad debts written off (198.9) (166.9) (19.2) Bank fees and data costs (158.9) (128.9) (23.2) Cash cost of sales (572.1) (495.1)
Slide 46: Net bad debts
Net bad debts For personal use only $m ANZ (AUD) US (AUD) US (USD) The table provides net write-offs on an actual basis for each quarter inclusive of recoveries and any fees 1Q24 29.2 14.3 9.4 • For ANZ: net write-offs were lower year-on-year, in line with 2Q24 30.0 16.3 10.6 management actions and
Slide 47: Segment information
Segment information For personal use only FY25 Corporate and $m ANZ USA other Total Total income 418.6 662.1 0.4 1,081.1 Cash cost of sales¹ (257.2) (315.0) 0.1 (572.1) Cash gross profit 161.4 347.1 0.5 509.0 Cash operating expenses (126.4) (188.6) (23.5) (338.4) Cash non-operating expenses and one-
Slide 48: Income statement
Income statement Breakdown of corporate, one-off adjustments and non-cash items For personal use only Statutory Underlying $m FY25 FY24 FY25 FY24 Total income 1,081.1 875.1 1,081.1 875.1 Cash EBTDA 170.3 69.0 170.3 69.0 Movement in expected credit losses (46.3) 2.5 (46.3) 2.5 Share‑based payments (1
Slide 49: Balance sheet
Balance sheet For personal use only $m June-25 June-24 Cash and cash equivalents 149.0 121.3 Restricted cash 242.7 231.7 Other receivables 108.1 100.8 Term deposit 4.6 4.5 Customer receivables 2,657.1 2,398.6 Property, plant and equipment and ROU assets 15.3 19.8 Intangible assets 55.3 96.1 Goodwill
Slide 50: Cash flows
Cash flows $m FY25 FY24 For personal use only Receipts from customers - transactional and other income 227.1 154.5 Payments to suppliers and employees (478.8) (443.5) Net increase in merchant payables 80.8 80.5 Net increase in receivables (525.4) (6.6) Borrowing transaction costs (2.4) (6.6) Interest
Slide 51: Funding
Funding For personal use only $m Jun-25 Jun-24 As at 30 June 2025 Secured funding facilities Facility Drawn at Maturity Facility limits Facility vehicle limit Jun-25 AU 2,476.3 2,293.4 AU Zip Master Trust 1 - Rated Note Series US 459.3 339.7 NZ1 18.5 18.3 *2023-2 $285.0m $285.0m Oct-26 Total limits
Slide 52: Zip product suite
Zip product suite For personal use only Product Pay-in-Z Zip Pay Zip Plus Zip Money Personal Loan Pay-in-4 Market US AU AU AU AU NZ 56.8k merchants + Acceptance Everywhere¹ Everywhere¹ Everywhere¹ N/A 4.0k merchants anywhere online Account type Pay by instalments Pay by account Pay by account Pay by
Slide 53: Zip's business model delivers growth, profitability and capital efficiency
Zip’s business model delivers growth, profitability and capital efficiency For personal use only Acquisition Engagement Scale Profitability Grow active Drive repeat Drive cash EBTDA Deliver operating customers, merchant network X usage, product engagement and X supported by economies of = leverage a
Slide 54: Zip customers can shop seamlessly, anywhere
Zip customers can shop seamlessly, anywhere For personal use only Hi there, Hi there, Jessica Nathan Online checkout In-store / physical Google Pay Chrome MS Edge iOS Android At merchant Embedded In App 54
Slide 55: Glossary
Glossary For personal use only Term Definition FY Financial year ending 30 June of the relevant financial year 1H Six months ending 31 December of the relevant financial year 2H Six months ending 30 June of the relevant financial year 1Q Three months ending 30 September 2Q Three months ending 31 Dece