Slide 1: FY25 Investor Presentation
22 August 2025 FY25 Investor Presentation Zip Co Limited (ASX: ZIP) (“Zip”, or the “Company”) today releases its FY25 Investor Presentation. A conference call to discuss Zip’s FY25 results will be held at 10.00 AM AEST today. Participants can register for the conference call by navigating to either
Slide 2: FY25 Results Presentation
FY25 Results Presentation Zip Co Limited 22 August 2025
Slide 3: Disclaimer and important notices
Disclaimer and important notices 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 outside the control of
Slide 4: FY25 highlights
01. FY25 highlights Our customers use Zip for everyday 3 spend
Slide 5: Outstanding FY25 results underpinned by significant US growth
TTV ($b) Total income1 ($m) Revenue margin (% of TTV) +30.3% YoY +23.5% YoY -45bps YoY 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 customers (m) Transactions (
Slide 6: Strong credit outcomes and cost discipline delivered operating leverage
Cash EBTDA ($m) Cash gross profit ($m) +147.0% YoY +34.0% YoY 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 YoY +11bps YoY margin e
Slide 7: Sustainably profitable with high growth US business and significant opportunity
Sustainably profitable with high growth US business and significant opportunity 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% 3.2 8.6% 103.3 Discipl
Slide 8: Record profitability amidst macroeconomic uncertainty
Record profitability amidst macroeconomic uncertainty 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 to deliver significant
Slide 9: Zip delivered against its FY25 strategic priorities
Zip delivered against its FY25 strategic priorities 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 scale • Customer engage
Slide 10: ESG highlights: commitment to operate sustainably and responsibly
ESG highlights: commitment to operate sustainably and responsibly 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 and 3 emissions 44% Fem
Slide 11: Outstanding results: group summary
Outstanding results: group summary 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 as % of TTV 1.5% 1.7%
Slide 12: Consideration of Nasdaq listing
Consideration of Nasdaq listing • 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 significant growth op
Slide 13: ANZ performance
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 and easy to use. I’m ex
Slide 14: ANZ: Returned to TTV growth with strong credit performance
ANZ: Returned to TTV growth with strong credit performance and accelerated product innovation 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; average transactions and
Slide 15: AU: Actively managed the portfolio to deliver yield and excess spread expansion
AU: Actively managed the portfolio to deliver yield and excess spread expansion 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 0.0 Jan- Feb- Mar- Apr-
Slide 16: AU: Comprehensive suite of fully-regulated products
AU: Comprehensive suite of fully-regulated products and services providing flexibility for customers 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 after each digital Visa ca
Slide 17: ANZ: Investment in innovation and operational excellence
ANZ: Investment in FY25 in innovation and operational excellence to drive scalability for future growth 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 handling all chat enqui
Slide 18: ANZ: Strategic assets provide strong platform for future growth
ANZ: Strategic assets provide strong platform for future growth 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 existing product ü Trus
Slide 19: US performance
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 Business Development and Sa
Slide 20: US: Cash earnings growth >100% with significant operating leverage
US: Cash earnings growth >100% with significant operating leverage 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 loss performance TTV
Slide 21: US: Executing in an early-stage BNPL market
US: Executing in an early-stage BNPL market 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$160b 15% of e-commerce BNPL
Slide 22: US: Growth in new customers along with deeper engagement
US: Growth in new customers along with deeper engagement Active customers (m, last 12 months) Growing our customer base while delivering commensurate losses 4.3 • Delivered year on year active 4.2 customer growth for the first time since FY22, up 11.0% 4.0 4.0 • Active customers increased 3.9 half-o
Slide 23: US: Customer engagement continues to deepen
US: Customer engagement continues to deepen with increased frequency and spend Transactions per active customer (#) Newer customer cohorts are spending at an accelerated rate (US$ spend per customer in first 12 months of purchase) +62% 400 Growth driven by acquiring customers direct to App, uptake o
Slide 24: 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 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 verticals growing at a fast
Slide 25: US: Active credit management supports profitable growth
US: Active credit management supports profitable growth • 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 having processed Actuals
Slide 26: US: Well positioned to continue delivering above-market growth
US: Well positioned to continue delivering above-market growth 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 marketing investment to driv
Slide 27: Financial performance
04. Financial performance Our customers use Zip for automotive maintenance 26
Slide 28: Strong financial results with all metrics within two year target ranges
Strong financial results with all metrics within their two year target ranges 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 Operating margin (Cash EBT
Slide 29: Income statement
Income statement Revenue growth and continued cost management delivered a step change in cash EBTDA • 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 1,071.6 868.0 +23.5 Other incom
Slide 30: Unit economics
Unit economics Cash net transaction margin improved 11bps from continued credit management and lower funding costs 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 $509.0m 3.9% +34.0% +11bps 1
Slide 31: Operating efficiency
Operating efficiency Disciplined investment in the period to drive future customer and volume growth 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 to 15.8% TTV $13.1b $1
Slide 32: Operating margin increased by 787 bps to 15.8%
Operating margin increased by 787 bps to 15.8% underpinned by disciplined execution FY25 vs FY24 movements in operating margin (Cash EBTDA as % of total income) 0.4% 15.8% 3.8% 3.7% 7.9% FY24 Cash Cost of Sales Cash Operating Expenses Other FY25 Total Improvement 31
Slide 33: Liquidity
Liquidity Liquidity levels remain strong benefiting from strong cash earnings growth Cash at 30 June 2025 ($m) FY25 movements in available cash and liquidity ($m) 391.6 +30.5 170.3 (19.5) 26.9 137.8 18.5 137.8 80.4 (242.7) (120.3) (29.6) Reported cash Restricted cash Unavailable cash AU trusts Avail
Slide 34: Funding
Funding Material improvements in duration, investor diversification and cost of funds ANZ Receivables funding Maturity profile ($m) • Portfolio weighted average margin reduced following lower margins achieved on circa $2.0b of receivables refinancing in AU driven by strong 900 corporate performance
Slide 35: Strategic funding initiatives
Strategic funding initiatives reflect Zip’s enhanced and sustainable business performance $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 March 2030 capacity f
Slide 36: Capital management
Capital management Zip’s capital management framework underpins our ambition to maximise long-term value and shareholder returns Guidelines • Zip will prioritise preserving a strong balance sheet • Invest capital in attractive growth opportunities Zip’s corporate strategy and/or to enhance our compe
Slide 37: Strategy and outlook
05. Strategy and outlook Our customers use Zip for healthcare 36
Slide 38: Our journey: proven track record of execution
Our journey: proven track record of execution 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-centric ethos • Achie
Slide 39: Zip today: strategically placed to deliver long-term value
Zip today: strategically placed to deliver long-term value 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 40: Zip will execute on three clear priorities in FY26
Zip will execute on three clear priorities in FY26 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 products Optimise fun
Slide 41: Leveraging AI to accelerate our strategy
Leveraging AI to accelerate our strategy 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 42: 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 FEARLESS FRONTIERS™ Zip has identified several high-quality opportunities to explore Test Explore AI-driven products, including a guided c
Slide 43: Outlook
Outlook Well positioned to build on the outstanding results delivered in FY25 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 TTV performance in July
Slide 44: Q&A
Q&A Our customers use Zip for travel 43
Slide 45: Appendix
Appendix Our customers use Zip for pet 44 care
Slide 46: Detailed unit economics
Detailed unit economics $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) (15.5) Cash gross profi
Slide 47: Net bad debts
Net bad debts $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 strategic settings and
Slide 48: Segment information
Segment information 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-off items (0.1) – (0.2
Slide 49: Income statement
Income statement Breakdown of corporate, one-off adjustments and non-cash items 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 (13.3) (6.6) (13.3) (6.6
Slide 50: Balance sheet
Balance sheet $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 212.3 209.5 Deferred
Slide 51: Cash flows
Cash flows $m FY25 FY24 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 received from financi
Slide 52: Funding
Funding $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 2,954.1 2,651.4 *2024-
Slide 53: Zip product suite
Zip product suite 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 account Pay by instal
Slide 54: Zip's business model delivers growth, profitability and capital efficiency
Zip’s business model delivers growth, profitability and capital efficiency 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 and efficiently allocat
Slide 55: Zip customers can shop seamlessly, anywhere
Zip customers can shop seamlessly, anywhere 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 56: Glossary
Glossary 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 December 3Q Three months e