Zip Co has decided to close its New Zealand Buy Now, Pay Later operations, following a strategic review of the business.
The ASX-listed fintech informed the market that the decision reflects its focus on the Australian and US businesses, which it said continue to show momentum and profitable growth. The company added that the financial impact of winding down the New Zealand unit is expected to be immaterial to the group.
Financial performance and share buyback
Zip Co, founded in Australia in 2013, has experienced volatility in its share price over the past 12 months, ranging from a high of USD 3.45 to a low of USD 0.96. The stock currently trades at around USD 2.01, broadly unchanged from July 2025. Some analysts have described the company as undervalued.
Following a share price decline of more than a third (34%) after its half-year results in February 2026, the board approved a USD 35 million share buyback, with more than eight million shares cancelled in June 2026. This followed an earlier buyback programme of USD 70 million completed in 2025.
For the third quarter of financial year 2026, Zip Co reported cash EBTDA of USD 45.6 million, up 41.5% year-on-year, with its operating margin rising to 19.4%, compared with 16.5% in the same quarter of financial year 2025. Total quarterly income increased by 20.2% to USD 234.6 million over the same period.
Net bad debts rose to 1.9% of total transaction volume, up from 1.6% a year earlier, though the company said this remained within its target range. In the US, net bad debts held steady at 1.86% of total transaction volume.
Merchant and customer growth
The number of merchants on Zip Co's platforms reached 93,900 by the end of the third quarter, an increase of 12.7% compared with the same period in financial year 2025. Active customers stood at 6.5 million at the close of the quarter.
In May 2026, Zip Co lost a High Court trade mark infringement claim brought by Firstmac over its use of the ZIP name in Australia. The company said it would treat the ruling as an opportunity to revise its Australian branding. It subsequently reached a confidential settlement to acquire the registered ZIP trade mark from Firstmac.
