Zip Co Ltd's stock surged 22.93% during intraday trading on Friday, following the release of its robust fiscal third-quarter results and an upgraded outlook for the full year.
The company reported record quarterly cash earnings before taxes, depreciation, and amortization (EBTDA) of AU$65.1 million, a significant 41.5% increase compared to the same period last year. Total income for the quarter rose 20.2% to AU$335.2 million, driven by strong transaction volume growth and an expanding customer base, which reached 6.5 million active users.
Management upgraded its fiscal 2026 group cash EBTDA guidance to be no less than AU$260 million, reflecting confidence in the company's continued profitability. Additionally, the forecast for US credit losses is expected to decline in the fourth quarter, improving the overall credit quality of the portfolio.