Zip Reports 17 Percent Revenue Growth in Q1

The Australian financial firm posts strong quarterly results driven by robust transaction volume in the United States market.

Updated on Oct. 22, 2026 in Corporate Finance

Isometric editorial illustration showing stacked freight containers and abstract digital network light pathways representing international financial growth. — Australian financial firm Zip reported a 17 percent revenue increase to $373.4 million for the quarter ending 30 September 2026. AI Illustration. Upload story photo >

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Zip reported a 17 percent increase in total income for the quarter ended 30 September 2026, reaching $373.4 million. The company reaffirmed its full-year 2027 guidance following strong growth in the United States.

Why it matters

The company performance was driven by an expanding user base and significant volume strength in the US market. Despite this growth, Zip faced operational challenges from coordinated external fraud events.

Zip recorded $373.4 million in total income for the first quarter, representing a 17 percent year-on-year increase. Group cash EBITDA rose to $65 million, while the company processed 31.6 million transactions totaling $4.6 billion.

The players

Zip

Zip is an Australian financial services company that provides buy now, pay later payment solutions to customers and merchants.

The details

Growth was underpinned by 6.4 million active customers and 96,600 integrated merchants. However, the company identified coordinated external fraud events involving legitimate credentials during July and August 2026, resulting in $10.1 million in one-off cash operating expenses.

July and August 2026: Fraud events impacted transaction volume and customer growth.
30 September 2026: The quarter closed with 6.4 million active customers reported.
FY27: The company reaffirmed its full-year financial guidance.

Market Dynamics

This reporting follows a pattern set by the Australian Securities and Investments Commission corporate reporting requirements. The company is maintaining market transparency by providing detailed disclosures regarding its first-quarter financial performance and forward-looking guidance.

Retail investors should note the impact of $10.1 million in fraud-related operating expenses on short-term cash margins. The reaffirmation of 2027 guidance suggests a stable outlook despite the recent identified fraud incidents.

The takeaway

Zip continues to scale its US operations, showing a 34.1 percent surge in transaction volume within that market. Customers should monitor how the company adapts its security measures to mitigate the risk of coordinated fraud using legitimate credentials.