BNPL Zip pulls out of New Zealand
Buy-now-pay-later platform Zip Co will shut down its New Zealand operations following a strategic review of the business.
The ASX-listed fintech (ASX: ZIP) told the market that the decision “reflects Zip’s strategic focus on investing in its Australian and US businesses, which continue to demonstrate strong momentum and profitable growth”.
More than 80%
BNPL, founded in Sydney in 2013, has had a roller coaster 12 months with its share price fluctuating between a high of $4.93 and low of $1.375. It currently sits at $2.87 – roughly the same level as July 2025. Some analysts consider the financial services business undervalued.
After Zip’s shares plunged by more than a third (34%) in the wake of its half-yearly results in February, the board launched a $50 million stock buyback, with more than 8 million shares cancelled in June. It previously spent $100m on share buybacks in 2025.
Revenue growth
The company posted record cash EBTDA of $65.1 million in its third quarter FY 2026 results (up 41.5% YoY), with the operating margin rising to 19.4% (16.5% in 3Q25) and total quarterly income up 20.2% to $335.2m on 12 months ago.
Meanwhile net bad debts increased to 1.9% of total transaction volume (1.6% of TTV in 3Q25), although this remained in line with management targets and US net bad debts remaining steady at 1.86% of TTV
Merchants on Zip’s platforms increased to 93,900, up 12.7% on Q3 in FY25. Active customers at the end of the quarter hit 6.5m.
In May, after losing a High Court trade mark infringement claim launched by Firstmac for the Australian use of the name, and saying it would use the judgment as an “opportunity to evolve its Australian brand”, Zip settled confidentially to acquire the registered trade mark for ZIP from Firstmac.
Zip said the financial impact of winding down its New Zealand operations is expected to be immaterial to the group.
Three weeks ago, Zip cofounder Larry Diamond and his wife Ashlyn were revealed as the buyers of a $17 million six-bedroom house Dover Heights in Sydney’s eastern suburbs earlier this year.
Diamond stepped down as a Zip director and executive in late 2024, subsequently selling more than $100m worth of shares in the company he cofounded in 2013.
