Zip Co Limited has announced its exit from the New Zealand market as part of a strategy to concentrate resources on expanding its Australian and US businesses, which have shown strong growth and profitability.
- Zip exits New Zealand to focus on Australia and US growth
- Company achieved record quarterly cash EBITDA with 41.5% year-on-year increase
- Share buybacks continue amid stock price fluctuations
What happened
Zip, the ASX-listed buy now, pay later company founded in Sydney in 2013, has decided to pull out of the New Zealand market to sharpen its focus on the Australian and US markets. The decision reflects the company’s strategic priority on higher-growth markets where it is achieving more significant momentum and profitability.
The company recently reported record quarterly cash EBITDA of $65.1 million for the third quarter of fiscal 2026, marking a 41.5% increase year-on-year, with the operating margin also improving. Coupled with this strong financial performance, Zip has continued its share buyback program, canceling over 8 million shares in June after a previous $100 million buyback effort in 2025.
Why it matters
Exiting New Zealand allows Zip to allocate resources, capital, and management attention to markets where it is experiencing substantial growth and profitability. Australia and the US present larger opportunities, evidenced by increasing customer and merchant numbers as well as a rising operating margin.
Despite challenges such as a recent trademark infringement case in Australia, Zip’s financial performance has remained robust. The company’s decision to settle for the ZIP trademark and readiness to evolve its Australian brand underline its commitment to solidifying its home market leadership while expanding in the US.
What to watch next
Market watchers will be monitoring Zip’s continued performance in Australia and the US, including how well it manages net bad debts which recently rose slightly but remained within management targets. Growth in active customers and platform merchants will be key indicators of sustained momentum.
Additionally, investors will be keeping an eye on Zip’s share price movements and ongoing buyback activities as the company seeks to enhance shareholder returns amid a competitive BNPL environment. How Zip navigates brand positioning post-trademark settlement could also influence its market perception and growth trajectory.