Zip Co reported weaker-than-expected operating results for the first half of its financial year, triggering a dramatic sell-off in the company's stock.
Results and consensus comparison
For the six-month period that ended on Dec. 31, Zip Co recorded cash operating earnings of A$124.3 million. That figure sits below the Visible Alpha consensus forecast of A$128.4 million.
Market reaction
The share price plunged as much as 38.2%, falling to A$1.743 as of 0124 GMT. That intraday decline represented the stock's weakest trading point since early May 2025 and marked its largest one-day percentage drop since mid-November 2014.
Outlook and full-year implication
Zip Co said it expects second-half group cash earnings to generally align with the results it posted in the first six months. Taken together, that outlook implies full-year cash operating earnings of roughly A$248 million. Citi noted that figure is short of the Visible Alpha full-year estimate of A$260.6 million.
Corporate capital markets update
The company told investors it will continue to monitor market conditions and would consider a dual listing on a U.S. exchange only if such a move is in the best interests of shareholders.
Currency reference
The report included the exchange rate used in market commentary: $1 equals 1.4188 Australian dollars.
This account is limited to the information released by the company and the market responses reported at the time of the announcement. No additional projections, interpretations or speculative commentary have been added beyond those items disclosed by the company and the Citi comparison to Visible Alpha estimates.