Shares of Australian buy-now, pay-later provider Zip Co tumbled nearly 40% on Thursday—marking their worst intraday drop in more than nine years—after the company missed first-half earnings expectations.
For the six months ending December 31, Zip Co reported cash operating earnings of A$124.3 million ($87.61 million), falling short of the Visible Alpha consensus estimate of A$128.4 million.
The disappointing results sent the stock down as much as 38.2% to A$1.743 in early trading—its lowest level since May 2025. The decline represented the company’s steepest intraday percentage loss since November 2014.
Looking ahead, Zip Co projected that second-half group cash earnings would generally track in line with the first half. That outlook points to full-year cash operating earnings of roughly A$248 million—well below the Visible Alpha forecast of A$260.6 million, according to Citi.
In a separate update, the company said it would continue to monitor market conditions and consider a dual listing on a U.S. stock exchange only when such a move aligns with shareholders’ best interests.
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