ZIP CO LIMITED.. — Call Transcript 2025

Thanks, Operator. Good morning and thanks everyone for joining us for the presentation of the FY25 results. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora Nation, and pay our respects to elders past and present. This conference is also being webcast and will be available on Zip's website. I'm joined today by Zip's Group CEO and Managing Director Cynthia Scott, Group CFO Gordon Bell, and U.S. CEO Joe Heck. Cynthia will present our FY25 group highlights and ANZ business performance. Joe will then cover the U.S. business and Gordon will provide details of the financial results. Cynthia will then conclude with remarks regarding our FY26 strategy and outlook, and the presentation will be followed by Q&A. With that, I'll now hand over the call to Cynthia. Thanks, Vivienne, and good morning everyone. On behalf of the Zip team, we're very pleased to be reporting the strongest financial performance in Zip's history. Disciplined execution, customer focus, and significant operating leverage underpinned cash earnings growth of 147% and positions us strongly to continue to deliver long-term shareholder value. Our group highlights are set out on slides four and five. We achieved several milestones this year including delivering over $1 billion in total income. From a regional perspective, our U.S. business delivered an outstanding performance and our ANZ business returned to TTV growth. Customer engagement strengthened with average spend and transactions per customer increasing across our 6.3 million customers. This year we safely processed over 93 million transactions valued at $13.1 billion, up 30.3%. Our revenue margin was 8.3% reflecting the increased contribution from the U.S. now representing 71% of TTV. Turning to slide five. Significant momentum in the business and strong credit outcomes underpinned cash earnings increasing 147% to $170.3 million. Cash gross profit was up 34% to $509 million, supported by net bad debts as a percentage of TTV improving 14 basis points with good credit performance across both markets. Our focus on cost discipline while driving significant top line growth resulted in our operating margin almost doubling to 15.8%. Our achievements this year have strengthened our unique competitive advantages. As shown on slide six, we have two regional growth engines underpinning sustainable profitable growth at a group level. The charts demonstrate the accelerated momentum experienced during the year across key performance metrics, resulting in the delivery of a very strong second half result. Turning now to slide seven, our cash earnings performance was driven by our U.S. business, which delivered over 100% growth and exceeded $100 million in cash earnings for the first time. Slide eight details how we've delivered on our FY25 strategic priorities of growth and engagement, product innovation, and operational excellence. Starting on the left, we saw increased customer engagement in both markets, with U.S. transaction frequency reaching double digits, reflecting investment in customer experience, strategic marketing initiatives, and the addition of new merchants across targeted verticals. We continued to innovate new products, which we'll cover in the regional updates. In delivering operational excellence, we made disciplined investments in core systems, processes, and people, and undertook initiatives to transform our balance sheet, which Gordon will provide further detail on. Turning to slide nine, we've continued to deliver against our ESG focus areas. We achieved strong customer NPS scores of 68 and 57 in the U.S. and ANZ respectively, reflecting the value our customers place on Zip and our commitment to delivering exceptional customer experiences. Our employee engagement score strengthened to 81%, and female representation across the group increased to 44%. Pleasingly, we now have 50/50 gender representation across our board and our group executive team. Finally, we continue to measure our scope 1, 2, and 3 emissions with the aim to achieve carbon neutrality. Slide 10 provides a snapshot of our key group performance metrics, demonstrating the strength of the results delivered in FY25. Moving to the next slide, consistent with our objective of long-term shareholder value, we're considering a dual listing on the NASDAQ, supporting our significant growth opportunity and growing investor interest in the U.S. The potential dual listing remains subject to Zip board approval and the completion of a number of required processes, including obtaining regulatory approvals in the U.S. We'll update the market in due course. Before I cover ANZ performance, I'd like to acknowledge and thank Zip Co Founder Peter Gray for his significant contributions, most recently as ANZ CEO. As foreshadowed at our half year results, Pete's moved into a newly created leadership role at Zip as Head of Strategic Growth with a focus on accelerating our growth agenda across both markets. I'd also like to formally welcome our new ANZ CEO Soraya Alali who joined us in May. Soraya brings over 20 years' experience in the financial services sector with a focus on driving scalable growth, digital transformation, and enhanced customer experiences. Turning now to ANZ performance on Slide 13, following a period of optimizing margins in response to the external environment, the ANZ business returned to TTV growth. TTV was up 5.5% for the year and 13.2% in the second half. While the business delivered strong credit outcomes, accelerated product innovation, and invested in platforms to scale, growth was driven by increased transaction frequency and by Zip Plus, which was expanded to new customers at higher limits of up to $8,000. Zip ANZ collaborated with Google on the rollout of new Google Wallet features to enable more seamless and secure payment experiences across Chrome Autofill, Google Pay Online, and Google Services. We also added several large enterprise merchants across Australia and New Zealand in targeted verticals such as travel and health, including Cathay Pacific and National Dental Plan. Turning to Slide 14 for more detail on the performance of the Australian loan book, with our account-based product construct in Australia, yield on the loan book and excess spread is the best way to think about the performance of the business. Changes in product mix, lower funding costs, and improved credit outcomes delivered a 91 basis point expansion in portfolio yield and a 331 basis point expansion in excess spread. Pleasingly, arrears rates and net bad debt improved in response to management actions and risk settings, positioning the portfolio for continued profitable growth. After returning to quarter-on-quarter growth in Q4, we expect receivables to return to modest growth in the first half of FY26, which will support revenue conversion. Slide 15 sets out our Australian products and their relative contribution to the receivables portfolio. We've continued to innovate to meet our customers' evolving needs, including launching two new products within the past 18 months. Zip Plus continues to attract new customers and generate strong engagement and unit economics, with receivables now accounting for around 12% of the Australian book. We launched our Personal Loan product in January and Zip customers are using the flexible finance for weddings, holidays, and renovations. In terms of current customer spending trends, we've seen continued growth in online marketplaces and non-discretionary categories such as grocery and education. Our more mature customers continue to spend more than other cohorts on a relative basis, particularly in discretionary categories such as travel, entertainment, and restaurants. Slide 16 sets out several strategic initiatives that the business delivered on in FY25 to support future growth. During the year, we invested in strengthening our core risk management and cyber platforms and developing AI-powered capabilities. In Australia, we rolled out an AI-powered customer chatbot, Zigi, which will facilitate more personalized customer interactions in FY26. Turning to Slide 17, with a highly engaged customer base representing approximately 10% of the Australian adult population and products well suited to the current operating environment, we're uniquely placed to deliver sustainable, profitable growth in FY26. We're focusing on driving new customer acquisition and deepening customer engagement, including through high-value merchant and partner channels, as well as delivering scalability through simplification and automation, expanding digital self-service, and deploying AI. We will continue to explore capital-light propositions that complement our existing product suite through our innovation arm, Fearless Frontiers, which I'll provide more detail on later. I'll now hand over to Joe to talk about our U.S. results in more detail. Thanks Cynthia. I'm incredibly proud of the results the team has delivered in the past year since I joined as U.S. CEO. Our laser focus remains on keeping our customers at the center of everything we do, and this is reflected by our high customer NPS of 68, a great achievement. Turning to slide 19, the U.S. business delivered an outstanding performance this year. Cash earnings more than doubled, underpinned by TTV and revenue increasing 41.6% and 43.7% respectively, which included a very strong fourth quarter performance. Top line growth was driven from new and existing customers as we recorded active customer growth for the first time since FY22 with a simplified and differentiated merchant value proposition. We added several large merchants such as Heritage Grocers, GameStop, Take 5 Oil Change, and Major League Baseball. Ticketing and Shop channel partnerships and embedded finance continued to build momentum. We've scaled volumes and merchants through Google Pay and in August 2025 we also integrated with Autofill on Google Chrome, allowing customers to use Zip without switching apps or re-entering payment details. Our partnership with Stripe also went live with general availability earlier this month. We continued to enhance our consumer and merchant payment options, scaling Pay-in-8 as an expansion of our Pay-in-Z platform, offering customers increased flexibility and control over their payments. Pay-in-8 volumes increased 2.5 times, half on half after being made available to all eligible customers in the app in January and represented 18% of TTV in the fourth quarter. Turning to slide 20, the U.S. BNPL market has grown 6x in the last five years, with companies like Zip playing a critical role in this transformation. The medium term opportunity remains compelling with BNPL representing less than 2% of the $12.8 trillion U.S. payments market or only 6% of e-commerce spend. This is well below usage rates in markets such as Australia at 15% and some European countries at over 20%. In-store also remains a major growth opportunity in FY25. In-store TTV grew 65% year on year and made up over 23% of total TTV. Slide 21 shows U.S. active customer base which grew 11% year on year, including an increase in second half versus first half for the first time since FY21. This was a strong result highlighting our effective credit decisioning in the face of typical seasonality and macro uncertainty. This growth has been driven by our ability to deliver increased customer engagement and improve dormancy. Monthly transacting users increased circa 20% on average in FY25, indicating strong momentum as we begin FY26. Slide 22 demonstrates how customer engagement has strengthened. Transactions and TTV per active customer increased 62% and 76% respectively over the last two years. In addition, continued improvements in our underwriting capabilities have accelerated our ability to increase spending power for newer cohorts over time. The July 2024 customer cohort experienced a 58% increase in average spend over the last 12 months and we are seeing continued momentum with the most recent January 2025 customer cohort outperforming that vintage over its first six months. We have achieved these outcomes by identifying and acquiring high quality potential customers, investing in personalization and features to drive customer engagement through the app and physical card, and providing spending power increases based on positive repayment behavior. We expect customer engagement to continue to deepen as the collective impact of these initiatives compound, driving increased transaction frequency and as we capture a greater share of our customers' wallets. Moving to slide 23, we serve a unique and resilient customer base, being the everyday American of which we estimate there to be over 100 million nationally. These Americans have been underestimated and underserved by traditional financial services providers. Today the majority of our TTV is derived from non-discretionary categories with an average order value of $133 and our customers are increasingly using our product for non-discretionary spends such as grocery, health, and education as seen in the increased spend in these segments as we focus on matching customers with appropriate spending power, providing financial flexibility, and giving customers confidence in their financial capability. The fact that over 98% of our transactions are repaid in full reflects the role Zip plays as a cash flow smoothing tool for our customers. Slide 24 covers U.S. credit performance on a cohort basis. As you can see on the chart, our U.S. business continued to deliver loss rates within our target range of 1.5%-2% of TTV, all while achieving over 40% year on year growth in TTV and revenue. These results reinforce the strength and agility of our credit decisioning platform and our ability to maintain strong unit economics during a period of macro uncertainty, and we remain well placed to perform in a range of economic scenarios given our short duration portfolio and the ability to swiftly adjust our risk settings. Losses remained within our target range even when accounting for seasonality. With respect to our reporting, historically 120-day delinquency as a percentage of cohort TTV has served as a reliable indicator of credit losses within our Pay-in-4 offering. However, this metric does not completely reflect the performance of Pay-in-8 as it is not yet fully seasoned. To accurately reflect the increased diversification of our portfolio, we will review the reporting of U.S. bad debts. Turning now to slide 25, on the back of an outstanding year and particularly strong fourth quarter, we are well placed to continue delivering strong growth with revised value propositions and a highly engaged customer base. We're excited to expand our Pay-in-Z platform with the rollout of Pay-in-2 functionality, providing greater flexibility with smaller ticket items and everyday expenses such as groceries and utilities. We're also exploring opportunities to expand our revenue streams in a way that provides greater utility for our customers, including MoneyCoach, an AI-powered guided cash flow management solution. We will also continue to drive our flywheel through accelerating customer and merchant growth through Channel Partners and Embedded Finance. With that, I will now hand over to Gordon to cover our financial performance. Thank you Joe and good morning to all. I'll start on slide 27. In a challenging macroeconomic environment, we've continued to deliver significant growth and improved margins. Our revenue margin, cash Net Transaction margin, operating margin and cash EBITDA are all well within the range of our two year targets originally set in August 2024. This is a testament to the strategic focus, growth mindset and disciplined execution across the entire organization. The growth in our U.S. business and group operating margin are the key highlights for the year. We've continued to tightly manage costs while investing more to grow our businesses. We are confident in our approach in delivering these outstanding annual results and they position us well for future growth opportunities. Moving to the income statement on slide 28, as Cynthia Scott highlighted earlier, I'm pleased to report Zip's record full year cash EBITDA result of $170.3 million for the group, which is up 147% year on year. We achieved a significant milestone with total income reaching over $1 billion, up 23.5% from FY24. Cash gross profit increased 34% compared to the prior year, reaching $509 million. The result reflects disciplined management of our bad debt losses and refinancing facilities at improved margins. We invested in business growth and innovation in a disciplined manner with cost growth at 10.2% year on year. For the full year, Zip delivered a statutory net profit after tax of $79.9 million and an underlying net profit after tax of $49.7 million after adjusting for one off items. Further detail is provided in the appendix. Slide 29 covers our unit economics. Cash gross profit increased 34% year on year and cash NTM increased by 11 basis points for the year. TTV surpassed $13 billion, fueled by a record performance in the U.S. The increasing contribution of the U.S. business has resulted in a decline in our revenue margin given that our U.S. product margin is approximately 7% compared to higher margin products in the Australia and New Zealand region. Business interest expense as a percentage of TTV was at 1.6%, an improvement of 35 basis points year on year despite higher notional funding facilities increasing as a result of our receivables growth. Net bad debts written off as a percentage of TTV was at 1.5%, the lowest in the last two years. This reflects our disciplined approach to credit settings and our portfolio management. The performance for all aspects of unit economics contributed the 11 basis point strengthening in our net cash transaction margin of 3.9%. Moving to operating efficiency on slide 30, cash OpEx spend in FY25 reflects the balanced spend on marketing initiatives, product innovation which delivers increased engagement, as well as increased spend in people, processes, and information technology to support the business as it scales. Marketing spend continues to be a priority across both markets to deepen customer engagement. We continue to target total marketing spend being at or below 0.5% of TTV, reflecting the maturity of our businesses. Other operating costs decreased mainly due to the early extinguishment of the corporate debt facility in July 2024. Our deliberate prioritization of cost discipline over the last two years has contributed to the operating margin doubling from 7.9% in FY24 to 15.8% in FY25. Going forward, we'll be using operating margin to manage the cost investment balance as opposed to a year-on-year percentage and or a specific dollar amount going forward on a like-for-like basis. We'll be reviewing intra spend year-on-year to ensure we are taking advantage of attractive opportunities and supporting our growing businesses. Additionally, in FY26 we will be investing in our future through our Fearless Frontiers Innovation arm and the work on a potential U.S. listing. All these costs will be reported externally in the corporate segment for transparency to the market. Turning to slide 31, operating margin where the cost of sales improvement and discipline on cash OpEx drove a 787 basis point improvement in our operating margin. We had a very strong cost of sales result in FY25. Outcomes from our credit management provided a year-on-year improvement with losses at 1.52% of TTV, well down on the prior year. The outstanding work on refinancing funding facilities in Australia was evident with the outcome being a material saving in interest costs. The cash OpEx benefit outlined earlier was also a standout result. Overall, we are targeting a further improvement in operating margin in FY26, primarily through the flow-through benefits of funding initiatives and supported by continued credit management and cost discipline. Turning to slide 32, the next few slides starting with slide 32 cover the group's liquidity, funding, and capital management. Slide 32 provides a breakdown of our cash position along with the year-on-year movement in available cash. In the chart on the left hand side you can see the breakdown of Zip's $391.6 million total cash position after we allow for cash held at balance sheet date that was unavailable and including cash that may be withdrawn from funding vehicles. Zip had $137.8 million of available cash and liquidity. As at 30 June 2025, pleasingly operating cash flows comprising cash, EBITDA, CapEx, working capital and funding requirements contributed a positive $30.5 million of cash inflows. This was driven by the Group's operating result offset by floats and working capital required for TTV growth, especially in the U.S. Non operating cash flows of $26.9 million includes the $50.1 million proceeds from the share purchase plan in late 2024 and this was offset by the equity buyback during the year. Collectively, these actions delivered a $57.4 million improvement in our available cash balance since June last year, further strengthening our balance sheet. As at 31 July 2025, available cash increased to $230.8 million as a result of U.S. funding enhancements, which I'll cover next. Slide 33 outlines the financing facilities in place for Zip's receivables and the headroom for future growth. As at 30 June 2025, Zip had no corporate debt. Zip is committed to preserving our balance sheet strength to support our existing businesses and future opportunities. During the year we executed approximately $2 billion of funding transactions, improved our margins, extended our maturity profile and expanded our investor base in Australia. Our strong corporate performance and favorable market conditions have supported new facilities at lower margins in the U.S. During the year we upsized our facility to $300 million to add capacity for growth. As at 30 June we had facility headroom of $509 million providing capacity and opportunity to amplify Zip's long term value. Slide 34 outlines various funding initiatives. These will diversify our funding, improve tenor and improve our weighted average margins. Zip has and will continue to successfully build a strong and diversified funding portfolio, strengthen our balance sheet and ensure the business has ample capacity for growth. In May 25th we established a new $400 million warehouse facility in Australia with a new funding partner for a five year term which has extended the tenor of our funding program and reduced upcoming refinancing risk. On 10 July 2025 we settled the new $300 million ABS bond issue with a weighted average margin of 1.79%, materially lower than the 2.13% we achieved on the previous deal in September last year. Both of these deals set us up well for refinancings in FY26 in the U.S. In July we added to our capacity with an increase to our short-term funding facility with our existing partner. This provides an uplift in the flexibility and capacity leading into Q2 at reduced cost of funds. We are also in advanced stages of establishing a new warehouse in the U.S., our second in country, which will deliver enhanced capacity from new sources at improved economics and we are targeting this for closure in October. These initiatives reflect Zip's appetite to continue to build a more resilient, efficient, and globally competitive funding platform to strengthen and support our growth opportunities. Slide 35 outlines our capital management framework which guides the allocation of financial resources. We aim to accomplish the optimal balance of investments that maintain a resilient balance sheet, enhance our competitive position, and deliver long-term value to maximize shareholder return. In April this year we successfully launched an on-market share buyback with 14.8 million shares purchased for $29.8 million to date. Following our FY25 results, Zip intends to neutralize the impact of share-based incentive programs by funding the Employee Share Trust to purchase shares on market. Looking ahead, we will continue to prioritize preserving a strong balance sheet to support long-term growth and the ability to pursue attractive opportunities as they arise. Our investment approach will continue to be guided through a lens on risk, expected returns, and strategic alignment. I'll now hand back to Cynthia Scott to cover the group's strategy and our outlook. Thanks, Gordon. Before I cover our FY26 priorities and outlook, slide 37 provides useful context on the journey Zip's been on over the past few years. After strengthening Zip's foundation and delivering group profitability, FY25 has been a year of preparing Zip for the next horizon of significant growth. Moving to slide 38, in FY25 we refreshed our mission and purpose to better reflect our future opportunities. We're committed to delivering on our purpose of unlocking financial potential together and are aligned on our mission to bring exceptional experiences, innovation, and partnership to every financial journey. Slide 39 sets out our FY26 strategic priorities, which are an evolution of the priorities we delivered in FY25. We will continue to do more for our customers, enhancing our existing propositions and leveraging our channel partnerships to allow our customers to shop seamlessly everywhere. Innovation is at the core of our business and we will increasingly deploy AI-powered products and experiences to Zip customers. As we continue to scale, we'll focus on optimizing our capital structure and ensuring our core systems and processes continue to support future growth efficiently. Turning to slide 40, while we've used machine learning since inception, through FY25 we explored opportunities to leverage generative AI across the group. We've equipped all employees with GenAI tools, our engineers are enabled with AI-augmented developer tools, and we've automated a range of business processes including merchant risk, accreditation, and improved customer self-service. In FY26 and beyond, we will develop a sharper focus on scale and depth of impact. We will continue to build our AI knowledge and capability across our people, processes, and products to deliver enhanced and more personalized experiences for our customers and partners. Onto slide 41, we've established Fearless Frontiers, a lean strategic team focused on long-term product innovation aligned to our regional strategies. Fearless Frontiers will assess new products, systems, and processes to accelerate the core business and unlock new profit pools supporting future growth. Examples of this include exploring AI-driven products such as a guided cash flow management solution, MoneyCoach in the U.S., and capital-light propositions in ANZ. Moving to the outlook on slide 42, as highlighted, we've delivered results this year well within the two-year targets we provided 12 months ago. Today, we're providing refreshed ranges across each of the four metrics for FY26. Firstly, revenue as a percentage of TTV is expected to be circa 8%. This reflects the increased contribution from our U.S. business which we expect to deliver TTV growth of at least 35% in U.S. dollar terms. Pleasingly, U.S. TTV performance in July tracked in line with FY25 growth. Our cash net transaction margin range has been increased to between 3.8% and 4.2% for FY26. As the business scales, we remain focused on preserving the strong unit economics and operating leverage we've developed, and as a result, we've upgraded our operating margin expectations to between 16% and 19%. Finally, taking into account the other three metrics, we expect Cash EBITDA as a percentage of TTV to be above the FY25 result of 1.3%. In closing, FY25 has proven to be a defining year for Zip Co Limited. We're a fundamentally stronger and more efficient business than a year ago with the team, technology, and balance sheet strength to capture future growth opportunities while remaining true to the customer first values that brought us here. On behalf of the executive team, I'd like to thank our incredible team of Zipsters for their passion and commitment and our shareholders for their ongoing support. That concludes our formal presentation and we'll now open the call for Q&A. Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. For the sake of time today, we ask that you please limit yourself to two questions per person. If you have any further questions, you may rejoin the queue. Your first question today comes from Jonathon Higgins from Unified Capital Partners. Please go ahead. Hi, guys. Cynthia, Gordon, rest of the team, congratulations on the result and also shout out to Peter, obviously moving to the new revenue role. Congratulations. Look, a few couple from me today, probably the first one, which I assume you'll get several questions on, just on the guidance. We can see that you've upgraded the operating margin there, but you've also sort of, I think, been exiting pretty strongly on that cash TTV margin versus guidance in both the third and the fourth quarter. I was wondering if you could just sort of expand on some of those building blocks, noting we've got U.S. TTV, don't have ANZ, and probably a little bit on the costs, wherever you want to take it. Thank you. Yeah, thanks very much, Jonathon. I'll give you my initial perspective, then I'll hand to Gordon just to give you a bit more of a walkthrough. You're absolutely right. In terms of that, the expectation of growth in the U.S., we did provide the guidance that we expect the U.S. business to grow at more than 35%. That's obviously an increase on the guidance that we provided for FY25. There is still very strong momentum in the U.S. business and we do still see the opportunity to deliver at least that 35% growth. It's only six weeks into FY26, but we wanted to also just give you a window into how the business is performing in the early part of the financial year. The momentum that we saw in 2025 pleasingly has continued. We're very confident about where our U.S. business in particular is positioned and the strength of the result that it's delivering at the moment. I might ask Gordon just to walk through, Jona, the interplay between some of those different metrics for you. Yeah, thanks, Cynthia. Morning, Jona. The increase for operating margin, if you recall, the two year target was 12%-17%. We feel comfortable with another year under our belt to up that to a range of 16%-19%. We've tightened the range and we've increased, which we feel comfortable about. It is a full year 2026 range. We note that we've got things moving within the P&L throughout the year in cost of sales, OpEx, et cetera, but we feel really comfortable in that range for the full year. Thanks, guys. Good color. Just last one from me. Can you just give us probably the number one sort of question you get covering the stock is the interplay between ATV and new customer growth and sort of how that looks like, as Joe I think alluded to at the start of the call, you've had good ATV growth year on year. We're heading into the seasonal peak. I was wondering if you can expand on just the interplay of those two factors that makes up that 35%-40% for the year and how far ATV do you think you can grow? Maybe one if Joe wants to jump in too also.Thank you. Yeah, thanks Joe. I'll start and then I will throw to Joe. You're absolutely right. Obviously, one of the things we're really pleased with is both the net new customer growth of 11% that we saw in the U.S. but also that increase in transaction frequency hitting over double digits, 10.6x now early. New customers that come onto the Zip platform are not obviously going to be transacting as frequently as existing customers. While I'm not going to give you a breakdown of, you know, we're breaking down the 35% between new customer growth and existing customer growth, I will say that the team is very focused on driving both of those engines. Both net new customer growth but also looking for more ways to engage our existing customers more, more frequently maybe. Joe, do you want to talk about some of the specific initiatives underway on both of those. Yeah, thanks, Cynthia. I think when we look at new customer growth, the best sign of new customer growth is an engaged existing customer growth that's endorsing you across. I think when you look at the number of transactions per year increasing up to 10.6 now, I think that's a really strong sign of our engagement and we're excited about that. As we look in FY26, I would say there's initiatives active across both our direct to consumer, which probably the most exciting thing to me is around the Pay-in-8 platform, which I think will deliver strong flexibility to that everyday non-discretionary spend that we were anchored to. We continue to invest in the brand and embedded, and we're continuing to see really, really strong in-store growth as well. In the merchant channel, we have seen really good traction in our refreshed value prop, and we expect growth from being in general availability with Stripe and adding in additional embedded and channel partner opportunities in the future. Thanks guys. Thank you. Your next question comes from Phil Chippindale from Ord Minnett. Please go ahead. Hi, good morning team. Thanks for your time. I just want to touch on the NTM margin guidance of 3.8%-4.2%. Cynthia, you mentioned earlier the revenue margin did expect to come down because of that mix from the U.S., which I think we understand, but sort of to potentially see an improvement in the NTM margin against that backdrop, what do you think is sort of going to be the primary driver of that? Is that really around interest expense perhaps coming down? Yeah, thanks, Phil. Exactly. Look, I'll get Gordon to comment on it. Exactly as you said, there's a portfolio mix shift that is going to continue as we see greater TTV across the business coming from the U.S., and that's obviously at the 7% revenue margin. The biggest impact is actually going to be on the interest side or the funding cost side. Gordon, do you want to talk a bit to that? Yeah, you're spot on, Phil. The interest costs, and we look to obviously maintain and keep improving on our credit discipline. Of course, on the interest cost side, you've got both aspects which we're looking to deliver some benefit. You've got the base rate side, which depending on your outlook, there's a lot of market analysts who've got rate cuts priced in for both Australia and the U.S., so there's benefit there. We're also refinancing, as we've shown in Australia this year. We'll see the flow through of those refinancings at lower margins. We are refinancing facilities in the U.S., which will start up through in 2026 and probably more in 2027. There's just a little bit more color, but you're right on with the building blocks. Okay, thanks. Just on slide 42, the guidance slide, the last bullet point you've mentioned driving non-TTV dependent revenue streams. This is specifically in relation to FY26. Can you just unpack that for us? You know, what are you expecting to see contribute there? Yeah, sure, Phil. I mean it's a continuation of the conversations that we had last year. That is looking at capital-light propositions, you know, that will drive revenue. Some of the things that we've talked about in relation largely to the Australian business. There's obviously, you know, we talked about automation and AI and just the general focus on productivity and driving operating margin in the business. That will continue to be a priority for us. Okay, and just on the dual listing. Phil, just one more thing. I mean the one as well, the thing we also have to balance there with that metric is with TTV now at over $13 billion, you know, the range that we had, the 1% or 2% there was a pretty wide range and getting wider, hence why we gave it a lower bound. We're looking to go above that. Just to explain the change there on the outlook. Yes, understand, just last one for me and I'll jump back in the queue. Just on the dual listing, you've obviously said it's subject to board approval. What sort of time frame should we expect to hear some more about that? Is that something for the first half or is that potentially sort of more of a second half story? Yeah, no, look, there's obviously a process that we need to go through and we just announced the intention today, Phil. Yes, we require board approval. There are SEC requirements that we've got to go through. There are a number of different processes we'll undertake. We'll keep you updated and as and when there's something to update you on, we'll let you know. It's certainly something I would imagine we'd give you an update on in the first half. Okay, thanks. I'll jump back in the queue. Thank you. Thank you. Your next question comes from Elijah Mayr from Goldman Sachs. Please go ahead. Good morning, guys. Congrats on the results. Just firstly, can you sort of just break out, I guess, the key drivers of that fourth quarter, fourth quarter outperformance just from the cash EBITDA perspective, and if that fourth quarter number is reflective of kind of a run rate looking into FY26, or is there anything unique about the fourth quarter we should be aware of? Elijah, it's Gordon. Thank you. Look, we do have seasonality in our business. We see revenue coming through in the second half, primarily that sort of Q2 busy period. You do see greater conversion into cash EBITDA in Q3 and Q4. That's happened again this year. Hence, you've got to look at those two. What I would say is that we're really pleased with the TTV and the growth in Q4. I mean the U.S. was north of 40%. Credit was managed well, interest costs well. We saw that flow through, and we maintained our cost discipline. It was really an all-round performance on the Q4 piece. As we look into 2026, we'll look to maintain where we can and improve. We're also conscious that it's a full year in FY26, hence we're giving an outlook for the whole year. There's on the metrics. No problem. Maybe just for my second question on active customers in the U.S., that seems to accelerate in the fourth quarter. Can you sort of maybe give some color on how you think about the cost of acquiring these customers? Now that sort of loss rates are within that target range for the U.S., do you look to push harder or is this kind of the levels you want to maintain, and just that relationship focus of how much cost you want to put into acquiring new customers in that loss rate range as it stands today? Yeah, no, look, it's a good question and as we've said consistently for the last couple years, it is always a balance for us around profitable growth, customer growth, and maintaining strong loss performance. As the business scales, though, our CAC is quite low and will continue to drive lower because as we move into some of the channel partnerships, the announcements we've made today in relation to Google, Joe mentioned that we've gone into general availability now with Stripe. The more we've got these one-to-many channel partnerships really moving, you'll see that CAC continuing to drive down. We are very confident in our ability to continue to drive strong customer acquisition and not see an increase in CAC. On the back of that, Joe? Yeah, I would just add to that. We maintain strong discipline around our CAC. I also would just maybe point to our underwriting strategy of a low and grow. We acquire new customers, we make sure that we match the right affordability, and we continue to underwrite based on performance. We maintain a profitable customer, and we feel really good that we're constantly balancing that perspective of CAC versus ongoing performance. Perfect. Thanks, guys. Thank you. Your next question comes from Siraj Ahmed from Citigroup Inc. Please go ahead. Morning all. First question, maybe one for Gordon. Maybe I'm getting the maths wrong, but to get your sort of cash operating margin midpoint, it certainly implies the OpEx has to grow 20%+ or something. Is that, can you just help me with that as to how much OpEx you're looking to grow next year, especially given you just mentioned that tax expected to go down in the U.S. as well. Thanks. Good morning, Siraj. I didn't catch all that, but I think you're talking about operating margin. Is that right? Yeah. Gordon, if you look. At the operating margin, I mean, rough math, if you want to get to the midpoint, it sort of implies your OpEx to be up like 20%+. Right. Otherwise, you get to the top end. Just any color on how much OpEx is growing next year would be very helpful. Yeah, thanks, Siraj. I understand the question. Look, we're giving an outlook on operating margin for next year. I outlined we're not giving a dollar or a year-on-year increase for 2026. We're going to manage it within an operating margin context. What that allows us to do is it allows us to invest in the businesses as they grow and allows us to measure that investment with the translation through the whole income stack. That's the way we're going to look at it going forward. We feel that's the best way to balance investment in the business and the discipline in the business. Okay. It doesn't sound like it's marketing then. If your tax going down, it could be people, technology, something like that. The second one, maybe for Cynthia and Gordon, certain of the revenue yield, I mean, there were questions on that getting to, getting to 4% at the midpoint.Right. Given the losses, picking up payment, is there something offsetting that to get to 4%? I mean, for instance, are you looking to launch a subscription offering similar to one of your competitors, or is there something else offsetting that? That's going up. Thanks. Yeah, thanks, Siraj. Can I just add one other thing to your prior comment? You mentioned marketing costs going up at the end of your comment. We're definitely still maintaining the same discipline around marketing costs that we've consistently said that they won't exceed 0.5% of TTV. I just want to confirm that. In terms of the U.S. NTM, it's really going to come down to funding costs, I think is where we're going to go with this one. That's right. You've got U.S. Fed rate cuts in the outlook. Whether they occur or not is up to Mr. Powell and so forth in the next few months. We are refinancing our U.S. funding facilities and we do look to delivering some of that. We'll deliver some of the benefit in the cash NTM in the U.S. in 2026 and probably flying through in 2027. Okay, can I just ask a quick one just on ANZ, I've heard feedback the regulations impacting some of the other BNPL players, especially in terms of money sort of offering. Are you, because of more on risk paperwork, are you seeing anything impacting Australian growth next year in terms of regulation? Yeah, no. Thanks, Siraj. Just to clarify, the products that we operate in Australia, even prior to this change in regulation, Zip Money, Zip Plus, and Personal Loans were already operating under the NCCPA. That's why we were very pro advocating for fit for purpose regulation for these products in Australia because it's the way we've always been operating our business. What has changed is with the new BNPL regs coming in, Zip Pay now comes in under the NCCPA. From our perspective, we've brought Zip Pay in as a fully regulated product now and we've adopted the same acquisition flows and operating processes for Zip Pay as we have for the other products. While you're right for others, I know it does add some friction and it's certainly something that we're very alive to to make sure our customers have a great experience. We're fully compliant with the new regulations and all of our products are now under the NCCPA. Just to clarify, you're not seeing any impact from that because you already complied, right? No, not material Siraj. As we highlighted in the earlier comments, a lot of the growth we've seen in the ANZ business and the TTV growth has come from Zip Plus. That's a product where we've got a well-established flow and it's been under the NCCPA since inception. Super helpful, thank you. Thank you. Your next question comes from Tim Piper from UBS. Please go ahead. Oh, good morning team. First one just on the U.S. bad debt performance. You've noted in the TTV there that. 120 day delinquency is not reflecting Pay-in-8 anymore. Can you just give us a sense on what you're planning on changing towards. For bad debt performance there? Is it extending the period from 120 to 180, or what are you sort of planning on doing? Yeah, no, it's a great question. We'll unpack a little bit. I'll kick off and then Joe can give some detail as well. The 120-day sort of forecast cohort losses is a good guide for the Pay-in-4 products because it sort of matches the maturity of that product. When it comes to Pay-in-8 at 120 days, the actual write-offs haven't seasoned that well in the product because it's a longer maturity. What we're finding is that the 120-day measure is becoming a little dated in its view on the overall portfolio. As Pay-in-8 gets to a more material percentage of the overall portfolio and we're getting close to 20% and it's growing, that metric's becoming a little outdated for us and there are going to be better ways to show our loss performance. In FY26 we are making clear that we will be looking to provide more traditional product type metrics and give more color as that portfolio develops. Okay, but are you still going to. Stick to this one, the 0.5%-2% loss range in terms of growing the business? If we do assume you extend that out like that 1.7% that it's kind of running at now, does that have an artificially depressed kind of impact on that 1.7%? Yeah, so the 1.5%-2% is still the range, you know, for now. Absolutely. What we've also done, Tim, just to give some more color is in the back of the presentation we did provide an appendix which actually gave the actual dollar write offs for the past eight quarters so that you can have a look at that through your models. We also, you know, just to point out those actual write offs in the P&L and there's nothing new there. It's been in the 4D and the.4E for a while. That's also net of recoveries and any fees. Whereas the forecast cohort loss graph you're used to seeing, that is a gross number. We're just giving you both there to do the analysis. Right. I guess what I'm trying to get. Is it going to give. You have more capacity to accelerate customer growth within what would be a target net bad debts range in the U.S. if you make those changes? Yes. Okay, good one. Sorry, just a quick second question. Just on the OpEx picking up again, I mean, even if you go from 40 basis points to 50 basis points of TTV on marketing, that only adds sort of 5% OpEx growth. I know you're guiding to a range, but it does imply quite a. Lot of OpEx growth. Maybe just a bit of a sense. On the areas you're going to be accelerating the cost investment, outside of marketing. We're looking across the board. I mean, one of the things we have said is we're going to grow the businesses. We are having some investment in our Fearless Frontiers arm, which we mentioned. We're looking at some costs for the consideration of a NASDAQ listing. There's probably a broader range of costs, if you like. Overall, we are anchoring back to the operating margin of 16%-19%. We'll be investing in the businesses and spending to the benefit, and if we're able to, if we're producing the revenue through the income statement. We are looking at it on that basis. Got it. Thanks. Thank you. Your next question comes from John Marrin from CLSA. Please go ahead. Thank you. Hey guys, congratulations on a great result. Great job. Just wanted to go back to slide 22 for a second and talk about that new customer cohort. Obviously, the performance to see it accelerating year over year is good. I'm just hoping to get a little more color around why the January cohort is so strong. We heard some details on prepared remarks, so maybe a little more color on what's motivating that new customer to spend so much more. And. I'll have a second to follow up. Thank you. Great question. I would say a couple different factors play into this. In particular, it's same as our story back in July. We were getting better and better at targeting the right customer that fits the value proposition of the product. We continue to refine our marketing and our omnichannel approach to find these customers and engage them in the right way. The app is built in a way to continue to engage them and stay top of wallet, which I think is reflected in the frequency of transaction. The other is probably a broader macro trend. You know, BNPL is becoming a more common payment method within the U.S. and it's benefiting all players on that front. We see stay really focused on the everyday non-discretionary spend American and you're seeing that frequency and engagement pick up. Yeah, great. Just to build on Elijah's question earlier, on account growth and, you know, obviously a great result in this quarter or this half year rather, I just kind of want to hear a little more about what you're thinking about both in the U.S. and ANZ on account growth. What the drivers are and maybe the seasonal cadence as we look into the latter portion of the year. If there's things in place with merchants that might drive growth in the fourth quarter and what have you. Yeah, from a US perspective we're excited particularly about Pay-in-2 on the consumer value prop side. We think that fits monthly spend much better. We see heavy, heavy usage on non-discretionary core utilities and other monthly bills. This will help with those smaller purchases. We're excited about that. That should bring in new customers, and then the merchant side, getting exposure in channel partnerships and embedded opportunities like Google, like Stripe. We see tremendous upside on new customer growth on those fronts. On the ANZ side, it's a very similar story. We made comment in the prepared remarks just in relation to the similar sorts of initiatives we've rolled out with Google. We've also got a lot of work going on with additional new merchants coming onto the platform, and you've seen a lot of the growth coming through Zip Plus. That's where we are seeing the transaction frequency, I think. My final point would be that's all really evident through the TTV growth and the pickup in momentum that we've seen in TTV growth in the ANZ business in Q4, and we do expect that will continue. Okay, if I could just slip one more in. I think the 1.3% guide, obviously a lower end of the lower bound there on the guidance. If you think about how you could outperform that number, what are the bigger buckets that we're thinking about? Is it just a higher top line, lower interest costs, lower bad debts? How are you thinking about outperformance on that? If you could be generous enough to give us the upper bound. That'd be great. Nice try. Let me clarify. It's greater than 1.3% and the answer to your question is yes to all of those things that you've suggested. All of those levers we will be looking at this year to drive that higher than the 1.3%. The real focus for us though is on operating margin. As we deliver through operating margin, as Gordon said earlier, that will then flow through. Okay. All right, good enough. Thanks, guys. Thank you. Your next question comes from Ware Kuo from Bank of America. Please go ahead. Morning. Thanks. Just a few questions from me. Number one, just touching on the Pay-in-8 product. Good outcomes for TTV growth for Pay-in-8. Have you seen it open up new customer cohorts or has it been more additive to existing customers? Number two, just how are you thinking structurally about average loss rates for Pay-in-8 versus Pay-in-4? Is it correct that the revenue take rates are similar between the two products? Yeah, maybe I'll start then I'll throw to Joe. Thanks for the question. So yeah, I'll answer your last question first. Yes, the revenue margin on the products, we optimize them to keep the revenue margin across the portfolio at 7%. Yes, and we do look for that balance in terms of optimizing the use cases for customers. Some of the areas that we've seen, particularly around health and travel and entertainment and so forth, tickets is where we've been seeing a lot of penetration of Pay-in-8 and that then aligns to our merchant strategy and where we've been bringing new merchants onto the platform as well. Joe, do you want to talk a bit more about that and then about maybe the comment on losses? Yeah. From a consumer perspective, opening up additional categories for us, I think it is really important. Cynthia mentioned a couple of those verticals, but I also think when you kind of play out the U.S. consumer, especially around now back to school season, our customers are buying iPads and things to get ready for school. Pay-in-8 offers additional flexibility to allow for a range of purchases that Pay-in-4 might get tight on. Excited about that from a loss perspective. I think I'll go back to what Gordon's comment was. We're continuing to just evaluate the right metric, but we are very comfortable with the loss rates and we've got enough history over the last 12 months now where we feel like we're in a really good position to continue to manage the risk at a portfolio level within the range that we've articulated. Great. Thank you. Thank you. Your next question comes from Wei Sim from Jefferies. Please go ahead. Hi team, can you hear me? We can, Wei. Great, thanks. Thanks, Cynthia and team. Just one question. Congratulations on a great result. I've been wrong, you know, U.S. customer growth in fourth quarter. Didn't expect that. Really great. One question for me is just really on the U.S. regulatory landscape on potential risks there. I've seen some news flow on potentially for BNPLs to report to credit rating agencies and the New York BNPL Act. I understand we've got working with WebBank. If you can just talk about, I guess, how you see the regulatory landscape, any potential risks, and what is being done to mitigate these things. Thanks. I'll just start with some comments that I will pass to Joe. I would characterize it as a benign regulatory environment at the moment, certainly from a federal perspective, and it's been constructive for us. Some of the things that you noted in relation to FICO scores and providing data back to the agencies, I'll ask Joe to comment on. The one thing that we have seen is there has been some pickup in state-based regulators focusing on the product. You mentioned New York. We'll particularly comment in relation to New York. Joe, just want to comment on FICO and New York. Thank you. I would say echo what Cynthia Scott said about a benign environment, in particular when you look at the FICO side of this. I think it's very, very early days and it's in an exploratory phase. Anchoring back to our perspective, we believe in fit for purpose and I think we're seeing firmly with what will benefit our customer base. We'll continue to stay abreast, but there's no immediacy to that from a New York perspective. We're in dialogue there, feel very comfortable with our regulatory position. We've always been kind of in a good spot there and we'll continue to monitor as that plays out. We're in a very good position in the near and medium term. Okay. Just for these, is this in conversation with Webbank or with the regulators, or how does that work? Yeah, we partner with WebBank, which we believe is a very strong regulatory position for our products. Whenever we have any conversations with regulators, state or federal, we partner with WebBank for those conversations. Okay, perfect. Thank you. Congrats again on the great results. Thank you. Thank you. Once again, if you'd like to ask a question, please press Star one on your telephone and wait for your name to be announced. For the sake of time, we please ask that you keep it to one question. Your next question comes from Jacqueline from RBC. Please go ahead. Hi team. Congratulations on the great result. Just one in terms maybe for Joe, the U.S. adoption rate, 6% FY24 is feeling a bit dated now. Feedback what we're getting is that's floating higher towards sort of the 8% mark. Just any thoughts around the key drivers there if that's occurring and how it pertains to some of your segments? Yeah. From a U.S. perspective, I think we're still in the early days of understanding, and I would say consumer awareness, and as the industry grows, we benefit from that. I think you're starting to see a normalization and probably an understanding from the U.S. consumer of the utility and, frankly, the benefits of a fixed product that really is starting to drive strong adoption across the U.S. industry. I think it's on an upward trajectory. I would anchor back to what we see in other markets like Australia, which is 15%, and some places in Europe up close to 20%. There's a long journey ahead, but we're excited about the growth. Thank you, Joe. Maybe just one on ANZ revenue margins. Just looking at my numbers and I might be wrong, but a little bit of compression on the revenue margin in the fourth quarter. I just want to get some color if there's any one-off initiatives in there with merchants or customers that are driving a little bit of softness there, and how to think about that in the context of the 8%. No, I wouldn't say so. No one-offs. The Australian business we've talked about for a little while is we really are trying to balance, I guess, the return of the economy and making sure that we're growing at the right time. We're really pleased with the products we've got in market with our Personal Loans products and coming into the new year and with the consumer sentiment print the other day, another potential rate cut coming. We feel that we're well placed and well timed for FY26. I'll just point out as well that TTV growth for the ANZ business in Q4 was really strong at 13%. We are seeing those signs and we're cautiously optimistic. Thank you. Unfortunately, that is all the time we have for questions today. I'll now hand the conference back to Ms. Scott for any closing remarks. Thanks everyone. I'm sorry, we've run a little bit over time. Thanks everyone for all your questions. Thanks for joining us. I know we're going to speak to many of you and meet over the next couple of weeks with several of you. Thanks again and we look forward to seeing you in the next couple of weeks. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker 6: Thanks, Operator. Good morning and thanks everyone for joining us for the presentation of the FY25 results. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora Nation, and pay our respects to elders past and present. This conference is also being webcast and will be available on Zip's website. I'm joined today by Zip's Group CEO and Managing Director Cynthia Scott, Group CFO Gordon Bell, and U.S. CEO Joe Heck. Cynthia will present our FY25 group highlights and ANZ business performance. Joe will then cover the U.S. business and Gordon will provide details of the financial results. Cynthia will then conclude with remarks regarding our FY26 strategy and outlook, and the presentation will be followed by Q&A. With that, I'll now hand over the call to Cynthia. Thanks, Operator. thanks operator Good morning and thanks everyone for joining us for the presentation of the FY25 results. good morning and thanks everyone for joining us for the presentation of the fy25 results To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora Nation, and pay our respects to elders past and present. to open i'd like to begin by acknowledging the traditional owners of the land on which we meet today the gadigal of the eora nation and pay our respects to elders past and present This conference is also being webcast and will be available on Zip's website. this conference is also being webcast and will be available on zip's website I'm joined today by Zip's Group CEO and Managing Director Cynthia Scott, Group CFO Gordon Bell, and U.S. i'm joined today by zip's group ceo and managing director cynthia scott group cfo gordon bell and u.s CEO Joe Heck. ceo joe heck Cynthia will present our FY25 group highlights and ANZ business performance. cynthia will present our fy25 group highlights and anz business performance Joe will then cover the U.S. business and Gordon will provide details of the financial results. joe will then cover the u.s business and gordon will provide details of the financial results Cynthia will then conclude with remarks regarding our FY26 strategy and outlook, and the presentation will be followed by Q&A. cynthia will then conclude with remarks regarding our fy26 strategy and outlook and the presentation will be followed by q&a With that, I'll now hand over the call to Cynthia. with that i'll now hand over the call to cynthia

Speaker 5: Thanks, Vivienne, and good morning everyone. On behalf of the Zip team, we're very pleased to be reporting the strongest financial performance in Zip's history. Disciplined execution, customer focus, and significant operating leverage underpinned cash earnings growth of 147% and positions us strongly to continue to deliver long-term shareholder value. Our group highlights are set out on slides four and five. We achieved several milestones this year including delivering over $1 billion in total income. From a regional perspective, our U.S. business delivered an outstanding performance and our ANZ business returned to TTV growth. Customer engagement strengthened with average spend and transactions per customer increasing across our 6.3 million customers. This year we safely processed over 93 million transactions valued at $13.1 billion, up 30.3%. Our revenue margin was 8.3% reflecting the increased contribution from the U.S. now representing 71% of TTV. Turning to slide five. Thanks, Vivienne, and good morning everyone. thanks vivienne and good morning everyone On behalf of the Zip team, we're very pleased to be reporting the strongest financial performance in Zip's history. on behalf of the zip team we're very pleased to be reporting the strongest financial performance in zip's history Disciplined execution, customer focus, and significant operating leverage underpinned cash earnings growth of 147% and positions us strongly to continue to deliver long-term shareholder value. disciplined execution customer focus and significant operating leverage underpinned cash earnings growth of 147% and positions us strongly to continue to deliver long-term shareholder value Our group highlights are set out on slides four and five. our group highlights are set out on slides four and five We achieved several milestones this year including delivering over $1 billion in total income. we achieved several milestones this year including delivering over $1 billion in total income From a regional perspective, our U.S. business delivered an outstanding performance and our ANZ business returned to TTV growth. from a regional perspective our u.s business delivered an outstanding performance and our anz business returned to ttv growth Customer engagement strengthened with average spend and transactions per customer increasing across our 6.3 million customers. customer engagement strengthened with average spend and transactions per customer increasing across our 6.3 million customers This year we safely processed over 93 million transactions valued at $13.1 billion, up 30.3%. this year we safely processed over 93 million transactions valued at $13.1 billion up 30.3% Our revenue margin was 8.3% reflecting the increased contribution from the U.S. now representing 71% of TTV. our revenue margin was 8.3% reflecting the increased contribution from the u.s now representing 71% of ttv Turning to slide five. turning to slide five Significant momentum in the business and strong credit outcomes underpinned cash earnings increasing 147% to $170.3 million. Cash gross profit was up 34% to $509 million, supported by net bad debts as a percentage of TTV improving 14 basis points with good credit performance across both markets. Our focus on cost discipline while driving significant top line growth resulted in our operating margin almost doubling to 15.8%. Our achievements this year have strengthened our unique competitive advantages. As shown on slide six, we have two regional growth engines underpinning sustainable profitable growth at a group level. The charts demonstrate the accelerated momentum experienced during the year across key performance metrics, resulting in the delivery of a very strong second half result. Turning now to slide seven, our cash earnings performance was driven by our U.S. Significant momentum in the business and strong credit outcomes underpinned cash earnings increasing 147% to $170.3 million. significant momentum in the business and strong credit outcomes underpinned cash earnings increasing 147% to $170.3 million Cash gross profit was up 34% to $509 million, supported by net bad debts as a percentage of TTV improving 14 basis points with good credit performance across both markets. cash gross profit was up 34% to $509 million supported by net bad debts as a percentage of ttv improving 14 basis points with good credit performance across both markets Our focus on cost discipline while driving significant top line growth resulted in our operating margin almost doubling to 15.8%. our focus on cost discipline while driving significant top line growth resulted in our operating margin almost doubling to 15.8% Our achievements this year have strengthened our unique competitive advantages. our achievements this year have strengthened our unique competitive advantages As shown on slide six, we have two regional growth engines underpinning sustainable profitable growth at a group level. as shown on slide six we have two regional growth engines underpinning sustainable profitable growth at a group level The charts demonstrate the accelerated momentum experienced during the year across key performance metrics, resulting in the delivery of a very strong second half result. the charts demonstrate the accelerated momentum experienced during the year across key performance metrics resulting in the delivery of a very strong second half result Turning now to slide seven, our cash earnings performance was driven by our U.S. turning now to slide seven our cash earnings performance was driven by our u.s business, which delivered over 100% growth and exceeded $100 million in cash earnings for the first time. Slide eight details how we've delivered on our FY25 strategic priorities of growth and engagement, product innovation, and operational excellence. Starting on the left, we saw increased customer engagement in both markets, with U.S. transaction frequency reaching double digits, reflecting investment in customer experience, strategic marketing initiatives, and the addition of new merchants across targeted verticals. We continued to innovate new products, which we'll cover in the regional updates. In delivering operational excellence, we made disciplined investments in core systems, processes, and people, and undertook initiatives to transform our balance sheet, which Gordon will provide further detail on. Turning to slide nine, we've continued to deliver against our ESG focus areas. We achieved strong customer NPS scores of 68 and 57 in the U.S. business, which delivered over 100% growth and exceeded $100 million in cash earnings for the first time. business which delivered over 100% growth and exceeded $100 million in cash earnings for the first time Slide eight details how we've delivered on our FY25 strategic priorities of growth and engagement, product innovation, and operational excellence. slide eight details how we've delivered on our fy25 strategic priorities of growth and engagement product innovation and operational excellence Starting on the left, we saw increased customer engagement in both markets, with U.S. transaction frequency reaching double digits, reflecting investment in customer experience, strategic marketing initiatives, and the addition of new merchants across targeted verticals. starting on the left we saw increased customer engagement in both markets with u.s transaction frequency reaching double digits reflecting investment in customer experience strategic marketing initiatives and the addition of new merchants across targeted verticals We continued to innovate new products, which we'll cover in the regional updates. we continued to innovate new products which we'll cover in the regional updates In delivering operational excellence, we made disciplined investments in core systems, processes, and people, and undertook initiatives to transform our balance sheet, which Gordon will provide further detail on. in delivering operational excellence we made disciplined investments in core systems processes and people and undertook initiatives to transform our balance sheet which gordon will provide further detail on Turning to slide nine, we've continued to deliver against our ESG focus areas. turning to slide nine we've continued to deliver against our esg focus areas We achieved strong customer NPS scores of 68 and 57 in the U.S. we achieved strong customer nps scores of 68 and 57 in the u.s and ANZ respectively, reflecting the value our customers place on Zip and our commitment to delivering exceptional customer experiences. Our employee engagement score strengthened to 81%, and female representation across the group increased to 44%. Pleasingly, we now have 50/50 gender representation across our board and our group executive team. Finally, we continue to measure our scope 1, 2, and 3 emissions with the aim to achieve carbon neutrality. Slide 10 provides a snapshot of our key group performance metrics, demonstrating the strength of the results delivered in FY25. Moving to the next slide, consistent with our objective of long-term shareholder value, we're considering a dual listing on the NASDAQ, supporting our significant growth opportunity and growing investor interest in the U.S. The potential dual listing remains subject to Zip board approval and the completion of a number of required processes, including obtaining regulatory approvals in the U.S. and ANZ respectively, reflecting the value our customers place on Zip and our commitment to delivering exceptional customer experiences. and anz respectively reflecting the value our customers place on zip and our commitment to delivering exceptional customer experiences Our employee engagement score strengthened to 81%, and female representation across the group increased to 44%. our employee engagement score strengthened to 81% and female representation across the group increased to 44% Pleasingly, we now have 50/50 gender representation across our board and our group executive team. pleasingly we now have 50/50 gender representation across our board and our group executive team Finally, we continue to measure our scope 1, 2, and 3 emissions with the aim to achieve carbon neutrality. finally we continue to measure our scope 1 2 and 3 emissions with the aim to achieve carbon neutrality Slide 10 provides a snapshot of our key group performance metrics, demonstrating the strength of the results delivered in FY25. slide 10 provides a snapshot of our key group performance metrics demonstrating the strength of the results delivered in fy25 Moving to the next slide, consistent with our objective of long-term shareholder value, we're considering a dual listing on the NASDAQ, supporting our significant growth opportunity and growing investor interest in the U.S. moving to the next slide consistent with our objective of long-term shareholder value we're considering a dual listing on the nasdaq supporting our significant growth opportunity and growing investor interest in the u.s The potential dual listing remains subject to Zip board approval and the completion of a number of required processes, including obtaining regulatory approvals in the U.S. the potential dual listing remains subject to zip board approval and the completion of a number of required processes including obtaining regulatory approvals in the u.s We'll update the market in due course. Before I cover ANZ performance, I'd like to acknowledge and thank Zip Co Founder Peter Gray for his significant contributions, most recently as ANZ CEO. As foreshadowed at our half year results, Pete's moved into a newly created leadership role at Zip as Head of Strategic Growth with a focus on accelerating our growth agenda across both markets. I'd also like to formally welcome our new ANZ CEO Soraya Alali who joined us in May. Soraya brings over 20 years' experience in the financial services sector with a focus on driving scalable growth, digital transformation, and enhanced customer experiences. Turning now to ANZ performance on Slide 13, following a period of optimizing margins in response to the external environment, the ANZ business returned to TTV growth. TTV was up 5.5% for the year and 13.2% in the second half. We'll update the market in due course. we'll update the market in due course Before I cover ANZ performance, I'd like to acknowledge and thank Zip Co Founder Peter Gray for his significant contributions, most recently as ANZ CEO. before i cover anz performance i'd like to acknowledge and thank zip co founder peter gray for his significant contributions most recently as anz ceo As foreshadowed at our half year results, Pete's moved into a newly created leadership role at Zip as Head of Strategic Growth with a focus on accelerating our growth agenda across both markets. as foreshadowed at our half year results pete's moved into a newly created leadership role at zip as head of strategic growth with a focus on accelerating our growth agenda across both markets I'd also like to formally welcome our new ANZ CEO Soraya Alali who joined us in May. i'd also like to formally welcome our new anz ceo soraya alali who joined us in may Soraya brings over 20 years' experience in the financial services sector with a focus on driving scalable growth, digital transformation, and enhanced customer experiences. soraya brings over 20 years' experience in the financial services sector with a focus on driving scalable growth digital transformation and enhanced customer experiences Turning now to ANZ performance on Slide 13, following a period of optimizing margins in response to the external environment, the ANZ business returned to TTV growth. turning now to anz performance on slide 13 following a period of optimizing margins in response to the external environment the anz business returned to ttv growth TTV was up 5.5% for the year and 13.2% in the second half. ttv was up 5.5% for the year and 13.2% in the second half While the business delivered strong credit outcomes, accelerated product innovation, and invested in platforms to scale, growth was driven by increased transaction frequency and by Zip Plus, which was expanded to new customers at higher limits of up to $8,000. Zip ANZ collaborated with Google on the rollout of new Google Wallet features to enable more seamless and secure payment experiences across Chrome Autofill, Google Pay Online, and Google Services. We also added several large enterprise merchants across Australia and New Zealand in targeted verticals such as travel and health, including Cathay Pacific and National Dental Plan. Turning to Slide 14 for more detail on the performance of the Australian loan book, with our account-based product construct in Australia, yield on the loan book and excess spread is the best way to think about the performance of the business. While the business delivered strong credit outcomes, accelerated product innovation, and invested in platforms to scale, growth was driven by increased transaction frequency and by Zip Plus, which was expanded to new customers at higher limits of up to $8,000. while the business delivered strong credit outcomes accelerated product innovation and invested in platforms to scale growth was driven by increased transaction frequency and by zip plus which was expanded to new customers at higher limits of up to $8,000 Zip ANZ collaborated with Google on the rollout of new Google Wallet features to enable more seamless and secure payment experiences across Chrome Autofill, Google Pay Online, and Google Services. zip anz collaborated with google on the rollout of new google wallet features to enable more seamless and secure payment experiences across chrome autofill google pay online and google services We also added several large enterprise merchants across Australia and New Zealand in targeted verticals such as travel and health, including Cathay Pacific and National Dental Plan. we also added several large enterprise merchants across australia and new zealand in targeted verticals such as travel and health including cathay pacific and national dental plan Turning to Slide 14 for more detail on the performance of the Australian loan book, with our account-based product construct in Australia, yield on the loan book and excess spread is the best way to think about the performance of the business. turning to slide 14 for more detail on the performance of the australian loan book with our account-based product construct in australia yield on the loan book and excess spread is the best way to think about the performance of the business Changes in product mix, lower funding costs, and improved credit outcomes delivered a 91 basis point expansion in portfolio yield and a 331 basis point expansion in excess spread. Pleasingly, arrears rates and net bad debt improved in response to management actions and risk settings, positioning the portfolio for continued profitable growth. After returning to quarter-on-quarter growth in Q4, we expect receivables to return to modest growth in the first half of FY26, which will support revenue conversion. Slide 15 sets out our Australian products and their relative contribution to the receivables portfolio. We've continued to innovate to meet our customers' evolving needs, including launching two new products within the past 18 months. Zip Plus continues to attract new customers and generate strong engagement and unit economics, with receivables now accounting for around 12% of the Australian book. Changes in product mix, lower funding costs, and improved credit outcomes delivered a 91 basis point expansion in portfolio yield and a 331 basis point expansion in excess spread. changes in product mix lower funding costs and improved credit outcomes delivered a 91 basis point expansion in portfolio yield and a 331 basis point expansion in excess spread Pleasingly, arrears rates and net bad debt improved in response to management actions and risk settings, positioning the portfolio for continued profitable growth. pleasingly arrears rates and net bad debt improved in response to management actions and risk settings positioning the portfolio for continued profitable growth After returning to quarter-on-quarter growth in Q4, we expect receivables to return to modest growth in the first half of FY26, which will support revenue conversion. after returning to quarter-on-quarter growth in q4 we expect receivables to return to modest growth in the first half of fy26 which will support revenue conversion Slide 15 sets out our Australian products and their relative contribution to the receivables portfolio. slide 15 sets out our australian products and their relative contribution to the receivables portfolio We've continued to innovate to meet our customers' evolving needs, including launching two new products within the past 18 months. we've continued to innovate to meet our customers' evolving needs including launching two new products within the past 18 months Zip Plus continues to attract new customers and generate strong engagement and unit economics, with receivables now accounting for around 12% of the Australian book. zip plus continues to attract new customers and generate strong engagement and unit economics with receivables now accounting for around 12% of the australian book We launched our Personal Loan product in January and Zip customers are using the flexible finance for weddings, holidays, and renovations. In terms of current customer spending trends, we've seen continued growth in online marketplaces and non-discretionary categories such as grocery and education. Our more mature customers continue to spend more than other cohorts on a relative basis, particularly in discretionary categories such as travel, entertainment, and restaurants. Slide 16 sets out several strategic initiatives that the business delivered on in FY25 to support future growth. During the year, we invested in strengthening our core risk management and cyber platforms and developing AI-powered capabilities. In Australia, we rolled out an AI-powered customer chatbot, Zigi, which will facilitate more personalized customer interactions in FY26. We launched our Personal Loan product in January and Zip customers are using the flexible finance for weddings, holidays, and renovations. we launched our personal loan product in january and zip customers are using the flexible finance for weddings holidays and renovations In terms of current customer spending trends, we've seen continued growth in online marketplaces and non-discretionary categories such as grocery and education. in terms of current customer spending trends we've seen continued growth in online marketplaces and non-discretionary categories such as grocery and education Our more mature customers continue to spend more than other cohorts on a relative basis, particularly in discretionary categories such as travel, entertainment, and restaurants. our more mature customers continue to spend more than other cohorts on a relative basis particularly in discretionary categories such as travel entertainment and restaurants Slide 16 sets out several strategic initiatives that the business delivered on in FY25 to support future growth. slide 16 sets out several strategic initiatives that the business delivered on in fy25 to support future growth During the year, we invested in strengthening our core risk management and cyber platforms and developing AI-powered capabilities. during the year we invested in strengthening our core risk management and cyber platforms and developing ai-powered capabilities In Australia, we rolled out an AI-powered customer chatbot, Zigi, which will facilitate more personalized customer interactions in FY26. in australia we rolled out an ai-powered customer chatbot zigi which will facilitate more personalized customer interactions in fy26 Turning to Slide 17, with a highly engaged customer base representing approximately 10% of the Australian adult population and products well suited to the current operating environment, we're uniquely placed to deliver sustainable, profitable growth in FY26. We're focusing on driving new customer acquisition and deepening customer engagement, including through high-value merchant and partner channels, as well as delivering scalability through simplification and automation, expanding digital self-service, and deploying AI. We will continue to explore capital-light propositions that complement our existing product suite through our innovation arm, Fearless Frontiers, which I'll provide more detail on later. I'll now hand over to Joe to talk about our U.S. results in more detail. Turning to Slide 17, with a highly engaged customer base representing approximately 10% of the Australian adult population and products well suited to the current operating environment, we're uniquely placed to deliver sustainable, profitable growth in FY26. turning to slide 17 with a highly engaged customer base representing approximately 10% of the australian adult population and products well suited to the current operating environment we're uniquely placed to deliver sustainable profitable growth in fy26 We're focusing on driving new customer acquisition and deepening customer engagement, including through high-value merchant and partner channels, as well as delivering scalability through simplification and automation, expanding digital self-service, and deploying AI. we're focusing on driving new customer acquisition and deepening customer engagement including through high-value merchant and partner channels as well as delivering scalability through simplification and automation expanding digital self-service and deploying ai We will continue to explore capital-light propositions that complement our existing product suite through our innovation arm, Fearless Frontiers, which I'll provide more detail on later. we will continue to explore capital-light propositions that complement our existing product suite through our innovation arm fearless frontiers which i'll provide more detail on later I'll now hand over to Joe to talk about our U.S. results in more detail. i'll now hand over to joe to talk about our u.s results in more detail

Speaker 14: Thanks Cynthia. I'm incredibly proud of the results the team has delivered in the past year since I joined as U.S. CEO. Our laser focus remains on keeping our customers at the center of everything we do, and this is reflected by our high customer NPS of 68, a great achievement. Turning to slide 19, the U.S. business delivered an outstanding performance this year. Cash earnings more than doubled, underpinned by TTV and revenue increasing 41.6% and 43.7% respectively, which included a very strong fourth quarter performance. Top line growth was driven from new and existing customers as we recorded active customer growth for the first time since FY22 with a simplified and differentiated merchant value proposition. We added several large merchants such as Heritage Grocers, GameStop, Take 5 Oil Change, and Major League Baseball. Ticketing and Shop channel partnerships and embedded finance continued to build momentum. Thanks Cynthia. thanks cynthia I'm incredibly proud of the results the team has delivered in the past year since I joined as U.S. i'm incredibly proud of the results the team has delivered in the past year since i joined as u.s CEO. ceo Our laser focus remains on keeping our customers at the center of everything we do, and this is reflected by our high customer NPS of 68, a great achievement. our laser focus remains on keeping our customers at the center of everything we do and this is reflected by our high customer nps of 68 a great achievement Turning to slide 19, the U.S. business delivered an outstanding performance this year. turning to slide 19 the u.s business delivered an outstanding performance this year Cash earnings more than doubled, underpinned by TTV and revenue increasing 41.6% and 43.7% respectively, which included a very strong fourth quarter performance. cash earnings more than doubled underpinned by ttv and revenue increasing 41.6% and 43.7% respectively which included a very strong fourth quarter performance Top line growth was driven from new and existing customers as we recorded active customer growth for the first time since FY22 with a simplified and differentiated merchant value proposition. top line growth was driven from new and existing customers as we recorded active customer growth for the first time since fy22 with a simplified and differentiated merchant value proposition We added several large merchants such as Heritage Grocers, GameStop, Take 5 Oil Change, and Major League Baseball. we added several large merchants such as heritage grocers gamestop take 5 oil change and major league baseball Ticketing and Shop channel partnerships and embedded finance continued to build momentum. ticketing and shop channel partnerships and embedded finance continued to build momentum We've scaled volumes and merchants through Google Pay and in August 2025 we also integrated with Autofill on Google Chrome, allowing customers to use Zip without switching apps or re-entering payment details. Our partnership with Stripe also went live with general availability earlier this month. We continued to enhance our consumer and merchant payment options, scaling Pay-in-8 as an expansion of our Pay-in-Z platform, offering customers increased flexibility and control over their payments. Pay-in-8 volumes increased 2.5 times, half on half after being made available to all eligible customers in the app in January and represented 18% of TTV in the fourth quarter. Turning to slide 20, the U.S. BNPL market has grown 6x in the last five years, with companies like Zip playing a critical role in this transformation. We've scaled volumes and merchants through Google Pay and in August 2025 we also integrated with Autofill on Google Chrome, allowing customers to use Zip without switching apps or re-entering payment details. we've scaled volumes and merchants through google pay and in august 2025 we also integrated with autofill on google chrome allowing customers to use zip without switching apps or re-entering payment details Our partnership with Stripe also went live with general availability earlier this month. our partnership with stripe also went live with general availability earlier this month We continued to enhance our consumer and merchant payment options, scaling Pay-in-8 as an expansion of our Pay-in-Z platform, offering customers increased flexibility and control over their payments. we continued to enhance our consumer and merchant payment options scaling pay-in-8 as an expansion of our pay-in-z platform offering customers increased flexibility and control over their payments Pay-in-8 volumes increased 2.5 times, half on half after being made available to all eligible customers in the app in January and represented 18% of TTV in the fourth quarter. pay-in-8 volumes increased 2.5 times half on half after being made available to all eligible customers in the app in january and represented 18% of ttv in the fourth quarter Turning to slide 20, the U.S. turning to slide 20 the u.s BNPL market has grown 6x in the last five years, with companies like Zip playing a critical role in this transformation. bnpl market has grown 6x in the last five years with companies like zip playing a critical role in this transformation The medium term opportunity remains compelling with BNPL representing less than 2% of the $12.8 trillion U.S. payments market or only 6% of e-commerce spend. This is well below usage rates in markets such as Australia at 15% and some European countries at over 20%. In-store also remains a major growth opportunity in FY25. In-store TTV grew 65% year on year and made up over 23% of total TTV. Slide 21 shows U.S. active customer base which grew 11% year on year, including an increase in second half versus first half for the first time since FY21. This was a strong result highlighting our effective credit decisioning in the face of typical seasonality and macro uncertainty. This growth has been driven by our ability to deliver increased customer engagement and improve dormancy. Monthly transacting users increased circa 20% on average in FY25, indicating strong momentum as we begin FY26. The medium term opportunity remains compelling with BNPL representing less than 2% of the $12.8 trillion U.S. payments market or only 6% of e-commerce spend. the medium term opportunity remains compelling with bnpl representing less than 2% of the $12.8 trillion u.s payments market or only 6% of e-commerce spend This is well below usage rates in markets such as Australia at 15% and some European countries at over 20%. this is well below usage rates in markets such as australia at 15% and some european countries at over 20% In-store also remains a major growth opportunity in FY25. in-store also remains a major growth opportunity in fy25 In-store TTV grew 65% year on year and made up over 23% of total TTV. in-store ttv grew 65% year on year and made up over 23% of total ttv Slide 21 shows U.S. active customer base which grew 11% year on year, including an increase in second half versus first half for the first time since FY21. slide 21 shows u.s active customer base which grew 11% year on year including an increase in second half versus first half for the first time since fy21 This was a strong result highlighting our effective credit decisioning in the face of typical seasonality and macro uncertainty. this was a strong result highlighting our effective credit decisioning in the face of typical seasonality and macro uncertainty This growth has been driven by our ability to deliver increased customer engagement and improve dormancy. this growth has been driven by our ability to deliver increased customer engagement and improve dormancy Monthly transacting users increased circa 20% on average in FY25, indicating strong momentum as we begin FY26. monthly transacting users increased circa 20% on average in fy25 indicating strong momentum as we begin fy26 Slide 22 demonstrates how customer engagement has strengthened. Transactions and TTV per active customer increased 62% and 76% respectively over the last two years. In addition, continued improvements in our underwriting capabilities have accelerated our ability to increase spending power for newer cohorts over time. The July 2024 customer cohort experienced a 58% increase in average spend over the last 12 months and we are seeing continued momentum with the most recent January 2025 customer cohort outperforming that vintage over its first six months. We have achieved these outcomes by identifying and acquiring high quality potential customers, investing in personalization and features to drive customer engagement through the app and physical card, and providing spending power increases based on positive repayment behavior. Slide 22 demonstrates how customer engagement has strengthened. slide 22 demonstrates how customer engagement has strengthened Transactions and TTV per active customer increased 62% and 76% respectively over the last two years. transactions and ttv per active customer increased 62% and 76% respectively over the last two years In addition, continued improvements in our underwriting capabilities have accelerated our ability to increase spending power for newer cohorts over time. in addition continued improvements in our underwriting capabilities have accelerated our ability to increase spending power for newer cohorts over time The July 2024 customer cohort experienced a 58% increase in average spend over the last 12 months and we are seeing continued momentum with the most recent January 2025 customer cohort outperforming that vintage over its first six months. the july 2024 customer cohort experienced a 58% increase in average spend over the last 12 months and we are seeing continued momentum with the most recent january 2025 customer cohort outperforming that vintage over its first six months We have achieved these outcomes by identifying and acquiring high quality potential customers, investing in personalization and features to drive customer engagement through the app and physical card, and providing spending power increases based on positive repayment behavior. we have achieved these outcomes by identifying and acquiring high quality potential customers investing in personalization and features to drive customer engagement through the app and physical card and providing spending power increases based on positive repayment behavior We expect customer engagement to continue to deepen as the collective impact of these initiatives compound, driving increased transaction frequency and as we capture a greater share of our customers' wallets. Moving to slide 23, we serve a unique and resilient customer base, being the everyday American of which we estimate there to be over 100 million nationally. These Americans have been underestimated and underserved by traditional financial services providers. Today the majority of our TTV is derived from non-discretionary categories with an average order value of $133 and our customers are increasingly using our product for non-discretionary spends such as grocery, health, and education as seen in the increased spend in these segments as we focus on matching customers with appropriate spending power, providing financial flexibility, and giving customers confidence in their financial capability. We expect customer engagement to continue to deepen as the collective impact of these initiatives compound, driving increased transaction frequency and as we capture a greater share of our customers' wallets. we expect customer engagement to continue to deepen as the collective impact of these initiatives compound driving increased transaction frequency and as we capture a greater share of our customers' wallets Moving to slide 23, we serve a unique and resilient customer base, being the everyday American of which we estimate there to be over 100 million nationally. moving to slide 23 we serve a unique and resilient customer base being the everyday american of which we estimate there to be over 100 million nationally These Americans have been underestimated and underserved by traditional financial services providers. these americans have been underestimated and underserved by traditional financial services providers Today the majority of our TTV is derived from non-discretionary categories with an average order value of $133 and our customers are increasingly using our product for non-discretionary spends such as grocery, health, and education as seen in the increased spend in these segments as we focus on matching customers with appropriate spending power, providing financial flexibility, and giving customers confidence in their financial capability. today the majority of our ttv is derived from non-discretionary categories with an average order value of $133 and our customers are increasingly using our product for non-discretionary spends such as grocery health and education as seen in the increased spend in these segments as we focus on matching customers with appropriate spending power providing financial flexibility and giving customers confidence in their financial capability The fact that over 98% of our transactions are repaid in full reflects the role Zip plays as a cash flow smoothing tool for our customers. Slide 24 covers U.S. credit performance on a cohort basis. As you can see on the chart, our U.S. business continued to deliver loss rates within our target range of 1.5%-2% of TTV, all while achieving over 40% year on year growth in TTV and revenue. These results reinforce the strength and agility of our credit decisioning platform and our ability to maintain strong unit economics during a period of macro uncertainty, and we remain well placed to perform in a range of economic scenarios given our short duration portfolio and the ability to swiftly adjust our risk settings. Losses remained within our target range even when accounting for seasonality. The fact that over 98% of our transactions are repaid in full reflects the role Zip plays as a cash flow smoothing tool for our customers. the fact that over 98% of our transactions are repaid in full reflects the role zip plays as a cash flow smoothing tool for our customers Slide 24 covers U.S. credit performance on a cohort basis. slide 24 covers u.s credit performance on a cohort basis As you can see on the chart, our U.S. business continued to deliver loss rates within our target range of 1.5%- 2% of TTV, all while achieving over 40% year on year growth in TTV and revenue. as you can see on the chart our u.s business continued to deliver loss rates within our target range of 1.5%- 2% of ttv all while achieving over 40% year on year growth in ttv and revenue These results reinforce the strength and agility of our credit decisioning platform and our ability to maintain strong unit economics during a period of macro uncertainty, and we remain well placed to perform in a range of economic scenarios given our short duration portfolio and the ability to swiftly adjust our risk settings. these results reinforce the strength and agility of our credit decisioning platform and our ability to maintain strong unit economics during a period of macro uncertainty and we remain well placed to perform in a range of economic scenarios given our short duration portfolio and the ability to swiftly adjust our risk settings Losses remained within our target range even when accounting for seasonality. losses remained within our target range even when accounting for seasonality With respect to our reporting, historically 120-day delinquency as a percentage of cohort TTV has served as a reliable indicator of credit losses within our Pay-in-4 offering. However, this metric does not completely reflect the performance of Pay-in-8 as it is not yet fully seasoned. To accurately reflect the increased diversification of our portfolio, we will review the reporting of U.S. bad debts. Turning now to slide 25, on the back of an outstanding year and particularly strong fourth quarter, we are well placed to continue delivering strong growth with revised value propositions and a highly engaged customer base. We're excited to expand our Pay-in-Z platform with the rollout of Pay-in-2 functionality, providing greater flexibility with smaller ticket items and everyday expenses such as groceries and utilities. With respect to our reporting, historically 120-day delinquency as a percentage of cohort TTV has served as a reliable indicator of credit losses within our Pay-in-4 offering. with respect to our reporting historically 120-day delinquency as a percentage of cohort ttv has served as a reliable indicator of credit losses within our pay-in-4 offering However, this metric does not completely reflect the performance of Pay-in-8 as it is not yet fully seasoned. however this metric does not completely reflect the performance of pay-in-8 as it is not yet fully seasoned To accurately reflect the increased diversification of our portfolio, we will review the reporting of U.S. bad debts. to accurately reflect the increased diversification of our portfolio we will review the reporting of u.s bad debts Turning now to slide 25, on the back of an outstanding year and particularly strong fourth quarter, we are well placed to continue delivering strong growth with revised value propositions and a highly engaged customer base. turning now to slide 25 on the back of an outstanding year and particularly strong fourth quarter we are well placed to continue delivering strong growth with revised value propositions and a highly engaged customer base We're excited to expand our Pay-in-Z platform with the rollout of Pay-in-2 functionality, providing greater flexibility with smaller ticket items and everyday expenses such as groceries and utilities. we're excited to expand our pay-in-z platform with the rollout of pay-in-2 functionality providing greater flexibility with smaller ticket items and everyday expenses such as groceries and utilities We're also exploring opportunities to expand our revenue streams in a way that provides greater utility for our customers, including MoneyCoach, an AI-powered guided cash flow management solution. We will also continue to drive our flywheel through accelerating customer and merchant growth through Channel Partners and Embedded Finance. With that, I will now hand over to Gordon to cover our financial performance. We're also exploring opportunities to expand our revenue streams in a way that provides greater utility for our customers, including Money Coach, an AI-powered guided cash flow management solution. we're also exploring opportunities to expand our revenue streams in a way that provides greater utility for our customers including money coach an ai-powered guided cash flow management solution We will also continue to drive our flywheel through accelerating customer and merchant growth through Channel Partners and Embedded Finance. we will also continue to drive our flywheel through accelerating customer and merchant growth through channel partners and embedded finance With that, I will now hand over to Gordon to cover our financial performance. with that i will now hand over to gordon to cover our financial performance

Speaker 4: Thank you Joe and good morning to all. I'll start on slide 27. In a challenging macroeconomic environment, we've continued to deliver significant growth and improved margins. Our revenue margin, cash Net Transaction margin, operating margin and cash EBITDA are all well within the range of our two year targets originally set in August 2024. This is a testament to the strategic focus, growth mindset and disciplined execution across the entire organization. The growth in our U.S. business and group operating margin are the key highlights for the year. We've continued to tightly manage costs while investing more to grow our businesses. We are confident in our approach in delivering these outstanding annual results and they position us well for future growth opportunities. Thank you Joe and good morning to all. thank you joe and good morning to all I'll start on slide 27. i'll start on slide 27 In a challenging macroeconomic environment, we've continued to deliver significant growth and improved margins. in a challenging macroeconomic environment we've continued to deliver significant growth and improved margins Our revenue margin, cash Net Transaction margin, operating margin and cash EBITDA are all well within the range of our two year targets originally set in August 2024. our revenue margin cash net transaction margin operating margin and cash ebitda are all well within the range of our two year targets originally set in august 2024 This is a testament to the strategic focus, growth mindset and disciplined execution across the entire organization. this is a testament to the strategic focus growth mindset and disciplined execution across the entire organization The growth in our U.S. business and group operating margin are the key highlights for the year. the growth in our u.s business and group operating margin are the key highlights for the year We've continued to tightly manage costs while investing more to grow our businesses. we've continued to tightly manage costs while investing more to grow our businesses We are confident in our approach in delivering these outstanding annual results and they position us well for future growth opportunities. we are confident in our approach in delivering these outstanding annual results and they position us well for future growth opportunities Moving to the income statement on slide 28, as Cynthia Scott highlighted earlier, I'm pleased to report Zip's record full year cash EBITDA result of $170.3 million for the group, which is up 147% year on year. We achieved a significant milestone with total income reaching over $1 billion, up 23.5% from FY24. Cash gross profit increased 34% compared to the prior year, reaching $509 million. The result reflects disciplined management of our bad debt losses and refinancing facilities at improved margins. We invested in business growth and innovation in a disciplined manner with cost growth at 10.2% year on year. For the full year, Zip delivered a statutory net profit after tax of $79.9 million and an underlying net profit after tax of $49.7 million after adjusting for one off items. Further detail is provided in the appendix. Slide 29 covers our unit economics. Moving to the income statement on slide 28, as Cynthia Scott highlighted earlier, I'm pleased to report Zip 's record full year cash EBITDA result of $170.3 million for the group, which is up 147% year on year. moving to the income statement on slide 28 as cynthia scott highlighted earlier i'm pleased to report zip 's record full year cash ebitda result of $170.3 million for the group which is up 147% year on year We achieved a significant milestone with total income reaching over $1 billion, up 23.5% from FY24. we achieved a significant milestone with total income reaching over $1 billion up 23.5% from fy24 Cash gross profit increased 34% compared to the prior year, reaching $509 million. cash gross profit increased 34% compared to the prior year reaching $509 million The result reflects disciplined management of our bad debt losses and refinancing facilities at improved margins. the result reflects disciplined management of our bad debt losses and refinancing facilities at improved margins We invested in business growth and innovation in a disciplined manner with cost growth at 10.2% year on year. we invested in business growth and innovation in a disciplined manner with cost growth at 10.2% year on year For the full year, Zip delivered a statutory net profit after tax of $79.9 million and an underlying net profit after tax of $49.7 million after adjusting for one off items. for the full year, zip delivered a statutory net profit after tax of $79.9 million and an underlying net profit after tax of $49.7 million after adjusting for one off items Further detail is provided in the appendix. further detail is provided in the appendix Slide 29 covers our unit economics. slide 29 covers our unit economics Cash gross profit increased 34% year on year and cash NTM increased by 11 basis points for the year. TTV surpassed $13 billion, fueled by a record performance in the U.S. The increasing contribution of the U.S. business has resulted in a decline in our revenue margin given that our U.S. product margin is approximately 7% compared to higher margin products in the Australia and New Zealand region. Business interest expense as a percentage of TTV was at 1.6%, an improvement of 35 basis points year on year despite higher notional funding facilities increasing as a result of our receivables growth. Net bad debts written off as a percentage of TTV was at 1.5%, the lowest in the last two years. This reflects our disciplined approach to credit settings and our portfolio management. Cash gross profit increased 34% year on year and cash NTM increased by 11 basis points for the year. cash gross profit increased 34% year on year and cash ntm increased by 11 basis points for the year TTV surpassed $13 billion, fueled by a record performance in the U.S. ttv surpassed $13 billion fueled by a record performance in the u.s The increasing contribution of the U.S. business has resulted in a decline in our revenue margin given that our U.S. product margin is approximately 7% compared to higher margin products in the Australia and New Zealand region. the increasing contribution of the u.s business has resulted in a decline in our revenue margin given that our u.s product margin is approximately 7% compared to higher margin products in the australia and new zealand region Business interest expense as a percentage of TTV was at 1.6%, an improvement of 35 basis points year on year despite higher notional funding facilities increasing as a result of our receivables growth. business interest expense as a percentage of ttv was at 1.6% an improvement of 35 basis points year on year despite higher notional funding facilities increasing as a result of our receivables growth Net bad debts written off as a percentage of TTV was at 1.5%, the lowest in the last two years. net bad debts written off as a percentage of ttv was at 1.5% the lowest in the last two years This reflects our disciplined approach to credit settings and our portfolio management. this reflects our disciplined approach to credit settings and our portfolio management The performance for all aspects of unit economics contributed the 11 basis point strengthening in our net cash transaction margin of 3.9%. Moving to operating efficiency on slide 30, cash OpEx spend in FY25 reflects the balanced spend on marketing initiatives, product innovation which delivers increased engagement, as well as increased spend in people, processes, and information technology to support the business as it scales. Marketing spend continues to be a priority across both markets to deepen customer engagement. We continue to target total marketing spend being at or below 0.5% of TTV, reflecting the maturity of our businesses. Other operating costs decreased mainly due to the early extinguishment of the corporate debt facility in July 2024. Our deliberate prioritization of cost discipline over the last two years has contributed to the operating margin doubling from 7.9% in FY24 to 15.8% in FY25. The performance for all aspects of unit economics contributed the 11 basis point strengthening in our net cash transaction margin of 3.9%. the performance for all aspects of unit economics contributed the 11 basis point strengthening in our net cash transaction margin of 3.9% Moving to operating efficiency on slide 30, cash OpEx spend in FY25 reflects the balanced spend on marketing initiatives, product innovation which delivers increased engagement, as well as increased spend in people, processes, and information technology to support the business as it scales. moving to operating efficiency on slide 30 cash opex spend in fy25 reflects the balanced spend on marketing initiatives product innovation which delivers increased engagement as well as increased spend in people processes and information technology to support the business as it scales Marketing spend continues to be a priority across both markets to deepen customer engagement. marketing spend continues to be a priority across both markets to deepen customer engagement We continue to target total marketing spend being at or below 0.5% of TTV, reflecting the maturity of our businesses. we continue to target total marketing spend being at or below 0.5% of ttv reflecting the maturity of our businesses Other operating costs decreased mainly due to the early extinguishment of the corporate debt facility in July 2024. other operating costs decreased mainly due to the early extinguishment of the corporate debt facility in july 2024 Our deliberate prioritization of cost discipline over the last two years has contributed to the operating margin doubling from 7.9% in FY24 to 15.8% in FY25. our deliberate prioritization of cost discipline over the last two years has contributed to the operating margin doubling from 7.9% in fy24 to 15.8% in fy25 Going forward, we'll be using operating margin to manage the cost investment balance as opposed to a year-on-year percentage and or a specific dollar amount going forward on a like-for-like basis. We'll be reviewing intra spend year-on-year to ensure we are taking advantage of attractive opportunities and supporting our growing businesses. Additionally, in FY26 we will be investing in our future through our Fearless Frontiers Innovation arm and the work on a potential U.S. listing. All these costs will be reported externally in the corporate segment for transparency to the market. Turning to slide 31, operating margin where the cost of sales improvement and discipline on cash OpEx drove a 787 basis point improvement in our operating margin. We had a very strong cost of sales result in FY25. Outcomes from our credit management provided a year-on-year improvement with losses at 1.52% of TTV, well down on the prior year. Going forward, we'll be using operating margin to manage the cost investment balance as opposed to a year-on-year percentage and or a specific dollar amount going forward on a like-for-like basis. going forward we'll be using operating margin to manage the cost investment balance as opposed to a year-on-year percentage and or a specific dollar amount going forward on a like-for-like basis We'll be reviewing intra spend year-on-year to ensure we are taking advantage of attractive opportunities and supporting our growing businesses. we'll be reviewing intra spend year-on-year to ensure we are taking advantage of attractive opportunities and supporting our growing businesses Additionally, in FY26 we will be investing in our future through our Fearless Frontiers Innovation arm and the work on a potential U.S. listing. additionally in fy26 we will be investing in our future through our fearless frontiers innovation arm and the work on a potential u.s listing All these costs will be reported externally in the corporate segment for transparency to the market. all these costs will be reported externally in the corporate segment for transparency to the market Turning to slide 31, operating margin where the cost of sales improvement and discipline on cash OpEx drove a 787 basis point improvement in our operating margin. turning to slide 31 operating margin where the cost of sales improvement and discipline on cash opex drove a 787 basis point improvement in our operating margin We had a very strong cost of sales result in FY25. we had a very strong cost of sales result in fy25 Outcomes from our credit management provided a year-on-year improvement with losses at 1.52% of TTV, well down on the prior year. outcomes from our credit management provided a year-on-year improvement with losses at 1.52% of ttv well down on the prior year The outstanding work on refinancing funding facilities in Australia was evident with the outcome being a material saving in interest costs. The cash OpEx benefit outlined earlier was also a standout result. Overall, we are targeting a further improvement in operating margin in FY26, primarily through the flow-through benefits of funding initiatives and supported by continued credit management and cost discipline. Turning to slide 32, the next few slides starting with slide 32 cover the group's liquidity, funding, and capital management. Slide 32 provides a breakdown of our cash position along with the year-on-year movement in available cash. In the chart on the left hand side you can see the breakdown of Zip's $391.6 million total cash position after we allow for cash held at balance sheet date that was unavailable and including cash that may be withdrawn from funding vehicles. Zip had $137.8 million of available cash and liquidity. The outstanding work on refinancing funding facilities in Australia was evident with the outcome being a material saving in interest costs. the outstanding work on refinancing funding facilities in australia was evident with the outcome being a material saving in interest costs The cash OpEx benefit outlined earlier was also a standout result. the cash opex benefit outlined earlier was also a standout result Overall, we are targeting a further improvement in operating margin in FY26, primarily through the flow-through benefits of funding initiatives and supported by continued credit management and cost discipline. overall we are targeting a further improvement in operating margin in fy26 primarily through the flow-through benefits of funding initiatives and supported by continued credit management and cost discipline Turning to slide 32, the next few slides starting with slide 32 cover the group's liquidity, funding, and capital management. turning to slide 32 the next few slides starting with slide 32 cover the group's liquidity funding and capital management Slide 32 provides a breakdown of our cash position along with the year-on-year movement in available cash. slide 32 provides a breakdown of our cash position along with the year-on-year movement in available cash In the chart on the left hand side you can see the breakdown of Zip's $391.6 million total cash position after we allow for cash held at balance sheet date that was unavailable and including cash that may be withdrawn from funding vehicles. in the chart on the left hand side you can see the breakdown of zip's $391.6 million total cash position after we allow for cash held at balance sheet date that was unavailable and including cash that may be withdrawn from funding vehicles Zip had $137.8 million of available cash and liquidity. zip had $137.8 million of available cash and liquidity As at 30 June 2025, pleasingly operating cash flows comprising cash, EBITDA, CapEx, working capital and funding requirements contributed a positive $30.5 million of cash inflows. This was driven by the Group's operating result offset by floats and working capital required for TTV growth, especially in the U.S. Non operating cash flows of $26.9 million includes the $50.1 million proceeds from the share purchase plan in late 2024 and this was offset by the equity buyback during the year. Collectively, these actions delivered a $57.4 million improvement in our available cash balance since June last year, further strengthening our balance sheet. As at 31 July 2025, available cash increased to $230.8 million as a result of U.S. funding enhancements, which I'll cover next. Slide 33 outlines the financing facilities in place for Zip's receivables and the headroom for future growth. As at 30 June 2025, Zip had no corporate debt. As at 30 June 2025, pleasingly operating cash flows comprising cash, EBITDA, CapEx, working capital and funding requirements contributed a positive $30.5 million of cash inflows. as at 30 june 2025 pleasingly operating cash flows comprising cash ebitda capex working capital and funding requirements contributed a positive $30.5 million of cash inflows This was driven by the Group's operating result offset by floats and working capital required for TTV growth, especially in the U.S. this was driven by the group's operating result offset by floats and working capital required for ttv growth especially in the u.s Non operating cash flows of $26.9 million includes the $50.1 million proceeds from the share purchase plan in late 2024 and this was offset by the equity buyback during the year. non operating cash flows of $26.9 million includes the $50.1 million proceeds from the share purchase plan in late 2024 and this was offset by the equity buyback during the year Collectively, these actions delivered a $57.4 million improvement in our available cash balance since June last year, further strengthening our balance sheet. collectively these actions delivered a $57.4 million improvement in our available cash balance since june last year further strengthening our balance sheet As at 31 July 2025, available cash increased to $230.8 million as a result of U.S. funding enhancements, which I'll cover next. as at 31 july 2025 available cash increased to $230.8 million as a result of u.s funding enhancements which i'll cover next Slide 33 outlines the financing facilities in place for Zip's receivables and the headroom for future growth. slide 33 outlines the financing facilities in place for zip's receivables and the headroom for future growth As at 30 June 2025, Zip had no corporate debt. as at 30 june 2025 zip had no corporate debt Zip is committed to preserving our balance sheet strength to support our existing businesses and future opportunities. During the year we executed approximately $2 billion of funding transactions, improved our margins, extended our maturity profile and expanded our investor base in Australia. Our strong corporate performance and favorable market conditions have supported new facilities at lower margins in the U.S. During the year we upsized our facility to $300 million to add capacity for growth. As at 30 June we had facility headroom of $509 million providing capacity and opportunity to amplify Zip's long term value. Slide 34 outlines various funding initiatives. These will diversify our funding, improve tenor and improve our weighted average margins. Zip has and will continue to successfully build a strong and diversified funding portfolio, strengthen our balance sheet and ensure the business has ample capacity for growth. Zip is committed to preserving our balance sheet strength to support our existing businesses and future opportunities. zip is committed to preserving our balance sheet strength to support our existing businesses and future opportunities During the year we executed approximately $2 billion of funding transactions, improved our margins, extended our maturity profile and expanded our investor base in Australia. during the year we executed approximately $2 billion of funding transactions improved our margins extended our maturity profile and expanded our investor base in australia Our strong corporate performance and favorable market conditions have supported new facilities at lower margins in the U.S. our strong corporate performance and favorable market conditions have supported new facilities at lower margins in the u.s During the year we upsized our facility to $300 million to add capacity for growth. during the year we upsized our facility to $300 million to add capacity for growth As at 30 June we had facility headroom of $509 million providing capacity and opportunity to amplify Zip's long term value. as at 30 june we had facility headroom of $509 million providing capacity and opportunity to amplify zip's long term value Slide 34 outlines various funding initiatives. slide 34 outlines various funding initiatives These will diversify our funding, improve tenor and improve our weighted average margins. these will diversify our funding improve tenor and improve our weighted average margins Zip has and will continue to successfully build a strong and diversified funding portfolio, strengthen our balance sheet and ensure the business has ample capacity for growth. zip has and will continue to successfully build a strong and diversified funding portfolio strengthen our balance sheet and ensure the business has ample capacity for growth In May 25th we established a new $400 million warehouse facility in Australia with a new funding partner for a five year term which has extended the tenor of our funding program and reduced upcoming refinancing risk. On 10 July 2025 we settled the new $300 million ABS bond issue with a weighted average margin of 1.79%, materially lower than the 2.13% we achieved on the previous deal in September last year. Both of these deals set us up well for refinancings in FY26 in the U.S. In July we added to our capacity with an increase to our short-term funding facility with our existing partner. This provides an uplift in the flexibility and capacity leading into Q2 at reduced cost of funds. In May 25th we established a new $400 million warehouse facility in Australia with a new funding partner for a five year term which has extended the tenor of our funding program and reduced upcoming refinancing risk. in may 25th we established a new $400 million warehouse facility in australia with a new funding partner for a five year term which has extended the tenor of our funding program and reduced upcoming refinancing risk On 10 July 2025 we settled the new $300 million ABS bond issue with a weighted average margin of 1.79%, materially lower than the 2.13% we achieved on the previous deal in September last year. on 10 july 2025 we settled the new $300 million abs bond issue with a weighted average margin of 1.79% materially lower than the 2.13% we achieved on the previous deal in september last year Both of these deals set us up well for refinancings in FY26 in the U.S. both of these deals set us up well for refinancings in fy26 in the u.s In July we added to our capacity with an increase to our short-term funding facility with our existing partner. in july we added to our capacity with an increase to our short-term funding facility with our existing partner This provides an uplift in the flexibility and capacity leading into Q2 at reduced cost of funds. this provides an uplift in the flexibility and capacity leading into q2 at reduced cost of funds We are also in advanced stages of establishing a new warehouse in the U.S., our second in country, which will deliver enhanced capacity from new sources at improved economics and we are targeting this for closure in October. These initiatives reflect Zip's appetite to continue to build a more resilient, efficient, and globally competitive funding platform to strengthen and support our growth opportunities. Slide 35 outlines our capital management framework which guides the allocation of financial resources. We aim to accomplish the optimal balance of investments that maintain a resilient balance sheet, enhance our competitive position, and deliver long-term value to maximize shareholder return. In April this year we successfully launched an on-market share buyback with 14.8 million shares purchased for $29.8 million to date. We are also in advanced stages of establishing a new warehouse in the U.S., our second in country, which will deliver enhanced capacity from new sources at improved economics and we are targeting this for closure in October. we are also in advanced stages of establishing a new warehouse in the u.s our second in country which will deliver enhanced capacity from new sources at improved economics and we are targeting this for closure in october These initiatives reflect Zip 's appetite to continue to build a more resilient, efficient, and globally competitive funding platform to strengthen and support our growth opportunities. these initiatives reflect zip 's appetite to continue to build a more resilient efficient and globally competitive funding platform to strengthen and support our growth opportunities Slide 35 outlines our capital management framework which guides the allocation of financial resources. slide 35 outlines our capital management framework which guides the allocation of financial resources We aim to accomplish the optimal balance of investments that maintain a resilient balance sheet, enhance our competitive position, and deliver long-term value to maximize shareholder return. we aim to accomplish the optimal balance of investments that maintain a resilient balance sheet enhance our competitive position and deliver long-term value to maximize shareholder return In April this year we successfully launched an on-market share buyback with 14.8 million shares purchased for $29.8 million to date. in april this year we successfully launched an on-market share buyback with 14.8 million shares purchased for $29.8 million to date Following our FY25 results, Zip intends to neutralize the impact of share-based incentive programs by funding the Employee Share Trust to purchase shares on market. Looking ahead, we will continue to prioritize preserving a strong balance sheet to support long-term growth and the ability to pursue attractive opportunities as they arise. Our investment approach will continue to be guided through a lens on risk, expected returns, and strategic alignment. I'll now hand back to Cynthia Scott to cover the group's strategy and our outlook. Following our FY25 results, Zip i ntends to neutralize the impact of share-based incentive programs by funding the Employee Share Trust to purchase shares on market. following our fy25 results, zip i ntends to neutralize the impact of share-based incentive programs by funding the employee share trust to purchase shares on market Looking ahead, we will continue to prioritize preserving a strong balance sheet to support long-term growth and the ability to pursue attractive opportunities as they arise. looking ahead we will continue to prioritize preserving a strong balance sheet to support long-term growth and the ability to pursue attractive opportunities as they arise Our investment approach will continue to be guided through a lens on risk, expected returns, and strategic alignment. our investment approach will continue to be guided through a lens on risk expected returns and strategic alignment I'll now hand back to Cynthia Scott to cover the group's strategy and our outlook. i'll now hand back to cynthia scott to cover the group's strategy and our outlook

Speaker 5: Thanks, Gordon. Before I cover our FY26 priorities and outlook, slide 37 provides useful context on the journey Zip's been on over the past few years. After strengthening Zip's foundation and delivering group profitability, FY25 has been a year of preparing Zip for the next horizon of significant growth. Moving to slide 38, in FY25 we refreshed our mission and purpose to better reflect our future opportunities. We're committed to delivering on our purpose of unlocking financial potential together and are aligned on our mission to bring exceptional experiences, innovation, and partnership to every financial journey. Slide 39 sets out our FY26 strategic priorities, which are an evolution of the priorities we delivered in FY25. We will continue to do more for our customers, enhancing our existing propositions and leveraging our channel partnerships to allow our customers to shop seamlessly everywhere. Thanks, Gordon. thanks gordon Before I cover our FY26 priorities and outlook, slide 37 provides useful context on the journey Zip's been on over the past few years. before i cover our fy26 priorities and outlook slide 37 provides useful context on the journey zip's been on over the past few years After strengthening Zip's foundation and delivering group profitability, FY25 has been a year of preparing Zip for the next horizon of significant growth. after strengthening zip's foundation and delivering group profitability fy25 has been a year of preparing zip for the next horizon of significant growth Moving to slide 38, in FY25 we refreshed our mission and purpose to better reflect our future opportunities. moving to slide 38 in fy25 we refreshed our mission and purpose to better reflect our future opportunities We're committed to delivering on our purpose of unlocking financial potential together and are aligned on our mission to bring exceptional experiences, innovation, and partnership to every financial journey. we're committed to delivering on our purpose of unlocking financial potential together and are aligned on our mission to bring exceptional experiences innovation and partnership to every financial journey Slide 39 sets out our FY26 strategic priorities, which are an evolution of the priorities we delivered in FY25. slide 39 sets out our fy26 strategic priorities which are an evolution of the priorities we delivered in fy25 We will continue to do more for our customers, enhancing our existing propositions and leveraging our channel partnerships to allow our customers to shop seamlessly everywhere. we will continue to do more for our customers enhancing our existing propositions and leveraging our channel partnerships to allow our customers to shop seamlessly everywhere Innovation is at the core of our business and we will increasingly deploy AI-powered products and experiences to Zip customers. As we continue to scale, we'll focus on optimizing our capital structure and ensuring our core systems and processes continue to support future growth efficiently. Turning to slide 40, while we've used machine learning since inception, through FY25 we explored opportunities to leverage generative AI across the group. We've equipped all employees with GenAI tools, our engineers are enabled with AI-augmented developer tools, and we've automated a range of business processes including merchant risk, accreditation, and improved customer self-service. In FY26 and beyond, we will develop a sharper focus on scale and depth of impact. We will continue to build our AI knowledge and capability across our people, processes, and products to deliver enhanced and more personalized experiences for our customers and partners. Innovation is at the core of our business and we will increasingly deploy AI-powered products and experiences to Zip customers. innovation is at the core of our business and we will increasingly deploy ai-powered products and experiences to zip customers As we continue to scale, we'll focus on optimizing our capital structure and ensuring our core systems and processes continue to support future growth efficiently. as we continue to scale we'll focus on optimizing our capital structure and ensuring our core systems and processes continue to support future growth efficiently Turning to slide 40, while we've used machine learning since inception, through FY25 we explored opportunities to leverage generative AI across the group. turning to slide 40 while we've used machine learning since inception through fy25 we explored opportunities to leverage generative ai across the group We've equipped all employees with GenAI tools, our engineers are enabled with AI-augmented developer tools, and we've automated a range of business processes including merchant risk, accreditation, and improved customer self-service. we've equipped all employees with genai tools our engineers are enabled with ai-augmented developer tools and we've automated a range of business processes including merchant risk accreditation and improved customer self-service In FY26 and beyond, we will develop a sharper focus on scale and depth of impact. in fy26 and beyond we will develop a sharper focus on scale and depth of impact We will continue to build our AI knowledge and capability across our people, processes, and products to deliver enhanced and more personalized experiences for our customers and partners. we will continue to build our ai knowledge and capability across our people processes and products to deliver enhanced and more personalized experiences for our customers and partners Onto slide 41, we've established Fearless Frontiers, a lean strategic team focused on long-term product innovation aligned to our regional strategies. Fearless Frontiers will assess new products, systems, and processes to accelerate the core business and unlock new profit pools supporting future growth. Examples of this include exploring AI-driven products such as a guided cash flow management solution, MoneyCoach in the U.S., and capital-light propositions in ANZ. Moving to the outlook on slide 42, as highlighted, we've delivered results this year well within the two-year targets we provided 12 months ago. Today, we're providing refreshed ranges across each of the four metrics for FY26. Firstly, revenue as a percentage of TTV is expected to be circa 8%. This reflects the increased contribution from our U.S. business which we expect to deliver TTV growth of at least 35% in U.S. dollar terms. Pleasingly, U.S. Onto slide 41, we've established Fearless Frontiers, a lean strategic team focused on long-term product innovation aligned to our regional strategies. onto slide 41 we've established fearless frontiers a lean strategic team focused on long-term product innovation aligned to our regional strategies Fearless Frontiers will assess new products, systems, and processes to accelerate the core business and unlock new profit pools supporting future growth. fearless frontiers will assess new products systems and processes to accelerate the core business and unlock new profit pools supporting future growth Examples of this include exploring AI-driven products such as a guided cash flow management solution, Money Coach in the U.S., and capital-light propositions in ANZ. examples of this include exploring ai-driven products such as a guided cash flow management solution money coach in the u.s and capital-light propositions in anz Moving to the outlook on slide 42, as highlighted, we've delivered results this year well within the two-year targets we provided 12 months ago. moving to the outlook on slide 42 as highlighted we've delivered results this year well within the two-year targets we provided 12 months ago Today, we're providing refreshed ranges across each of the four metrics for FY26. today we're providing refreshed ranges across each of the four metrics for fy26 Firstly, revenue as a percentage of TTV is expected to be circa 8%. firstly revenue as a percentage of ttv is expected to be circa 8% This reflects the increased contribution from our U.S. business which we expect to deliver TTV growth of at least 35% in U.S. dollar terms. this reflects the increased contribution from our u.s business which we expect to deliver ttv growth of at least 35% in u.s dollar terms Pleasingly, U.S. pleasingly u.s TTV performance in July tracked in line with FY25 growth. Our cash net transaction margin range has been increased to between 3.8% and 4.2% for FY26. As the business scales, we remain focused on preserving the strong unit economics and operating leverage we've developed, and as a result, we've upgraded our operating margin expectations to between 16% and 19%. Finally, taking into account the other three metrics, we expect Cash EBITDA as a percentage of TTV to be above the FY25 result of 1.3%. In closing, FY25 has proven to be a defining year for Zip Co Limited. We're a fundamentally stronger and more efficient business than a year ago with the team, technology, and balance sheet strength to capture future growth opportunities while remaining true to the customer first values that brought us here. TTV performance in July tracked in line with FY25 growth. ttv performance in july tracked in line with fy25 growth Our cash net transaction margin range has been increased to between 3.8% and 4.2% for FY26. our cash net transaction margin range has been increased to between 3.8% and 4.2% for fy26 As the business scales, we remain focused on preserving the strong unit economics and operating leverage we've developed, and as a result, we've upgraded our operating margin expectations to between 16% and 19%. as the business scales we remain focused on preserving the strong unit economics and operating leverage we've developed and as a result we've upgraded our operating margin expectations to between 16% and 19% Finally, taking into account the other three metrics, we expect Cash EBITDA as a percentage of TTV to be above the FY25 result of 1.3%. finally taking into account the other three metrics we expect cash ebitda as a percentage of ttv to be above the fy25 result of 1.3% In closing, FY25 has proven to be a defining year for Zip Co Limited. in closing fy25 has proven to be a defining year for zip co limited We're a fundamentally stronger and more efficient business than a year ago with the team, technology, and balance sheet strength to capture future growth opportunities while remaining true to the customer first values that brought us here. we're a fundamentally stronger and more efficient business than a year ago with the team technology and balance sheet strength to capture future growth opportunities while remaining true to the customer first values that brought us here On behalf of the executive team, I'd like to thank our incredible team of Zipsters for their passion and commitment and our shareholders for their ongoing support. That concludes our formal presentation and we'll now open the call for Q&A. On behalf of the executive team, I'd like to thank our incredible team of Zipsters for their passion and commitment and our shareholders for their ongoing support. on behalf of the executive team i'd like to thank our incredible team of zipsters for their passion and commitment and our shareholders for their ongoing support That concludes our formal presentation and we'll now open the call for Q&A. that concludes our formal presentation and we'll now open the call for q&a

Speaker 10: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. For the sake of time today, we ask that you please limit yourself to two questions per person. If you have any further questions, you may rejoin the queue. Your first question today comes from Jonathon Higgins from Unified Capital Partners. Please go ahead. Thank you. thank you If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. if you would like to ask a question please press star one on your telephone and wait for your name to be announced If you would like to cancel your request, please press star two. if you would like to cancel your request please press star two If you are on a speakerphone, please pick up the handset to ask your question. if you are on a speakerphone please pick up the handset to ask your question For the sake of time today, we ask that you please limit yourself to two questions per person. for the sake of time today we ask that you please limit yourself to two questions per person If you have any further questions, you may rejoin the queue. if you have any further questions you may rejoin the queue Your first question today comes from Jonathon Higgins from Unified Capital Partners. your first question today comes from jonathon higgins from unified capital partners Please go ahead. please go ahead

Speaker 2: Hi, guys. Cynthia, Gordon, rest of the team, congratulations on the result and also shout out to Peter, obviously moving to the new revenue role. Congratulations. Look, a few couple from me today, probably the first one, which I assume you'll get several questions on, just on the guidance. We can see that you've upgraded the operating margin there, but you've also sort of, I think, been exiting pretty strongly on that cash TTV margin versus guidance in both the third and the fourth quarter. I was wondering if you could just sort of expand on some of those building blocks, noting we've got U.S. TTV, don't have ANZ, and probably a little bit on the costs, wherever you want to take it. Thank you. Hi, guys. Cynthia, Gordon, rest of the team, congratulations on the result and also shout out to Peter, obviously moving to the new revenue role. hi, guys. cynthia gordon rest of the team congratulations on the result and also shout out to peter obviously moving to the new revenue role Congratulations. congratulations Look, a few couple from me today, probably the first one, which I assume you'll get several questions on, just on the guidance. look a few couple from me today probably the first one which i assume you'll get several questions on just on the guidance We can see that you've upgraded the operating margin there, but you've also sort of, I think, been exiting pretty strongly on that cash TTV margin versus guidance in both the third and the fourth quarter. we can see that you've upgraded the operating margin there but you've also sort of i think been exiting pretty strongly on that cash ttv margin versus guidance in both the third and the fourth quarter I was wondering if you could just sort of expand on some of those building blocks, noting we've got U.S. i was wondering if you could just sort of expand on some of those building blocks noting we've got u.s TTV, don't have ANZ, and probably a little bit on the costs, wherever you want to take it. ttv don't have anz and probably a little bit on the costs wherever you want to take it Thank you. thank you

Speaker 5: Yeah, thanks very much, Jonathon. I'll give you my initial perspective, then I'll hand to Gordon just to give you a bit more of a walkthrough. You're absolutely right. In terms of that, the expectation of growth in the U.S., we did provide the guidance that we expect the U.S. business to grow at more than 35%. That's obviously an increase on the guidance that we provided for FY25. There is still very strong momentum in the U.S. business and we do still see the opportunity to deliver at least that 35% growth. It's only six weeks into FY26, but we wanted to also just give you a window into how the business is performing in the early part of the financial year. The momentum that we saw in 2025 pleasingly has continued. We're very confident about where our U.S. Yeah, thanks very much, Jonathon. yeah thanks very much jonathon I'll give you my initial perspective, then I'll hand to Gordon just to give you a bit more of a walkthrough. i'll give you my initial perspective then i'll hand to gordon just to give you a bit more of a walkthrough You're absolutely right. you're absolutely right In terms of that, the expectation of growth in the U.S., we did provide the guidance that we expect the U.S. business to grow at more than 35%. in terms of that the expectation of growth in the u.s we did provide the guidance that we expect the u.s business to grow at more than 35% That's obviously an increase on the guidance that we provided for FY25. that's obviously an increase on the guidance that we provided for fy25 There is still very strong momentum in the U.S. business and we do still see the opportunity to deliver at least that 35% growth. there is still very strong momentum in the u.s business and we do still see the opportunity to deliver at least that 35% growth It's only six weeks into FY26, but we wanted to also just give you a window into how the business is performing in the early part of the financial year. it's only six weeks into fy26 but we wanted to also just give you a window into how the business is performing in the early part of the financial year The momentum that we saw in 2025 pleasingly has continued. the momentum that we saw in 2025 pleasingly has continued We're very confident about where our U.S. we're very confident about where our u.s business in particular is positioned and the strength of the result that it's delivering at the moment. I might ask Gordon just to walk through, Jona, the interplay between some of those different metrics for you. business in particular is positioned and the strength of the result that it's delivering at the moment. business in particular is positioned and the strength of the result that it's delivering at the moment I might ask Gordon just to walk through, Jona, the interplay between some of those different metrics for you. i might ask gordon just to walk through jona the interplay between some of those different metrics for you

Speaker 4: Yeah, thanks, Cynthia. Morning, Jona. The increase for operating margin, if you recall, the two year target was 12%-17%. We feel comfortable with another year under our belt to up that to a range of 16%-19%. We've tightened the range and we've increased, which we feel comfortable about. It is a full year 2026 range. We note that we've got things moving within the P&L throughout the year in cost of sales, OpEx, et cetera, but we feel really comfortable in that range for the full year. Yeah, thanks, Cynthia. yeah thanks cynthia Morning, Jona. morning jona The increase for operating margin, if you recall, the two year target was 12%- 17%. the increase for operating margin if you recall the two year target was 12%- 17% We feel comfortable with another year under our belt to up that to a range of 16%- 19%. we feel comfortable with another year under our belt to up that to a range of 16%- 19% We've tightened the range and we've increased, which we feel comfortable about. we've tightened the range and we've increased which we feel comfortable about It is a full year 2026 range. it is a full year 2026 range We note that we've got things moving within the P&L throughout the year in cost of sales, OpEx, et cetera, but we feel really comfortable in that range for the full year. we note that we've got things moving within the p&l throughout the year in cost of sales opex et cetera but we feel really comfortable in that range for the full year

Speaker 2: Thanks, guys. Good color. Just last one from me. Can you just give us probably the number one sort of question you get covering the stock is the interplay between ATV and new customer growth and sort of how that looks like, as Joe I think alluded to at the start of the call, you've had good ATV growth year on year. We're heading into the seasonal peak. I was wondering if you can expand on just the interplay of those two factors that makes up that 35%-40% for the year and how far ATV do you think you can grow? Maybe one if Joe wants to jump in too also.Thank you. Thanks, guys. thanks guys Good color. good color Just last one from me. just last one from me Can you just give us probably the number one sort of question you get covering the stock is the interplay between ATV and new customer growth and sort of how that looks like, as Joe I think alluded to at the start of the call, you've had good ATV growth year on year. can you just give us probably the number one sort of question you get covering the stock is the interplay between atv and new customer growth and sort of how that looks like as joe i think alluded to at the start of the call you've had good atv growth year on year We're heading into the seasonal peak. we're heading into the seasonal peak I was wondering if you can expand on just the interplay of those two factors that makes up that 35%- 40% for the year and how far ATV do you think you can grow? i was wondering if you can expand on just the interplay of those two factors that makes up that 35%- 40% for the year and how far atv do you think you can grow Maybe one if Joe wants to jump in too also. maybe one if joe wants to jump in too also Thank you. thank you

Speaker 5: Yeah, thanks Joe. I'll start and then I will throw to Joe. You're absolutely right. Obviously, one of the things we're really pleased with is both the net new customer growth of 11% that we saw in the U.S. but also that increase in transaction frequency hitting over double digits, 10.6x now early. New customers that come onto the Zip platform are not obviously going to be transacting as frequently as existing customers. While I'm not going to give you a breakdown of, you know, we're breaking down the 35% between new customer growth and existing customer growth, I will say that the team is very focused on driving both of those engines. Both net new customer growth but also looking for more ways to engage our existing customers more, more frequently maybe. Yeah, thanks Joe. yeah thanks joe I'll start and then I will throw to Joe. i'll start and then i will throw to joe You're absolutely right. you're absolutely right Obviously, one of the things we're really pleased with is both the net new customer growth of 11% that we saw in the U.S. but also that increase in transaction frequency hitting over double digits, 10.6x now early. obviously one of the things we're really pleased with is both the net new customer growth of 11% that we saw in the u.s but also that increase in transaction frequency hitting over double digits 10.6x now early New customers that come onto the Zip platform are not obviously going to be transacting as frequently as existing customers. new customers that come onto the zip platform are not obviously going to be transacting as frequently as existing customers While I'm not going to give you a breakdown of, you know, we're breaking down the 35% between new customer growth and existing customer growth, I will say that the team is very focused on driving both of those engines. while i'm not going to give you a breakdown of you know we're breaking down the 35% between new customer growth and existing customer growth i will say that the team is very focused on driving both of those engines Both net new customer growth but also looking for more ways to engage our existing customers more, more frequently maybe. both net new customer growth but also looking for more ways to engage our existing customers more more frequently maybe Joe, do you want to talk about some of the specific initiatives underway on both of those. Joe, do you want to talk about some of the specific initiatives underway on both of those. joe do you want to talk about some of the specific initiatives underway on both of those

Speaker 14: Yeah, thanks, Cynthia. I think when we look at new customer growth, the best sign of new customer growth is an engaged existing customer growth that's endorsing you across. I think when you look at the number of transactions per year increasing up to 10.6 now, I think that's a really strong sign of our engagement and we're excited about that. As we look in FY26, I would say there's initiatives active across both our direct to consumer, which probably the most exciting thing to me is around the Pay-in-8 platform, which I think will deliver strong flexibility to that everyday non-discretionary spend that we were anchored to. We continue to invest in the brand and embedded, and we're continuing to see really, really strong in-store growth as well. Yeah, thanks, Cynthia. yeah thanks cynthia I think when we look at new customer growth, the best sign of new customer growth is an engaged existing customer growth that's endorsing you across. i think when we look at new customer growth the best sign of new customer growth is an engaged existing customer growth that's endorsing you across I think when you look at the number of transactions per year increasing up to 10.6 now, I think that's a really strong sign of our engagement and we're excited about that. i think when you look at the number of transactions per year increasing up to 10.6 now i think that's a really strong sign of our engagement and we're excited about that As we look in FY26, I would say there's initiatives active across both our direct to consumer, which probably the most exciting thing to me is around the Pay-in-8 platform, which I think will deliver strong flexibility to that everyday non-discretionary spend that we were anchored to. as we look in fy26 i would say there's initiatives active across both our direct to consumer which probably the most exciting thing to me is around the pay-in-8 platform which i think will deliver strong flexibility to that everyday non-discretionary spend that we were anchored to We continue to invest in the brand and embedded, and we're continuing to see really, really strong in-store growth as well. we continue to invest in the brand and embedded and we're continuing to see really really strong in-store growth as well In the merchant channel, we have seen really good traction in our refreshed value prop, and we expect growth from being in general availability with Stripe and adding in additional embedded and channel partner opportunities in the future. In the merchant channel, we have seen really good traction in our refreshed value prop, and we expect growth from being in general availability with Stripe and adding in additional embedded and channel partner opportunities in the future. in the merchant channel we have seen really good traction in our refreshed value prop and we expect growth from being in general availability with stripe and adding in additional embedded and channel partner opportunities in the future

Speaker 2: Thanks guys. Thanks guys. thanks guys

Speaker 10: Thank you. Your next question comes from Phil Chippindale from Ord Minnett. Please go ahead. Thank you. thank you Your next question comes from Phil Chippindale from Ord Minnett . your next question comes from phil chippindale from ord minnett Please go ahead. please go ahead

Speaker 7: Hi, good morning team. Thanks for your time. I just want to touch on the NTM margin guidance of 3.8%-4.2%. Cynthia, you mentioned earlier the revenue margin did expect to come down because of that mix from the U.S., which I think we understand, but sort of to potentially see an improvement in the NTM margin against that backdrop, what do you think is sort of going to be the primary driver of that? Is that really around interest expense perhaps coming down? Hi, good morning team. hi good morning team Thanks for your time. thanks for your time I just want to touch on the NTM margin guidance of 3.8%- 4.2%. i just want to touch on the ntm margin guidance of 3.8%- 4.2% Cynthia, you mentioned earlier the revenue margin did expect to come down because of that mix from the U.S., which I think we understand, but sort of to potentially see an improvement in the NTM margin against that backdrop, what do you think is sort of going to be the primary driver of that? cynthia you mentioned earlier the revenue margin did expect to come down because of that mix from the u.s which i think we understand but sort of to potentially see an improvement in the ntm margin against that backdrop what do you think is sort of going to be the primary driver of that Is that really around interest expense perhaps coming down? is that really around interest expense perhaps coming down

Speaker 5: Yeah, thanks, Phil. Exactly. Look, I'll get Gordon to comment on it. Exactly as you said, there's a portfolio mix shift that is going to continue as we see greater TTV across the business coming from the U.S., and that's obviously at the 7% revenue margin. The biggest impact is actually going to be on the interest side or the funding cost side. Gordon, do you want to talk a bit to that? Yeah, thanks, Phil. yeah thanks phil Exactly. exactly Look, I'll get Gordon to comment on it. look i'll get gordon to comment on it Exactly as you said, there's a portfolio mix shift that is going to continue as we see greater TTV across the business coming from the U.S., and that's obviously at the 7% revenue margin. exactly as you said there's a portfolio mix shift that is going to continue as we see greater ttv across the business coming from the u.s and that's obviously at the 7% revenue margin The biggest impact is actually going to be on the interest side or the funding cost side. the biggest impact is actually going to be on the interest side or the funding cost side Gordon, do you want to talk a bit to that? gordon do you want to talk a bit to that

Speaker 4: Yeah, you're spot on, Phil. The interest costs, and we look to obviously maintain and keep improving on our credit discipline. Of course, on the interest cost side, you've got both aspects which we're looking to deliver some benefit. You've got the base rate side, which depending on your outlook, there's a lot of market analysts who've got rate cuts priced in for both Australia and the U.S., so there's benefit there. We're also refinancing, as we've shown in Australia this year. We'll see the flow through of those refinancings at lower margins. We are refinancing facilities in the U.S., which will start up through in 2026 and probably more in 2027. There's just a little bit more color, but you're right on with the building blocks. Yeah, you're spot on, Phil. yeah you're spot on phil The interest costs, and we look to obviously maintain and keep improving on our credit discipline. the interest costs and we look to obviously maintain and keep improving on our credit discipline Of course, on the interest cost side, you've got both aspects which we're looking to deliver some benefit. of course on the interest cost side you've got both aspects which we're looking to deliver some benefit You've got the base rate side, which depending on your outlook, there's a lot of market analysts who've got rate cuts priced in for both Australia and the U.S., so there's benefit there. you've got the base rate side which depending on your outlook there's a lot of market analysts who've got rate cuts priced in for both australia and the u.s so there's benefit there We're also refinancing, as we've shown in Australia this year. we're also refinancing as we've shown in australia this year We'll see the flow through of those refinancings at lower margins. we'll see the flow through of those refinancings at lower margins We are refinancing facilities in the U.S., which will start up through in 2026 and probably more in 2027. we are refinancing facilities in the u.s which will start up through in 2026 and probably more in 2027 There's just a little bit more color, but you're right on with the building blocks. there's just a little bit more color but you're right on with the building blocks

Speaker 7: Okay, thanks. Just on slide 42, the guidance slide, the last bullet point you've mentioned driving non-TTV dependent revenue streams. This is specifically in relation to FY26. Can you just unpack that for us? You know, what are you expecting to see contribute there? Okay, thanks. okay thanks Just on slide 42, the guidance slide, the last bullet point you've mentioned driving non-TTV dependent revenue streams. just on slide 42 the guidance slide the last bullet point you've mentioned driving non-ttv dependent revenue streams This is specifically in relation to FY26. this is specifically in relation to fy26 Can you just unpack that for us? can you just unpack that for us You know, what are you expecting to see contribute there? you know what are you expecting to see contribute there

Speaker 5: Yeah, sure, Phil. I mean it's a continuation of the conversations that we had last year. That is looking at capital-light propositions, you know, that will drive revenue. Some of the things that we've talked about in relation largely to the Australian business. There's obviously, you know, we talked about automation and AI and just the general focus on productivity and driving operating margin in the business. That will continue to be a priority for us. Yeah, sure, Phil. yeah sure phil I mean it's a continuation of the conversations that we had last year. i mean it's a continuation of the conversations that we had last year That is looking at capital-light propositions, you know, that will drive revenue. that is looking at capital-light propositions you know that will drive revenue Some of the things that we've talked about in relation largely to the Australian business. some of the things that we've talked about in relation largely to the australian business There's obviously, you know, we talked about automation and AI and just the general focus on productivity and driving operating margin in the business. there's obviously you know we talked about automation and ai and just the general focus on productivity and driving operating margin in the business That will continue to be a priority for us. that will continue to be a priority for us

Speaker 7: Okay, and just on the dual listing. Okay, and just on the dual listing. okay and just on the dual listing

Speaker 4: Phil, just one more thing. I mean the one as well, the thing we also have to balance there with that metric is with TTV now at over $13 billion, you know, the range that we had, the 1% or 2% there was a pretty wide range and getting wider, hence why we gave it a lower bound. We're looking to go above that. Just to explain the change there on the outlook. Phil, just one more thing. phil just one more thing I mean the one as well, the thing we also have to balance there with that metric is with TTV now at over $13 billion, you know, the range that we had, the 1% or 2% there was a pretty wide range and getting wider, hence why we gave it a lower bound. i mean the one as well the thing we also have to balance there with that metric is with ttv now at over $13 billion you know the range that we had the 1% or 2% there was a pretty wide range and getting wider hence why we gave it a lower bound We're looking to go above that. we're looking to go above that Just to explain the change there on the outlook. just to explain the change there on the outlook

Speaker 7: Yes, understand, just last one for me and I'll jump back in the queue. Just on the dual listing, you've obviously said it's subject to board approval. What sort of time frame should we expect to hear some more about that? Is that something for the first half or is that potentially sort of more of a second half story? Yes, understand, just last one for me and I'll jump back in the queue. yes understand just last one for me and i'll jump back in the queue Just on the dual listing, you've obviously said it's subject to board approval. just on the dual listing you've obviously said it's subject to board approval What sort of time frame should we expect to hear some more about that? what sort of time frame should we expect to hear some more about that Is that something for the first half or is that potentially sort of more of a second half story? is that something for the first half or is that potentially sort of more of a second half story

Speaker 5: Yeah, no, look, there's obviously a process that we need to go through and we just announced the intention today, Phil. Yes, we require board approval. There are SEC requirements that we've got to go through. There are a number of different processes we'll undertake. We'll keep you updated and as and when there's something to update you on, we'll let you know. It's certainly something I would imagine we'd give you an update on in the first half. Yeah, no, look, there's obviously a process that we need to go through and we just announced the intention today, Phil. yeah no look there's obviously a process that we need to go through and we just announced the intention today phil Yes, we require board approval. There are SEC requirements that we've got to go through. yes we require board approval. there are sec requirements that we've got to go through There are a number of different processes we'll undertake. there are a number of different processes we'll undertake We'll keep you updated and as and when there's something to update you on, we'll let you know. we'll keep you updated and as and when there's something to update you on we'll let you know It's certainly something I would imagine we'd give you an update on in the first half. it's certainly something i would imagine we'd give you an update on in the first half

Speaker 7: Okay, thanks. I'll jump back in the queue. Okay, thanks. okay thanks I'll jump back in the queue. i'll jump back in the queue

Speaker 5: Thank you. Thank you. thank you

Speaker 10: Thank you. Your next question comes from Elijah Mayr from Goldman Sachs. Please go ahead. Thank you. thank you Your next question comes from Elijah Mayr from Goldman Sachs. your next question comes from elijah mayr from goldman sachs Please go ahead. please go ahead

Speaker 8: Good morning, guys. Congrats on the results. Just firstly, can you sort of just break out, I guess, the key drivers of that fourth quarter, fourth quarter outperformance just from the cash EBITDA perspective, and if that fourth quarter number is reflective of kind of a run rate looking into FY26, or is there anything unique about the fourth quarter we should be aware of? Good morning, guys. good morning guys Congrats on the results. congrats on the results Just firstly, can you sort of just break out, I guess, the key drivers of that fourth quarter, fourth quarter outperformance just from the cash EBITDA perspective, and if that fourth quarter number is reflective of kind of a run rate looking into FY26, or is there anything unique about the fourth quarter we should be aware of? just firstly can you sort of just break out i guess the key drivers of that fourth quarter fourth quarter outperformance just from the cash ebitda perspective and if that fourth quarter number is reflective of kind of a run rate looking into fy26 or is there anything unique about the fourth quarter we should be aware of

Speaker 4: Elijah, it's Gordon. Thank you. Look, we do have seasonality in our business. We see revenue coming through in the second half, primarily that sort of Q2 busy period. You do see greater conversion into cash EBITDA in Q3 and Q4. That's happened again this year. Hence, you've got to look at those two. What I would say is that we're really pleased with the TTV and the growth in Q4. I mean the U.S. was north of 40%. Credit was managed well, interest costs well. We saw that flow through, and we maintained our cost discipline. It was really an all-round performance on the Q4 piece. As we look into 2026, we'll look to maintain where we can and improve. We're also conscious that it's a full year in FY26, hence we're giving an outlook for the whole year. There's on the metrics. Elijah, it's Gordon. elijah it's gordon Thank you. thank you Look, we do have seasonality in our business. look we do have seasonality in our business We see revenue coming through in the second half, primarily that sort of Q2 busy period. we see revenue coming through in the second half primarily that sort of q2 busy period You do see greater conversion into cash EBITDA in Q3 and Q4. you do see greater conversion into cash ebitda in q3 and q4 That's happened again this year. that's happened again this year Hence, you've got to look at those two. hence you've got to look at those two What I would say is that we're really pleased with the TTV and the growth in Q4. what i would say is that we're really pleased with the ttv and the growth in q4 I mean the U.S. was north of 40%. i mean the u.s was north of 40% Credit was managed well, interest costs well. credit was managed well interest costs well We saw that flow through, and we maintained our cost discipline. we saw that flow through and we maintained our cost discipline It was really an all-round performance on the Q4 piece. it was really an all-round performance on the q4 piece As we look into 2026, we'll look to maintain where we can and improve. as we look into 2026 we'll look to maintain where we can and improve We're also conscious that it's a full year in FY26, hence we're giving an outlook for the whole year. we're also conscious that it's a full year in fy26 hence we're giving an outlook for the whole year There's on the metrics. there's on the metrics

Speaker 8: No problem. Maybe just for my second question on active customers in the U.S., that seems to accelerate in the fourth quarter. Can you sort of maybe give some color on how you think about the cost of acquiring these customers? Now that sort of loss rates are within that target range for the U.S., do you look to push harder or is this kind of the levels you want to maintain, and just that relationship focus of how much cost you want to put into acquiring new customers in that loss rate range as it stands today? No problem. no problem Maybe just for my second question on active customers in the U.S., that seems to accelerate in the fourth quarter. maybe just for my second question on active customers in the u.s that seems to accelerate in the fourth quarter Can you sort of maybe give some color on how you think about the cost of acquiring these customers? can you sort of maybe give some color on how you think about the cost of acquiring these customers Now that sort of loss rates are within that target range for the U.S., do you look to push harder or is this kind of the levels you want to maintain, and just that relationship focus of how much cost you want to put into acquiring new customers in that loss rate range as it stands today? now that sort of loss rates are within that target range for the u.s do you look to push harder or is this kind of the levels you want to maintain and just that relationship focus of how much cost you want to put into acquiring new customers in that loss rate range as it stands today

Speaker 5: Yeah, no, look, it's a good question and as we've said consistently for the last couple years, it is always a balance for us around profitable growth, customer growth, and maintaining strong loss performance. As the business scales, though, our CAC is quite low and will continue to drive lower because as we move into some of the channel partnerships, the announcements we've made today in relation to Google, Joe mentioned that we've gone into general availability now with Stripe. The more we've got these one-to-many channel partnerships really moving, you'll see that CAC continuing to drive down. We are very confident in our ability to continue to drive strong customer acquisition and not see an increase in CAC. On the back of that, Joe? Yeah, no, look, it's a good question and as we've said consistently for the last couple years, it is always a balance for us around profitable growth, customer growth, and maintaining strong loss performance. yeah no look it's a good question and as we've said consistently for the last couple years it is always a balance for us around profitable growth customer growth and maintaining strong loss performance As the business scales, though, our CAC is quite low and will continue to drive lower because as we move into some of the channel partnerships, the announcements we've made today in relation to Google, Joe mentioned that we've gone into general availability now with Stripe. as the business scales though our cac is quite low and will continue to drive lower because as we move into some of the channel partnerships the announcements we've made today in relation to google joe mentioned that we've gone into general availability now with stripe The more we've got these one-to-many channel partnerships really moving, you'll see that CAC continuing to drive down. the more we've got these one-to-many channel partnerships really moving you'll see that cac continuing to drive down We are very confident in our ability to continue to drive strong customer acquisition and not see an increase in CAC. we are very confident in our ability to continue to drive strong customer acquisition and not see an increase in cac On the back of that, Joe? on the back of that joe

Speaker 14: Yeah, I would just add to that. We maintain strong discipline around our CAC. I also would just maybe point to our underwriting strategy of a low and grow. We acquire new customers, we make sure that we match the right affordability, and we continue to underwrite based on performance. We maintain a profitable customer, and we feel really good that we're constantly balancing that perspective of CAC versus ongoing performance. Yeah, I would just add to that. yeah i would just add to that We maintain strong discipline around our CAC. we maintain strong discipline around our cac I also would just maybe point to our underwriting strategy of a low and grow. i also would just maybe point to our underwriting strategy of a low and grow We acquire new customers, we make sure that we match the right affordability, and we continue to underwrite based on performance. we acquire new customers we make sure that we match the right affordability and we continue to underwrite based on performance We maintain a profitable customer, and we feel really good that we're constantly balancing that perspective of CAC versus ongoing performance. we maintain a profitable customer and we feel really good that we're constantly balancing that perspective of cac versus ongoing performance

Speaker 8: Perfect. Thanks, guys. Perfect. perfect Thanks, guys. thanks guys

Speaker 10: Thank you. Your next question comes from Siraj Ahmed from Citigroup Inc. Please go ahead. Thank you. thank you Your next question comes from Siraj Ahmed from Citigroup Inc. Please go ahead. your next question comes from siraj ahmed from citigroup inc please go ahead

Speaker 11: Morning all. First question, maybe one for Gordon. Maybe I'm getting the maths wrong, but to get your sort of cash operating margin midpoint, it certainly implies the OpEx has to grow 20%+ or something. Is that, can you just help me with that as to how much OpEx you're looking to grow next year, especially given you just mentioned that tax expected to go down in the U.S. as well. Thanks. Morning all. morning all First question, maybe one for Gordon. first question maybe one for gordon Maybe I'm getting the maths wrong, but to get your sort of cash operating margin midpoint, it certainly implies the OpEx has to grow 20%+ or something. maybe i'm getting the maths wrong but to get your sort of cash operating margin midpoint it certainly implies the opex has to grow 20%+ or something Is that, can you just help me with that as to how much OpEx you're looking to grow next year, especially given you just mentioned that tax expected to go down in the U.S. as well. is that can you just help me with that as to how much opex you're looking to grow next year especially given you just mentioned that tax expected to go down in the u.s as well Thanks. thanks

Speaker 4: Good morning, Siraj. I didn't catch all that, but I think you're talking about operating margin. Is that right? Good morning, Siraj. good morning siraj I didn't catch all that, but I think you're talking about operating margin. i didn't catch all that but i think you're talking about operating margin Is that right? is that right

Speaker 11: Yeah. Gordon, if you look. At the operating margin, I mean, rough math, if you want to get to the midpoint, it sort of implies your OpEx to be up like 20%+. Right. Otherwise, you get to the top end. Just any color on how much OpEx is growing next year would be very helpful. Yeah. yeah Gordon, if you look. gordon if you look At the operating margin, I mean, rough math, if you want to get to the midpoint, it sort of implies your OpEx to be up like 20%+ . at the operating margin i mean rough math if you want to get to the midpoint it sort of implies your opex to be up like 20%+ Right. right Otherwise, you get to the top end. otherwise you get to the top end Just any color on how much OpEx is growing next year would be very helpful. just any color on how much opex is growing next year would be very helpful

Speaker 4: Yeah, thanks, Siraj. I understand the question. Look, we're giving an outlook on operating margin for next year. I outlined we're not giving a dollar or a year-on-year increase for 2026. We're going to manage it within an operating margin context. What that allows us to do is it allows us to invest in the businesses as they grow and allows us to measure that investment with the translation through the whole income stack. That's the way we're going to look at it going forward. We feel that's the best way to balance investment in the business and the discipline in the business. Yeah, thanks, Siraj. yeah thanks siraj I understand the question. i understand the question Look, we're giving an outlook on operating margin for next year. look we're giving an outlook on operating margin for next year I outlined we're not giving a dollar or a year-on-year increase for 2026. i outlined we're not giving a dollar or a year-on-year increase for 2026 We're going to manage it within an operating margin context. we're going to manage it within an operating margin context What that allows us to do is it allows us to invest in the businesses as they grow and allows us to measure that investment with the translation through the whole income stack. what that allows us to do is it allows us to invest in the businesses as they grow and allows us to measure that investment with the translation through the whole income stack That's the way we're going to look at it going forward. that's the way we're going to look at it going forward We feel that's the best way to balance investment in the business and the discipline in the business. we feel that's the best way to balance investment in the business and the discipline in the business

Speaker 11: Okay. It doesn't sound like it's marketing then. If your tax going down, it could be people, technology, something like that. The second one, maybe for Cynthia and Gordon, certain of the revenue yield, I mean, there were questions on that getting to, getting to 4% at the midpoint.Right. Okay. okay It doesn't sound like it's marketing then. it doesn't sound like it's marketing then If your tax going down, it could be people, technology, something like that. if your tax going down it could be people technology something like that The second one, maybe for Cynthia and Gordon, certain of the revenue yield, I mean, there were questions on that getting to, getting to 4% at the midpoint. the second one maybe for cynthia and gordon certain of the revenue yield i mean there were questions on that getting to getting to 4% at the midpoint Right. right Given the losses, picking up payment, is there something offsetting that to get to 4%? I mean, for instance, are you looking to launch a subscription offering similar to one of your competitors, or is there something else offsetting that? That's going up. Thanks. Given the losses, picking up payment, is there something offsetting that to get to 4%? given the losses picking up payment is there something offsetting that to get to 4% I mean, for instance, are you looking to launch a subscription offering similar to one of your competitors, or is there something else offsetting that? i mean for instance are you looking to launch a subscription offering similar to one of your competitors or is there something else offsetting that That's going up. that's going up Thanks. thanks

Speaker 5: Yeah, thanks, Siraj. Can I just add one other thing to your prior comment? You mentioned marketing costs going up at the end of your comment. We're definitely still maintaining the same discipline around marketing costs that we've consistently said that they won't exceed 0.5% of TTV. I just want to confirm that. In terms of the U.S. NTM, it's really going to come down to funding costs, I think is where we're going to go with this one. Yeah, thanks, Siraj. yeah thanks siraj Can I just add one other thing to your prior comment? can i just add one other thing to your prior comment You mentioned marketing costs going up at the end of your comment. you mentioned marketing costs going up at the end of your comment We're definitely still maintaining the same discipline around marketing costs that we've consistently said that they won't exceed 0.5% of TTV. we're definitely still maintaining the same discipline around marketing costs that we've consistently said that they won't exceed 0.5% of ttv I just want to confirm that. i just want to confirm that In terms of the U.S. in terms of the u.s NTM, it's really going to come down to funding costs, I think is where we're going to go with this one. ntm it's really going to come down to funding costs i think is where we're going to go with this one

Speaker 14: That's right. You've got U.S. Fed rate cuts in the outlook. Whether they occur or not is up to Mr. Powell and so forth in the next few months. We are refinancing our U.S. funding facilities and we do look to delivering some of that. We'll deliver some of the benefit in the cash NTM in the U.S. in 2026 and probably flying through in 2027. That's right. that's right You've got U.S. you've got u.s Fed rate cuts in the outlook. fed rate cuts in the outlook Whether they occur or not is up to Mr. Powell and so forth in the next few months. whether they occur or not is up to mr powell and so forth in the next few months We are refinancing our U.S. funding facilities and we do look to delivering some of that. we are refinancing our u.s funding facilities and we do look to delivering some of that We'll deliver some of the benefit in the cash NTM in the U.S. in 2026 and probably flying through in 2027. we'll deliver some of the benefit in the cash ntm in the u.s in 2026 and probably flying through in 2027

Speaker 11: Okay, can I just ask a quick one just on ANZ, I've heard feedback the regulations impacting some of the other BNPL players, especially in terms of money sort of offering. Are you, because of more on risk paperwork, are you seeing anything impacting Australian growth next year in terms of regulation? Okay, can I just ask a quick one just on ANZ, I've heard feedback the regulations impacting some of the other BNPL players, especially in terms of money sort of offering. okay can i just ask a quick one just on anz i've heard feedback the regulations impacting some of the other bnpl players especially in terms of money sort of offering Are you, because of more on risk paperwork, are you seeing anything impacting Australian growth next year in terms of regulation? are you because of more on risk paperwork are you seeing anything impacting australian growth next year in terms of regulation

Speaker 5: Yeah, no. Thanks, Siraj. Just to clarify, the products that we operate in Australia, even prior to this change in regulation, Zip Money, Zip Plus, and Personal Loans were already operating under the NCCPA. That's why we were very pro advocating for fit for purpose regulation for these products in Australia because it's the way we've always been operating our business. What has changed is with the new BNPL regs coming in, Zip Pay now comes in under the NCCPA. From our perspective, we've brought Zip Pay in as a fully regulated product now and we've adopted the same acquisition flows and operating processes for Zip Pay as we have for the other products. While you're right for others, I know it does add some friction and it's certainly something that we're very alive to to make sure our customers have a great experience. Yeah, no. yeah no Thanks, Siraj. thanks siraj Just to clarify, the products that we operate in Australia, even prior to this change in regulation, Zip Money, Zip Plus, and Personal Loans were already operating under the NCCPA. just to clarify the products that we operate in australia even prior to this change in regulation zip money zip plus and personal loans were already operating under the nccpa That's why we were very pro advocating for fit for purpose regulation for these products in Australia because it's the way we've always been operating our business. that's why we were very pro advocating for fit for purpose regulation for these products in australia because it's the way we've always been operating our business What has changed is with the new BNPL regs coming in, Zip Pay now comes in under the NCCPA. what has changed is with the new bnpl regs coming in zip pay now comes in under the nccpa From our perspective, we've brought Zip Pay in as a fully regulated product now and we've adopted the same acquisition flows and operating processes for Zip Pay as we have for the other products. from our perspective we've brought zip pay in as a fully regulated product now and we've adopted the same acquisition flows and operating processes for zip pay as we have for the other products While you're right for others, I know it does add some friction and it's certainly something that we're very alive to to make sure our customers have a great experience. while you're right for others i know it does add some friction and it's certainly something that we're very alive to to make sure our customers have a great experience We're fully compliant with the new regulations and all of our products are now under the NCCPA. We're fully compliant with the new regulations and all of our products are now under the NCCPA. we're fully compliant with the new regulations and all of our products are now under the nccpa

Speaker 11: Just to clarify, you're not seeing any impact from that because you already complied, right? Just to clarify, you're not seeing any impact from that because you already complied, right? just to clarify you're not seeing any impact from that because you already complied right

Speaker 5: No, not material Siraj. As we highlighted in the earlier comments, a lot of the growth we've seen in the ANZ business and the TTV growth has come from Zip Plus. That's a product where we've got a well-established flow and it's been under the NCCPA since inception. No, not material Siraj. no not material siraj As we highlighted in the earlier comments, a lot of the growth we've seen in the ANZ business and the TTV growth has come from Zip Plus. as we highlighted in the earlier comments a lot of the growth we've seen in the anz business and the ttv growth has come from zip plus That's a product where we've got a well-established flow and it's been under the NCCPA since inception. that's a product where we've got a well-established flow and it's been under the nccpa since inception

Speaker 11: Super helpful, thank you. Super helpful, thank you. super helpful thank you

Speaker 10: Thank you. Your next question comes from Tim Piper from UBS. Please go ahead. Thank you. thank you Your next question comes from Tim Piper from UBS . your next question comes from tim piper from ubs Please go ahead. please go ahead

Speaker 3: Oh, good morning team. First one just on the U.S. bad debt performance. You've noted in the TTV there that. 120 day delinquency is not reflecting Pay-in-8 anymore. Can you just give us a sense on what you're planning on changing towards. For bad debt performance there? Is it extending the period from 120 to 180, or what are you sort of planning on doing? Oh, good morning team. oh good morning team First one just on the U.S. bad debt performance. first one just on the u.s bad debt performance You've noted in the TTV there that. 120 day delinquency is not reflecting Pay-in-8 anymore. you've noted in the ttv there that 120 day delinquency is not reflecting pay-in-8 anymore Can you just give us a sense on what you're planning on changing towards. can you just give us a sense on what you're planning on changing towards For bad debt performance there? for bad debt performance there Is it extending the period from 120 to 180, or what are you sort of planning on doing? is it extending the period from 120 to 180 or what are you sort of planning on doing

Speaker 4: Yeah, no, it's a great question. We'll unpack a little bit. I'll kick off and then Joe can give some detail as well. The 120-day sort of forecast cohort losses is a good guide for the Pay-in-4 products because it sort of matches the maturity of that product. When it comes to Pay-in-8 at 120 days, the actual write-offs haven't seasoned that well in the product because it's a longer maturity. What we're finding is that the 120-day measure is becoming a little dated in its view on the overall portfolio. As Pay-in-8 gets to a more material percentage of the overall portfolio and we're getting close to 20% and it's growing, that metric's becoming a little outdated for us and there are going to be better ways to show our loss performance. Yeah, no, it's a great question. yeah no it's a great question We'll unpack a little bit. we'll unpack a little bit I'll kick off and then Joe can give some detail as well. i'll kick off and then joe can give some detail as well The 120-day sort of forecast cohort losses is a good guide for the Pay-in-4 products because it sort of matches the maturity of that product. the 120-day sort of forecast cohort losses is a good guide for the pay-in-4 products because it sort of matches the maturity of that product When it comes to Pay-in-8 at 120 days, the actual write-offs haven't seasoned that well in the product because it's a longer maturity. when it comes to pay-in-8 at 120 days the actual write-offs haven't seasoned that well in the product because it's a longer maturity What we're finding is that the 120-day measure is becoming a little dated in its view on the overall portfolio. what we're finding is that the 120-day measure is becoming a little dated in its view on the overall portfolio As Pay-in-8 gets to a more material percentage of the overall portfolio and we're getting close to 20% and it's growing, that metric's becoming a little outdated for us and there are going to be better ways to show our loss performance. as pay-in-8 gets to a more material percentage of the overall portfolio and we're getting close to 20% and it's growing that metric's becoming a little outdated for us and there are going to be better ways to show our loss performance In FY26 we are making clear that we will be looking to provide more traditional product type metrics and give more color as that portfolio develops. In FY26 we are making clear that we will be looking to provide more traditional product type metrics and give more color as that portfolio develops. in fy26 we are making clear that we will be looking to provide more traditional product type metrics and give more color as that portfolio develops

Speaker 3: Okay, but are you still going to. Stick to this one, the 0.5%-2% loss range in terms of growing the business? If we do assume you extend that out like that 1.7% that it's kind of running at now, does that have an artificially depressed kind of impact on that 1.7%? Okay, but are you still going to. okay but are you still going to Stick to this one, the 0.5%- 2% loss range in terms of growing the business? stick to this one the 0.5%- 2% loss range in terms of growing the business If we do assume you extend that out like that 1.7% that it's kind of running at now, does that have an artificially depressed kind of impact on that 1.7%? if we do assume you extend that out like that 1.7% that it's kind of running at now does that have an artificially depressed kind of impact on that 1.7%

Speaker 4: Yeah, so the 1.5%-2% is still the range, you know, for now. Absolutely. What we've also done, Tim, just to give some more color is in the back of the presentation we did provide an appendix which actually gave the actual dollar write offs for the past eight quarters so that you can have a look at that through your models. We also, you know, just to point out those actual write offs in the P&L and there's nothing new there. It's been in the 4D and the.4E for a while. Yeah, so the 1.5%- 2% is still the range, you know, for now. yeah so the 1.5%- 2% is still the range you know for now Absolutely. absolutely What we've also done, Tim, just to give some more color is in the back of the presentation we did provide an appendix which actually gave the actual dollar write offs for the past eight quarters so that you can have a look at that through your models. what we've also done tim just to give some more color is in the back of the presentation we did provide an appendix which actually gave the actual dollar write offs for the past eight quarters so that you can have a look at that through your models We also, you know, just to point out those actual write offs in the P&L and there's nothing new there. we also you know just to point out those actual write offs in the p&l and there's nothing new there It's been in the 4D and the. 4E for a while. it's been in the 4d and the 4e for a while That's also net of recoveries and any fees. Whereas the forecast cohort loss graph you're used to seeing, that is a gross number. We're just giving you both there to do the analysis. That's also net of recoveries and any fees. that's also net of recoveries and any fees Whereas the forecast cohort loss graph you're used to seeing, that is a gross number. whereas the forecast cohort loss graph you're used to seeing that is a gross number We're just giving you both there to do the analysis. we're just giving you both there to do the analysis

Speaker 3: Right. I guess what I'm trying to get. Is it going to give. You have more capacity to accelerate customer growth within what would be a target net bad debts range in the U.S. if you make those changes? Right. I guess what I'm trying to get. right. i guess what i'm trying to get Is it going to give. is it going to give You have more capacity to accelerate customer growth within what would be a target net bad debts range in the U.S. if you make those changes? you have more capacity to accelerate customer growth within what would be a target net bad debts range in the u.s if you make those changes

Speaker 4: Yes. Yes. yes

Speaker 3: Okay, good one. Sorry, just a quick second question. Just on the OpEx picking up again, I mean, even if you go from 40 basis points to 50 basis points of TTV on marketing, that only adds sort of 5% OpEx growth. I know you're guiding to a range, but it does imply quite a. Lot of OpEx growth. Maybe just a bit of a sense. On the areas you're going to be accelerating the cost investment, outside of marketing. Okay, good one. okay good one Sorry, just a quick second question. sorry just a quick second question Just on the OpEx picking up again, I mean, even if you go from 40 basis points to 50 basis points of TTV on marketing, that only adds sort of 5% OpEx growth. just on the opex picking up again i mean even if you go from 40 basis points to 50 basis points of ttv on marketing that only adds sort of 5% opex growth I know you're guiding to a range, but it does imply quite a. i know you're guiding to a range but it does imply quite a Lot of OpEx growth. lot of opex growth Maybe just a bit of a sense. maybe just a bit of a sense On the areas you're going to be accelerating the cost investment, outside of marketing. on the areas you're going to be accelerating the cost investment outside of marketing

Speaker 4: We're looking across the board. I mean, one of the things we have said is we're going to grow the businesses. We are having some investment in our Fearless Frontiers arm, which we mentioned. We're looking at some costs for the consideration of a NASDAQ listing. There's probably a broader range of costs, if you like. Overall, we are anchoring back to the operating margin of 16%-19%. We'll be investing in the businesses and spending to the benefit, and if we're able to, if we're producing the revenue through the income statement. We are looking at it on that basis. We're looking across the board. we're looking across the board I mean, one of the things we have said is we're going to grow the businesses. i mean one of the things we have said is we're going to grow the businesses We are having some investment in our Fearless Frontiers arm, which we mentioned. we are having some investment in our fearless frontiers arm which we mentioned We're looking at some costs for the consideration of a NASDAQ listing. we're looking at some costs for the consideration of a nasdaq listing There's probably a broader range of costs, if you like. there's probably a broader range of costs if you like Overall, we are anchoring back to the operating margin of 16%- 19%. overall we are anchoring back to the operating margin of 16%- 19% We'll be investing in the businesses and spending to the benefit, and if we're able to, if we're producing the revenue through the income statement. we'll be investing in the businesses and spending to the benefit and if we're able to if we're producing the revenue through the income statement We are looking at it on that basis. we are looking at it on that basis

Speaker 3: Got it. Thanks. Got it. got it Thanks. thanks

Speaker 10: Thank you. Your next question comes from John Marrin from CLSA. Please go ahead. Thank you. thank you Your next question comes from John Marrin from CLSA . your next question comes from john marrin from clsa Please go ahead. please go ahead

Speaker 12: Thank you. Hey guys, congratulations on a great result. Great job. Just wanted to go back to slide 22 for a second and talk about that new customer cohort. Obviously, the performance to see it accelerating year over year is good. I'm just hoping to get a little more color around why the January cohort is so strong. We heard some details on prepared remarks, so maybe a little more color on what's motivating that new customer to spend so much more. And. I'll have a second to follow up. Thank you. thank you Hey guys, congratulations on a great result. hey guys congratulations on a great result Great job. great job Just wanted to go back to slide 22 for a second and talk about that new customer cohort. just wanted to go back to slide 22 for a second and talk about that new customer cohort Obviously, the performance to see it accelerating year over year is good. obviously the performance to see it accelerating year over year is good I'm just hoping to get a little more color around why the January cohort is so strong. i'm just hoping to get a little more color around why the january cohort is so strong We heard some details on prepared remarks, so maybe a little more color on what's motivating that new customer to spend so much more. we heard some details on prepared remarks so maybe a little more color on what's motivating that new customer to spend so much more And. and I'll have a second to follow up. i'll have a second to follow up

Speaker 14: Thank you. Great question. I would say a couple different factors play into this. In particular, it's same as our story back in July. We were getting better and better at targeting the right customer that fits the value proposition of the product. We continue to refine our marketing and our omnichannel approach to find these customers and engage them in the right way. The app is built in a way to continue to engage them and stay top of wallet, which I think is reflected in the frequency of transaction. The other is probably a broader macro trend. You know, BNPL is becoming a more common payment method within the U.S. and it's benefiting all players on that front. We see stay really focused on the everyday non-discretionary spend American and you're seeing that frequency and engagement pick up. Thank you. thank you Great question. great question I would say a couple different factors play into this. i would say a couple different factors play into this In particular, it's same as our story back in July. in particular it's same as our story back in july We were getting better and better at targeting the right customer that fits the value proposition of the product. we were getting better and better at targeting the right customer that fits the value proposition of the product We continue to refine our marketing and our omnichannel approach to find these customers and engage them in the right way. we continue to refine our marketing and our omnichannel approach to find these customers and engage them in the right way The app is built in a way to continue to engage them and stay top of wallet, which I think is reflected in the frequency of transaction. the app is built in a way to continue to engage them and stay top of wallet which i think is reflected in the frequency of transaction The other is probably a broader macro trend. the other is probably a broader macro trend You know, BNPL is becoming a more common payment method within the U.S. and it's benefiting all players on that front. you know bnpl is becoming a more common payment method within the u.s and it's benefiting all players on that front We see stay really focused on the everyday non-discretionary spend American and you're seeing that frequency and engagement pick up. we see stay really focused on the everyday non-discretionary spend american and you're seeing that frequency and engagement pick up

Speaker 12: Yeah, great. Just to build on Elijah's question earlier, on account growth and, you know, obviously a great result in this quarter or this half year rather, I just kind of want to hear a little more about what you're thinking about both in the U.S. and ANZ on account growth. What the drivers are and maybe the seasonal cadence as we look into the latter portion of the year. If there's things in place with merchants that might drive growth in the fourth quarter and what have you. Yeah, great. yeah great Just to build on Elijah 's question earlier, on account growth and, you know, obviously a great result in this quarter or this half year rather, I just kind of want to hear a little more about what you're thinking about both in the U.S. and ANZ on account growth. just to build on elijah 's question earlier on account growth and you know obviously a great result in this quarter or this half year rather i just kind of want to hear a little more about what you're thinking about both in the u.s and anz on account growth What the drivers are and maybe the seasonal cadence as we look into the latter portion of the year. what the drivers are and maybe the seasonal cadence as we look into the latter portion of the year If there's things in place with merchants that might drive growth in the fourth quarter and what have you. if there's things in place with merchants that might drive growth in the fourth quarter and what have you

Speaker 14: Yeah, from a US perspective we're excited particularly about Pay-in-2 on the consumer value prop side. We think that fits monthly spend much better. We see heavy, heavy usage on non-discretionary core utilities and other monthly bills. This will help with those smaller purchases. We're excited about that. That should bring in new customers, and then the merchant side, getting exposure in channel partnerships and embedded opportunities like Google, like Stripe. We see tremendous upside on new customer growth on those fronts. Yeah, from a US perspective we're excited particularly about Pay-in-2 on the consumer value prop side. yeah from a us perspective we're excited particularly about pay-in-2 on the consumer value prop side We think that fits monthly spend much better. we think that fits monthly spend much better We see heavy, heavy usage on non-discretionary core utilities and other monthly bills. we see heavy heavy usage on non-discretionary core utilities and other monthly bills This will help with those smaller purchases. this will help with those smaller purchases We're excited about that. we're excited about that That should bring in new customers, and then the merchant side, getting exposure in channel partnerships and embedded opportunities like Google, like Stripe. that should bring in new customers and then the merchant side getting exposure in channel partnerships and embedded opportunities like google like stripe We see tremendous upside on new customer growth on those fronts. we see tremendous upside on new customer growth on those fronts

Speaker 5: On the ANZ side, it's a very similar story. We made comment in the prepared remarks just in relation to the similar sorts of initiatives we've rolled out with Google. We've also got a lot of work going on with additional new merchants coming onto the platform, and you've seen a lot of the growth coming through Zip Plus. That's where we are seeing the transaction frequency, I think. My final point would be that's all really evident through the TTV growth and the pickup in momentum that we've seen in TTV growth in the ANZ business in Q4, and we do expect that will continue. On the ANZ side, it's a very similar story. on the anz side it's a very similar story We made comment in the prepared remarks just in relation to the similar sorts of initiatives we've rolled out with Google. we made comment in the prepared remarks just in relation to the similar sorts of initiatives we've rolled out with google We've also got a lot of work going on with additional new merchants coming onto the platform, and you've seen a lot of the growth coming through Zip Plus. we've also got a lot of work going on with additional new merchants coming onto the platform and you've seen a lot of the growth coming through zip plus That's where we are seeing the transaction frequency, I think. that's where we are seeing the transaction frequency i think My final point would be that's all really evident through the TTV growth and the pickup in momentum that we've seen in TTV growth in the ANZ business in Q4, and we do expect that will continue. my final point would be that's all really evident through the ttv growth and the pickup in momentum that we've seen in ttv growth in the anz business in q4 and we do expect that will continue

Speaker 12: Okay, if I could just slip one more in. I think the 1.3% guide, obviously a lower end of the lower bound there on the guidance. If you think about how you could outperform that number, what are the bigger buckets that we're thinking about? Is it just a higher top line, lower interest costs, lower bad debts? How are you thinking about outperformance on that? If you could be generous enough to give us the upper bound. That'd be great. Okay, if I could just slip one more in. okay if i could just slip one more in I think the 1.3% guide, obviously a lower end of the lower bound there on the guidance. i think the 1.3% guide obviously a lower end of the lower bound there on the guidance If you think about how you could outperform that number, what are the bigger buckets that we're thinking about? if you think about how you could outperform that number what are the bigger buckets that we're thinking about Is it just a higher top line, lower interest costs, lower bad debts? is it just a higher top line lower interest costs lower bad debts How are you thinking about outperformance on that? how are you thinking about outperformance on that If you could be generous enough to give us the upper bound. if you could be generous enough to give us the upper bound That'd be great. that'd be great

Speaker 5: Nice try. Let me clarify. It's greater than 1.3% and the answer to your question is yes to all of those things that you've suggested. All of those levers we will be looking at this year to drive that higher than the 1.3%. The real focus for us though is on operating margin. As we deliver through operating margin, as Gordon said earlier, that will then flow through. Nice try. nice try Let me clarify. let me clarify It's greater than 1.3% and the answer to your question is yes to all of those things that you've suggested. it's greater than 1.3% and the answer to your question is yes to all of those things that you've suggested All of those levers we will be looking at this year to drive that higher than the 1.3%. all of those levers we will be looking at this year to drive that higher than the 1.3% The real focus for us though is on operating margin. the real focus for us though is on operating margin As we deliver through operating margin, as Gordon said earlier, that will then flow through. as we deliver through operating margin as gordon said earlier that will then flow through

Speaker 12: Okay. All right, good enough. Thanks, guys. Okay. okay All right, good enough. all right good enough Thanks, guys. thanks guys

Speaker 10: Thank you. Your next question comes from Ware Kuo from Bank of America. Please go ahead. Thank you. thank you Your next question comes from Ware Kuo from Bank of America. your next question comes from ware kuo from bank of america Please go ahead. please go ahead

Speaker 9: Morning. Thanks. Just a few questions from me. Number one, just touching on the Pay-in-8 product. Good outcomes for TTV growth for Pay-in-8. Have you seen it open up new customer cohorts or has it been more additive to existing customers? Number two, just how are you thinking structurally about average loss rates for Pay-in-8 versus Pay-in-4? Is it correct that the revenue take rates are similar between the two products? Morning. morning Thanks. thanks Just a few questions from me. just a few questions from me Number one, just touching on the Pay-in-8 product. number one just touching on the pay-in-8 product Good outcomes for TTV growth for Pay-in-8. good outcomes for ttv growth for pay-in-8 Have you seen it open up new customer cohorts or has it been more additive to existing customers? have you seen it open up new customer cohorts or has it been more additive to existing customers Number two, just how are you thinking structurally about average loss rates for Pay-in-8 versus Pay-in-4? number two just how are you thinking structurally about average loss rates for pay-in-8 versus pay-in-4 Is it correct that the revenue take rates are similar between the two products? is it correct that the revenue take rates are similar between the two products

Speaker 5: Yeah, maybe I'll start then I'll throw to Joe. Thanks for the question. So yeah, I'll answer your last question first. Yes, the revenue margin on the products, we optimize them to keep the revenue margin across the portfolio at 7%. Yes, and we do look for that balance in terms of optimizing the use cases for customers. Some of the areas that we've seen, particularly around health and travel and entertainment and so forth, tickets is where we've been seeing a lot of penetration of Pay-in-8 and that then aligns to our merchant strategy and where we've been bringing new merchants onto the platform as well. Joe, do you want to talk a bit more about that and then about maybe the comment on losses? Yeah, maybe I'll start then I'll throw to Joe. yeah maybe i'll start then i'll throw to joe Thanks for the question. thanks for the question So yeah, I'll answer your last question first. so yeah i'll answer your last question first Yes, the revenue margin on the products, we optimize them to keep the revenue margin across the portfolio at 7%. yes the revenue margin on the products we optimize them to keep the revenue margin across the portfolio at 7% Yes, and we do look for that balance in terms of optimizing the use cases for customers. yes and we do look for that balance in terms of optimizing the use cases for customers Some of the areas that we've seen, particularly around health and travel and entertainment and so forth, tickets is where we've been seeing a lot of penetration of Pay-in-8 and that then aligns to our merchant strategy and where we've been bringing new merchants onto the platform as well. some of the areas that we've seen particularly around health and travel and entertainment and so forth tickets is where we've been seeing a lot of penetration of pay-in-8 and that then aligns to our merchant strategy and where we've been bringing new merchants onto the platform as well Joe, do you want to talk a bit more about that and then about maybe the comment on losses? joe do you want to talk a bit more about that and then about maybe the comment on losses

Speaker 14: Yeah. From a consumer perspective, opening up additional categories for us, I think it is really important. Cynthia mentioned a couple of those verticals, but I also think when you kind of play out the U.S. consumer, especially around now back to school season, our customers are buying iPads and things to get ready for school. Pay-in-8 offers additional flexibility to allow for a range of purchases that Pay-in-4 might get tight on. Excited about that from a loss perspective. I think I'll go back to what Gordon's comment was. We're continuing to just evaluate the right metric, but we are very comfortable with the loss rates and we've got enough history over the last 12 months now where we feel like we're in a really good position to continue to manage the risk at a portfolio level within the range that we've articulated. Yeah. From a consumer perspective, opening up additional categories for us, I think it is really important. yeah. from a consumer perspective opening up additional categories for us i think it is really important Cynthia mentioned a couple of those verticals, but I also think when you kind of play out the U.S. consumer, especially around now back to school season, our customers are buying iPads and things to get ready for school. cynthia mentioned a couple of those verticals but i also think when you kind of play out the u.s consumer especially around now back to school season our customers are buying ipads and things to get ready for school Pay-in-8 offers additional flexibility to allow for a range of purchases that Pay-in-4 might get tight on. pay-in-8 offers additional flexibility to allow for a range of purchases that pay-in-4 might get tight on Excited about that from a loss perspective. excited about that from a loss perspective I think I'll go back to what Gordon's comment was. i think i'll go back to what gordon's comment was We're continuing to just evaluate the right metric, but we are very comfortable with the loss rates and we've got enough history over the last 12 months now where we feel like we're in a really good position to continue to manage the risk at a portfolio level within the range that we've articulated. we're continuing to just evaluate the right metric but we are very comfortable with the loss rates and we've got enough history over the last 12 months now where we feel like we're in a really good position to continue to manage the risk at a portfolio level within the range that we've articulated

Speaker 9: Great. Thank you. Great. great Thank you. thank you

Speaker 10: Thank you. Your next question comes from Wei Sim from Jefferies. Please go ahead. Thank you. thank you Your next question comes from Wei Sim from Jefferies . your next question comes from wei sim from jefferies Please go ahead. please go ahead

Speaker 1: Hi team, can you hear me? Hi team, can you hear me? hi team can you hear me

Speaker 5: We can, Wei. We can, Wei. we can wei

Speaker 1: Great, thanks. Thanks, Cynthia and team. Just one question. Congratulations on a great result. I've been wrong, you know, U.S. customer growth in fourth quarter. Didn't expect that. Really great. One question for me is just really on the U.S. regulatory landscape on potential risks there. I've seen some news flow on potentially for BNPLs to report to credit rating agencies and the New York BNPL Act. I understand we've got working with WebBank. If you can just talk about, I guess, how you see the regulatory landscape, any potential risks, and what is being done to mitigate these things. Great, thanks. great thanks Thanks, Cynthia and team. thanks cynthia and team Just one question. just one question Congratulations on a great result. congratulations on a great result I've been wrong, you know, U.S. customer growth in fourth quarter. i've been wrong you know u.s customer growth in fourth quarter Didn't expect that. didn't expect that Really great. really great One question for me is just really on the U.S. regulatory landscape on potential risks there. one question for me is just really on the u.s regulatory landscape on potential risks there I've seen some news flow on potentially for BNPLs to report to credit rating agencies and the New York BNPL Act. i've seen some news flow on potentially for bnpls to report to credit rating agencies and the new york bnpl act I understand we've got working with WebBank. i understand we've got working with webbank If you can just talk about, I guess, how you see the regulatory landscape, any potential risks, and what is being done to mitigate these things. if you can just talk about i guess how you see the regulatory landscape any potential risks and what is being done to mitigate these things

Speaker 5: Thanks. I'll just start with some comments that I will pass to Joe. I would characterize it as a benign regulatory environment at the moment, certainly from a federal perspective, and it's been constructive for us. Some of the things that you noted in relation to FICO scores and providing data back to the agencies, I'll ask Joe to comment on. The one thing that we have seen is there has been some pickup in state-based regulators focusing on the product. You mentioned New York. We'll particularly comment in relation to New York. Joe, just want to comment on FICO and New York. Thanks. thanks I'll just start with some comments that I will pass to Joe. i'll just start with some comments that i will pass to joe I would characterize it as a benign regulatory environment at the moment, certainly from a federal perspective, and it's been constructive for us. i would characterize it as a benign regulatory environment at the moment certainly from a federal perspective and it's been constructive for us Some of the things that you noted in relation to FICO scores and providing data back to the agencies, I'll ask Joe to comment on. some of the things that you noted in relation to fico scores and providing data back to the agencies i'll ask joe to comment on The one thing that we have seen is there has been some pickup in state-based regulators focusing on the product. the one thing that we have seen is there has been some pickup in state-based regulators focusing on the product You mentioned New York. you mentioned new york We'll particularly comment in relation to New York. we'll particularly comment in relation to new york Joe, just want to comment on FICO and New York. joe just want to comment on fico and new york

Speaker 14: Thank you. I would say echo what Cynthia Scott said about a benign environment, in particular when you look at the FICO side of this. I think it's very, very early days and it's in an exploratory phase. Anchoring back to our perspective, we believe in fit for purpose and I think we're seeing firmly with what will benefit our customer base. We'll continue to stay abreast, but there's no immediacy to that from a New York perspective. We're in dialogue there, feel very comfortable with our regulatory position. We've always been kind of in a good spot there and we'll continue to monitor as that plays out. We're in a very good position in the near and medium term. Thank you. thank you I would say echo what Cynthia Scott said about a benign environment, in particular when you look at the FICO side of this. i would say echo what cynthia scott said about a benign environment in particular when you look at the fico side of this I think it's very, very early days and it's in an exploratory phase. i think it's very very early days and it's in an exploratory phase Anchoring back to our perspective, we believe in fit for purpose and I think we're seeing firmly with what will benefit our customer base. anchoring back to our perspective we believe in fit for purpose and i think we're seeing firmly with what will benefit our customer base We'll continue to stay abreast, but there's no immediacy to that from a New York perspective. we'll continue to stay abreast but there's no immediacy to that from a new york perspective We're in dialogue there, feel very comfortable with our regulatory position. we're in dialogue there feel very comfortable with our regulatory position We've always been kind of in a good spot there and we'll continue to monitor as that plays out. we've always been kind of in a good spot there and we'll continue to monitor as that plays out We're in a very good position in the near and medium term. we're in a very good position in the near and medium term

Speaker 1: Okay. Just for these, is this in conversation with Webbank or with the regulators, or how does that work? Okay. okay Just for these, is this in conversation with Webbank or with the regulators, or how does that work? just for these is this in conversation with webbank or with the regulators or how does that work

Speaker 14: Yeah, we partner with WebBank, which we believe is a very strong regulatory position for our products. Whenever we have any conversations with regulators, state or federal, we partner with WebBank for those conversations. Yeah, we partner with WebBank, which we believe is a very strong regulatory position for our products. yeah we partner with webbank which we believe is a very strong regulatory position for our products Whenever we have any conversations with regulators, state or federal, we partner with WebBank for those conversations. whenever we have any conversations with regulators state or federal we partner with webbank for those conversations

Speaker 1: Okay, perfect. Thank you. Congrats again on the great results. Thank you. Okay, perfect. okay perfect Thank you. thank you Congrats again on the great results. congrats again on the great results Thank you. thank you

Speaker 10: Thank you. Once again, if you'd like to ask a question, please press Star one on your telephone and wait for your name to be announced. For the sake of time, we please ask that you keep it to one question. Your next question comes from Jacqueline from RBC. Please go ahead. Thank you. thank you Once again, if you'd like to ask a question, please press Star one on your telephone and wait for your name to be announced. once again if you'd like to ask a question please press star one on your telephone and wait for your name to be announced For the sake of time, we please ask that you keep it to one question. for the sake of time we please ask that you keep it to one question Your next question comes from Jacqueline from RBC . your next question comes from jacqueline from rbc Please go ahead. please go ahead

Speaker 13: Hi team. Congratulations on the great result. Just one in terms maybe for Joe, the U.S. adoption rate, 6% FY24 is feeling a bit dated now. Feedback what we're getting is that's floating higher towards sort of the 8% mark. Just any thoughts around the key drivers there if that's occurring and how it pertains to some of your segments? Hi team. hi team Congratulations on the great result. congratulations on the great result Just one in terms maybe for Joe, the U.S. adoption rate, 6% FY24 is feeling a bit dated now. just one in terms maybe for joe the u.s adoption rate 6% fy24 is feeling a bit dated now Feedback what we're getting is that's floating higher towards sort of the 8% mark. feedback what we're getting is that's floating higher towards sort of the 8% mark Just any thoughts around the key drivers there if that's occurring and how it pertains to some of your segments? just any thoughts around the key drivers there if that's occurring and how it pertains to some of your segments

Speaker 14: Yeah. From a U.S. perspective, I think we're still in the early days of understanding, and I would say consumer awareness, and as the industry grows, we benefit from that. I think you're starting to see a normalization and probably an understanding from the U.S. consumer of the utility and, frankly, the benefits of a fixed product that really is starting to drive strong adoption across the U.S. industry. I think it's on an upward trajectory. I would anchor back to what we see in other markets like Australia, which is 15%, and some places in Europe up close to 20%. There's a long journey ahead, but we're excited about the growth. Yeah. yeah From a U.S. perspective, I think we're still in the early days of understanding, and I would say consumer awareness, and as the industry grows, we benefit from that. from a u.s perspective i think we're still in the early days of understanding and i would say consumer awareness and as the industry grows we benefit from that I think you're starting to see a normalization and probably an understanding from the U.S. consumer of the utility and, frankly, the benefits of a fixed product that really is starting to drive strong adoption across the U.S. industry. i think you're starting to see a normalization and probably an understanding from the u.s consumer of the utility and frankly the benefits of a fixed product that really is starting to drive strong adoption across the u.s industry I think it's on an upward trajectory. i think it's on an upward trajectory I would anchor back to what we see in other markets like Australia, which is 15%, and some places in Europe up close to 20%. i would anchor back to what we see in other markets like australia which is 15% and some places in europe up close to 20% There's a long journey ahead, but we're excited about the growth. there's a long journey ahead but we're excited about the growth

Speaker 13: Thank you, Joe. Maybe just one on ANZ revenue margins. Just looking at my numbers and I might be wrong, but a little bit of compression on the revenue margin in the fourth quarter. I just want to get some color if there's any one-off initiatives in there with merchants or customers that are driving a little bit of softness there, and how to think about that in the context of the 8%. Thank you, Joe. thank you joe Maybe just one on ANZ revenue margins. maybe just one on anz revenue margins Just looking at my numbers and I might be wrong, but a little bit of compression on the revenue margin in the fourth quarter. I just want to get some color if there's any one-off initiatives in there with merchants or customers that are driving a little bit of softness there, and how to think about that in the context of the 8%. just looking at my numbers and i might be wrong but a little bit of compression on the revenue margin in the fourth quarter. i just want to get some color if there's any one-off initiatives in there with merchants or customers that are driving a little bit of softness there and how to think about that in the context of the 8%

Speaker 4: No, I wouldn't say so. No one-offs. The Australian business we've talked about for a little while is we really are trying to balance, I guess, the return of the economy and making sure that we're growing at the right time. We're really pleased with the products we've got in market with our Personal Loans products and coming into the new year and with the consumer sentiment print the other day, another potential rate cut coming. We feel that we're well placed and well timed for FY26. I'll just point out as well that TTV growth for the ANZ business in Q4 was really strong at 13%. We are seeing those signs and we're cautiously optimistic. No, I wouldn't say so. no i wouldn't say so No one-offs. no one-offs The Australian business we've talked about for a little while is we really are trying to balance, I guess, the return of the economy and making sure that we're growing at the right time. the australian business we've talked about for a little while is we really are trying to balance i guess the return of the economy and making sure that we're growing at the right time We're really pleased with the products we've got in market with our Personal Loans products and coming into the new year and with the consumer sentiment print the other day, another potential rate cut coming. we're really pleased with the products we've got in market with our personal loans products and coming into the new year and with the consumer sentiment print the other day another potential rate cut coming We feel that we're well placed and well timed for FY26. we feel that we're well placed and well timed for fy26 I'll just point out as well that TTV growth for the ANZ business in Q4 was really strong at 13%. i'll just point out as well that ttv growth for the anz business in q4 was really strong at 13% We are seeing those signs and we're cautiously optimistic. we are seeing those signs and we're cautiously optimistic

Speaker 13: Thank you. Thank you. thank you

Speaker 10: Unfortunately, that is all the time we have for questions today. I'll now hand the conference back to Ms. Scott for any closing remarks. Unfortunately, that is all the time we have for questions today. unfortunately that is all the time we have for questions today I'll now hand the conference back to Ms. Scott for any closing remarks. i'll now hand the conference back to ms scott for any closing remarks

Speaker 5: Thanks everyone. I'm sorry, we've run a little bit over time. Thanks everyone for all your questions. Thanks for joining us. I know we're going to speak to many of you and meet over the next couple of weeks with several of you. Thanks again and we look forward to seeing you in the next couple of weeks. Thanks everyone. thanks everyone I'm sorry, we've run a little bit over time. i'm sorry we've run a little bit over time Thanks everyone for all your questions. thanks everyone for all your questions Thanks for joining us. thanks for joining us I know we're going to speak to many of you and meet over the next couple of weeks with several of you. i know we're going to speak to many of you and meet over the next couple of weeks with several of you Thanks again and we look forward to seeing you in the next couple of weeks. thanks again and we look forward to seeing you in the next couple of weeks

Speaker 10: That does conclude our conference for today. Thank you for participating. You may now disconnect. That does conclude our conference for today. that does conclude our conference for today Thank you for participating. thank you for participating You may now disconnect. you may now disconnect