Sydney, Feb 25, 2026, 18:30 AEDT — Market closed
- Zip Co bounced 9.4% to A$1.75, snapping its multi-day losing streak.
- Australian Retirement Trust disclosed a 5.145% stake, a filing showed.
- Investors have their eyes on a planned A$50 million buyback, with Zip’s next update set for April.
Zip Co (ZIP.AX) rebounded 9.4% to close at A$1.75 Wednesday, breaking a losing streak that followed last week’s heavy drop. Trading volume came in at roughly 39.6 million shares, exchange figures from Investing.com show. (Investing.com Australia)
The rebound’s caught attention, with Zip now something of a proxy for risk sentiment in Australia’s buy-now, pay-later space since that jarring earnings report. New ownership filings and talk of an imminent buyback are swirling, complicating the picture. Investors? Still hashing out what counts as “steady” for growth and credit trends.
Buy-now, pay-later, or BNPL, lets shoppers break up payments into instalments—usually right at checkout. The formula works well as long as losses are minimal and funding remains inexpensive, but it quickly turns sour if credit costs climb or consumers pull back.
Australian Retirement Trust has emerged as a substantial holder in Zip, according to a notice of initial substantial holding dated Feb. 20. The fund now holds 65,372,992 ordinary shares, representing 5.145% of the company’s voting power. (YourIR)
Non-executive director Diane Smith-Gander reported in a Tuesday filing that she bought 28,850 Zip shares on-market for A$50,343.05. That pushes her total ordinary shareholding up to 252,365.
Zip unveiled plans last week for an on-market share buyback reaching up to A$50 million, eyeing a kickoff around March 6. The buyback could last as long as a year, though the company retains the option to adjust or stop the program. “Confidence in the strength of our balance sheet,” chief executive Cynthia Scott said, framing the decision as Zip continues to push for “driving sustainable profitability”.
Zip shares plunged last Thursday after first-half operating earnings came in under analyst forecasts. The company also warned that second-half cash earnings would likely be flat—news that rattled investors already anxious about growth prospects. “Even minor disappointments in growth, guidance, or operational efficiency can trigger outsized reactions,” said Marc Jocum, strategist at Global X ETFs, at the time. (Reuters)
Even with shares rebounding this week, the key concerns remain: credit losses, U.S. customer growth speed, and whether Zip can keep margins intact as it expands. If bad debts start creeping up again, or if U.S. growth shows signs of slowing, the stock could quickly find itself under fire once more.
The market’s closed, so focus turns to the upcoming figures and if the bounce can last into next week. According to Zip’s investor calendar, third-quarter FY26 results drop April 17, while full-year numbers are slated for August 20. (Zip)
