Zip Co Ltd's stock price surged 5.00% during Thursday's intraday trading session, marking a significant upward movement for the Australian financial technology company.

The sharp rise follows the company's announcement that it has reached a settlement agreement regarding the Zip trade mark in Australia with mortgage lender Firstmac. This settlement allows Zip Co to continue operating using its established Zip brand name in the Australian market, resolving a potential branding conflict that had created uncertainty for investors.

The company confirmed that its branding in the United States and New Zealand remains unaffected by this settlement, and importantly, the agreement does not impact the company's financial guidance for fiscal year 2026, suggesting the resolution came without material financial cost.