Zip Co (ASX:ZIP) reported Thursday fiscal first-half underlying earnings of AU$0.0408 per basic share after breaking even a year earlier.
Analysts polled by FactSet expected earnings of AU$0.02.
Revenue for the six months ended Dec. 31, 2025, was AU$658.1 million, compared with AU$509.2 million a year earlier. Analysts surveyed by FactSet expected AU$680 million.
The company upgraded its fiscal 2026 guidance, with group operating margin now expected to be greater than 18%, up from the previous range of 16% to 19%, and group cash earnings before interest, taxes, depreciation, and amortization as a percentage of total transaction volume expected to be greater than 1.4%, up from the previous expectation of greater than 1.3%.
The company's shares tumbled 34% in recent Thursday trade.