Why did the zip share price drop about 35% today?

The selloff followed the half‑year update, where investors focused on a higher net bad‑debt ratio at 1.7% of TTV and softer revenue margins. Those trends pressure unit economics and can delay profitability scaling. While management reiterated FY26 guidance and highlighted record cash EBITDA growth, the market prioritised credit quality and margin trajectory. Elevated volume confirmed strong conviction behind the re‑rating, pushing zip asx sharply lower.

Is zip asx attractive after the fall, or is there further downside risk?

Valuation compressed, but risks remain. At A$1.85, PE is about 30.8, price to sales 3.34, and price to book 5.14. Debt to equity is 3.42 and interest coverage 1.94, so funding costs and bad debts matter. Near‑term models point to A$1.97 monthly and A$1.62 quarterly. If net bad debts and margins stabilise, upside opens; if not, multiples can compress further.

What should investors watch after the latest zip earnings update?

Three areas: credit, margins, and liquidity. First, track the net bad‑debt ratio against TTV and any tightening in credit controls. Second, watch revenue margins and net transaction margin to gauge monetisation. Third, monitor cash EBITDA versus receivables growth, warehouse capacity, and interest coverage. For bnpl stocks, stable take‑rates and improving loss rates are the signals that can support a durable recovery in the zip share price.

How would a potential U.S. dual listing affect zip asx holders?

A dual listing could expand the investor base and improve liquidity, but it may add compliance costs and increase volatility. Pricing, currency translation, and cross‑market arbitrage can affect day‑to‑day moves. Strategic benefits depend on attracting lower‑cost capital and broadening research coverage. For existing holders, the core drivers remain the same: bad‑debt trends, revenue margins, and funding costs after the latest zip earnings reset.

Global Market Insights

ZIP.AX Stock Today: 35% Slide on H1 Bad Debts, Margins — February 20

ByHuzaifa Zahoor February 20, 2026February 20, 2026

The zip asx selloff accelerated today, with shares of ZIP.AX dropping about 35% after its half‑year update. The market focused on a higher net bad‑debt ratio at 1.7% of TTV and softer revenue margins, offsetting record cash EBITDA growth and reiterated FY26 targets. A possible U.S. dual listing flagged by management also added uncertainty. We break down the zip share price action, the key risks for BNPL stocks, valuation signals, and the technical picture Australian investors should watch next.