Zip Co Ltd (ZIP.AU) shares are soaring 14.86% in intraday trading after the company reported record-breaking third-quarter results for FY25 and upgraded its full-year guidance. The buy-now-pay-later (BNPL) provider demonstrated strong growth across key metrics, signaling a robust business model and successful strategic execution.

For Q3 FY25, Zip Co reported its highest-ever quarterly cash EBTDA of A$46 million, representing a remarkable 219.4% increase compared to the same period last year. The company's total transaction volume rose 35.7% year-on-year to A$3.3 billion, while total income climbed 26.5% to A$278.9 million. The number of transactions also increased by 27.3% to 22.8 million, indicating growing user engagement.

Based on these strong results, Zip Co has upgraded its full-year FY25 guidance. The company now expects to deliver a cash EBTDA of at least A$153 million, up from its previous forecast of A$147 million. This improved outlook, coupled with the company's continued expansion in both the US and Australia/New Zealand markets, has fueled investor optimism. CEO Cynthia Scott attributed the robust performance to Zip's resilient business model and disciplined strategic execution, highlighting the company's strong position in the competitive BNPL sector.