Updates share moves in paragraph 6, adds details, analyst comments in paragraphs 3-5, 7-11

By John Biju

April 16 (Reuters) - Australian buy-now, pay-later firm Zip Co ZIP.AX posted record quarterly cash earnings on Wednesday, helped by strong performance from its U.S. operations and raised its fiscal 2025 earnings forecast, sending its shares more than 18% higher.

The company's earnings before taxes, depreciation and amortization (EBTDA) for the three months ended March 31, 2025, were A$46.0 million ($29.16 million), up 219.4% from the same period last year.

The results "demonstrated that growth momentum is yet to slow as more consumers adopt BNPL", analysts at Sandstone Insights said.

Zip U.S. delivered revenue of $108.5 million for the quarter, 44.1% higher than a year earlier, while total transaction volumes rose 40.2% to $1.5 billion.

The digital retail finance and payments provider's total income rose 26.5% to A$278.9 million during the reported quarter.

Shares of the company rose as much as 18.2% to A$1.75, as of 0117 GMT, hitting their highest level since March 28. The stock was the top gainer on the benchmark index .AXJO.

Zip now expects fiscal 2025 EBTDA of at least A$153.0 million, higher than its earlier forecast of A$147.0 million.

Analysts at UBS called the forecast hike "conservative" given their current trajectory.

The company's first-half cash earnings had more than doubled, driven by higher total transaction volumes and revenue.

"4Q will be the quarter of increased uncertainty following U.S. tariff news flow in early April," UBS said.

Earlier this month, the company announced a $30 million share buyback program.

($1 = 1.5773 Australian dollars)

(Reporting by John Biju in Bengaluru; Editing by Alan Barona and Rashmi Aich)

((John.Biju@thomsonreuters.com))