Zilch Hits $300m Annual Run Rate and Achieves Adjusted Profitability Following Strong FY26 Results

Zilch has reached a $300 million annual run rate and achieved two consecutive quarters of adjusted profitability in FY27, signaling a major turning point for the UK fintech. These results suggest that the company’s ad-subsidised payments model is successfully scaling, offering a blueprint for sustainable growth in the competitive consumer credit market.

What was announced

Zilch reported a 36% increase in revenue to £147.5 million for FY26, alongside a 28% rise in Gross Merchandise Volume (GMV) to £2.4 billion. The company’s revenue take rate improved from 5.98% to 6.34%, a shift attributed to better monetisation across its platform. Credit revenue grew 47% to £108.4 million, while feature and advertising revenue saw increases of 120% and 12% respectively. This financial performance was underpinned by a 21% growth in yearly active users, reaching 970,000, with customers spending an average of £2,500 annually across 56 purchases.

Strategically, Zilch expanded its consumer offering with physical cards and membership tiers, while its "Intelligent Commerce" tool utilized data and AI to bridge the gap between brands and shoppers. To support its scaling operations, the firm increased its securitisation facility to £200 million—led by Deutsche Bank and supported by major credit funds—providing the capacity for approximately £4 billion in annual GMV. The company ended FY26 with £106.5 million in cash and secured its own FCA payments licence and Visa Principal Membership. Additionally, Zilch has proposed an acquisition of Fjord Bank and committed £77 million to a new London headquarters scheduled for 2027, alongside maintaining its partnership with Arsenal Football Club.

"We’re confident in the strength and profitability of our business model, and we’re now seeing the results of those investments. Reaching a $300m annual run rate and delivering two consecutive quarters of adjusted profit before tax demonstrates how the foundations we built during FY26 are translating into accelerated growth and stronger financial performance."

Philip Belamant, CEO and Co-Founder of Zilch

The companies involved

Zilch is a London-based consumer payments platform that differentiates itself through an ad-subsidised model, allowing it to offer credit and payment services while generating revenue from merchant partnerships. Since its inception, the company has sought to move beyond the traditional buy-now-pay-later (BNPL) framework by integrating data-driven commerce features. Its recent acquisition of a Visa Principal Membership and an FCA payments licence marks a significant step toward operational autonomy, allowing the firm to process payments and issue cards with less reliance on intermediary providers.

The proposed acquisition of Fjord Bank, a digital bank based in Lithuania, indicates a strategic move to bring banking infrastructure in-house, potentially lowering the cost of capital. Visa, a global leader in digital payments, remains a central partner in Zilch’s ecosystem, ensuring its cards are accepted at millions of locations worldwide. Zilch also maintains a high-profile presence in the UK through its partnership with Arsenal Football Club. This combination of regulatory licensing, banking infrastructure, and brand visibility positions Zilch as a vertically integrated player in the evolving European fintech landscape.

What FF News has reported before

FF News has tracked Zilch’s expansion as it builds out its ecosystem and loyalty features. We recently reported that Zilch Partners with Spotify to Offer Four Months of Premium Free for Plus Members, highlighting the company’s focus on membership-driven value. Our coverage of its primary partner, Visa, includes significant infrastructure moves such as when Expensify and Visa Partner to Streamline Corporate Expense Management for Businesses. Additionally, we have explored Visa’s insights into the intersection of technology and retail, notably how Visa Research Reveals 41% of Americans Hide AI Use for Holiday Shopping.

What this means

Zilch’s move into adjusted profitability challenges the narrative that consumer credit fintechs are perpetually loss-making. By successfully growing advertising and feature revenue alongside credit, the company is proving that a multi-pronged revenue model is more resilient than pure-play lending. The industry is now watching to see if this "payments plus" approach becomes the standard for survival as regulatory costs rise. This announcement puts pressure on competitors who remain dependent on interchange fees or interest alone. The move to own its banking licence via Fjord Bank suggests the next stage of fintech competition will be won by those who control the full value chain.