Key Highlights

  • Xero (ASX:XRO) closed at A$64.19 on 23 October 2026, up 0.77% on the day and approximately 57% lower over a year.
  • FY26 operating revenue was NZ$2.75 billion, up 31%, with adjusted EBITDA of NZ$757.4 million, up 18%.
  • The board authorised purchases of up to A$550 million of shares in FY27 to offset share-based compensation dilution.

Xero Limited (ASX:XRO) closed at A$64.19 on 23 October 2026, up 0.77% (A$0.49) on the day, although the shares are approximately 57% lower than a year ago. Xero provides cloud accounting software for small businesses and their advisors. Its latest result was the FY26 full-year release dated 14 May 2026, and the 23 October share price move has not been linked to that release.

About Xero

Xero is a New Zealand-headquartered software company providing accounting and related financial tools to small businesses, accountants and bookkeepers. It reports in New Zealand dollars, and with the Melio acquisition it has added business payments capability in the United States.

Latest development: FY26 results (14 May 2026)

For the year ended 31 March 2026, Xero reported operating revenue of NZ$2,753 million, up 31% (28% in constant currency). Adjusted EBITDA was NZ$757.4 million, up 18%, EBITDA was NZ$789.5 million and free cash flow was NZ$554.0 million. The operating expense to revenue ratio was 70.5% excluding Melio-related transaction costs.

Customers reached 4.92 million, up 11%, and net customer additions were 506,000, compared with 254,000 a year earlier. Xero said it added 110,000 customers in the United States, including new Melio direct payments customers, and reported pro-forma US revenue growth of 50%. EBITDA included two one-off items related to the Melio acquisition: transaction costs of NZ$50.6 million and a foreign exchange translation gain of NZ$90.5 million.

The board authorised the purchase of up to A$550 million of shares in FY27 to offset dilution from share-based compensation, funded through an intragroup structure.

Risks to weigh

The share price has fallen approximately 57% over a year despite revenue growth of 31%, and the company's results include one-off acquisition items. Integration of Melio, the company's AI-related investment and reported figures in New Zealand dollars against a share price in Australian dollars are all factors that shape how the numbers read. The company's FY27 guidance and FY28 aspirations are forward-looking.

What lies ahead

Items to watch include FY27 guidance delivery, US customer growth and Melio integration, the execution of the A$550 million share purchase arrangement and the company's half-year results.