Key highlights

  • Xero Ltd (ASX:XRO) closed at $61.34 on 20 October 2026, up 1.69%.
  • The shares are down approximately 60.32% over the past year.
  • Xero reported FY26 Operating Revenue of $2.8 billion, up 31%, and adjusted EBITDA of $757.4 million on 14 May 2026.

Shares in Xero Ltd (ASX:XRO) closed at $61.34 on 20 October 2026, rose 1.69% on the day from a previous close of about $60.3206.

Over the past 12 months the stock lost approximately 60.32%. Working back from the closing price, a 12-month change of approximately -60.32% implies a share price of about $154.59 a year earlier. The annual decline is much larger than the move in a single session, which is a reminder of how far a stock can travel over a year.

In dollar terms, the 12-month move amounts to about $93.25 per share, from roughly $154.59 to $61.34, while the move during the 20 October session was about $1.02 per share. The two figures measure different time frames and are reported here on their own terms.

About Xero

Xero Limited is a cloud accounting software company serving small businesses and their advisers, with its main operations in Australia, New Zealand, the United Kingdom and the United States. During FY26 it completed the Acquisition of Melio, a United States small Business bill-payment platform, to combine accounting and payments.

Latest development

The share price figures above are set out separately from the company’s annual results. On 14 May 2026 Xero reported results for the year ended 31 March 2026 (FY26). Operating revenue rose 31% (28% in constant currency) to $2.8 billion, and adjusted EBITDA rose 18% to $757.4 million, with EBITDA of $789.5 million. Free Cash Flow was $554.0 million, up 9%.

Net profit after tax fell 27% to $167.4 million from $227.8 million, and Operating Income fell 13%, which Xero attributed to costs of the Melio acquisition. Transaction Costs were $50.6 million, partly offset by a $90.5 million foreign exchange translation gain on acquisition funds recorded in other income. Excluding Melio-related costs, the Operating Expense to revenue ratio was 70.5%, in line with guidance.

Xero said it added 110,000 new customers in the United States, including new Melio direct payments customers, and that pro forma United States revenue growth was 50%. Average revenue per customer rose 28% (26% in constant currency) to $63.74 on an organic basis. The board authorised purchases of shares of up to A$550 million in FY27 to offset dilution from share-based compensation, and Xero reported a pro forma Rule of 40 outcome of 36.0% for the year.

Sector context

Cloud accounting companies are widening from bookkeeping into payments, lending and adviser tools, and integrating acquisitions is a common step in that direction. Software providers also describe embedding artificial intelligence into their products as both an opportunity and a competitive requirement.

Because Xero reports in New Zealand dollars with major operations overseas, currency translation has a visible effect on its reported results.

Risks

Net profit fell in FY26 and operating income was lower after acquisition costs, so the Earnings comparison depends on one-off items. Integrating Melio and growing in the United States require continued investment.

Customers’ subscription levels depend on small business conditions, and the share buy-back is intended to offset dilution rather than to reduce the share count outright.

Share price movements add a separate layer of uncertainty. The stock’s one-day move of +1.69% on 20 October 2026 and its 12-month change of approximately -60.32% show how far the share price can move, and past movements do not indicate future direction.

Catalysts to watch

Items to watch include execution of the Melio integration, growth in United States customers, progress on the FY27 guidance Xero has given, the A$550 million buy-back and the company’s next half-year result.