Xero Lifts Revenue 31% to $2.8 Billion on Xro Asx
Xero’s xro asx result delivered 31% revenue growth to $2.8 billion in FY26, even as Melio acquisition costs weighed on profit. The numbers point to a business that is still expanding quickly in the US while absorbing the cost of that expansion in the income statement.
Xero revenue reaches $2.8 billion
31% revenue growth to $2.8 billion came alongside 18% growth in adjusted EBITDA to $757.4 million. That combination shows the group is scaling faster than many software peers, but the profit mix is being pulled by acquisition-related spending rather than a clean margin expansion.
240% US core revenue growth and 110,000 new US customers drove much of the momentum during the period. Xero said the US gain was boosted by the integration of Melio, the US bill pay platform it acquired during FY26, with the merger bringing accounting and payments onto one platform for customers in that market.
23% ARPC growth to $55.44 across the group gives a second read on the quarter-by-quarter machine: Xero is earning more from each customer even as it keeps adding them. Una said, “Our strong full year results demonstrate Xero's disciplined execution and macro-resilience.”
Melio and AI lift the US push
One of the clearest tensions in the result is that the same acquisition helping Xero deepen its US offer is also pressuring profit. Una said, “We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing Melio.”
Xero also extended its partnership with Anthropic to integrate Claude’s AI, ramped up GenAI-powered features including Just Ask Xero and smart document capture, and launched XeroForce in early testing. The company is pushing those tools into the product stack while it tries to turn the larger customer base into higher-value recurring revenue.
That sequence matters because the FY26 figures are not just a growth story; they are also a test of whether the US expansion can keep lifting revenue without letting acquisition drag outrun operating leverage. Xero’s quoted framing was explicit: “This has moved us beyond single-job workflows in the US by integrating Melio to unite accounting and payments on one platform.”
FY27 targets and buyback
$550 million in authorised buyback capacity for FY27 gives the board a tool to offset dilution from staff share-based compensation while the business keeps growing. Xero is pairing that capital return with guidance for operating revenue of $3.62 billion to $3.73 billion and adjusted EBITDA of $860 million to $920 million in FY27.
Those targets leave the next read-through simple for investors: the market is watching whether Xero can keep the US growth rate moving while converting the acquired base into cleaner earnings. Una put the longer game this way: “Globally, we are providing a small business financial operating system for the AI era, driving value for customers while deepening our technology foundations, compliance capability and data advantages, and driving stronger unit economics.”
Xero is aiming to double group revenue by FY28 compared with FY25, a goal that now sits against a share price that has fallen 53% over the past year even as the S&P/ASX 200 Index has risen 4%. That gap leaves the company needing execution, not just expansion, to close the distance between its operating numbers and the stock’s performance.
