EarningsQ4 2026 Earnings Report

Xero Limited (XRON) Q4 2026 Earnings Report

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Previous Report: Q2 2026

MX:XRON Q4 2026 EPS Results

Actual EPS$1.21

Consensus EPS$5.91

Beat/MissMissed by -$4.70

One Year Ago EPS$8.79

MX:XRON Q4 2026 Revenue Results

Actual Revenue$16.87B

Expected Revenue$15.14B

Beat/MissBeat by +$1.73B

YoY Revenue Growth+33.99%

Earnings Announcement Details

QuarterQ4 2026

Date05/13/2026

TimeAfter Close

Conference CallWednesday, May 13, 2026

MX:XRON Upcoming Earnings

Xero Limited's next earnings date is estimated for November 12, 2026, based on past reporting schedules.

Q4 2026 Earnings Call Audio

MX:XRON Q4 2026 Earnings Call

0:00 / 0:00

Q4 2026 Earnings Slide Deck

Q4 2026 Earnings Call Summary

Q4 2026

Earnings Call Date:May 13, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call presented a strong set of operating and financial results: double-digit revenue growth, expanding ARPC driven by payments (Melio), accelerating U.S. momentum, robust adjusted EBITDA and free cash flow generation, and rapid AI adoption and product launches. Near-term headwinds include the pro forma dilution of Rule of 40 from the Melio acquisition, Melio-related losses and SBC timing, headline gross margin compression from payments/media mix, and planned multiyear U.S. brand investment that will weight FY'27 results toward H2. Management provided clear guidance for FY'27 and a pathway to Melio breakeven and Rule of 40 recovery by FY'28, indicating confidence in execution and capital discipline.

Company Guidance

Xero guided FY27 operating revenue of $3.62–$3.73 billion and adjusted EBITDA of $860–$920 million, noting the outcome will be driven by a mix of ARPC expansion and customer growth plus some initial AI monetization; the guide explicitly includes up to AUD 55 million of incremental U.S. brand spend, carries a higher H2 weighting (reflecting Melio phasing and normal seasonality), and is supported by strong payments momentum after pro forma payments revenue of roughly $535 million in FY26 (payments grew ~56% pro forma) and group TPV of $62 billion. Management reiterated a FY26 pro forma Rule of 40 of 36% and said they expect to be back above the Rule of 40 by FY28, with Melio targeted to hit run‑rate adjusted EBITDA breakeven in H2 FY28 (FY26 results: adjusted EBITDA $757 million, free cash flow $554 million, net debt just under $400 million).

Strong Top-Line Growth

Operating revenue grew 31% year-on-year to $2.75 billion in FY'26 (21% organic). Fiscal '27 revenue guidance is $3.62bn–$3.73bn, reflecting continued momentum and a pathway to more than doubling group revenue from FY'25 by FY'28.

Robust Profitability and Cash Generation

Adjusted EBITDA reached $757 million (27.5% margin) in FY'26. Organic adjusted EBITDA grew ~30%. Free cash flow was $554 million and net debt sits just under $400 million with net-debt-to-adjusted-EBITDA of ~0.5x reported.

Customer and ARPC Expansion

Total customers reached 4.90 million with 506,000 net additions (+11% headline, +10% organic). Group ARPC rose to $55.44, up 23% (14% organic); Melio contributed $4.24 to ARPC at the group level and a ~$50 uplift per customer in the U.S.

Payments and TPV Scale

Total payment volume (TPV) reached $62 billion (Xero invoicing $28bn; Xero BillPay/Melio $34bn). Total payments and invoicing revenue was $535 million, up 53% pro forma year-on-year; pro forma transactional revenue grew to 18% of group revenue (from 7% in FY'23).

International and U.S. Acceleration

International revenue grew 47% to $1.36 billion; U.K. revenue +26% and customers +14%. U.S. organic revenue growth accelerated to 30%; on a pro forma basis (including Melio) U.S. FY'26 revenue reached NZD 530 million (+50%) and pro forma gross profit $186 million (+36%).

Strong Gross Profit Dollar Growth and Stable Organic Margins

Gross profit totaled $2.31 billion, up 23% year-on-year (21% organic), generating an additional $436 million in gross profit dollars. On an organic basis gross margin held at ~89% (headline margin reduced due to payments/media mix).

AI Adoption and Product Momentum

2.6 million customers used at least one AI feature in the last 12 months; 513,000 used newer generative AI features (up from 300,000). Auto bank reconciliation processed >40 million transaction lines with >97% accuracy. JAX chat messages per customer grew 115% and internal AI usage is high (83% of employees, 97% of engineers).

Improved Unit Economics and LTV Metrics

Total LTV expanded by $3 billion (17%) to nearly $21 billion (excluding Melio). Total CAC per gross add was $735 with a payback period of 14.4 months. International LTV/CAC improved to 3.5x, indicating better acquisition efficiency.

Clear Capital Allocation and Dilution Management

Board approved a program to offset up to AUD 550 million of share-based compensation dilution, expected to be capital efficient while preserving balance sheet strength. Management reiterated disciplined allocation to product, buy/partner or build, and go-to-market investments.

MX:XRON Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 12, 2026	2027 (Q2)	4.30 / -	8.387	―
May 13, 2026	2026 (Q4)	5.91 / 1.21	8.791	-86.21% (-7.58)
Nov 12, 2025	2026 (Q2)	9.71 / 8.39	6.912	21.35% (+1.48)
May 14, 2025	2025 (Q4)	8.00 / 8.79	10.004	-12.12% (-1.21)
Nov 13, 2024	2025 (Q2)	7.44 / 6.91	3.82	80.95% (+3.09)
May 22, 2024	2024 (Q4)	7.18 / 10.00	2.455	307.41% (+7.55)
Nov 08, 2023	2024 (Q2)	4.39 / 3.82	-1.112	443.64% (+4.93)
May 17, 2023	2023 (Q4)	1.53 / 2.46	-0.182	1450.00% (+2.64)
Nov 09, 2022	2023 (Q2)	1.87 / -1.11	-0.424	-161.90% (-0.69)
May 11, 2022	2022 (Q4)	0.58 / -0.18	-1.01	82.00% (+0.83)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed