EarningsQ4 2026 Earnings Report
MX:XRON Q4 2026 EPS Results
Actual EPS$1.22
Consensus EPS$5.97
Beat/MissMissed by -$4.74
One Year Ago EPS$8.87
MX:XRON Q4 2026 Revenue Results
Actual Revenue$16.90B
Expected Revenue$15.28B
Beat/MissBeat by +$1.61B
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
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
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
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
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