• Revenue up 31% to NZ$2.8 billion
• Net profit down 27% to NZ$167 million
• 4.9 million global customers, up 11%
• Acquisition of Melio completed, impacting net tangible assets

Xero Limited (ASX: XRO) has released its FY26 annual results, reporting a 31% increase in revenue to NZ$2.8 billion but a 27% decline in net profit to NZ$167 million. The company ended the year with 4.9 million global customers, up 11% year-over-year. The acquisition of Melio had a material impact on Xero's net tangible assets, moving the company from a net cash to a net debt position. As a software business, Xero has limited tangible assets associated with its operations, with the majority of assets being intangible. The completion of the Melio transaction resulted in the transfer of tangible cash assets to intangible assets, leading to the decrease in net tangible assets per share from NZ$6.62 to NZ($3.02). Xero did not propose to pay a dividend for the reporting period. The company's FY26 annual report outlines its strategy and financial performance, as well as providing updates on its sustainability commitments and data-driven insights on the small business economy.