• Sustained revenue and Adj-EBITDA growth with strong US momentum and Melio investment absorbed
• 3x3 + AI innovation accelerating with payments + AI scaling fast and deepening customer penetration
• Continued capital and operational discipline funding growth, and delivering consistent returns

Xero Limited (ASX: XRO) reported its FY26 annual results, highlighting a milestone year with strong growth, a step-change in the US market, and continued innovation. The company achieved 31% revenue growth to $2.75 billion, with 21% organic growth, and 18% Adj-EBITDA growth to $757 million, absorbing the Melio investment. The company's 3x3 + AI strategy is accelerating, with payments and AI scaling rapidly and deepening customer penetration. Xero maintained disciplined capital allocation and operational efficiency, delivering consistent returns with a Rule of 40 of 48.5%. The ANZ region continued to deliver strong revenue growth, supported by quality customer acquisition. International growth, particularly in the UK and US, gained momentum, fueled by organic growth and the Melio acquisition. Xero's focus on unit economics remains compelling, with 17% growth in lifetime value to $21 billion. The company is proactively managing its capital structure by offsetting dilution associated with share-based compensation, while maintaining a strong balance sheet with available liquid resources of $1.9 billion.

Xero expects to continue its strong financial performance, with revenue growth and Adj-EBITDA margin in line with its FY25-FY27 strategy.

Xero is well-positioned to capitalize on the ongoing digital transformation of small businesses globally, with its innovative 3x3 + AI strategy driving growth across its key markets.