Strong Xero H1 FY27 result, upgraded outlook & A$1bn buyback

• Xero reports H1 FY27 revenue of $1.7 billion, up 46%
• Adjusted EBITDA increased 3% to $362 million
• Upgraded FY27 revenue outlook to $3.77 billion - $3.83 billion
• Announced A$1 billion share buyback program

Xero Limited reported its H1 FY27 results, showing a 46% increase in revenue to $1.7 billion, driven by robust customer growth and average revenue per customer expansion. Adjusted EBITDA increased by 3% to $362 million. The company upgraded its FY27 revenue outlook to between $3.77 billion and $3.83 billion, reflecting stronger Melio payments performance and an FX benefit from the weaker NZD. Xero also announced an on-market buy-back program of up to A$1 billion to be completed over the next 12 months.

FY27 revenue expected between $3.77 billion and $3.83 billion, adjusted EBITDA between $880 million and $920 million

Xero expects to reach adjusted EBITDA breakeven on a run-rate basis in H2 FY28 and sees the opportunity for FY28 revenue to be more than $4.6 billion.