Daily Roundup

Xero posts impressive half-year results, upgrades outlook, and launches $1 billion buyback

Xero Ltd is having a stellar year. The accounting software giant reported first-half FY27 revenue of $1.7 billion, up a robust 46% year-over-year, driven by strong customer growth and expanding average revenue per customer. Adjusted EBITDA climbed 3% to $362 million, while free cash flow surged 32% on a reported basis and 36.1% on a pro-forma basis.

The company's customer base now exceeds 5 million, and AI adoption continues to accelerate across its platform. Xero is clearly capitalizing on its multi-product strategy, with innovations spanning payments, analytics, and AI-powered tools.

Buoyed by this momentum, Xero upgraded its full-year revenue guidance to between $3.77 billion and $3.83 billion, reflecting stronger-than-expected performance from its Melio payments division and favorable foreign exchange tailwinds from a weaker New Zealand dollar. Adjusted EBITDA guidance sits at $880 million to $920 million. Looking further ahead, the company expects to hit adjusted EBITDA breakeven on a run-rate basis in the second half of FY28, with FY28 revenue potentially exceeding $4.6 billion.

To reward shareholders, Xero announced an on-market buyback program of up to A$1 billion to be completed over the next 12 months. The announcement underscores management's confidence in the company's trajectory and its ability to generate substantial cash.

AUB Group delivers strong FY26, raises FY27 profit guidance

Insurance broker AUB Group Ltd wrapped up FY26 with impressive results. Underlying net profit after tax grew 12.2% to $224.6 million, while profit margins expanded by 140 basis points to 36.1%. The company has demonstrated remarkable consistency, posting a 16.7% compound annual revenue growth rate and 25.1% CAGR in underlying net profit after tax since FY19.

For FY27, CEO Mike Emmett raised guidance to between $250 million and $265 million in underlying net profit after tax, representing growth of 11.3% to 18.0% over the prior year. This reflects a positive start to the financial year and management's confidence in the business momentum. The company's divisions performed well across the board, though the New Zealand market faced some headwinds. Going forward, AUB plans to drive growth through disciplined execution, strategic investments, and integration of recent acquisitions, while leveraging its global platform for competitive advantage.

Aura Consolidated posts solid Q3 results, introduces new AI engine

Aura Consolidated Group, Inc. (trading as AXQ) delivered respectable third-quarter 2026 results. Pro forma revenue grew 24% year-over-year to $87.9 million, with annual recurring revenue climbing 24% to $355.0 million. The company swung to positive adjusted free cash flow of $12.4 million, a $15.5 million improvement from the prior year, demonstrating meaningful operational progress.

Cost-cutting initiatives have also paid dividends, with Aura achieving $66 million in total cost savings—surpassing its initial target by $11 million. Net debt improved by $7.3 million since the transaction close. The company introduced Solstice, a new in-house AI engine designed for agentic protection, alongside a refreshed Aura experience built on the new technology. Aura reaffirmed its full-year 2026 guidance of 20% or greater ARR growth and positive adjusted free cash flow through year-end, signaling confidence in its trajectory.

Stealth Group marks record FY26 with HBT acquisition driving growth

Stealth Group Holdings Ltd capped off a record FY26 with significant momentum. Sales grew 13.8% to $165.1 million, while EBITDA surged 46.2% to $14.4 million. Net profit after tax jumped 86.3% to $5.8 million. The standout catalyst was the acquisition of Hardware and Building Traders (HBT) in November 2025, which substantially expanded the company's market reach and scale.

The market has taken notice—the share price climbed from $0.73 to $1.29 over the year, lifting market capitalization from $94.5 million to $192.9 million. Looking ahead, Stealth is rolling out central invoicing across the HBT network with a target of 75% conversion in FY27, while new annual sales negotiations are set to kick off in the first half of 2027. The company is also exploring strategic acquisitions to further expand its offering and customer base as it pursues its $500 million sales target.

Regal Partners crystallizes $122.7 million in performance fees for CY26

Regal Partners Ltd reported that it has crystallized $122.7 million in fund performance fee revenue for calendar year 2026, with an additional $4.0 million received between July and October. The company does not expect any material incremental performance fee revenue for the second half of the year. Other income, including mark-to-market gains, interest, and dividends, is expected to have minimal impact on normalized net profit after tax for CY26. Despite market volatility, Regal Partners maintained positive momentum with $2.2 billion in net inflows for the ten months ending October 2026, underscoring the resilience of its business model.