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Xero Reports Strong FY26 Results, Accelerating US Growth

Xero Limited (ASX: XRO) has delivered a milestone year, reporting robust financial results for FY26. The company achieved 31% revenue growth to $2.75 billion, with 21% organic growth, and an 18% increase in adjusted EBITDA to $757 million, absorbing the impact of the Melio acquisition.

Xero's 3x3 + AI strategy is accelerating, with payments and AI scaling rapidly and deepening customer penetration. The company maintained disciplined capital allocation and operational efficiency, delivering a compelling Rule of 40 of 48.5%.

The ANZ region continued to deliver strong revenue growth, supported by quality customer acquisition. Xero's international expansion, particularly in the UK and US, gained significant momentum, fueled by organic growth and the Melio acquisition. The company's focus on unit economics remains compelling, with 17% growth in lifetime value to $21 billion.

Looking ahead, Xero expects to continue its strong financial performance, with revenue growth and adjusted EBITDA margin in line with its FY25-FY27 strategy. The company 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.

Megaport Secures Major Compute, Network & Storage Contracts

Megaport Limited (ASX: MP1), a leading global automated infrastructure platform, has announced that its subsidiary, Latitude.sh, has secured three major GPU, CPU, network, and storage contracts across two customers. These binding, fixed-term contracts represent a combined total contract value of approximately USD$182.9M (AUD$254.0M), delivering around USD$65.2M (AUD$90.6M) in Annualised Recurring Revenue.

The combination of Megaport's foundational network infrastructure automation with Latitude.sh's compute and storage capabilities has created a global automated infrastructure platform, enabling the company to pursue and secure new value-accretive opportunities. Megaport will fund the incremental capital expenditure via a combination of existing cash reserves and a newly-upsized debt facility.

Megaport reaffirms its FY26 revenue and EBITDA guidance, with FY26 group capex guidance of between AUD$90M and $100M, excluding these new customer contracts. The company is becoming an essential platform for powering the applications of tomorrow with globally distributed, automated infrastructure, supporting AI, edge compute, and other emerging technologies.

Bapcor Provides Turnaround and Trading Update

Bapcor Limited (ASX: BAP) has reported positive sales momentum from its turnaround activities, with improved sales growth across all business segments in February 2026 to April 2026 versus the prior comparative period. However, trading conditions have materially deteriorated since late March 2026 due to the Middle East conflict and rising interest rates, leading Bapcor to revise its FY26 earnings guidance.

Bapcor now expects to deliver underlying FY26 EBITDA of $144M - $150M (post AASB16) and underlying FY26 EBITDA of $62M - $68M (pre AASB16). The revised outlook reflects softer trading conditions, higher fuel, freight and supplier costs, and the depreciation of the NZD against the AUD.

To strengthen competitiveness and improve performance, Bapcor is implementing initiatives to enhance profitability, optimize costs, improve capital efficiency, and return to growth. These initiatives are already demonstrating results, with all segments showing positive sales momentum in the period February to April 2026 versus the prior comparative period.

Kingsgate Acquires Royalty and Water Rights at Nueva Esperanza

Kingsgate Consolidated Limited (ASX: KCN) has announced the acquisition of the royalty and water rights for its Nueva Esperanza Silver-Gold Project in Chile. The acquisition eliminates US$2.0 million per annum in pre-production royalties, removes the 5% NSR royalty over Esperanza and the 3% NSR royalty over Arqueros, and secures long-term water rights, removing the ongoing payment of approximately US$0.8 million per annum.

Kingsgate believes the acquisition significantly enhances the value and development potential of the Nueva Esperanza project. The company is focused on accelerating key technical workstreams to optimize the project's development pathway, including assessing the potential for heap leach processing, which could materially reduce capital intensity and accelerate the timeline.

oOh!Media Provides Strategy & Trading Update, 2026 AGM Materials

oOh!Media Limited (ASX:OML) has provided a strategy and trading update, reporting Q1 revenue growth of 7% in Australia and 4% for the group, slightly ahead of February projections. The company has launched an Operational Excellence program, which is expected to deliver $12 million in annualized pre-tax cash savings from FY27.

However, 1H gross margin will be softer than anticipated, driven by industry-wide pressure on Billboards. Underlying adjusted opex for 1H is expected to be slightly lower than the prior corresponding period, with one-offs in 1H to cost circa $6 million to deliver targeted savings.

oOh!Media has also provided materials for its 2026 Annual General Meeting, including addresses from the Chair, CEO, and other senior executives. The company expects CY2026 capex to be between $45 million and $55 million, with gearing at or below 1.0X.

Despite some advertiser uncertainty due to the broader macro environment, oOh!Media remains pleased with its overall outlook, as the Out of Home sector continues to benefit from strong structural growth, and the company executes its strategy to cement its market leadership.