Daily Roundup

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Xero Delivers Strong FY25 Results

Xero Limited (ASX: XRO) has reported impressive financial results for the 2025 fiscal year, demonstrating its ability to drive balanced, profitable growth. The cloud-based accounting software provider saw revenue increase by 23% to NZ$2.1 billion, with all of its major markets - Australia, New Zealand, the UK, and North America - contributing to the strong performance.

Adjusted EBITDA also grew by 22% year-over-year to NZ$641 million, reflecting Xero's disciplined approach to capital allocation and continued investment in its product and people. The company's Rule of 40 outcome of 44.3% further underscores its success in delivering greater than 40% combined revenue growth and profitability.

Xero's subscriber base grew by 254,000 during the year (414,000 excluding long idle subscriptions), as the company enhanced its offerings for the three most critical jobs facing small businesses - accounting, payroll, and payments. Key highlights included the launch of Xero Simple in the UK, improvements to the US product, and the acquisition of Syft to bolster Xero's insights and analytics capabilities.

Looking ahead, Xero expects its total operating expenses as a percentage of revenue to be around 71.5% in FY26, with a higher ratio in the first half of the year due to non-recurring remuneration impacts and other planned investment. The company remains focused on its aspiration to double the size of its business while maintaining Rule of 40 or greater performance over time.

Cleanaway Acquires Citywide Waste Business

Cleanaway Waste Management Ltd (ASX: CWY) has received clearance from the ACCC for its acquisition of the Citywide waste and recycling business. The deal, expected to complete around the end of the 2025 fiscal year, will further strengthen Cleanaway's position as Australia's leading total waste management, industrial, and environmental services company.

AVA Secures Contract in Abu Dhabi

AVA Risk Group Limited (ASX: AVA) has secured a A$1.1 million contract with Honeywell Middle East Company Ltd-AD to supply its Aura Ai-X Distributed Acoustic Sensing technology to the Abu Dhabi National Oil Company (ADNOC). The technology will be used to monitor and identify risks to critical infrastructure across a major oil and gas field operated by ADNOC.

HITIQ Announces Rights Issue

HITIQ Ltd has announced a non-renounceable rights issue entitlement to raise up to A$2.92 million. The offer is 1 new share at A$0.022 per share for every 3 shares held, with 1 free new option for every 2 shares applied for. The funds will be used for general working capital purposes.

MedAdvisor Completes Successful Share Purchase Plan

MedAdvisor Limited (ASX: MDR) has successfully completed its Share Purchase Plan, raising A$2.668 million from existing shareholders. The funds will support the company's strategic and cost optimization initiatives and provide additional working capital.