Xero Expects Higher Adj. EBITDA, Revenues In FY27
(RTTNews) - Xero Limited (XROLF, XRO.AX), a New Zealand-based cloud accounting software provider, on Thursday issued fiscal 2027 outlook, expecting higher adjusted EBITDA and revenues, with its financial performance reflecting strong demand for products and services.
In Australia, the shares closed Thursday's trading at A$81.73, down 2.60 percent.
For fiscal 2027, adjusted EBITDA is expected to be between NZ$860 million and NZ$920 million, and revenue between NZ$3.62 billion and NZ$3.73 billion, supported by a balance between ARPC expansion and customer growth, including some initial monetisation of new AI features.
In fiscal 2026, the company's adjusted EBITDA grew 18 percent year-over-year to $757 million, and operating revenue climbed 31 percent to $2.75 billion.
Organic revenue was up 21 percent, and the growth was 19 percent in constant currency.
The company said growth was sustained across ANZ, the UK and the US, with the US accelerating.
Over fiscal 2027, Xero expects a higher than historical weighting towards the second half.
Further, Xero reiterated its fiscal 2028 aspirations and Melio breakeven guidance.
The combined business is expected to significantly accelerate US revenue growth and to more than double Xero's FY25 group revenue in FY28 excluding anticipated revenue synergies.
