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Cloud-based accounting software for small businesses, founded in New Zealand and now serving customers worldwide.
Cloud-based accounting software for small businesses, founded in New Zealand and now serving customers worldwide.
Customers pay a monthly subscription that rises with the plan chosen, and accountants and bookkeepers recommend and use it for their clients, which supplies much of the new business. Australia, New Zealand and the UK are the main markets, and in 2025 it agreed to buy US payments firm Melio to push further into payments and the US.
In one line: The Intuit QuickBooks of Australia/NZ.
Moat: narrow (switching costs, network effects, brand). Data lock-in and a large accountant/bookkeeper partner ecosystem make switching costly.
Headquarters: Wellington, New Zealand · Founded: 2006 · Employees: 5,114
Size Xero (XRO.AX) is an Australia Information Technology company (Packaged Software) with a market value of $8.36B, the 42nd largest of 316 Australia companies the cockpit tracks. Shares closed at A$70.74 on 6 Nov 2026.
Performance Over six months the shares fell 12.7%, against +15.1% for the median peer and +4.1% for the Australia market (cap-weighted) — 6th lowest of 21 in its peer set.
Growth Revenue grew 27.3% over the last twelve months (peer median +19.6%); the operating margin is 13.4% (peer median 2.9%).
Valuation It trades at 66.7× forward earnings against a peer median of 41.3× (5th most expensive of 19).
Price implies For today's price to make sense, revenue must grow about 26% a year for seven years (Req g). Recent delivered growth is +25%, so the hurdle is +1 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 6.4 points below its cost of capital (11.3% WACC).
Next results Next results expected around 12 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | A$2.44B | A$2.45B | A$1.91B | A$1.59B | A$1.28B |
| Revenue growth | — | +28% | +20% | +25% | — |
| Gross profit | A$1.72B | A$1.72B | A$1.46B | A$1.17B | A$923M |
| EBITDA | A$665M | A$669M | A$588M | A$483M | A$278M |
| Net income | A$152M | A$149M | A$207M | A$162M | -A$103M |
| Free cash flow | A$796M | A$821M | A$727M | A$542M | A$350M |
| Capital expenditure | A$372M | A$383M | A$276M | A$230M | A$260M |
| Total debt | n/a | A$1.77B | A$1.22B | A$1.12B | A$1.07B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Xero XRO.AX | $8.36B | -13% | +27% | 13% | 66.7× | 25.9% |
| Intuit INTU | $91.3B | -14% | +14% | 29% | 14.8× | 3.1% |
| Sage SGE.L | $14.1B | +33% | +9% | 23% | 23.1× | 3.1% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | XRO.AX | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +22.4% | -4.0% | 2nd highest of 21 |
| 6-month return | -12.7% | +15.1% | 6th lowest of 21 |
| Distance from 52-week high | -50.8% | -25.7% | 3rd lowest of 21 |
| Revenue growth (TTM) | +27.3% | +19.6% | 5th highest of 21 |
| Operating margin | 13.4% | 2.9% | 7th highest of 21 |
| Forward P/E | 66.7× | 41.3× | 5th most expensive of 19 |
| Growth the price implies (Req g, 7 yrs) | 25.9% | 18.0% | 6th most demanding of 18 |
| Growth delivered (Del g) | +25.3% | +22.8% | 7th highest of 18 |
| Hurdle (Req g minus delivered) | +0.6 pp | -10.4 pp | 6th most demanding of 18 |
| ROIC minus cost of capital | -6.4 pp | -7.3 pp | 9th highest of 18 |
| EV / EBITDA | 18.4× | 22.3× | 4th cheapest of 10 |
| Net debt / EBITDA | 0.2× | -0.4× | 4th most indebted of 10 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Xero XRO.AX | Australia | $8.36B | -13% | +27% | 13% | 66.7× | 25.9% | +25.3% |
| Snap SNAP | United States | $8.39B | -18% | +13% | -5% | 32.3× | 2.7% | +18.8% |
| Nemetschek NEM.DE | Germany | $8.39B | +10% | +13% | 26% | 29.9× | 11.1% | +14.8% |
| CSG Digital Power Grid Research Institute 301638.SZ | China | $8.52B | -37% | +18% | 10% | n/a | 18.0% | +8.2% |
| DigitalOcean DOCN | United States | $8.55B | -56% | +28% | 12% | 44.7× | 41.6% | +23.1% |
| 360 Security Technology 601360.SS | China | $8.63B | -26% | +7% | -4% | 172.6× | 55.2% | -5.7% |
| Descartes Systems DSG.TO | Canada | $8.10B | +32% | +12% | 33% | 37.9× | 4.4% | +16.8% |
| Netskope NTSK | United States | $8.70B | +83% | +30% | -94% | n/a | n/a | n/a |
| Gitlab GTLB | United States | $8.01B | +85% | +23% | -8% | 55.0× | 18.8% | +44.4% |
| ServiceTitan TTAN | United States | $7.89B | +36% | +23% | -13% | 55.6× | 20.7% | +27.1% |
| Sangfor Technologies 300454.SZ | China | $7.84B | +5% | +21% | 2% | 71.4× | 46.1% | +6.9% |
| Zeta Global ZETA | United States | $7.79B | +81% | +36% | 3% | 28.2× | 49.7% | +28.8% |
| Paylocity PCTY | United States | $9.03B | +56% | +11% | 22% | 19.0× | 2.3% | +22.8% |
| Oracle Corporation Japan 4716.T | Japan | $7.73B | +10% | +10% | 32% | 17.0× | -6.9% | +6.5% |
| Empyrean Technology 301269.SZ | China | $7.70B | +5% | +15% | -10% | 357.4× | n/a | n/a |
| Elastic ESTC | United States | $9.12B | +65% | +16% | -1% | 24.4× | 13.0% | +23.4% |
| Horizon Robotics 9660.HK | Hong Kong | $7.61B | -48% | +46% | -101% | 159.5× | n/a | n/a |
| SentinelOne S | United States | $7.58B | +31% | +21% | -26% | 54.7× | 53.7% | +60.8% |
| Clear Secure YOU | United States | $7.55B | -2% | +23% | 26% | 24.2× | 15.8% | +31.3% |
| Dropbox DBX | United States | $7.54B | +20% | 0% | 26% | 11.1× | -5.0% | +5.7% |
| Duolingo DUOL | United States | $7.51B | +49% | +23% | 12% | 52.6× | 19.8% | +45.0% |