WELLINGTON (dpa-AFX) - Xero Limited (XROLF, XRO.AX), a New Zealand-based cloud accounting software provider, reported Thursday higher profit in first half of fiscal 2026, driven by growth in operating revenues.
In the first half, net profit after tax climbed 42 percent to NZ$134.78 million from last year's NZ$95.09 million.
EBITDA grew 21 percent yearover-year to NZ$377.87 million, and adjusted EBITDA increased 12 percent from last year to NZ$350.93 million.
Operating revenue for the first half increased 20 percent to NZ$1.19 billion from NZ$995.87 million a year ago. Operating revenue growth was 18 percent in constant currency.
Subscribers grew 10 percent to 4.59 million from 4.19 million last year.
Looking ahead, the company said total operating expenses as a percentage of revenue is now expected to be around 70.5 percent in fiscal 2026. Xero previously expected this ratio to be around 71.5 percent.
The company added that its annual outlook now includes Melio, and its incorporation into full-year OPEX ratio provides a small benefit, with other drivers including improved efficiencies, contributing the majority of the reduction.
The company expects this ratio to be lower in the second half versus first half.
In Australia, the shares were losing around 8.2 percent to trade at A$74.38.
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