Xero Limited ( (XROLF) ) has released its Q4 earnings. Here is a breakdown of the information Xero Limited presented to its investors.
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Xero Limited is a global small business platform that provides accounting, payroll, payments, and other solutions to help small businesses thrive, with a focus on simplifying business administration and offering valuable insights. In its 2025 financial year, Xero reported a robust financial performance with operating revenue reaching $2.1 billion and a subscriber base of 4.4 million globally. Key financial highlights included a 23% increase in revenue, a 22% rise in adjusted EBITDA to $641 million, and strong free cash flow of $507 million. The company also achieved a Rule of 40 outcome of 44.3%, underscoring its macro-resilient growth and strategic execution. Looking ahead, Xero aims to continue its strategic focus on enhancing product offerings in accounting, payroll, and payments, particularly in its largest markets, while investing in AI and mobile capabilities to drive future growth. The company remains committed to supporting small businesses and their advisors, with a clear focus on sustainable and balanced growth.