Xero Limited (AU:XRO)
ASX:XRO
XRO Stock Chart & Stats
AU$75.12
-AU$0.57(-0.33%)
At close: 4:00 PM EST
AU$75.12
-AU$0.57(-0.33%)
Day’s Range― - ―
52-Week RangeAU$67.93 - AU$196.52
Previous CloseN/A
Volume197.70K
Average Volume (3M)753.32K
Market Cap
AU$12.81B
Enterprise ValueAU$13.79B
Total Cash (Recent Filing)AU$4.21B
Total Debt (Recent Filing)AU$1.18B
Price to Earnings (P/E)51.3
Beta1.14
Next Earnings
May 14, 2026EPS Estimate
0.51Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)0.69
Shares Outstanding170,591,400
10 Day Avg. Volume611,423
30 Day Avg. Volume753,320
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)13.19
Price to Sales (P/S)13.77
P/FCF Ratio32.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$157.28Price Target Upside109.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.5
Revenue Forecast (FY)AU$3.58B
Bulls Say, Bears Say
Bulls Say
Recurring Subscription Model & EcosystemXero's core subscription model and broad partner ecosystem create predictable recurring revenue and platform stickiness. Integrations with banks, payments and third-party apps increase retention and upsell potential, supporting durable ARR growth and lower customer acquisition payback over months to years.
High Margins And Strong Cash GenerationVery high gross margins and a 37.9% jump in free cash flow signal efficient unit economics and strong cash conversion. Robust operating-cash-to-net-income ratios provide flexibility to fund product investment, absorb short-term churn, and service debt without immediate equity raises, underpinning long-term financial resilience.
International Growth & Strategic Acquisition (Melio)Rapid international revenue growth (UK, North America) plus the Melio acquisition expand Xero's U.S. payments capability and addressable market. Integrating Melio bill-pay into Xero enhances product depth and cross-sell opportunities, supporting sustained revenue diversification and longer-term competitive positioning in North America.
Bears Say
Rising ChurnAn uptick in monthly recurring revenue churn, driven by growth in higher-churn segments, can erode net revenue retention and force higher acquisition or retention spending. Persistently higher churn would reduce long-term ARR durability and require sustained marketing or product investment to maintain growth rates.
Higher Leverage Risk After AcquisitionManagement expects the Melio deal to shift Xero toward net debt; combined with a rising debt trend, this reduces financial flexibility. Higher leverage can increase interest costs, constrain future M&A or R&D funding, and make the company more sensitive to macro shocks, potentially pressuring Rule of 40 metrics.
Margin Pressure From Rising Operating CostsNoncash and personnel-related G&A increases compress adjusted EBITDA and net margins. With net margin around 10.8%, sustained higher operating costs or continued investment in higher-cost segments may slow margin expansion and reduce the proportion of incremental revenue that converts to cash over the medium term.
Xero Limited News
XRO FAQ
What was Xero Limited’s price range in the past 12 months?
Xero Limited lowest share price was AU$67.93 and its highest was AU$196.52 in the past 12 months.
What is Xero Limited’s market cap?
Xero Limited’s market cap is AU$12.81B.
When is Xero Limited’s upcoming earnings report date?
Xero Limited’s upcoming earnings report date is May 14, 2026 which is in 43 days.
How were Xero Limited’s earnings last quarter?
Xero Limited released its earnings results on Nov 12, 2025. The company reported AU$0.689 earnings per share for the quarter, missing the consensus estimate of AU$0.798 by -AU$0.109.
Is Xero Limited overvalued?
According to Wall Street analysts Xero Limited’s price is currently Undervalued.
Does Xero Limited pay dividends?
Xero Limited does not currently pay dividends.
What is Xero Limited’s EPS estimate?
Xero Limited’s EPS estimate is 0.51.
How many shares outstanding does Xero Limited have?
Xero Limited has 170,591,400 shares outstanding.
What happened to Xero Limited’s price movement after its last earnings report?
Xero Limited reported an EPS of AU$0.689 in its last earnings report, missing expectations of AU$0.798. Following the earnings report the stock price went down -9.029%.
Which hedge fund is a major shareholder of Xero Limited?
Currently, no hedge funds are holding shares in AU:XRO
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Xero Limited Stock Smart Score
Neutral
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10
Analyst Consensus
Strong Buy
Average Price Target:
AU$157.28 (109.37% Upside)
AU$157.28 (109.37% Upside)
Blogger Sentiment
Bullish
AU:XRO Sentiment 66%
Sector Average ―
Sector Average ―
News Sentiment
Bullish
Bullish news 67%
Bearish news 33%
Bearish news 33%
Technicals
SMA
Negative
20 days / 200 days
Momentum
-25.92%
12-Months-Change
Fundamentals
Return on Equity
9.08%
Trailing 12-Months
Asset Growth
62.57%
Trailing 12-Months
Company Description
Xero Limited
Xero Limited, together with its subsidiaries, operates as a software as a service company in New Zealand, Australia, the United Kingdom, and internationally. The company offers Xero, an open platform that connects small businesses to a range of solutions, which helps to manage their finances. It also provides Xero mobile app; and accountant/bookkeeper tools, including Xero HQ, Xero Practice Manager, Xero Workpapers, and Xero Cashbook or Xero Ledger. Xero Limited was incorporated in 2006 and is headquartered in Wellington, New Zealand.
XRO Company Deck
XRO Earnings Call
Q2 2025
0:00 / 0:00
Earnings Call Sentiment|Positive
Xero's earnings call presented a generally positive outlook, with strong revenue growth across major regions and successful strategic initiatives like the Melio acquisition. However, challenges such as increased churn and specific regional issues in Canada were noted. Despite these, the overall financial health and strategic positioning of Xero appear robust.View all AU:XRO earnings summariesXRO Stock 12 Month Forecast
Average Price Target
AU$157.28
▲(109.37% Upside)
Technical Analysis
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Options Prices
Currently, No data available
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