Xero Limited · ASX:XRO
Xero — Investor Day (February 2026)
41 slides from Xero's investor day presentation, Feb 3, 2026
Slide 1: Investor Briefing
Xero Limited INVESTOR BRIEFING 3 February 2026 Diya Jolly Sukhinder Singh Cassidy Chief Product and Chief Executive Officer Technology Officer Claire Bramley Matan Bar Chief Financial Officer Xero US CEO & Melio Co-founder Xero UK partner Tyler Trew, founder of Highlight Accounting and his client Re
Slide 2: Important Notice
IMPORTANT NOTICE This presentation is given on behalf of Xero Limited (Xero) (ASX:XRO) (Company number NZ 183 0488, ARBN 160 661 183) Information in this presentation: ● is for general information purposes only, and is not an offer or ● includes statements relating to past performance, which invitat
Slide 3: Proven growth, large expanding TAM with right to win
Proven growth, large expanding TAM with right to win Xero’s fundamentals: proven growth engine, consistently delivering Rule of 40 Xero’s AI advantage: large TAM opportunity, Xero positioned to be a net winner Xero + Melio: accelerates US growth & delivers stronger unit economics 3
Slide 4: Agenda
AGENDA 01 02 03 Q&A AI OPPORTUNITY XERO + MELIO Xero AI strategy Opportunity recap Product demonstration Product demonstration Proof points & FY27 plan Growth & monetisation plan (incl. new disclosures) 4
Slide 5: AI Opportunity
AI OPPORTUNITY Sukhinder Singh Cassidy Chief Executive Officer Diya Jolly Chief Product and Technology Officer Xero UK customer James, owner of Harris Horrology — harrishorology.com 5
Slide 6: AI opportunity is immense. Long-term potential ~4x TAM expansion
AI opportunity is immense. Long-term potential ~4x TAM expansion AI EXPANDS SAAS TAM… ...BY UNLOCKING CUSTOMER VALUE Global SaaS TAM1 (NZ$) SMBs and ABs use AI to ~$3.3t Get help ~4X Get time back ~$750b Manage their business smarter Current Future (2035) Unlock new business growth SaaS TAM SaaS + A
Slide 7: Xero has a critical role to play in helping SMBs realise the promise of AI
Xero has a critical role to play in helping SMBs realise the promise of AI SMBs get help & get time back with AI-enabled actions System of Action System System of Record of Decision Making ‘Source of truth’ on SMB financial data SMBs manage business smarter & unlock new business growth 7
Slide 8: Xero has multiple strengths to leverage in the AI era
Xero has multiple strengths to leverage in the AI era Xero’s advantages SMBs Customer context which we understand deeply GTM layer General AI Xero GTM: 4m+ subscribers & growing assistants (250k+ strong AB channel, ecosystem, Global scale in multi-channel, New distribution (e.g. ChatGPT, Gemini, Cop
Slide 9: A differentiated AI strategy focused on delivering customer value
A Wedifferentiated have a differentiated AI strategy strategy focused that ondelivers delivering customer customer value value backed by a leading team, strong tooling & deep AI DNA Xero’s AI strategic pillars Automated Actionable Reimagined Trusted actions and insights experiences partner workflows
Slide 10: We have clear proof points of the customer value being delivered
We have clear proof points of the customer value being delivered Customer value from AI 97 % Help sessions resolved without ticket Get help > (thanks to self-serve content, which is partly AI-enabled)1 Get time back ~ 22 hrs Time saved by customers monthly using bank feeds and automated actions 61 M
Slide 11: Supported by the depth & breadth of our AI offering
Supported by the depth & breadth of our AI offering % Customer value from AI Key agents & features launched AI in Xero Central Get help Help in JAX chat JAX web search Key jobs-to-be-done AI document ingestion for 90% of users Get time back AI invoice generation Automated bank reconciliation Xero An
Slide 12: Demos
DEMOS 01 02 03 Lisa Huang SVP Product DEMO: DEMO: DEMO: AUTO BANK FINANCIAL INSIGHTS JAX FOR ABs RECONCILIATION Xero UK customer Rosette Ale, founder of Revival London and her designer Saabira Muhammad in London — revivalldn.com 12
Slide 13: Customer feedback is overwhelmingly positive
Customer feedback is overwhelmingly positive Get help “...The fact that this gives us the answer without having to look for it is pretty cool…” – AB using JAX Get time back “...It saves about 4 hours a week. I went away last week and came back yesterday and only had a few transactions to reconcile,
Slide 14: Over 2m Xero subscribers benefiting from Xero AI capabilities
Over 2m Xero subscribers benefiting from Xero AI capabilities Pre-FY26 launches FY26 launches 2m+ subs AI benchmarking JAX in Partner Hub Auto bank rec AI invoice generation Bank rec suggestions JAX web search Cashflow prediction JAX financial insights Email to bills Xero Analytics AI Insights Hubdoc /
Slide 15: Monetisation principles: focus on simplicity and driving adoption
Monetisation principles: focus on simplicity and driving adoption, while providing future optionality Monetisation principles Features bundled across plans, consistent with customer Keep it simple expectations Add-ons widen access, giving more customers opportunity to Encourage adoption experiment w
Slide 16: FY27 goals: Deepen AI value in our products
FY27 goals DEEPEN AI VALUE IN OUR PRODUCTS DRIVE USAGE / ADOPTION Multiple new agents across core JTBD of Accounting, Payments and Payroll MONETISE IN LINE WITH OUR PRINCIPLES 16 16
Slide 17: Xero + Melio
XERO + MELIO Sukhinder Singh Cassidy Chief Executive Officer Matan Bar Xero US CEO & Melio Co-founder Millie O'Neill, Bookkeeper at The Highlight Xero UK customer RosettePartnership Ale, founder and her client of Revival Oh Happy London Creative and her in designer Leigh-on-Sea Saabira Muhammad - oh
Slide 18: Strategic rationale
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES STRATEGIC 1 SOLVES CRITICAL ✓ Accounting + Payments = critical for US SMBs RATIONALE CUSTOMER NEED ✓ Large and growing US SMB Payments TAM US$29b1 Our conviction POWERFUL ✓ Owning Payments critical to our 3x3 strategy 2 STRATEGIC FIT ✓ Delivers a
Slide 19: US SMB Payments TAM – US$29b, fast-growing & whitespace
US SMB Payments TAM – US$29b1, fast-growing & whitespace A/P TAM GROWING TO US$19B… …WITH SIGNIFICANT WHITESPACE US SMB TAM1 (<100 employees, US$b) ~ 70 of US SMB payments volume % are made using slow & inefficient methods2 6% CAGR 90 % of US SMB A/P TAM are not ~ using software yet3 ~ 20 % growth i
Slide 20: SMBs are digitising their payments to reduce friction
SMBs are digitising their payments to reduce friction, bringing monetisation opportunities A/P payment 2025 US A/P Typical settlement Remittance data4 Opportunity method volume mix1 time3 Paper Over US$8 trillion (including 20% 20%5 - 10 business days None / Analog cheques annually5 cheque, cash) Hi
Slide 21: Melio helps customers save time & optimise cashflow
Melio helps customers save time & optimise cashflow when managing bills and accounts payable MULTIPLE WAYS TO APPEALS TO MULTIPLE SMB & AB EASY TO USE A/P WORKFLOWS PAY & GET PAID FASTER SEGMENTS1 Payment approval workflows Ways to pay incl. instant & same-day payments inc. pre-accounting SMBs ✓ Self-
Slide 22: Demos
DEMOS 01 DEMO: MELIO.COM & SYNDICATION CAPABILITIES 02 DEMO: XERO + MELIO Ilan Atias Eli Danziger Melio Co-founder & CTO SVP Product 22
Slide 23: Loved by customers, recognised by industry
Loved by customers, recognised by industry STRONG CUSTOMER DEEP PRODUCT An intuitive and flexible platform SATISFACTION ENGAGEMENT 45 71 % Leading alternatives to Melio Melio Peer 1 Peer 2 Net Promoter TPV Simple onboarding ✓ ✓ ✓ Score 1 growth/customer (in 12m post first transaction)2 Biller experien
Slide 24: Growth and Monetisation
GROWTH AND MONETISATION Claire Bramley Chief Financial Officer Xero UK customer Rosette Ale, founder of Revival London and her designer Saabira Muhammad in London — revivalldn.com 24
Slide 25: Xero + Melio delivers the unit economics to accelerate scale in the US
Xero + Melio delivers the unit economics to accelerate scale in the US PAYMENTS UNIT ECONOMICS ARE ATTRACTIVE UNLOCKS FLYWHEEL TO SCALE SUSTAINABLY IN THE US Illustrative Average Gross Profit per user (NZ$, monthly) ~90% CAGR ~13% ~$200 CAGR ~$30 ~$45 ~$30 Month 1 Month 36 Month 1 Month 36 Accounting
Slide 26: Xero + Melio: new drivers for our US business
Xero + Melio: new drivers for our US business New pro forma disclosures increase visibility of these drivers1 NZ$ Pro forma US Revenue composition FY24 FY25 YoY % Subscription, invoicing & other revenue $83m $107m 28% New disclosure detail Xero BillPay payments revenue $91m $158m 74% Additional disc
Slide 27: TPV and take rate are key drivers we can influence
TPV and take rate are key drivers we can influence SUBSCRIPTIONS + PAYMENTS = STRONGER BUSINESS MODEL1 ARPU ($) ✖ Subscription Focus of next pages Subs (#) revenue ($) More users, putting more Xero US revenue ($) BillPay TPV ($) 1 volume through Melio.com & Xero Payments Xero BillPay ✖ revenue ($)1 P
Slide 28: Multiple ways to grow TPV, cohort analysis
1 Multiple ways to grow TPV, cohort analysis illustrates typical TPV per customer growth over time WE CAN DRIVE & INFLUENCE TPV GROWTH AND EXPECT STRONG TPV GROWTH/CUSTOMER Illustrative TPV growth of real Melio customer cohort (indexed)1 Organic growth - in payment frequency as customers Year 1 Year
Slide 29: Take rate: actively managing mix to drive gross profit dollars
2 Take rate: actively managing mix to drive absolute gross profit dollars MELIO OFFERS MULTIPLE METHODS FOR PAYERS & PAYEES… …WHICH WE CAN INFLUENCE TO DRIVE PROFITABILITY Illustrative contribution of payment methods to key metrics By using data and in-product experience (UI / UX) to optimise recomme
Slide 30: Additional Melio breakeven guidance in support of existing aspirations
Additional Melio breakeven guidance in support of existing aspirations The combined business is expected to significantly accelerate US revenue growth OUR ASPIRATION and gives us the opportunity to more than double Xero’s FY25 group revenue in (FROM JUNE 2025 FY28 excluding anticipated revenue synerg
Slide 31: Strategic opportunity delivering growth & profitability
Strategic opportunity delivering growth & profitability SOLVES CRITICAL Multiple revenue drivers and ARPU expansion ✓ CUSTOMER NEED opportunities POWERFUL ✓ STRATEGIC FIT Clear disclosure on key metrics (including TPV/take rate) MELIO: WORLD-CLASS ✓ TEAM & PLATFORM TOGETHER: COMPELLING Credible path
Slide 32: Integration Update
INTEGRATION UPDATE Claire Bramley Chief Financial Officer Xero UK customer Rosette Ale, founder Xero UK team of Revival members London in our and her designer Saabira Muhammad in London — revivalldn.com London office 32
Slide 33: Integration progressing at pace
Integration progressing at pace INTEGRATION PLAN (JUNE 2025) MelioMelio CEO responsible forfor CEO responsible combined Xero combined Xeroand andMelio USbusinesses Melio US businesses (reporting (reporting to Xero to Xero CEO)CEO) Plan FY26: 0-12 months Plan FY27-28: 12-24 months Plan FY28+: 24 mont
Slide 34: Recap
RECAP 01 02 03 Q&A AI OPPORTUNITY XERO + MELIO ✓ Xero AI strategy ✓ Opportunity recap ✓ Product demonstration ✓ Product demonstration ✓ Proof points & FY27 plan ✓ Growth & monetisation plan (incl. new disclosures) 34
Slide 35: Q&A
Q&A Millie O'Neill, Bookkeeper at The Highlight Partnership and her client Oh Happy Creative in Leigh-on-Sea - ohhappycreative.com 35 35
Slide 36: Appendix
APPENDIX Xero Australia customers Wayne & Sallina, owners of Cheol’s in Perth — cheols.com.au 36 36
Slide 37: Xero reiterates its FY26 guidance + reiterates FY26 disclosure impacts
Xero reiterates its FY26 guidance + reiterates FY26 disclosure impacts GUIDANCE UNCHANGED FROM H1 FY26 Total operating expenses as a percentage of revenue expected to be around 70.5% in FY261,2 This ratio is expected to be lower in H2 FY26 vs. H1 FY26 and includes the Melio business3 1 This includes
Slide 38: Xero is well positioned to capitalise on the AI TAM expansion opportunity
Xero is well positioned to capitalise on the AI TAM expansion opportunity, leveraging our advantages as a system of record 01 02 03 04 XERO IS A CORE SYSTEM OF WE HAVE MULTIPLE AREAS OUR STRATEGY WE ARE ALREADY DRIVING RECORD (P. 7) OF ADVANTAGES AGAINST DIFFERENTIATES US (P. 9) ADOPTION (P. 14) COM
Slide 39: New pro forma disclosure detail
New pro forma disclosure detail1 US Revenue composition (NZ$) Units H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1 FY26 Subscription, invoicing & other revenue A $m 39 44 49 58 66 Xero BillPay payments revenue B $m 36 55 68 90 109 2 Syndication payments revenue C $m 39 45 41 49 66 Payments revenue B C $m 75 100
Slide 40: New US disclosure definitions & FX rates
New US disclosure definitions & FX rates Subscription, invoicing & other revenue Includes all direct subscription revenue across both Melio and Xero, Invoicing (A/R) related revenue (incl. Float revenue) across Xero and Melio, and any other non-BillPay related revenue (such as Xerocon revenue) NZD /
Slide 41: General glossary
General glossary AB GAAP Pro forma Accountant and Bookkeepers Generally accepted accounting practice Pro forma statements are unaudited and are created to illustrate the impact if Melio and Xero were combined from the start of Xero’s 2024 Financial Year. ACH GTM A go-to-market (GTM) strategy details