Xero Limited (XRO) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for standing by and welcome to the Xero Limited 2026 Interim Results Conference Call. I am joined by Xero's Chief Executive Officer, Sikinder Singh-Cassidy, and Chief Financial Officer, Claire Blamley. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the call over to Sikinder Singh-Cassidy, Chief Executive Officer of Xero. Please go ahead. Good morning from Sydney, Australia. Thank you for joining our investor briefing today covering Xero's financial and operating results for the half year ending September 30th, 2025. I'm Sikinder Singh-Cassidy and I'm with Claire Bramley, our CFO. Our first agenda item is the summary of Xero's performance for the half year. I'll then pass to Claire to cover our financial results in more detail before I finish with strategic priorities in Xero's outlook. After that, we'll move to Q&A. So moving to a summary of our results on slide five. We're very pleased with our H-1 fiscal 26-year results, which clearly demonstrates our sustained revenue momentum and execution against our strategy. We continue to achieve strong revenue growth across our 3x3 portfolio. This, along with another meaningful increase in profitability, enabled us to again deliver above the rule of 40, demonstrating strong cash generation. I'm going to touch on the key metrics here, and Claire will cover them in detail later in the presentation. Operating revenue grew 20% year-on-year to reach $1,194,000,000, or 18% in constant currency. This strong growth comes despite a tough prior period comparison. Adjusted EBITDA was 351 million or up 12% year-over-...