Investor presentation H1 FY27

Investor briefing

Results for the six months ended 30 September 2026

Sukhinder Singh Cassidy

Chief Executive Officer

Claire Bramley

Chief Financial Officer

12 NOVEMBER 2026

1

Consistent 3x3 execution compounding

Strong revenue and adj-EBITDA growth…

powered by operational excellence

…translating to strong FCF

Disciplined capital allocation +

flexibility

Scaling 3x3 + AI adoption

delivering 3x3 + a trusted partner for >5.1m SMBs and our AB community globally

FY27 Outlook upgraded1 Pro-forma Rule of 40 in FY27 - 1yr early1

Up to A$1bn on-market buy-back2

1. Refer slides 20 and 21 for further detail on Xero's FY27 Outlook and FY28 Aspirations 3

2. Refer slide 23 for further detail

+27% YOY pro-forma

+23% YOY pro-forma

+32% YOY pro-forma1

$1,745m

+46% YOY reported

(+27% YOY pro-forma, +22% CC)

$362m

+3% YOY reported

(+23% YOY pro-forma)

36.1% R40

CC revenue growth 22.5% FCF margin 13.6%2

Reported Rule of 40 54.9%3

Pro-forma refers to performance if Xero + Melio were combined for the full period in H1 FY25 and H1 FY264

1. Reported free cash flow was $238.1m in H1 FY27, down 26% on H1 FY26 $321.1m. This reduction was largely due to the incorporation of Melio in H1 FY27. Pro-forma free cash flow increased 32% (from $180.5m) and includes adjustments to reflect changes in Xero's balance sheet structure following the Melio acquisition

   4

2. Refer to slide 44 in appendix for further details

3. Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and free cash flow margin percentage (free cash flow as a percentage of revenue)

4. Refer to slide 47 in appendix for further details

Strong revenue growth: 46%, 27% pro-forma Adjusted EBITDA 23% YOY pro-forma growth

Revenue ($m)

Adjusted EBITDA ($m)

$996m

+20% YOY

$1,194m

+46% YOY

$1,745m

$1,108m

+24% YOY

$1,378m

+27% YOY

$1,745m

$313m

+12% YOY

$351m

+3% YOY

$362m

$252m

+17% YOY

$295m

+23% YOY

$362m

Reported

Pro-forma

Reported

Pro-forma

Pro-forma refers to performance if Xero + Melio were combined for the full period in H1 FY25 and H1 FY261

1. For details on pro-forma definition see slide 47

5

Pro-forma Rule of 40 increasing

FCF growth 32% YOY pro-forma growth Pro-forma R40 increasing

Free cash flow ($m) & margin (%) Rule of 402,3 (%)

$209m 21.0%

$321m 26.9%

$238m 13.6%

$181m 13.1%

+32% YOY

$238m 13.6%

Revenue growth CC (%) Free cash flow margin (%)

43.9% 44.5%

54.9%

31.8%

FY27 R40 expected to be ~40%1

34.9% 36.1%

$80m 7.2%

Reported

Pro-forma

Reported

Pro-forma

Pro-forma refers to performance if Xero + Melio were combined for the full period in H1 FY25 and H1 FY264

1. Refer slide 20 for details on Rule of 40 guidance

2. Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and free cash flow margin percentage (free cash flow as a percentage of revenue)

3. Chart may not add through due to rounding

4. For details on pro-forma definition see slide 47 6

UK US

+23% ¹ +91k 2

+24% ¹ +85k 2 +51% ¹ +31k 2,4

Continued robust growth

• Solid customer growth 9%

• Launched Ultra and AU Bill Pay3

  MTD success adds to momentum

• MTD for IT drives 16% customer growth

• Payroll Director in beta

  US momentum continues

• Strong customer growth, 18% pro-forma

• Bill Pay live alongside Xero Payroll powered by Gusto

• Direct sales motion across AU, UK and US

• Xerocon London and Denver ~3k attendees

• Launched Xero Coaches in the US - 1:1 SMB onboarding

  Focused bets to win the future

• XeroForce in beta

• Claude, ChatGPT & Gemini connectors deployed

• Launched Claude plugin for SMBs

  Unleash Xeros to win

• Accelerating transformation: Citizen builders shipping reusable skills & capabilities across Xero

• Global Leadership Summit - 550+ leaders

• Refreshed leadership framework

1. Revenue growth 1H FY27 vs 1H FY26 for AU and the UK. US growth presented pro-forma refer slide 39 for further detail

2. Net customer additions in H1 FY27

3. Powered by Airwallex

4. US customer numbers include c.5,000, who weren't previously included. These should be excluded to calculate an underlying growth rate and net customer additions for H1 FY27 7

Expanding our value proposition by deepening offerings and adding AI innovation Broadens revenue streams, and increases ARPC expansion opportunities

BEFORE FY25-27 STRATEGY TODAY · H1 FY27

Accounting centric product; limited levers to drive deep engagement and usage

Deeper and broader product set, attach growing - Xero positioned as the OS for SMBs

Accounting

Bookkeeping Tax

Analytics & insights

Payments

Invoice payments Bill Pay

Payroll

Payroll Workforce mgmt

Live Early stage / rolling out Not offered Contains AI enhancements

8

US growth momentum strong across key metrics reflecting value of offering

US pro-forma revenue ($m) & ARPC growth (%)

●

ARPC growth (%)

Melio delivering and enabling multi-product growth opportunities

Brand uplift in early stages - Focus is on quality of customer

US brand spend underway expanding across different digital channels







YouTube Streaming Audio

Podcasts

Unaided awareness +4ppts in H1 FY273

Melio payments revenue ($m)1

●

●

• Xero embedded BillPay

  Revenue ($m)

  38%

  +38% YOY

  $158m

  48%

  +53% YOY

  $241m

  28%

  +51% YOY

  $365m

  Annualised TPV ~US$1bn

  • Melio BillPay take rate +21bps YoY2

  • Melio BillPay TPV +25% YoY2

56% CAGR

$175m

$109m

$75m

$283m

1. Melio payments revenue comprises Xero BillPay and syndication payments revenue. For more detail refer to slide 39

2. Melio BillPay TPV and take rate refer to Total Xero BillPay TPV and gross TPV take rate, which include BillPay transactions by both Xero and Melio direct customers processed using Melio's payments capabilities, and exclude syndication. Refer to slide 39 for further detail

3. Based on internal brand performance measurements

9

Customers using GenAI features (000s)

1,000

Rolling 12 month orgs

Monthly active orgs

~1m

750

500

~9x YoY

250

0

Sep-25

Dec-25

Mar-26

Jun-26

Sep-26

Top GenAI features

~90%

Auto Bank Rec return customers1

~6x

JAX chat monthly customers2

~4.5x

Smart Doc Capture monthly customers3

1. Return users defined as % of customers who used the product in concurrent months, average over 6 months to Sep '26

2. Increase in customers using the feature over 12 months to Sep '26

3. Increase in customers using the feature in first ~6 months since launch to Sep '26

10

Claire Bramley

Chief Financial Officer

11

Revenue up 46%, 27% pro-forma, AMRR $3.8b1 - up 29% pro-forma

Customers up 12%,

11% pro-forma

ARPC up 25%, Melio Payments contributed 46% of uplift

Revenue ($m) Customers (#m) ARPC ($)3

+21% YOY

$800m

+25% YOY

$996m

+46% YOY reported

(27% YOY pro-forma)

$1,745m

+20% YOY

$1,194m

+13% YOY 3.95m

+6% YOY

(+10% ex-long idle2)

4.19m

+12% YOY reported

(+11% YOY pro-forma)

5.15m

+10% YOY 4.59m

Melio contribution4

+15% YOY

(+11% ex-long idle2)

$43.08

+15% YOY

$49.63

+25% YOY

(+20% CC)

$62.21

$5.81

+6% YOY

$37.38

1. AMRR now includes Melio direct customer contribution but excludes syndication payments revenue, for details on definition refer to slide 47

   12

2. Ex-long idle excludes the impact of the removal of long idle subscriptions on both customer and ARPC growth. For further details refer to page 29 of Xero's FY26 Annual Report

3. ARPC includes Melio contribution. ARPC reported in SaaS metrics shown on slide 41 excludes Melio

4. Melio contribution reflects Melio's direct customers only

Revenue sources diversifying as we add products…

Pro-forma revenue by nature ($m)

Subscription revenue ($m) Payments and other revenue ($m)

…with increasing usage…

Pro-forma total payment value ($b)1,2

Xero BillPay TPV ($b) Xero Invoicing TPV ($b)3

…supporting higher ARPC

Pro-forma ARPC incl. Melio ($)

Total revenue ($m)

$1,108m 15%

85%

$1,378m

19%

81%

$1,745m

22%

78%

$26b

$15b

$11b

+19% YOY

$31b

$17b

$14b

+23% YOY

$38b

$21b

$17b

$45.3

+18% YOY

$53.6

+16% YOY

$62.2

1. Presented pro-forma to include Melio payments on a historical basis, refer to slide 39 for more detail

2. May not add through due to rounding 13

3. Total invoice payment value across our connected online payment service providers who process the payment of invoices on the Xero platform

Pro-forma gross profit up 22%

Pro-forma gross margin (%) & gross profit ($m)

Pro-forma gross margin (%) Pro-forma gross profit ($m)

82.1%

79.1%

76.0%

Pro-forma gross margin trend largely driven by mix as Melio payments revenue contribution increases1

+22% YOY pro-forma

$1,327m

$1,089m

$910m

Melio payments revenue % of Group revenue

10%

13%

16%

Gross margin profile reflects mix impact from integration of Melio

Gross margin drivers H1 FY26 vs. H1 FY27 (%)

Includes impact

of one-time cloud infrastructure investment

88.5%

(0.4%)

76.0%

(11.5%)

(0.6%)

1. Melio's payments revenue model has a lower gross margin profile than Xero's subscription revenue

14

>50% contribution

50% - 25% contribution

25% - 0% contribution Negative contribution

ARPC has increased $6.77 (up 12%) to 30 September 2026

$62.21

Direct payments Price changes Product mix

• Strong Melio momentum with higher TPV take rate & higher TPV per customer driving ARPC expansion, contributing $1.57 to the Group

• Monetising value delivered through new features and capabilities - price changes nuanced by tier

• AU / UK price changes effective July / September & included in ARPC, revenue benefit to flow through in H2

• NZ / US price rises to come through in H2 ARPC and revenue

• Mild positive, with strong mix contribution in US offset by impact of UK MTD headwinds

Platform attach & other2 ● Continued expansion, with improved invoice payments penetration, 25% invoice TPV growth

FX movements ● NZD weaker against all major FX pairs, AUD in particular a large driver

ARPC at 31 March 2026 $55.44

1. ARPC including Melio contribution

2. Platform attach includes products such as payments, payroll and Planday 15

Xero subscription MRR churn (%)1

Churn is reported on a percentage of monthly recurring revenue basis

Headline churn (%)2

Underlying cohorted churn (%)3

1.19%

COVID-19

0.83%

Existing customer churn largely steady

Total churn up from recent sign ups skewed towards international and direct, which have higher short term churn

International churn structurally higher & driven by higher weighting of direct channel

International

1.57%

ANZ

1.14%

0.89%

0.72%

International headline vs. underlying differential bigger, due to more direct channel contribution to new customer adds

ANZ benefits from structural benefit of very strong partner channel

1. Does not include Melio

2. Includes the impact of removing long idle subscriptions in H1 FY25 and H2 FY25. Headline churn excluding this impact was 1.00% and 1.03% respectively 16

3. Underlying cohorted churn is presented excluding the impact of long idle subscriptions

management

Continued OPEX ratio improvement Rev/FTE up 36% reflects disciplined headcount

Operating expenses as a % of operating revenue - excl. M&A costs1

Down ~10ppts

78.8%

Revenue per FTE ($k)

Pro-forma FTE flat vs. H1 FY24

+36% YOY

+27% Pro-forma

Up >100%

$696k

71.1%

72.8%

68.6%

$337k

$444k

$513k

1. For details on the impact of M&A and other transaction costs refer to slide 45

17

Sales & marketing efficiency improved 1.4pp

Product efficiency improved 1.9pp G&A efficiency improved by 0.9pp

Expense ($m)

Melio contribution 43.9% capitalisation rate (down 3.5pp)

Expenses as a % of revenue

+40% YOY

(+15.7ppts from Melio)

30.3% (1.4pp)

$529m

$59m

+36% YOY

(+20.2ppts

26.3% (1.9pp)

$459m

+36% YOY

12.0% (0.9pp)

from Melio)

$68m

(+31.2ppts from Melio)

$209m

$48m

• Continued investment in performance marketing across digital channels

• Incremental investment in brand through targeted channels

• High product velocity and release cadence, particularly new AI product development

• Emerging efficiencies from adoption of AI tools

• Reported growth largely from Melio

• Efficiency delivered despite Melio's structurally higher G&A

18

H2 FY27 Guide reflects expected emergence of significant operating leverage

Pro-forma adjusted EBITDA by half ($m)

Guidance for FY27 adjusted EBITDA

$880m - $920m1

+29% - 39% YOY

$518-$558m

$252m

$259m

$295m

55% YOY

$402m

23% YOY

$362m

1. Refer slide 20 for further detail on Xero's FY27 adjusted EBITDA guidance

   19

   FY27 Outlook upgraded, including expected early delivery of Rule of 40, reflecting strong momentum…

   • FY27 operating revenue is now expected to be between $3,770m and $3,830m

     (up from prior range of $3,620m to $3,730m)

     The increase in revenue guidance largely reflects stronger Melio payments performance alongside an FX benefit from the weaker NZD On a constant currency basis pro-forma revenue growth is expected to be between 24%-27%

   • FY27 adjusted EBITDA is expected to be between $880m and $920m

     (prior range of $860m to $920m)

     This guide continues to reflect a higher than historical H2 weighting. H2 adj-EBITDA will reflect the benefit of announced price rises and payments growth

     momentum, disciplined headcount cost management & further operating efficiencies, and an expected reduction in Melio's adjusted EBITDA losses

     Product capitalisation rate expected to be similar to long term range. D&A expense estimated at ~$475m (up $10m)

   • Xero expects to deliver a Rule of 40 outcome of around 40% for FY27 on

     a pro-forma basis, earlier than its previous aspiration

     The Rule of 40 guide reflects Xero's updated FY27 revenue guide and strong free cash flow generation

     This guide demonstrates Xero's confidence in cash flow generation, supporting our ability to return capital to shareholders through the announced buy back

     Refer to slide 43 for further details including supporting assumptions and qualitative commentary

     20

     … which underpins a lift in our FY28 aspirations, reaffirming Melio breakeven guidance and confidence in FCF generation

The strength of Melio's performance to date has expanded Xero's revenue growth opportunity. We now see the opportunity for Xero's FY28 revenue to be more than $4.6bn, excluding revenue synergies1

(up from prior expectation of more than double FY25 i.e. more than $4.2bn)

Xero's aspiration remains to deliver a greater than Rule of 40 outcome in FY282,3

Melio is expected to reach adjusted EBITDA breakeven on a run-rate basis in H2 FY284,5

This outcome reflects continued strong revenue growth, expanding gross margins, and accelerating operating leverage as Melio drives scale (with core Opex growth expected to be materially lower than Xero's)

1. Anticipated FY28 revenue synergies are expected to be ~US$70m, for more detail refer to page 27 of the Investor Presentation lodged with the ASX on 25 June 2025. Assuming currency conversion of NZ$/US$ 0.59, NZ$/AU$ 0.84 and NZ$/GBP 0.44

2. Assessed including both expected revenue and expected cost synergies outlined on page 27 of the Investor Presentation lodged with the ASX on 25 June 2025

3. Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and FCF margin percentage (free cash flow as a percentage of revenue)

4. Melio adjusted EBITDA definition aligns with the Xero group definition, for further detail refer to page 11 of Xero's H1 FY27 Interim Report. This guide aligns with Xero's assumptions outlined in its FY28 aspiration statement and excludes synergies

5. Run-rate breakeven refers to at least one month of positive adjusted EBITDA contribution to the Xero group during the referenced period

21

Underlying FCF generation strong. Net debt to EBITDA of 1.1x reflects completion of dilution offset program

Movements in net (debt) / cash waterfall

Total shares purchased 6,891,196, held in trust to vest to employees1

($664m)

($35m)

($844m)

($383m)

$238m

0.5x

TTM net debt to

pr A

o-forma adj-EBITD

1.1x

Strong balance sheet $1.5bn with available liquid resources

Movement in net cash position

$000s Mar-26

Sep-26 Δ

Cash and cash equivalents 884,372 973,634 89,262

Short-term deposits 1,049,771

175,925

(873,846)

Total cash and short-term

A deposits

1,934,143 1,149,559 (784,584)

●A Lower balances reflects completion of SBC dilution offset program and repayment of US$200m of RCF partly offset by $238m of FCF generation

●B Remaining US$200m of RCF paid down post 30-Sep, now fully undrawn

1. 58% of purchased shares were for FY27 grants which will vest over the next three years. The remainder were purchased to offset prior year grants which had a historical weighted grant price of A$146.15

22

Strong FCF generation enabling up to A$1 billion on-market share buy-back1

Buy-back aligned with Xero's disciplined capital allocation framework and focus on value creation

Available capital3

Invest to support Rule of 40 outcomes in-line with aspiration

Product development

GTM/CAC

Build

Partner

Buy

Disciplined investment to tightly align with FY25-27 strategy e.g. "Win the 3x3"

Free cash flow4

Offsetting share based compensation

Return to shareholders

Up to A$1bn buy-back

Returning capital and offsetting share based compensation

• Value accretive use of capital for shareholders. The Board believes the current share price does not reflect Xero's long-term value and growth potential

• Strong financial position allows Xero to execute this program while continuing to fully fund strategic growth priorities

• Balance sheet strength will be maintained over 12-month program - funded by excess cash and expected strong free cash flow generation

• The Board intends to maintain a healthy net debt to adjusted EBITDA ratio during this program

• Program includes an amount intended to offset dilution associated with share-based compensation expected for FY282

• Executed at the Company's discretion within guidelines designed to maximise value accretion for shareholders

1. As Xero Limited is subject to the NZ Companies Act 1993 Xero plans to notify shareholders in writing and release a separate standalone disclosure document on the ASX to explain the nature and implications of an on-market share buy-back for Xero and its shareholders

2. For reference 58% of shares purchased as part of the recently completed A$550m program related to neutralising expected FY27 share-based compensation

3. Balance sheet strength is maintained and therefore available for investment 23

4. Free cash flow also includes investment into cost-to-serve and G&A and other operating costs, which are excluded for simplicity

Sukhinder Singh Cassidy

Chief Executive Officer

24

The AI opportunity is immense. Long-term potential ~4x TAM expansion

AI expands SaaS TAM…

Global SaaS TAM1 (NZ$)

~$3.3t

~4X

~$750b

Current SaaS TAM

Future (2035) SaaS + AI TAM

…by unlocking customer value…

Get help

Get time back

Manage their business smarter

Unlock new business growth

…for which Xero has unique competitive advantages

GTM Layer

Customer context Global scale

Xero SMBs/ABs are not billed by seats

Vertical Platform Layer

Domain expertise

3 JTBD combined = more effective and efficient

Infra. layer

System of record = 'Source of truth'

Trusted experts in compliance Deep infra capabilities

Data Layer

20yrs of data across multiple regions

1. Current (2025) and future (2035) Total Addressable Market (TAM) estimates (expressed in US$) from Gartner (2025) report: 'Emerging Tech: Maximize Opportunities While Managing Risks of Agentic AI on Enterprise Software'

25

Adoption is nascent but increasing

AI adoption by SMB segment (% respondents)1,2

Micro

Small

Medium & Large

No / low adoption Medium / high adoption

#1 for time saving in Accounting SaaS (AU, UK)

"This brand uses AI to automate tasks & saves time" (% respondents)3

Xero

40%

Peer 1

34%

Peer 2

29%

Peer 3*

28%

Peer 4*

26%

Peer 5*

26%

1. Xero survey of small businesses (non-customers) in AU, UK & US, Jun to Aug-26 n=2,619

2. Micro (0-1 employees), small (2-19 employees), medium & large (20+ employees). Low adoption = occasional use for isolated/simple tasks. Medium/high adoption = use of AI in daily routine, core workflows redesigned for AI, or use of agentic automation 26

3. Xero survey measuring brand association. Peers ranked by pooled result i.e. average of the AU (n=973) and UK (n=1,439) results, weighted by sample size. *Peer appears in one market only

Saving countless hours

"The new auto bank rec feature… really shaved down [time] in high volume situations… sometimes even more than half."

Dan MATAX

Supercharging skills with technology

"If we're getting transactions processed quicker and accounts reconciled faster, that's

a reflection of our skill and the technology we've chosen

to adopt." Martine

Unlocking capacity

"Our monthly-quarterly package was actually our worst ROI… most of our time was spent coding and chasing… [it's now] turned around to be one of our biggest revenue makers." Katie

The Vault Bookkeeping

Accuracy you can trust

"I… couldn't believe how well [auto bank rec] was working. It's done most of our transactions. I haven't found a single error. I have it on for four accounts now." John | Dial A Rod Engineering Services

27

Typically larger customers

~5.5x higher AI adoption1 in top tier vs lowest tier

5.5x

Ignite/Early customers

Ultimate customers

Actively using AI integrations via our MCP

~40% MoM growth customers using Xero via AI assistants2

3.6x

May-26 Jun-26 Jul-26 Aug-26 Sep-26

Executing core workflows with Xero agents

>100 XeroForce workflows serving 1000s of SMBs3

9x

Apr-26

Sep-26

1. Portion of Ultimate tier customers in Sep-26 who were AI active was 5.5x that of Ignite/Early tier customers, where AI active = customer who has used an AI feature in the month; Note no Ultimate customers in the US

2. Monthly active customers making calls to an AI assistant tool including Claude, ChatGPT and Microsoft 365 Copilot in Sep-26 vs Aug-26 28

3. Workflows run or scheduled, and number of SMB clients that have Xeroforce workflows running against them. Xeroforce is in early beta testing and growth reflects this

1

1. Forward Deployed Engineers

Xero AI platform

JAX: PACKAGED SOLUTIONS

1

Interface layer

XFORCE: AN E2E SOLUTION

1

Interface layer

Xero Blue

XPH

LLMs

XeroForce AI teammate

Custom

t

eammate

JAX intelligence layer - invoke agents

ABR

Books Health

… + more

XeroForce - Orchestration layer

Template library - pre-built workflows

2

Services layer

Xero MCP

Xero APIs

3rd Party MCPs

3

Xero OS

Bank feeds

Apps outside Xero

Tax

int

egrations

Payment rails

… & more

… + more

FDE1 service model

Meet customers where they are

2

Secure connectors (APIs, MCP) for AI

3

Infrastructure for e2e workflows

29

Introducing Xforce by Xero (beta)

AI solutions designed with accounting partners

Shared ambition to champion clients' success

United Kingdom

United Kingdom

Australia

Christchurch, New Zealand

New Zealand

Packaged offering across the Xero AI platform

Customers can expect:

Platform

Tailored to needs

Skills

Agent orchestration

Services Xero OS 3P Apps

FDEs

MCPs and APIs

Bank feeds, payment rails, tax integrations & more

Seamless data & workflows

Custom build & implementation

Built with Xero FDEs and partner consultants

30

Xero AI platform

1

JAX: PACKAGED SOLUTIONS

Interface layer

3

XFORCE: AN E2E SOLUTION

Interface layer

Xero Blue

XPH

LLMs

XeroForce AI teammate

Custom

t

eammate

JAX intelligence layer - invoke agents

ABR Books Health … + more

XeroForce - Orchestration layer

Template library - pre-built workflows

2

Services layer

Xero MCP

Xero APIs

3rd Party MCPs

Xero OS

Bank feeds

Apps outside Xero

Tax

int

egrations

Payment rails

… & more

… + more

FDE service model

Monetisation opportunities via:

1 Bundles

In-product features, add-ons

2 Consumption

Credits, API usage, workflows

3 Solutions

XForce (inc. FDEs, AI teammates)

31

Wrap up: Strong H1 sets the stage for an exciting H2 FY27 and beyond

1

Strong revenue growth across all regions

2

Consistent execution drives durable EBITDA growth

3

FCF generation provides capital flexibility

4

Trusted partner for ABs & SBs in the AI journey

5

Strong momentum entering next strategic period

32

33

External integrations into Xero

Deterministic engine

Bank feeds Tax APIs Detect Record

Payment rails Ecosystem Reconcile Comply

SMBs + ABs

GTM layer

Xero's competitive advantages

Customer context Global scale

New distribution channel for Xero

Vertical platform layer

LLMs

General AI assistants Xero GTM: ~5m+ customers & growing

Accounting Payroll Payments Ecosystem

Xero app: Financial operations for SMBs

Foundation Enterprise LLMs (Anthropic, OpenAI, Google) are an input into our value chain

Xero's SMB customers are not billed by seats

Domain expertise

3 JTBD combined = more effective and efficient

Data layer Enriched & verified data across 1st party & 3rd party sources

20yrs of data

Infrastructure layer

Agent capabilities across JAX

System of record = 'Source of truth'

Trusted experts in compliance

Deep infra capabilities

34

Competitor or threat

NATIVE AI START-UPS

Area of concern / pushback

"Startups built AI-first, no legacy cost base or architecture, and are autonomous at the core"

Xero counters & strengths

• Start ups don't have global scale vs. Xero's multi channel. Multi-geo GTM creates competitive advantage

• Vertical providers see only a slice. Xero captures multiple jobs, delivering deeper data context and broader domain expertise

• Trust isn't built overnight. Our established governance practises, standards and secure systems support trusted workflows

LLM PROVIDERS

"General purpose models replicating SaaS functionality directly"

• LLMs are probabilistic; accounting, payroll and payments requires precision. Xero's structured deterministic data with context provides the source of truth that LLMs don't replicate

• LLMs are not a system of record. They lack the workflows, integrations and audit trails Xero provides

• LLMs are an input and distribution play not a competitor

SEAT-BASED MODELS

"AI agents replace human users collapsing revenue from per-seat pricing"

• Xero is not seatbased, & SMEs are not enterprises - you can't automate headcount that isn't there

• Xero's AI pricing reflects a mix of both subscription and consumption pricing

• Adding AI agent capabilities to Xero's model augments ARPC opportunity

• The AI opportunity presents total wallet growth, global SaaS TAM of

~US$750b expands to ~US$3.3tn with AI1

"VIBE-CODING" SOLUTIONS

"SMBs can code their own solutions using AI agents such as Claude"

• Xero has a deep infrastructure layer connecting to banks, payment rails, tax authorities etc. these all need to be replicated

• SMBs are time poor the opportunity cost of spending time coding solutions is substantial vs. Xero's price

• Xero provides and maintains a platform of multiple jobs. 'Vibe coding' is for simple single job workflows

1. Current (2025) and future (2035) Total Addressable Market (TAM) estimates (expressed in US$) from Gartner (2025) report: 'Emerging Tech: Maximize Opportunities While Managing Risks of Agentic AI on Enterprise Software'

35

Closing customer balance from H2 FY24 to H1 FY27

Australia New Zealand

United Kingdom

US1

Includes impact of 160k long idle subscriptions removed during H1 FY25. Underlying customer growth was 10% in both H1 and H2 FY25 excluding this impact

+10% YOY

+11% YOY

+12% YOY

5.15m

Rest of World2

+11% YOY

4.16m

388K

319K

1,077K

605K

1,771K

+6% YOY

4.19m

359K

284K

1,074K

614K

1,855K

+6% YOY

4.41m

382K

314K

1,153K

629K

1,936K

4.59m

397K

330K

1,209K

638K

2,016K

4.92m

426K

424K

1,319K

650K

2,101K

439K

455K3

1,404K

656K

2,192K

1. US customers from H2 FY26 onwards includes Melio's direct customers

   36

2. Rest of World restated to include Canada customers, in line with new reporting structure. In prior periods these customers were reported under the North America segment. For further details refer to page 36 of Xero's H1 FY26 Investor Briefing

3. US customer numbers include c.5,000, who weren't previously included. These should be excluded to calculate an underlying growth rate and net customer additions for H1 FY27

   ANZ continues to deliver strong revenue growth supported by quality customer acquisition to reach almost 3m customers

   Australia

   AU delivered continued robust growth

   • Maintained solid customer growth of 9%

   • Value based motions support quality customer acquisition

   • ARPC supported by initiatives to tailor customer engagement

   • Ultra subscription now live for more complex SMBs, expanding ARPC opportunity - early days with <1k customers

   Revenue

   +23%, +17% CC

   $670m

   Customers

   +9%, +91k net adds

   2.19m

   ANZ Segment

   $795m revenue

   (+20% YOY, +15% YOY constant currency)

   2.85m customers

   (+7% YOY | 97k net additions)

   $54.57 ARPC1

   (+18% YOY, +10% YOY constant currency)

   New Zealand

   Sustained growth

   • Lower level of growth compared to other regions reflects deep market penetration

   • ARPC optimisation continues

   Revenue

   $125m

   +6%, +6% CC

   656k

   Customers

   +3%, +6k net adds

   1. Price changes for Australia were effective from July 2026. Price Changes for New Zealand were effective from October 2026

   37

   International growth momentum continues, supported by MTD in UK and continued US momentum

   $950m revenue

   (+79% YOY reported | 33% YOY Pro-forma)

   2.30m customers1

   (+19% YOY reported, +129k net additions4

   | +16% YOY Pro-forma)

   $71.67 (incl Melio) ARPC2

   (+33% YOY, +31% YOY constant currency)

   $58.73 ARPC

   International Segment United Kingdom

   UK MTD success adds to momentum

   • Strong MTD performance reflected in customer growth of 16%

   • Continued ARPC momentum, but impacted by lower priced MTD

     United States

     US momentum continues

   • Continued strong customer growth (18%)

   • US product suite now largely filled out, with payroll by Gusto launched to customers

   • Melio revenue growth very strong up 57% pro-forma

     Revenue

     +24%, +20% CC

     Customers

     +16%, +85k net adds

     Revenue3

     +51% pro-forma

     Customers

     +38%, 18% Pro-forma

     +31k customers4

     +26k net adds

     +5k from reclass

     $419m

     1.40m

     $365m

     455k Rest of world

     Sustained revenue growth

     • Strong momentum in South Africa, Asia also contributed

1. Total customers includes Xero customers and Melio direct payments customers. Δ YOY pro-forma metrics are referenced in slide 39

2. Price changes effective September 2026 in the UK, October 2026 in the US, and November 2026 in Rest of World

3. Refer to slide 39 for further breakdown of US performance including Xero BillPay TPV and gross TPV take rate

4. US customer numbers include c.5,000, who weren't previously included. These should be excluded to calculate an underlying growth rate and net customer additions for H1 FY27

Revenue

$165m

+23%, +19% CC

439k

Customers

+11%, +13k net adds

38

Reflects Xero's reported performance, including a full six months of Melio contribution. Prior period columns are pro-forma as if Melio and Xero were combined from the start of Xero's 2024 Financial Year.

US customer numbers include c.5,000, who weren't previously included.

These should be excluded to calculate an underlying growth rate and net customer additions for H1 FY27

1. 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. For definitions / details on these metrics refer to glossary on slide 47

2. Syndication revenue growth between FY24 and FY25 was impacted by the exit of a syndication customer in the accounting software segment 39

3. Presented including Melio direct customers and associated revenue. This ARPC is presented on a different basis to Xero's SaaS metric disclosure on slide 41 which does not incorporate Melio direct customers

Organic unit economics are compelling: Strong LTV expansion, up 8% to $22.7b, reflects investment to drive ARPC and customer growth

LTV per customer $4,456

CAC per gross add $740

CAC months 13.1

LTV/CAC 6.0

International steady

LTV movements by driver ($b)1,2

$20.96b

$0.90b

$1.75b

($1.06b)

($0.48b)

$0.61b $22.67b

1. Melio is excluded from SaaS metric calculations

2. Chart may not add through due to rounding 40