The strong operating results saw operating revenue up 21% (20% in constant currency (CC)) to $799.5 million. This, along with disciplined cost management and restructuring outcomes, supported a 90% increase in EBITDA compared to H1 FY23, to $206.1 million. This reflected our ongoing focus on balancing growth and profitability, and resulted in an increase in free cash flow to $106.7 million, representing a free cash flow margin of 13.3% compared to 2.4% in the prior period. This focus was also reflected in our net profit, which increased to $54.1 million compared to a net loss of $16.1 million in H1 FY23. Find out about Xero, the emerging global leader of online accounting software that connects small businesses to their advisors and other services. Xero announces enhancements for workpapers, analytics, payments, interface; ADP launches wave of new AI features; Deloitte opens AI Infrastructure Center of Excellence; and other accounting tech updates.
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More features from classic invoicing are being rolled out in the new version of invoicing. This includes the ability to view tax rates and breakdowns in the invoice creation screen, and because of your idea, record overpayments against invoices so that credit can be applied to future invoices. The new fixed assets interface and experience is the default for all regions except Australia which still uses classic fixed assets. Australian organisations can choose to use the new fixed asset experience via the banner at the top of the fixed assets page as long as they don’t use tax pooling.
As fintech continues to evolve into a multi-trillion-dollar global sector, strategic acquisitions like Xero’s purchase of Melio may become more common. Rather than building every solution from scratch, companies are recognizing the value of buying access to talent, technology, and markets—especially when time-to-market is a critical advantage. The structure of the transaction is composed of $2.5 billion in immediate consideration—split between cash and equity—and up to $500 million in contingent payouts, deferrals, and employee incentives spread over three years.
Xero introduces new, AI-powered analytics to help small businesses plan for the future
The integration of accounting and payment functionalities into a unified platform offers compelling value for businesses that are increasingly seeking efficiency and simplicity in financial management. Rather than relying on third-party payment gateways, Xero’s users will now have access to an in-house, streamlined solution. It aligns Xero with a high-growth player that has already demonstrated traction in the U.S. Melio, founded in 2018 and headquartered in New York with offices in Tel Aviv, has rapidly scaled by offering intuitive, small business-focused payment tools—precisely the kind of services that resonate with Xero’s target demographic.
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We’re really proud of the work we do to make life better for people in small business. Find useful resources for media, including who to contact if you’ve got a media enquiry. Beta access to the platform will be granted to practices currently using the Xero Practice Manager with plans for a full launch in early 2026. Xero CEO Sukhinder Singh Cassidy also delivered her first interviews in Australian newspapers before the conference kicked off. To request an alternative format, or for any other inquiries, please contact the Xero media team.
UK manufacturing small businesses report strongest sales growth in June
- A surge in new business creation represents the next generation of change-makers who are leading our economy forward.
- The institutional placement will be conducted at a fixed offer price of $176 per new share, representing a 9.4% discount to Xero’s last closing price of $194.21 on Tuesday.
- It also brings the company into closer competition with platforms like QuickBooks, which has long offered an integrated financial suite in the U.S. market.
- The new fixed assets interface and experience is the default for all regions except Australia which still uses classic fixed assets.
- Xero has agreed to pay a break fee of $37.5 million in the event that the acquisition does not close solely due to failure to secure HSR approval.
- The deal underscores Xero’s intent to strengthen its foothold in the United States—one of the world’s most competitive fintech arenas—and signals a strategic evolution in its global ambitions.
The upfront consideration will be $2.5 billion in cash and equity consideration. Additional contingent consideration, deferrals and rollovers are payable to Melio employees of up to $0.5 billion payable over three years. Cloud accounting platform Xero announced it will acquire payments solution provider Melio. Some note that acquiring a company with complementary strengths and a scalable architecture could fast-track Xero’s product innovation while improving customer stickiness.
The majority is linked to delivering against certain pre-agreed outperformance targets, and the remainder subject to the passage of time, annual business objectives and continued employment. Melio, which has offices in New York, Tel Aviv and Denver, provides accounting and payments software to small and medium-sized businesses. Accounting Today is a leading provider of online business news for the accounting community, offering breaking news, in-depth features, and a host of resources and services.
Xero partners with Procore offering cloud construction management tools to global small businesses
So while there are changes to navigate, it’s not onerous and it’s easy to find what you need. I just dove straight in and it didn’t take long to figure out what had changed. I also really like the ability to customise the widgets according to the information that I want to see. I like the recent invoices paid widget because we rely on meeting invoice milestones before we do certain work, and previously that information was a lot harder to find. Now it’s really quick – I can see it at a glance, so it’s a lot more streamlined and means we’re moving faster and getting projects completed more quickly. You can check out the February edition here, and for a full list of what’s new this March, check out the release notes in Xero Central.
- Rather than relying on third-party payment gateways, Xero’s users will now have access to an in-house, streamlined solution.
- To request an alternative format, or for any other inquiries, please contact the Xero media team.
- Tony Schiffmann, chief executive partner of BDO Australia, says the national accounting firm is having one of its best ever years.
- This acquisition solves a critical customer need in the US, uniting Accounting and Payments in one platform for customers.
The transaction will be effected by way of a merger of Melio Limited and a newly incorporated wholly owned subsidiary of Xero Limited. Xero, headquartered in Wellington and publicly listed in Australia, has long held dominance in its home markets of New Zealand and Australia. However, the company has faced challenges scaling its offerings in North America, where it currently generates just 7% of its revenue.
The revamped sales tax home screen centralises Xero’s sales tax features, providing easy access to reporting and calculations alongside helpful information to guide you through the reporting process. All US users can now access sales tax reports that are automatically generated by state and by filing period with filing deadlines, saving you time in preparing to file reports and simplifying sales tax management. And Australia, as well as the three “super jobs” of core accounting, accounts payable and receivable, and payroll.
The deal underscores Xero’s intent to strengthen its foothold in the United States—one of the world’s most competitive fintech arenas—and signals a strategic evolution in its global ambitions. Xero’s $3B acquisition of U.S.-Israeli payments firm Melio marks a major fintech expansion, doubling down on U.S. growth. “We can’t wait to welcome Melio’s world-class team to Xero, once the transaction completes, and work together to deliver on our shared goals. Feedback from beta testers has already informed several upcoming improvements, including how we present third-party apps, prioritise key elements in the navigation, and surface the most relevant information in the banking widget. Get ready for Xero’s new navigation and homepage, which will be available to all Xero customers soon.
The acquisition of Melio—a fast-growing, B2B payments platform with an active customer base of 80,000—represents a calculated step toward addressing that gap. Xero provides a product customers love and value, as shown by our continued revenue growth and improving profitability. We are committed to evolving our business to deliver on our global aspirations.
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Beyond the fintech implications, this transaction represents a landmark moment for New Zealand’s technology sector. According to data from LSEG, this is the largest outbound acquisition by a New Zealand firm since 2011. It highlights the growing ambition and financial capability of companies based in smaller markets to compete on a xero news global stage. We’ve added more ways for customers to pay, including Tap to Pay on Android (initially in Australia), released Xero Inventory Plus in the US, and continued improving new invoicing. As we look forward, we’re sharpening our focus on Xero’s key levers of growth as we aspire to become a higher performing SaaS company. We will continue to balance growth and profitability, while delivering more value to our customers.
You can download your historic RTI submissions from the RTI filings table in payroll. To help save time and ensure more accurate payroll from the first pay run, we’ve modernised the user interface, included more informative content, and ensured the page meets accessibility standards. Attach a ‘pay now button’ to your invoices and let your customers pay the way they want – via credit card, debit card, google pay, apple pay and direct debit. From the global financial crisis to a serious car accident, Matt Gaffney has had some bumps along the way to building his own professional services business.
Xero has temporarily suspended its shares from trading as it raises A$1.85 billion (approx. $1.2 billion USD) from institutional investors to fund the acquisition. This fundraising round indicates strong internal confidence in the long-term financial upside of the deal, despite short-term dilution. Xero issued around 10.5 million new fully paid ordinary shares to sophisticated and institutional investors at a price of $176 per share. If you’re a payroll admin, it’s now easier for you to access historic real-time information (RTI) submissions for reverted and deleted pay runs, giving you better transparency and ability to self-serve.