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Xero

SoftwareFounded 2006
Reviewed by Swet Parvadiya
Company data updated: October 2026
Independent Editorial Analysis
10 historical events · Editorial analysis

Xero Company Profile: Revenue, Business Model & Strategy

Research depth: 10 milestones · 6 FAQs

Xero is a Wellington-based cloud accounting software company listed on the ASX. It reported revenue of ~$1.59 billion (NZ$2.75 billion) for the year ended 31 March 2026 and is led by CEO Sukhinder Singh Cassidy.

How Xero makes money: Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms. The core product covers bank reconciliation, invoicing, bills, payroll in several markets and financial…

Revenue & employeesCEO historyFoundersBusiness model
Annual Revenue (FY2026)~$1.6B
Employees4,400
CEOSukhinder Singh Cassidy
Founded2006
IndustrySoftware
By Swet ParvadiyaLast reviewed:
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Data sources: annual reports, SEC filings, methodology
Industry:Software

Xero key figures

Xero had revenue of ~$1.6B for fiscal year 2026, up 30.9% from FY2025. Net income was ~$97.1M, a net margin of 6.1%.

Source: Xero Limited (ASX:XRO) annual reports, as compiled by S&P Global (via StockAnalysis) · Last reviewed October 2026

Revenue growth, FY2022 to FY2026
+25.9% a year
Compound annual rate, ~$636.2M to ~$1.6B
Peak revenue year
FY2026
The latest annual year is the highest in this series
Revenue per employee
~$362,906
FY2026 revenue divided by 4,400 employees; headcount may use another date
Current chief executive
Sukhinder Singh Cassidy
In the role since 2023 (3 years)
Documented transactions
3
Between 2018 and 2025
Founded
2006
20 years ago
Where was Xero founded?
Xero was founded in Wellington, New Zealand in 2006. wikidata.org
When did Xero start?
Xero was founded in 2006.
How old is Xero?
Xero is 20 years old as of 2026.
In-Depth Analysis
206 words · 2 min read

Overview

Xero is a cloud accounting software company founded in Wellington, New Zealand, in 2006 by Rod Drury and Hamish Edwards. It sells subscriptions to small businesses and accounting firms, mainly in Australia, New Zealand, the UK and the US, and its shares trade on the ASX as XRO.

FY26 results

In the year to 31 March 2026 Xero reported operating revenue of ~$1.59 billion (NZ$2.75 billion), up 31%. Net profit fell 27% to ~$96.9 million (NZ$167 million), mainly because of Melio acquisition costs, while free cash flow rose 9% to ~$321 million (NZ$554 million). Subscribers grew 11% to 4.92 million.

The Melio deal

Xero completed its purchase of US bill pay platform Melio on 15 October 2025 for US$2.5 billion upfront, with up to US$0.5 billion more payable to Melio employees over three years. Melio added ~$193 million (NZ$332 million) of revenue in FY26. In March 2026 Melio co-founder Matan Bar became CEO of Xero US, and Xero launched online bill payments inside its US product.

Leadership

Sukhinder Singh Cassidy has been CEO since 2023. Claire Bramley became CFO on 1 April 2025, and Diya Jolly leads product, engineering and customer experience. Rod Drury ran the company from 2006 to 2018, followed by Steve Vamos.

Table of Contents

Xero Key Facts

CompanyXero
Annual revenue change+30.9% (FY2025–FY2026)
Financials~$1.6B (FY2026, last reviewed October 2026)
Market Cap$6.5B
FY2026 net income~$97.1M
Last reviewedBy Swet Parvadiya, Founder & Editor - October 2026
Founded2006
Founder(s)Rod Drury, Hamish Edwards
CEOSukhinder Singh Cassidy
HeadquartersWellington, New Zealand
IndustrySoftware
Employees4,400+
TickerXRO

Xero Company Profile: Revenue, Business Model & Strategy

"What most people miss about Xero is the sheer scale of conflict it survived to become Software."

Xero is a Wellington-based cloud accounting software company listed on the ASX. It reported revenue of ~$1.59 billion (NZ$2.75 billion) for the year ended 31 March 2026 and is led by CEO Sukhinder Singh Cassidy.

Revenue

~$1.6B

Founded

2006

Employees

4K+

Market Cap

$6.5B

Author: CorpDigest Research DeskCompany Research

Explore Xero In Depth

Detailed research across every dimension of Xero — history, financials, leadership, and strategy.

Company History

Xero was founded in 2006 in Wellington, New Zealand. The company has 10 documented historical milestones.

Full Xero history →

Revenue & Financials

Xero had ~$1.6B in revenue for fiscal year 2026. Data covers 5 fiscal years. Market capitalization stands at approximately $7B.

Xero financials →

Founders

Xero was founded by Rod Drury, Hamish Edwards in 2006 in Wellington, New Zealand. Explore each founder's background, motivations, and their role in building the company.

Xero founders →

CEO & Leadership

Xero is currently led by Sukhinder Singh Cassidy. Explore the full CEO history — leadership transitions, tenures, and the strategic decisions of each chief executive.

Xero CEO history →

Business Model

Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms.

How Xero makes money →

Acquisitions

Xero has completed 3 documented acquisitions. Explore the full acquisition history and strategic rationale behind each deal.

Xero acquisitions →

Competitive Strategy

Xero's strategy centres on three jobs for small businesses (accounting, payments and payroll) in three main markets (Australia and New Zealand, the UK and the US).

Xero strategy →

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CorpDigest Research Desk

 Research Profile

Our analysts compile business strategy profiles from public financial filings, press releases, and analyst reports. Each profile is reviewed for accuracy before publication by our editorial desk and updated on a rolling basis.

About the Author →Our Methodology →

Frequently Asked Questions About Xero

What is Xero?

Xero is a cloud accounting software company based in Wellington, New Zealand, serving small businesses and accounting firms. It is listed on the ASX as XRO.

Why did Xero buy Melio?

To add a US bill pay and receivables platform and accelerate growth in the US. The deal closed in October 2025 for US$2.5 billion upfront.

Is Xero bigger than QuickBooks?

In the United States, Intuit QuickBooks is far larger. However, Xero completely dominates the massive markets in New Zealand, Australia, and the United Kingdom.

Who founded Xero?

Xero was founded in 2006 by Rod Drury and Hamish Edwards, who realized that traditional desktop accounting software was completely outdated and needed to be moved entirely to the cloud.

Analysis: How Xero Makes Money

Deep dive into the Xero business model, revenue streams, and strategic moats in 2026.

Competitor Benchmarking

Xero vs Intuit Inc.Xero vs The Sage Group plc

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Financial data on this page is sourced from SEC EDGAR filings, official earnings releases, and verified press statements. Revenue figures are reviewed and updated periodically. Read our full data methodology ->

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This corporate intelligence report on Xero compiles data from verified filings. Explore more detailed brand histories and company histories in the global Software marketplace.

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Editorial Methodology

Company Research

We use company filings, annual reports, company statements and press reports, with primary sources preferred where available. Each financial row shows its recorded source. Full-year figures are separated from annualized run-rates, partial periods and forecasts; unaudited figures carry a label. Source detail varies by company, so check the linked material when the reporting basis matters.

1. Primary Sources

Public companies may provide filings and annual reports. Private-company figures may come from statements or press coverage. A missing figure stays missing, and a source link should identify where its number came from.

2. Expert Curation

We organize company records and review claims for strategic context, source quality and clarity. Pages show a review date where one is recorded.

3. Multi-Pass Audit

Technical checks flag inconsistent figures and missing links. Editorial review of the underlying source remains necessary for claims those checks cannot verify.

Swet Parvadiya
SEC filings & public records methodology
Sourced from public financial records

Explore Related Pages for Xero

History & FailuresTimeline, setbacks, and key milestonesBusiness ModelHow they make money and market productsFinancialsRevenue history and fiscal metricsCompetitive StrategyRivals, benchmarks, and SWOT analysis

Sources & References

The data and narrative synthesized in this intelligence report were verified against primary sources:

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.