Xero (ASX:XRO) intensified its global growth narrative during a high-stakes investor briefing on Feb. 3, showcasing a future anchored in artificial intelligence and a revitalised US payments strategy.
CEO Sukhinder Singh Cassidy detailed how the company is evolving from a "system of record" into a "system of action," powered by JAX, Xero’s suite of generative AI agents.
Currently, over two million subscribers utilise Xero’s AI features, with early adopters saving an average of 22 hours per month through automation.
The efficiency is central to Xero’s goal of capturing the vast small and medium business total addressable market, particularly as it eyes monetisation of new AI tools starting in FY27.
A critical pillar of this expansion is the integration of Melio, the US bill-pay platform acquired in late 2025.
Xero provided new guidance that Melio is expected to reach Adjusted-EBITDA breakeven by the second half of FY28.
By uniting accounting and payments on a single platform, Xero aims to accelerate its US revenue growth and double its FY25 group revenue by FY28.
The company is already realising operational synergies by unifying go-to-market teams and office locations.
Xero reaffirmed its FY26 guidance, maintaining an operating expense ratio of approximately 70.5%.
Looking ahead, the company will transition to Adjusted-EBITDA forward guidance in May.