Xero chief executive Sukhinder Singh Cassidy has announced the company’s strategic focus on expanding its global artificial intelligence offerings and bolstering its payments business in the United States. According to Cassidy, Xero is already delivering significant value to its customers through the deployment of multiple AI agents. Xero is a cloud-based accounting software platform designed for small and medium-sized businesses. It offers tools for managing invoicing, bank reconciliation, bookkeeping and more.
Cassidy noted that over two million subscribers are actively utilising core AI features within the Xero platform. Furthermore, 300,000 subscribers are leveraging newer generative AI (GenAI) tools. These tools are designed to save users time, increase operational efficiency, and provide actionable insights to help them manage their businesses more effectively.
In the US market, Xero is focused on integrating Melio to combine accounting functionalities with seamless payments processing. This integration is aimed at driving higher adoption rates among small and medium-sized businesses (SMBs), increasing the average revenue per user (ARPU), and improving overall unit economics. Xero has consolidated its offices and go-to-market teams to support this strategic push.
Xero anticipates that Melio will achieve adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) breakeven on a run-rate basis in the second half of the 2027-28 financial year. This milestone underpins Xero’s confidence in the total addressable market within the US small business sector. The company intends to deepen AI adoption, monetise new features, and maintain its 2025-26 guidance of operating expenses around 70.5 per cent of revenue, while transitioning to adjusted EBITDA guidance from the 2025-26 results in May 2026.
