Xero Needs to Accelerate U.S. Subscription Growth -- Market Talk

Dow Jones

Feb 04

2315 GMT [Dow Jones]--Xero still needs to demonstrate an ability to accelerate U.S. subscriptions growth if it is to turn Jefferies analyst Roger Samuel more positive on the stock. Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

February 03, 2026 18:16 ET (23:16 GMT)

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Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. (stuart.condie@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 03, 2026 18:16 ET (23:16 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Xero Needs to Accelerate U.S. Subscription Growth -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nXero Needs to Accelerate U.S. Subscription Growth -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-02-04 07:16</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  2315 GMT [Dow Jones]--Xero still needs to demonstrate an ability to accelerate U.S. subscriptions growth if it is to turn Jefferies analyst Roger Samuel more positive on the stock. Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. (stuart.condie@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 03, 2026 18:16 ET (23:16 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AAQC","symbol_name":"Accelerate Acquisition Corp","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2608389178","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2608389178","pubTimestamp":1770160560,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2315 GMT [Dow Jones]--Xero still needs to demonstrate an ability to accelerate U.S. subscriptions growth if it is to turn Jefferies analyst Roger Samuel more positive on the stock. Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"AAQC":"Accelerate Acquisition Corp","BK7503":"科技股","XRO.AU":"XERO LTD","BK7016":"应用软件"},"translate_title":"Xero需要加速美国订阅增长——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AAQC":1.5,"XRO.AU":0.9},"content_text":"2315 GMT [Dow Jones]--Xero still needs to demonstrate an ability to accelerate U.S. subscriptions growth if it is to turn Jefferies analyst Roger Samuel more positive on the stock. Samuel points out that the accounting software provider's shift toward payments in the U.S. exposes it to a model with less recurring revenue than its core subscription business. Payments' performance is linked to economic cycles, he tells clients in a note. Xero's Melio payments unit is far more profitable on a per-customer basis, but its cyclical nature makes it lower quality, he adds. Jefferies cuts its target price 26% to A$100.70 and keeps a hold rating on the stock, which is down 12% at A$84.15. (stuart.condie@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 03, 2026 18:16 ET (23:16 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}