Xero vs Life360: Which ASX Tech Stock Offers Greater Growth Potential in 2026?

Xero and Life360 delivered strong 2026 results, with both companies showing growth across revenue, customers, technology and new business opportunities.

Xero Limited (ASX: XRO)

Xero Limited (ASX: XRO), on 14 May 2026, reported FY26 revenue of $2.8 billion, up 31%. Adjusted EBITDA increased 18% to $757.4 million, while free cash flow was $554.0 million. Operating expenses were 70.5% of revenue, excluding Melio-related transaction costs.

During FY26, AMRR rose 37% to $3.3 billion, or 25% organically, while 506,000 customers were added.

Australia and New Zealand revenue increased 18% to $1.4 billion, with 2.8 million customers. International revenue rose 47% to $1.4 billion, while US core revenue increased 240%, or 30% excluding Melio. UK revenue grew 26%, with customers up 14%.

Xero also expanded its AI features through JAX, automated bank reconciliation, smart document capture and a new agreement with Anthropic.

More than 40 million transactions had been reconciled through JAX, with 97% reported accuracy, while 500,000 users adopted new GenAI features.

Xero announced XeroForce, a natural-language AI agent builder, then in invite-only alpha. XRO also introduced Ultra for medium-sized businesses, with Australian general availability planned for late June.

Xero FY27 Outlook

FY27 revenue guidance is $3,620–$3,730 million, while adjusted EBITDA guidance is $860–$920 million.

The board authorised up to A$550 million of share purchases to offset employee share-based compensation dilution.

In June 2025, XRO set FY28 aspirations for more than doubling FY25 group revenue and achieving greater than Rule of 40 outcomes.

Life360, Inc. (ASX: 360)

Life360, Inc. (ASX: 360), on 11 August 2026, shared its Record Q2 2026 Results.

360 achieved Q2’26 revenue of $159.0 million, up 38% YoY. Subscription revenue was $115.6 million, core subscription revenue was $111.1 million, adjusted EBITDA was $31.1 million, and operating cash flow was $23.8 million.

The quarter reached 100 million monthly active users, with approximately 102.4 million MAU and 4.6 million net additions.

Paying Circle net additions were 185,000, taking the total to 3.2 million.

Annualized Monthly Revenue rose 29% to $537.2 million, while advertising revenue reached $22.0 million, up 315%.

Life360 continued expanding its reach across different household types through products including PetGPS, Live Progress and Morning Check-in.

International activity during Q2 focused on LATAM and Germany. Brazil’s unaided awareness increased from 9% to 14%, while Mexico’s rose from 10% to 16%. Both markets had around 3% penetration.

Life360 launched its first Germany campaign and partnered with AT&T Mexico to offer Life360 Gold.

Life360 FY26 Outlook

FY26 revenue guidance is $650–$685 million, with adjusted EBITDA of $130–$140 million.

Xero vs Life360: Which One Is a Better Buy?

Both companies focus on growth rather than dividends.

360 has positive earnings, rising revenue and expanding business opportunities, while XRO offers strong scale and AI-led growth.

For now, Life360 looks more attractive because of its positive earnings, strong user growth and expanding advertising business.

Source: Company Report