Tyro Payments delivered stronger than expected earnings growth in FY26, with normalised profit before tax surging 40 percent to $24.7 million despite a challenging macroeconomic backdrop. The result reflects improved execution across the business and disciplined capital allocation, with the payments processor demonstrating renewed momentum heading into FY27. Gross profit grew 5.3 percent to $231.8 million while EBITDA expanded 8.6 percent to $66.9 million, establishing a firmer foundation for future growth.
Beyond the headline earnings growth, Tyro’s operational drivers paint a picture of expanding market share in attractive segments. Health markets continue to outperform, with the vertical reaching $7.9 billion in total transaction volume while growing at approximately twice the rate of Australia’s broader $110 billion health market. Allied Health specifically grew 26 percent, while Dental expanded 19 percent, indicating successful positioning in higher-margin customer segments. The banking division showed particular strength with account numbers jumping 35 percent, deposits rising 27 percent, and loan origination up 19 percent. eCommerce volumes grew 25 percent, demonstrating continued digital adoption among customers. These metrics suggest Tyro is winning share across multiple customer cohorts rather than relying on a narrow base.
Cash generation accelerated considerably, with free cash flow jumping 49.5 percent to $29.4 million. This improvement matters because it provides management with optionality to invest in growth initiatives while maintaining balance sheet strength. The Thriday acquisition, which expands Tyro’s accounting and financial management capabilities, positions the company to deepen relationships with existing customers through multi-product adoption. Recent customer wins including Bakers Delight, Lune, and Drummond Golf indicate the sales organisation is gaining traction in enterprise and franchise segments where pricing typically exceeds SME customers.
Management’s FY27 guidance suggests confidence in sustained momentum. The company forecasts gross profit between $240 million and $255 million, representing growth of 3.6 to 10 percent year on year, with EBITDA margins expected to range from 28.5 to 30.5 percent. The upper end of guidance assumes continued market share gains in priority verticals, particularly health and banking. While the range is wide, it reflects realistic planning given economic uncertainty and typical execution variables in the fintech sector.
Investors should monitor several metrics in coming quarters. Customer retention rates and payoff in the health and banking segments will determine whether Tyro can sustain the 40 percent earnings growth achieved in FY26. Margin progression will indicate whether the company can grow revenue faster than operating expenses, critical for reaching the higher end of FY27 guidance. The Thriday integration warrants close attention given its potential to either accelerate customer value or distract management. This announcement is price sensitive and has been flagged as material by the ASX.
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About Tyro Payments Limited (ASX: TYR)
Tyro Payments Limited is an Australian financial technology company that provides EFTPOS, business lending, and banking solutions to over 60,000 Australian businesses. The company operates through two segments: Payments, handling card processing and merchant transactions, and Banking, offering business loans, transaction accounts, and term deposits. Tyro is headquartered in Sydney and listed on the Australian Securities Exchange.
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