Tyro Payments Limited

FY26 reported gross profit of $231.8 million, up 5.3% year over year; EBITDA of $66.9 million, up 8.6%; normalized profit before tax of $24.7 million, up 40%; and free cash flow of $29.4 million, up 49.5%. Total transaction value across the broader portfolio increased 2.9% to $44.3 billion, and core payment volumes grew 4.4%. Banking gross profit increased 23% to $16.5 million, active bank accounts rose 34.6% to more than 14,500, deposits increased 27.3% to $118.9 million, and loan originations rose 19.4% to $187.8 million. For FY27, Tyro guided to normalized gross profit of $240 million to $255 million and normalized EBITDA margin of 28.5% to 30.5%, while noting the outlook reflects surcharging/interchange changes and a challenging macro environment.

Nigel Lee framed FY26 as his first full year as CEO and said the company is moving from building capability to commercializing it. He emphasized Tyro’s right to win in a $1 trillion Australian payments market through local depth, deep integrations, and scale, with investment concentrated in Health, Banking, enterprise franchise, and e-commerce. His tone was upbeat and confident, but grounded in execution: he repeatedly stressed focused growth, better merchant economics, and using the broader platform to deepen customer relationships.

Emma Burke said FY26 was delivered within guidance and highlighted operating leverage, with gross profit up 5.3% versus operating expenses up 4.2% over the year. She cited EBITDA margin expansion to 28.9%, free cash flow of $29.4 million, and available owned funds of about $145.3 million before regulatory requirements, alongside a total capital ratio of 76.5%. On capital allocation, she said the priority is maintaining balance sheet strength, then investing internally or through targeted strategic opportunities, with shareholder distributions considered only if surplus capital remains and subject to approvals and business needs. For FY27, she guided to normalized gross profit of $240 million to $255 million and EBITDA margin of 28.5% to 30.5%.

Analysts focused on three issues: banking adoption, regulatory changes, and the margin/free cash flow outlook. Management said the 34% of new merchants choosing to bank with Tyro in June reflected a step-up versus last year and that total active bank accounts rose from roughly 10,000-10,500 to more than 14,500. On surcharging and interchange, management said the changes are embedded in guidance, expect a net opportunity overall, and have already been communicating updated pricing to merchants. On Health, they said bulk-billing impacts should start to lap from November and growth should move back toward historical levels, supported by Allied, Dental, and the new Tyro Pro for Health product.