Tyro Payments Reports FY26 Profit and Cash Flow Growth

Tyro Payments Ltd delivered a strong financial performance for fiscal year 2026, meeting its guidance targets with increased gross profit, higher earnings, and a significant surge in free cash flow, according to an annual report released on August 25, 2026. The Australian payments company reported that its gross profit increased by 5.3% to $231.8 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8.6% to $66.9 million.

Tyro Payments Reports FY26 Profit and Cash Flow Growth

The company’s EBITDA margin expanded to 28.9%, reflecting continued improvements in operating efficiency, which rose to 68.6%. Normalized profit before tax experienced a sharp 40% increase, reaching $24.7 million. Tyro entered FY27 with a strong balance sheet, maintaining $145.3 million in available owned funds before regulatory requirements, alongside a total capital ratio of 76.5%. Total transaction value (TTV) across the business grew by 2.9% to $44.3 billion, serviced by approximately 78,000 merchants.

Surging Free Cash Flow and Core Payments Performance

The most notable financial gain for Tyro during the period was a 49.5% jump in free cash flow, which reached $29.4 million. During the company’s earnings call, Chief Financial Officer Emma Burke stated that the continued growth in cash generation was driven by EBITDA growth outpacing capital expenditure increases. Chief Executive Officer Nigel Lee added that the 44% free cash flow conversion is high because the business naturally generates cash from its core operations due to highly efficient infrastructure, allowing cash to flow through directly as the business scales.

Within the core payments sector, Tyro Core Payment Volumes grew by 4.4%. Payments gross profit increased by 4.1% to approximately $203 million, and the payments margin increased by half a basis point to 45.9 basis points. E-commerce growth also performed strongly, registering a 25% increase over the period. Strategic developments during the year included new product launches, the Thriday acquisition, and a leadership transition.

Accelerating Banking Adoption and Loan Growth

Tyro’s banking platform experienced accelerated customer adoption throughout FY26, with 34% of new merchants choosing to bank with the company by June. Active bank accounts increased by 34.6% to more than 14,500, driving a 23% increase in banking gross profit to $16.5 million. Customer deposits grew 27.3% to $118.9 million, and loan originations expanded by 19.4% to $187.8 million.

Tyro Payments Reports FY26 Profit and Cash Flow Growth — Photo: Investing

The progression from payments settlement to transaction accounts and cash flow loans creates higher customer lifetime value, with multi-product users demonstrating significantly higher retention levels. Although loan losses increased broadly in line with the growth in the loan book, management stated they remain comfortable with overall credit quality.

Health Vertical Expansion and Outlook

The health vertical served as a key growth driver for Tyro, with health volumes reaching $7.9 billion, representing a 6.4% increase. The segment has grown at approximately a 14% compound annual growth rate over three years, roughly twice the underlying market growth rate of 7%. Within health, allied health growth reached 26% and dental growth hit 19%, supported by the launch of the new Tyro Pro for Health product.

Looking ahead, Tyro positioned itself for upcoming regulatory changes regarding card surcharging and interchange fees. CEO Nigel Lee explained that the elimination of surcharging by the Reserve Bank of Australia (RBA) on October 1 levels the playing field, noting that Tyro has very few no-cost EFTPOS merchants. The company views the regulatory shift as a net opportunity to help merchants navigate the transition as it shifts its strategic focus from capability building to commercialization.