This article first appeared on GuruFocus .
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Total Payment Volumes:Increased by 4%, driven by a 5.6% growth in Tyro Core payment volumes.
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Health Sector Growth:Achieved 9.4% growth in the health sector.
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Payment Margin:Improved by 0.8 basis points compared to half one FY25.
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Payments Gross Profit:Grew by 6% to AUD104.1 million.
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Banking Gross Profit:Increased by 5.4%.
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Operating Expenses:Reduced by 2.9%.
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EBITDA:Increased by 19.8% to AUD39.5 million, with an EBITDA margin of 33.6%.
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Statutory Profit:Rose by 72% to AUD17.7 million.
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Free Cash Flow:Generated AUD13.6 million, up 52% from last year.
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Available Funds:Over AUD140 million in available funds.
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Guidance for FY26:Targeting gross profit of AUD230 million to AUD240 million and an EBITDA margin of 28.5% to 30%.
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Release Date: February 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Tyro Payments Ltd ( ASX:TYR ) reported a 4% increase in total payment volumes, driven by a 5.6% growth in Tyro Core payment volumes.
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The company launched new banking products and acquired Thriday, enhancing their product offerings and deepening merchant relationships.
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Tyro Payments Ltd ( ASX:TYR ) achieved a 6% growth in payments gross profit to AUD104.1 million, supported by volume increases and margin improvements.
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The company reported a 19.8% increase in EBITDA to AUD39.5 million, with a strong EBITDA margin of 33.6%.
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Tyro Payments Ltd ( ASX:TYR ) generated AUD13.6 million of free cash flow, strengthening their balance sheet with over AUD140 million in available funds.
Negative Points
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Volumes for Bendigo merchants fell by 10% this half, indicating challenges in this segment.
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The company anticipates higher operating expenses in the second half due to salary increases, project and marketing spend, and AML compliance investment.
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Despite improvements, churn levels are still not at historical averages, suggesting room for improvement in customer retention.
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The governments increased bulk billing funding has put pressure on volume growth across general practitioners.
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There is a significant step up in costs expected in the second half, with an additional AUD10 million in operating expenses compared to the first half.
Q & A Highlights
Q: Can you elaborate on the guidance for the second half, particularly regarding the expected increase in costs? A: Emma Burke, Chief Financial Officer, explained that the cost increase in the second half is due to several factors, including investments in AML compliance, project spending, and marketing efforts. Additionally, there will be salary increases effective from January, contributing to the higher operating expenses.
Q: Could you quantify the additional operating expenses expected in the second half? A: Emma Burke noted that the second half will see a step-up in operating expenses, driven by salary increases and more weighted marketing investments. However, she did not provide a specific dollar amount for these initiatives.
Q: How is Tyro managing churn, and has it stabilized to a satisfactory level? A: Emma Burke stated that Tyro has observed a positive trend in reducing churn, which has supported growth. While not yet at historical average levels, the current churn rate is notably lower than last year, and the company is focused on enhancing product offerings to further improve customer retention.
Q: What are the key areas Tyro is focusing on for future growth? A: Nigel Lee, Chief Executive Officer, highlighted four key areas: expanding in the health sector, enhancing integrated banking services, capturing e-commerce growth, and targeting larger merchants. These areas are seen as significant opportunities for Tyro's future expansion.
Q: How does the acquisition of Thriday enhance Tyro's offerings? A: Nigel Lee explained that the acquisition of Thriday deepens Tyro's role as a domestic payments and banking champion for Australian SMEs. Thriday adds automated invoicing, expense management, budgeting, and tax tools, simplifying financial management for small businesses and enhancing customer engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
