Full Year 2026 Tyro Payments Limited Earnings Call Transcript
Key Points
- Tyro Payments Ltd (TYPMF) delivered a strong FY26 financial performance, meeting guidance with gross profit up 5.3% to $231.8 million and EBITDA up 8.6% to $66.9 million.
- Free cash flow increased significantly by 49.5% to $29.4 million, demonstrating improved cash generation and a strong balance sheet with $145.3 million in available owned funds.
- The company is seeing strong momentum in its priority growth areas, with Allied Health growing 26%, Dental growing 19%, and e-commerce growing 25%.
- Banking adoption is accelerating, with active bank accounts up nearly 35% to over 14,500 and 34% of new merchants choosing to bank with Tyro, driving a 23% increase in banking gross profit.
- Tyro Payments Ltd (TYPMF) is well-positioned for the upcoming regulatory changes to card surcharging, viewing it as a net opportunity that levels the playing field and allows them to help merchants navigate the transition.
- The company is benefiting from improved operating leverage, with gross profit growing faster than operating expenses (5.3% vs 4.2% in FY26), leading to an expanded EBITDA margin of 28.9%.
- Tyro Payments Ltd (TYPMF) faces a challenging macroeconomic environment for its SME customers, with business closures remaining elevated during the year.
- Health segment growth moderated in FY26 due to changes in GP bulk billing funding, with the impact becoming more pronounced in the second half of the year.
- The company's FY27 guidance reflects a prudent view of the macroeconomic backdrop, which remains challenging for many of its customers.
- Expansion into larger enterprise and franchise merchants is expected to have a slight negative impact on overall payments margin, as these larger customers typically command lower margins.
- The upcoming regulatory changes to surcharging and interchange fees create uncertainty, and the company has factored in potential impacts on pricing and margins into its FY27 guidance.
- Loan losses increased broadly in line with the growth in the loan book, although management remains comfortable with overall credit quality.
Good morning and welcome to Tyro Payments results briefing for the full year ended June 30, 2026. My name is Danielle Stock and I'm the Investor Relations Lead. Thank you for joining us.
I'd like to acknowledge that I'm hosting today's meeting in Sydney on the land of the traditional owners, the Gadigal people. I pay my respects to elders past and present.
For today's briefing, our CEO, Nigel Lee, will provide an overview of the results and an update on the business. Our CFO, Emma Burke, will then take you through the financial results and outlook before Nigel returns to provide a summary and closing remarks.
There will be an opportunity for analysts and investors to ask questions at the end of the presentation.
All of our FY26 results materials, including today's presentation, have been released to the ASX and are available on our Investor Centre.
Today's presentation is also being recorded and transcribed, and a replay will be available on our Investors Center shortly.
With that, I
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