Company Reports

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail, and health sectors. It is also expanding into adjacent verticals like trade, accommodation, and services.

Tyro Payments' fiscal 2026 gross profit, EBITDA, and free cash flow increased 5%, 9%, and 50%, respectively, from last year. The firm guided to further gross profit growth and likely EBITDA margin expansion in fiscal 2027 but the market was unimpressed, with shares falling 10%.

We recently cut our fair value estimates for EML Payments and GQG Partners after we self-identified a valuation error in our treatment of share-based compensation. We've now reviewed our diversified financials coverage for the same issue and identified 10 affected companies.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail, and health sectors. It is also expanding into adjacent verticals like trade, accommodation, and services.

On Oct. 1, 2026, the Reserve Bank of Australia will ban debit, prepaid, and credit card surcharges and reduce interchange caps for domestic card transactions. Large merchant acquirers and card schemes must publish fees with greater transparency from April 1, 2027.

For the first half of fiscal 2026, Tyro Payments delivered 20% growth in EBITDA to AUD 40 million. Revenue grew 1% as higher volumes offset fee compression, while lower costs helped EBITDA margins expand to 16% from 13% last year.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail, and health sectors. It is also expanding into adjacent verticals like trade, accommodation, and services.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding into adjacent verticals like trade, accommodation and services.

Tyro Payments reaffirmed its fiscal 2026 gross profit and EBITDA margin guidance of AUD 230 million-AUD 240 million and 28.5%-30%, respectively. The firm noted "strong performance" for first quarter of fiscal 2026 at its AGM, with core, non-Bendigo payment volumes up over 6% from the prior period.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding into adjacent verticals like trade, accommodation and services.

Tyro Payments' fiscal 2025 underlying EBITDA—its preferred profitability measure—increased 11% to AUD 62 million. Adjusted pretax profit rose 2%, excluding a one-off intangibles impairment. EBITDA margin expanded to 28% from 26%.

The Reserve Bank of Australia has proposed removing payment card surcharges, lowering interchange fees paid by businesses, and requiring card networks and large merchant acquirers to publish their fees more transparently.

Tyro Payments has announced that CEO Jon Davey intends to resign and depart the firm in approximately six months.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding into adjacent verticals like trade, accommodation and services.

Shares of Tyro are down close to 12% for the year to April 29, 2025, underperforming the S&P/ASX 200 index, which is down in the low-single digits. The stock has derated since first-half fiscal 2025 results in February.

Tyro Payments has confirmed a nonbinding offer to acquire 100% of competitor Smartpay at NZD 1.00 per share, mostly in Tyro shares with a cash component. The market's reaction is slightly positive with shares up by approximately 2% on March 17.

First-half fiscal 2025 EBITDA—Tyro's preferred measure of profitability—increased by 21% to AUD 33 million. This was supported by a 1% increase in gross profit margin to 45%, and a roughly 4% increase in EBITDA margin to 30%. Transaction volumes were broadly flat.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding into adjacent verticals like trade, accommodation and services.

We believe the negative share price reaction of no-moat Tyro to Labor’s planned ban on debit card payment surcharges is overly pessimistic. The proposed ban, subject to consultation with the Reserve Bank of Australia, could be introduced in early 2026.

Tyro Payments provides merchants with the required infrastructure to accept electronic payments, as well as business banking products. It is the fifth-largest merchant acquirer in Australia by terminals, behind the major four banks. The firm mainly caters to small to medium-size enterprises in the hospitality, retail and health sectors. It is also expanding into adjacent verticals like trade, accommodation and services.