Tyro Payments Ltd. (AU:TYR)
ASX:TYR
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Tyro Payments Ltd.
(Sydney:TYR)
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Select Model
Rating:68Neutral
Price Target:
AU$0.83
▲(9.74% Upside)
Action:ReiteratedDate:02/24/26
AU:TYR scores 68 primarily because strong cash generation and a low-leverage balance sheet provide financial stability, and the earnings call reinforced improving profitability and reaffirmed FY26 guidance. This is tempered by weak technical trends (price below key moving averages with negative MACD) and a relatively high P/E with no dividend yield provided.
Positive Factors
Strong free cash flow
Exceptionally strong free cash flow and a high free cash flow-to-net-income ratio provide durable financial flexibility. This cash generation supports reinvestment, M&A (e.g., Thriday), debt-light growth and buffers against merchant volume swings without relying on external financing.
Negative Factors
Negative revenue trend
Declining top-line and compressed net margins signal structural pressure on core merchant revenue. Persistent revenue declines reduce operating leverage, constrain reinvestment capacity and increase reliance on banking and value-add services to sustain profit growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Exceptionally strong free cash flow and a high free cash flow-to-net-income ratio provide durable financial flexibility. This cash generation supports reinvestment, M&A (e.g., Thriday), debt-light growth and buffers against merchant volume swings without relying on external financing.
Read all positive factors
Tyro Payments Ltd. (TYR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$406.24M
Dividend YieldN/A
Average Volume (3M)2.52M
Price to Earnings (P/E)7.4
Beta (1Y)1.50
Revenue Growth1.06%
EPS Growth-30.96%
CountryAU
Employees626
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.03
Shares Outstanding531,027,340
10 Day Avg. Volume2,218,839
30 Day Avg. Volume2,520,333
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)2.04
Price to Sales (P/S)0.98
P/FCF Ratio3.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.24Price Target Upside63.16% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$496.64M
Tyro Payments Ltd. Business Overview & Revenue Model
Company Description
Tyro Payments Limited provides payment solutions to merchants in Australia. The company operates through Payments and Banking segments. It offers electronic funds transfer at point of sale (EFTPOS) solutions, business loans, and banking solutions....
How the Company Makes Money
Tyro primarily makes money by enabling merchants to accept card payments and charging fees linked to those transactions. Key revenue streams include: (1) transaction-based revenue (merchant service fees) earned when customers pay by card on Tyro-e...
Tyro Payments Ltd. Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive picture: volume recovery, strong banking momentum, improved profitability (EBITDA +19.8%, statutory profit +72%), and materially stronger cash generation and balance sheet provide capacity for growth. Management also articulated a clear growth strategy (health, banking, e-commerce, larger merchants) and completed a strategic acquisition (Thriday). Key risks flagged include a 10% decline in Bendigo merchant volumes, short-term GP volume pressure from government bulk-billing changes, and an expected step-up in H2 operating expenses for compliance, projects and marketing which could weigh on near-term margins. On balance, the positive operational and financial progress outweigh the identified challenges.Positive Updates
Scale and Reach
Tyro supports over 76,000 (nearly 80,000) merchants and processes more than $43 billion in annual transaction volumes, providing scale and optionality to drive further growth.
Negative Updates
Bendigo Merchant Volume Decline
Volumes for Bendigo merchants fell by 10% in the half; management is working with Bendigo to identify opportunities to improve performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Scale and Reach
Tyro supports over 76,000 (nearly 80,000) merchants and processes more than $43 billion in annual transaction volumes, providing scale and optionality to drive further growth.
Read all positive updates
Company Guidance
Tyro reiterated FY26 guidance of gross profit of $230–240 million and an EBITDA margin of 28.5–30%, saying it is on track at the half-year; H1 highlights that underpin this include payments gross profit of $104.1m, total payment volumes +4% (Tyro core +5.6%; health +9.4%; Bendigo -10%), processing >$43bn in annualised transaction volumes and serving over 76,000 merchants, EBITDA +19.8% to $39.5m (margin 33.6%), statutory profit $17.7m (+72% YoY), free cash flow $13.6m (+52%), overall gross profit +5%, banking gross profit +5.4% with net return on banking up from 11.7% to 12.2%, active banking users +38%, loan originations ~+20% with higher average loan size, payment margin improvement of 0.8 basis points, OpEx down 2.9% and operating efficiency improved from 69% to 64%, and the group holds >$140m of available funds—management noted second‑half cost increases (salary rises, AML compliance, project and marketing spend) are factored into the guidance.Tyro Payments Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 475.46M | 472.94M | 497.71M | 437.50M | 325.52M | 232.77M |
| Gross Profit | 186.66M | 217.35M | 225.87M | 162.00M | 118.81M | 98.33M |
| EBITDA | 71.06M | 67.20M | 68.20M | 37.92M | 8.14M | -13.89M |
| Net Income | 25.23M | 17.82M | 25.70M | 6.01M | -29.62M | -29.82M |
Balance Sheet | ||||||
| Total Assets | 482.55M | 547.56M | 451.46M | 431.04M | 410.09M | 395.26M |
| Cash, Cash Equivalents and Short-Term Investments | 105.96M | 191.93M | 85.48M | 58.05M | 47.36M | 89.52M |
| Total Debt | 49.66M | 28.05M | 31.54M | 33.56M | 33.99M | 2.81M |
| Total Liabilities | 235.48M | 320.74M | 243.78M | 253.35M | 250.49M | 214.59M |
| Stockholders Equity | 247.07M | 226.82M | 207.67M | 177.68M | 159.60M | 180.66M |
Cash Flow | ||||||
| Free Cash Flow | 71.61M | 127.07M | 35.52M | 10.15M | -33.38M | -40.26M |
| Operating Cash Flow | 72.70M | 138.13M | 48.79M | 25.23M | -9.02M | -10.98M |
| Investing Cash Flow | -24.16M | 7.04M | -40.62M | -27.76M | -48.35M | -32.22M |
| Financing Cash Flow | 1.07M | -6.59M | -2.97M | 8.88M | 9.37M | 23.93M |
Tyro Payments Ltd. Technical Analysis
Negative
0.76
Price Trends
0.89
Negative
0.96
Negative
1.01
Negative
Market Momentum
-0.04
Negative
30.82
Neutral
56.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TYR, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.89, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 30.82 is Neutral, neither overbought nor oversold. The STOCH value of 56.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TYR.
Tyro Payments Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$406.24M | 7.43 | 8.20% | ― | 1.06% | -30.96% | |
63 Neutral | AU$68.22M | 7.18 | 19.30% | ― | 13.74% | 70.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | AU$31.05M | 0.19 | 350.35% | ― | 24.46% | 24.10% | |
46 Neutral | AU$199.53M | -22.61 | -16.07% | ― | 10.79% | 46.67% | |
45 Neutral | AU$17.62M | -0.48 | -158.38% | ― | 106.21% | -60.61% |
* Technology Sector Average
AU:TYR
Tyro Payments Ltd.
0.77
>-0.01
-0.65%
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1.37
0.33
31.73%
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0.04
66.67%
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Spenda Limited
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Tyro Payments Ltd. Corporate Events
Tyro boosts profit, cash flow and expands SME banking offer
Feb 23, 2026
Tyro Payments reported strong interim results for the six months to 31 December 2025, with gross profit up 5%, EBITDA rising 19.8% to $39.5 million, and statutory net profit before tax jumping 72.3% to $17.7 million. Improved operating efficiency ...
Tyro Payments Delivers Strong Profit Growth and Higher Asset Backing in H1 FY26
Feb 23, 2026
Tyro Payments reported modest growth in transaction value and revenue for the half-year ended 31 December 2025, with transaction value up 4.0% to $22.86 billion and normalised revenue rising 1.1% to $251.1 million. Normalised gross profit increase...
Tyro Payments Seeks ASX Quotation for Nearly 295,000 New Ordinary Shares
Jan 20, 2026
Tyro Payments Ltd has applied to the ASX for quotation of additional fully paid ordinary shares following the conversion or exercise of existing options or other convertible securities. The application covers the listing of multiple small tranches...
Tyro Payments Details Conversion of Unquoted Equity into Ordinary Shares
Jan 20, 2026
Tyro Payments has notified the market of the issue of a total of 147,546 ordinary fully paid shares arising from the exercise or conversion of previously unquoted equity securities. The new shares, to be issued on several dates between October and...
Tyro Issues 154,072 Unquoted Performance Rights Under Employee Incentive Scheme
Jan 20, 2026
Tyro Payments Limited has notified the ASX of the issue of 154,072 unquoted performance rights under its employee incentive scheme, effective 12 December 2025. The additional equity-based awards, which will not be quoted on the exchange, form part...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.