Tyro Payments Ltd. (TYR) AI Stock Analysis

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Tyro Payments Ltd.

(Sydney:TYR)

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Neutral 68 (OpenAI - 5.2)

Rating:68Neutral

Price Target:

AU$0.86

▲(5.00% 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

Cash generation

Exceptional free cash flow growth and a high FCF-to-net-income ratio provide durable internal funding for investment, reduce reliance on external capital, and support strategic initiatives. This cash strength underpins the company's ability to invest in product, underwriting and customer acquisition over the medium term.

Low financial leverage

A very low debt-to-equity ratio signals conservative leverage and strong solvency, giving the company flexibility to absorb shocks, fund H2 investment needs, and pursue M&A or product development without materially increasing financial risk. This capital structure supports sustainable execution of strategy.

Platform expansion (Thriday)

The Thriday acquisition deepens Tyro's embedded merchant offering, increasing integration, stickiness and cross-sell potential between payments, banking and software services. This platform expansion supports higher lifetime value and differentiation versus pure-play EFTPOS providers over the medium term.

Negative Factors

Revenue weakness

Negative revenue growth suggests structural demand or competitive pressures that could limit top-line scalability. If trends persist, revenue contraction will constrain operating leverage and make it harder to fund growth investments from internal cash flow, reducing optionality for medium-term expansion.

Margin deterioration

A material drop in net margin and only modest payment-margin gains indicate limited structural margin expansion. Management passing through scheme/interchange benefits and ongoing cost pressures can cap long-term profitability, meaning higher volumes are required to materially lift net returns.

Customer retention risk

Persistently elevated churn undermines revenue predictability and lifetime value, requiring increased acquisition spend or product investment to stabilize growth. Combined with partner-specific shocks (e.g., Bendigo volumes down 10%), this retention issue creates a structural execution risk to scaling margins and TPV over the medium term.

Tyro Payments Ltd. (TYR) vs. iShares MSCI Australia ETF (EWA)

Market Cap

AU$419.51M

Dividend YieldN/A

Average Volume (3M)2.52M

Price to Earnings (P/E)7.4

Beta (1Y)1.37

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$1.36

Price Target Upside65.45% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

EPS Forecast (FY)0.05

Revenue Forecast (FY)AU$496.64M

Tyro Payments Ltd. Business Overview & Revenue Model

Company DescriptionTyro 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. The company also acquires credit, debit, and EFTPOS cards; and offers Medicare and private health fund claiming and rebating services. In addition, it provides complementary banking solutions, including merchant cash advance, transaction account, and a term-deposit account. Further, the company offers Tyro Go, a mobile payment card reader; Tyro Connect that integrates apps and services with POS system designed for cafes, restaurants, QSRs, pubs, clubs, and bars; and Medipass, a digital health payment platform that links practitioners, funders, and patients. It primarily serves health, hospitality, services, corporate, accommodation, and retail industries. The company was incorporated in 2003 and is based in Sydney, Australia.

How the Company Makes MoneyTyro Payments generates revenue primarily through transaction fees charged to merchants on each payment processed through its payment systems. Additionally, the company earns income from subscription fees for its POS systems and software services. Tyro's revenue model is also bolstered by partnerships with financial institutions and service providers, allowing it to offer integrated solutions and expand its market reach. Key revenue streams include merchant service fees, transaction-based earnings, and ancillary services such as cash flow management and analytics tools, which help businesses optimize their operations.

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.

Q2-2026 Updates

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.

Payment Volume Recovery

Total payment volumes increased 4% year-over-year, driven by a 5.6% increase in Tyro core payment volumes and broadly consistent 4-5% growth across retail, hospitality and service verticals.

Strong Growth in Health Vertical

Health vertical delivered 9.4% volume growth, with continued focus on specialists, allied health and dental despite some short-term GP pressure from government policy.

Payments Margin and Gross Profit Expansion

Payment margin improved by 0.8 basis points versus H1 FY25; payments gross profit grew 6% to $104.1 million.

Banking Momentum

New transaction account and debit card drove active banking users up 38%; loan originations grew close to 20% with higher average loan size; banking gross profit rose 5.4% and net return on banking improved from 11.7% to 12.2%.

Improved Profitability and Cash Generation

EBITDA increased 19.8% to $39.5 million (EBITDA margin 33.6%); statutory profit rose 72% to $17.7 million; free cash flow was $13.6 million, up 52% year-over-year.

Operational Discipline

Operating expenses decreased 2.9% while gross profit rose 5%, improving operating efficiency from 69% to 64% and enabling capacity for growth investment.

Strong Balance Sheet and Confirmed Guidance

Available funds exceed $140 million; company reaffirmed full-year guidance of $230–240 million gross profit and EBITDA margin 28.5%–30%, and indicated it is on track at the half year.

Strategic Acquisition (Thriday)

Acquisition of Thriday adds automated invoicing, expense management, budgeting and tax tools, deepening Tyro's integrated proposition to increase engagement, retention and lifetime value.

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.

Short-Term GP Volume Pressure from Policy

Government increased bulk-billing funding late in the half, creating pressure on volumes for general practitioners; management will monitor adaptations over time.

Second-Half Cost Increase and Timing Risk

Management expects higher operating expenses in H2 due to annual salary increases, increased AML compliance costs, project spend and marketing; analysts referenced approximately a $10 million step-up in H2 OpEx versus H1 (company highlighted a material step-up but did not fully quantify).

Churn Still Above Long-Term Averages

TTV churn has reduced and is materially improved versus the prior year, but management indicated churn remains above historical average levels and is not yet fully normalized.

Modest Payment Margin Improvement

Payment margin improvement was relatively small at 0.8 basis points versus H1 FY25, and management has begun passing benefits of reduced scheme/interchange fees to customers, limiting margin upside.

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

Financials are solid overall, led by strong cash flow (FCF growth 433.52% and FCF/net income 0.92) and a conservative balance sheet (debt-to-equity 0.12). Offsetting this, the income statement shows pressure with negative revenue growth (-3.91%) and a lower net margin (3.77% vs 5.16% prior year), indicating profitability and growth still need improvement.

Income Statement

Positive

Tyro Payments Ltd. has shown a mixed performance in its income statement. The company has a decent gross profit margin of 45.96% for 2025, indicating efficient cost management. However, the net profit margin has declined to 3.77% from 5.16% in 2024, reflecting reduced profitability. Revenue growth has been negative at -3.91%, which is a concern. The EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

Positive

The balance sheet of Tyro Payments Ltd. is relatively strong with a low debt-to-equity ratio of 0.12, indicating low financial leverage and reduced risk. The return on equity is moderate at 7.85%, showing a reasonable return on shareholders' investments. The equity ratio is healthy, suggesting a solid capital structure. Overall, the company maintains a stable financial position.

Cash Flow

Positive

Tyro Payments Ltd. has demonstrated strong cash flow performance with a significant free cash flow growth rate of 433.52% in 2025. The operating cash flow to net income ratio is 0.55, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.92, reflecting efficient cash management. The cash flow metrics suggest robust liquidity and financial flexibility.

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

Technical Analysis Sentiment

Negative

Last Price0.82

Price Trends

50DMA

0.97

Negative

100DMA

1.02

Negative

200DMA

1.02

Negative

Market Momentum

MACD

-0.04

Positive

RSI

24.08

Positive

STOCH

3.51

Positive

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 0.82 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.97, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 24.08 is Positive, neither overbought nor oversold. The STOCH value of 3.51 is Positive, 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TYR	68 Neutral	AU$419.51M	7.43	8.20%	―	1.06%	-30.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
B4P	59 Neutral	AU$74.70M	7.18	19.30%	―	13.74%	70.80%
WRK	53 Neutral	AU$259.39M	-22.61	-19.83%	―	10.79%	46.67%
QFE	52 Neutral	AU$28.75M	0.19	-60.86%	―	24.46%	24.10%
SPX	37 Underperform	AU$13.55M	-0.48	-97.38%	―	106.21%	-60.61%

* Technology Sector Average

Performance Comparison

AU:TYR

Tyro Payments Ltd.

0.79

-0.02

-1.86%

AU:QFE

QuickFee Ltd.

0.08

0.04

108.33%

AU:B4P

Beforepay Group Limited

1.43

0.11

8.78%

AU:WRK

Wrkr Ltd

0.13

0.08

160.00%

AU:SPX

Spenda Limited

―

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 and a 6% lift in payments gross profit, supported by stronger consumer spending and lower churn, also drove a 51.8% increase in free cash flow to $13.6 million.

The company advanced its strategy to build an integrated payments and banking proposition, launching a new transaction account and Tyro Flexi Loan, which contributed to a 38% increase in transaction accounts. It also announced the acquisition of Thriday, an AI-powered financial management platform for small businesses, and reaffirmed its FY26 guidance, highlighting balance sheet strength and capacity to pursue both organic and inorganic growth opportunities in the Australian SME and merchant market.