Tyro Payments Ltd Posts FY26 Results With Free Cash Flow Up 49.5%

Tyro delivers FY26 result with free cash flow up 49.5%

In its FY26 full-year results investor presentation dated 25 August 2026, Tyro Payments (ASX: TYR) reported meeting FY26 guidance, delivering stronger earnings and improved cash generation across the completed financial year ended 30 June 2026.

The integrated payments and banking provider now serves approximately 78,000 merchants, processing more than $44 billion in total transaction value (TTV) within a Australian payments market estimated at around $1 trillion.

Management outlined a result underpinned by gross profit of $231.8m (+5.3%), EBITDA of $66.9m (+8.6%) and free cash flow of $29.4m (+49.5%). The strategic thread running through the presentation was clear: increased scale and operating leverage are driving a more cash-generative business.

FY26 results delivered against guidance

The completed-year result met both FY26 guidance bands set by management. Gross profit guidance of $230m–$240m was achieved at $231.8m, while the EBITDA margin guidance range of 28.5%–30.0% landed at 28.9%.

The profitability step-up was a feature of the result. Tyro recorded normalised profit before tax of $24.7m, up 40.0%, with the EBITDA margin expanding 87 basis points to 28.9%.

All figures are stated on a normalised basis unless otherwise noted.

What Tyro does and why the multi-product model matters

For readers less familiar with the company, Tyro operates an integrated platform combining payments, banking and software, with 580+ integrations purpose-built for Australian small and medium enterprises (SMEs). The model addresses three core merchant needs:

• Get paid through Payments

• Grow the business through Banking

• Run the business through Financial management

The presentation detailed how these elements compound. Payments settle into a Tyro transaction account, those deposits provide low-cost funding for lending, and merchants who adopt more products become more valuable over time. Management noted that multi-product customers demonstrate significantly higher retention, which drives improved lifetime value and stronger per-merchant economics.

A key adoption datapoint underpinned this thesis: 34% of new merchants chose to bank with Tyro in June, described by the company as front-book adoption.

Health and banking driving the growth engine

Management framed Health as Tyro’s playbook for growth. The Australian health market represents more than $110bn in annual spend, growing at approximately 7% CAGR. Tyro Health recorded $7.9bn in TTV, growing at roughly 2× the underlying market, which the presentation described as sustained market share gains.

Sub-vertical momentum was evident, with Allied +26% and Dental +19% on an FY26 versus FY25 TTV basis. General Practice was described as a leader, while Vet claiming (GapOnly) was launched during the period. Management was candid that Health growth was moderated by changes to GP bulk billing, with the stronger momentum concentrated in Allied and Dental.

Banking delivered a robust contribution across the year:

1. Active accounts +34.6% to 14,505

2. Deposit balances +27.3% to $118.9m

3. Loan originations +19.4% to $187.8m

Banking gross profit rose 23.0% to $16.5m, with a net return on banking of 11.0%.

Management commentary

In its FY26 presentation, management reiterated its view that Tyro is uniquely positioned to win in Australia, framing FY27 as the next phase of growth built on a differentiated right to win and deeper multi-product merchant relationships.

A strong balance sheet and operating leverage

The presentation highlighted continued operating leverage. Operating expenses as a percentage of gross profit improved to 69.3%, down from 76.3% in FY24 and 71.2% in FY25. Gross profit grew 5.3% against operating expense growth of 4.2%.

Balance sheet strength was a recurring theme, supported by three metrics:

• Free cash flow at 44% of EBITDA

• Total capital ratio of 76.5%, significantly above the regulatory requirement

• Available own funds of $145.3m (before regulatory requirements)

Management outlined capital allocation principles centred on preserving balance sheet strength, growing through internal investment as well as M&A and partnerships, and improving shareholder returns via the distribution of surplus capital, which remains subject to regulatory approval. The Thriday acquisition and the launch of Tyro Accounting were referenced as FY26 platform expansion.

FY27 outlook: converting capabilities into growth

Management disclosed forward guidance for the year ahead, targeting gross profit of $240m–$255m and an EBITDA margin of 28.5%–30.5%.

Three growth levers were flagged in the presentation:

• Payments growth through core TTV, improved merchant retention and Health growth normalising

• Banking adoption via more merchants banking with Tyro, higher deposits and lending contribution

• Operating leverage through disciplined cost management and cash-generative growth

The company described FY27 as being about converting unlocked capabilities into growth across Health, larger merchants and SMEs. The raised gross profit guidance range signals management confidence in continued execution, with the differentiated platform positioned as the foundation for sustainable long-term shareholder value.

The pricing transparency advantage also extends into the regulatory environment, where RBA card payment reforms taking effect from October 2026 are expected to trigger merchant switching activity as fee disclosure mandates reshape how competitors structure their offerings.

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