Tyro Payments Accelerates Growth, Targets $40B New Markets with Banking Boost
Tyro Payments delivered solid FY25 results with a 10.6% rise in EBITDA and accelerated growth initiatives, including expansion into new $40 billion addressable markets and a pilot banking platform.
- EBITDA increased 10.6% to $61.6 million with 28% margin
- Gross profit grew 4.4% to $220.1 million, driven by payments and banking
- Active banking users surged 43%, with one-third of new merchants onboarded
- Expansion into pet health, aged care, unattended payments, and automotive sectors
- New banking platform pilot launching to merchants in September
Strong Financial Performance Amidst Competitive Landscape
Tyro Payments Limited reported its FY25 results, showcasing a robust 10.6% increase in EBITDA to $61.6 million and a 4.4% rise in gross profit to $220.1 million. This performance aligns with the company’s guidance and reflects disciplined cost management alongside steady growth in both payments and banking segments. Despite a modest 0.2% increase in transaction value, Tyro’s strategic focus on profitability and sustainable growth is evident in its 28% EBITDA margin, up 1.6 percentage points from the previous year.
Accelerated Growth Initiatives and Market Expansion
Tyro has accelerated its delivery of growth initiatives, targeting new sub-verticals such as pet health, aged care, unattended payments, and automotive services. These sectors collectively represent an addressable market exceeding $40 billion, signaling significant expansion potential beyond Tyro’s traditional hospitality and retail strongholds. The company’s enhanced omnichannel payments solutions, including the launch of the Tyro Pro Key terminal and expanded payment link capabilities, further strengthen its competitive positioning.
Banking Segment Gains Momentum
The banking business continues to gain traction, with active banking users growing by 43% year-on-year. Notably, one in three new merchants now opens a Tyro Bank Account, reflecting strong adoption of integrated banking services. Tyro’s upcoming new banking platform, currently in pilot and set for a September launch, promises a comprehensive suite of cash flow management tools including transaction accounts, debit cards, term deposits, and flexible loans tailored for small businesses.
Outlook and Strategic Positioning
Looking ahead to FY26, Tyro projects gross profit between $230 million and $240 million, with an improved EBITDA margin range of 28.5% to 30%. The company’s strong balance sheet and cost discipline provide a solid foundation to accelerate strategic priorities, including potential inorganic growth. Early trends in Q1 FY26 indicate positive momentum in payment volumes and banking adoption, supporting this optimistic outlook.
Tyro’s ability to innovate within a competitive payments and banking landscape, while expanding into underserved markets, positions it well for sustained growth. However, the success of new initiatives and the banking platform rollout will be critical to watch as they mature.
Bottom Line?
Tyro’s FY25 momentum sets the stage for ambitious growth, but execution in new markets and banking will be key to watch.
Questions in the middle?
- How quickly will the new banking platform scale among existing and new merchants?
- What competitive pressures might emerge in the newly targeted $40 billion sub-vertical markets?
- Can Tyro sustain its cost discipline while accelerating growth initiatives and potential acquisitions?
