Tyro Payments Limited reported a solid 5% increase in gross profit and a 72% surge in statutory profit before tax for H1 FY26, underpinned by growth in core payment volumes and banking activities. The company also expanded its fintech footprint with the acquisition of AI-powered platform Thriday.
- 5.0% growth in gross profit to $117.6 million
- 19.8% increase in EBITDA to $39.5 million with 33.6% margin
- 72.3% rise in statutory profit before tax to $17.7 million
- 4.0% growth in total transaction value to $22.9 billion
- Acquisition of AI-driven financial management platform Thriday for $8 million
Strong Financial Momentum
Tyro Payments Limited has delivered a robust set of interim results for the half-year ended 31 December 2025, demonstrating steady growth across its payments and banking segments. The company reported a 5.0% increase in gross profit to $117.6 million, driven primarily by a 5.6% rise in core payment volumes. This growth was supported by improved merchant retention and an uptick in new merchant value added in the prior year.
EBITDA rose 19.8% to $39.5 million, representing a healthy margin of 33.6%, up from 29.5% in the previous corresponding period. Statutory profit before tax surged 72.3% to $17.7 million, reflecting operational efficiencies and favourable adjustments related to the Bendigo Alliance partnership.
Payments and Banking Performance
The payments business saw a 6.0% increase in gross profit to $104.1 million, supported by a 4.0% increase in total transaction value to $22.9 billion. Growth was particularly notable in the Retail and Hospitality verticals, which reversed prior declines, and in the Health sector, where payment volumes grew 9.4% despite some headwinds from changes to Bulk Billing rates.
Banking gross profit increased 5.4% to $8.2 million, buoyed by an 18.7% rise in loan originations to $88.7 million. This was achieved despite a brief pause in lending to new merchants during a platform transition. The launch of a new transaction account in September 2025 has been well received, with active users increasing by 37.7% to 12,367 and deposit balances growing 27.9% to $114 million.
Strategic Acquisition and Outlook
Post-period, Tyro expanded its fintech capabilities through the acquisition of Thriday, an AI-powered financial management platform tailored for small and medium enterprises. The $8 million cash deal is expected to enhance Tyro’s integrated payments and banking offering, providing merchants with a unified platform to manage their finances more effectively.
Operating expenses were tightly managed, decreasing slightly by 1.2% to $78 million, despite increased costs related to software, hosting, and the new banking platform. Lending and non-lending losses rose 73.3%, reflecting a cautious provisioning approach on historical accounts, though lending losses themselves declined by 19.5%.
Tyro remains well capitalised with a total capital ratio of 74.3%, comfortably above APRA requirements, and maintains strong liquidity with $202 million in cash and financial investments. The company did not declare dividends for the period, signalling a focus on reinvestment and growth.
Navigating Challenges and Opportunities
While the Bendigo Alliance payment volumes declined by 10%, the core business’s growth and new product launches provide a solid foundation for future expansion. The integration of Thriday’s AI-driven platform could be a game-changer in the SME segment, potentially driving deeper customer engagement and new revenue streams.
Investors will be watching closely how Tyro balances growth with risk management, particularly given the increase in lending provisions and the evolving regulatory landscape. The company’s strategic moves position it well to capitalise on the growing demand for integrated payment and banking solutions in Australia’s SME market.
Bottom Line?
Tyro’s H1 FY26 results mark a turning point, with strong profit growth and strategic acquisition setting the stage for accelerated fintech innovation.
Questions in the middle?
- How will the integration of Thriday’s AI platform impact Tyro’s SME customer acquisition and retention?
- What are the implications of the 10% decline in Bendigo Alliance payment volumes for future revenue streams?
- How will rising lending and non-lending losses affect Tyro’s credit risk profile and provisioning strategy?