Tyro Payments delivered a robust FY26 with profit before tax up 40%, driven by growth in payments and banking, alongside strategic expansion via the Thriday acquisition and new CEO Nigel Lee’s leadership.
- 40% increase in normalised profit before tax
- 5.3% growth in gross profit to $231.8 million
- Thriday acquisition broadens software capabilities
- Banking accounts up 35%, loan originations rise 19%
- Strong free cash flow growth of 49.5%
Profit Jumps Amid Strategic Shift and Leadership Change
Tyro Payments Limited (ASX:TYR) has reported a standout FY26, with normalised profit before tax soaring 40% to $24.7 million. This surge reflects a year of disciplined execution, strategic acquisitions, and a leadership transition that has sharpened the company’s growth focus. Under new CEO Nigel Lee, who took the helm in January 2026, Tyro has bolstered its integrated payments and banking platform, positioning itself for accelerated expansion in Australia’s $1 trillion payments market.
Gross profit climbed 5.3% to $231.8 million, supported by a 2.9% rise in transaction value to $44.3 billion. EBITDA grew 8.6% to $66.9 million, lifting the margin to 28.9%, while free cash flow nearly doubled, increasing 49.5% to $29.4 million. The company’s balance sheet remains robust, with a total capital ratio of 76.5%, comfortably above regulatory requirements, providing ample capacity for future investments and potential acquisitions.
Thriday Acquisition Enhances Software and Data Capabilities
In a notable strategic move, Tyro acquired AI-powered financial management platform Thriday in January 2026 for $8 million. This acquisition extends Tyro’s software capabilities, enabling the launch of Tyro Accounting and enriching data insights for customers. Since the acquisition, Thriday has contributed $1.5 million in revenue and $607,000 in profit after tax, integrating its workforce seamlessly into Tyro’s operations.
The expanded software offering complements Tyro’s core payments and banking services, enhancing merchant value and supporting deeper customer relationships. This aligns with CEO Nigel Lee’s vision of solving multiple business challenges for Australian merchants through a unified platform.
Banking Growth Drives Multi-Product Adoption and Customer Retention
Tyro’s banking segment showed strong momentum, with active banking accounts rising 34.6% to over 14,500 customers. Deposits increased 27.3% to $118.9 million, while loan originations grew 19.4% to $187.8 million. These customers exhibit higher retention rates and lifetime value, underpinning Tyro’s strategy to deepen merchant engagement through multi-product adoption.
The launch of new transaction accounts, Flexi Loan products, and enhanced features like debit cards and instant payments have made Tyro’s banking proposition more attractive. Gross profit from banking surged 23% to $16.5 million, reflecting the growing contribution of this segment to the company’s overall profitability.
Health Sector and eCommerce Expansion Highlight Growth Opportunities
Tyro continues to lead in the Australian health payments market, processing $7.9 billion in transaction value, with growth driven by Allied Health (+26%) and Dental (+19%). Despite some headwinds from bulk billing changes affecting General Practice volumes, the health vertical remains a key growth engine.
eCommerce volumes also expanded impressively by 25%, reflecting Tyro’s investment in enterprise-grade online payment capabilities. The company’s open and integrated ecosystem, boasting over 580 point-of-sale and practice management software integrations, remains a competitive differentiator, especially as merchants seek seamless omnichannel payment solutions.
Navigating Regulatory Changes and Market Dynamics
Tyro is preparing for significant industry reforms, including the Reserve Bank of Australia’s ban on merchant surcharging effective 1 October 2026. The company’s transparent pricing and strong software integration position it well to support merchants through this transition. The Board views these changes as reinforcing the importance of value beyond price, an area where Tyro holds meaningful competitive advantages.
Operationally, Tyro improved efficiency, with operating expenses growing 4.1% against a 5.3% rise in gross profit, resulting in operating leverage that supports earnings growth. Employee engagement remains high, with 85% of staff affirming Tyro as a diverse and inclusive workplace, while sustainability efforts continue to mature in anticipation of mandatory reporting requirements.
Executive Remuneration Reflects Performance and Transition
The FY26 remuneration report highlights a smooth CEO transition, with Nigel Lee receiving a pro-rated short-term incentive reflecting his partial-year tenure and performance. Executive incentives remain strongly linked to financial and strategic outcomes, with a balanced mix of short-term and long-term incentives designed to align leadership rewards with shareholder value creation.
Despite solid financial and operational progress, Tyro’s share price has lagged, a point acknowledged by the Board. The focus remains on sustained execution and delivering shareholder value through disciplined growth and capital management.
Bottom Line?
Tyro’s FY26 results underscore a business transitioning from investment to cash-generative growth, but execution in FY27 will be key to translating strategic initiatives into market value.
Questions in the middle?
- How will Tyro capitalise on its expanded software capabilities post-Thriday acquisition?
- What impact will the RBA’s surcharging ban have on merchant retention and competitive dynamics?
- Can Tyro sustain its health sector momentum amid regulatory and market headwinds?