gross margin
—
FY 2027
official guidance
TYRO PAYMENTS LIMITED
Last · ASXA$0.76+0.03 (+4.11%)stale · yahoo · 221h ago
Market capA$404.7M532.5M sh
P/E · TTM19.0fwd 15.0 · eps 0.04
Beta1.58vs S&P 500
Div yield—annual · TTM
52w range
A$0.665A$1.295
Volume3.0Msession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Improving economics and banking traction are encouraging, but FY27 visibility is insufficient for a clean buy without valuation support.
Hold: Tyro delivered a solid FY26, with gross profit up 5.3% to $231.8m, EBITDA up 8.6% to $66.9m, EBITDA margin at 28.9% and free cash flow up 49.5% to $29.4m.
FY27 guidance implies gross profit of $240m–$255m and a 28.5%–30.5% EBITDA margin, but this represents only modest-to-strongly variable growth and management gave limited detail on free cash flow, health recovery and the net impact of surcharging changes.
Themes
- Fy26 Results
- Fy27 Guidance
- Health Payments
- Banking Adoption
- Card Surcharging
- Enterprise Franchise
Near term
Health growth should begin lapping GP bulkbilling changes around November 2026; Allied Health and Dental remain the key near-term growth offsets.
The 1 October removal of card surcharging could alter merchant pricing, payment margins and retention; management calls it a net opportunity but provided no quantified impact.
Banking adoption, deposits and lending growth are important execution indicators after active accounts rose 34.6% to more than 14,500 and deposits increased 27.3% to $118.9m.
Enterprise and franchise wins can lift gross profit and scale, but larger merchants carry lower payment margins.
Longer term
The integrated payments, banking and software proposition could improve retention and customer lifetime value; merchants using payments and banking reportedly have materially lower churn.
Tyro Health has structural growth potential, with $7.9bn of FY26 TTV, more than 14,000 practices, over 125 practice-management integrations and connectivity to more than 60 insurers and funders.
Operating leverage remains a meaningful upside driver: gross profit grew at a three-year CAGR of 6.3% versus 2.6% for operating expenses, while the company owns its payments switch.
Capital flexibility could support organic investment, acquisitions or shareholder distributions, but allocation priorities remain unresolved.
Red flags
Management did not provide a quantified FY27 free-cash-flow outlook despite analyst questioning; the response was qualitative and acknowledged that CapEx will rise with EBITDA.
The claimed 34% new-merchant banking adoption lacked a comparable prior-year figure, limiting assessment of acceleration and conversion quality.
The expected recovery in health growth depends partly on cycling GP bulkbilling changes, while management did not provide a specific FY27 health growth target.
Management characterized surcharging and interchange changes as a net opportunity without quantifying the effects on pricing, margin or merchant behavior.
Enterprise and franchise expansion may dilute payment margins, and management's confidence in maintaining margins was not backed by a numerical FY27 payment-margin target.
Forward outlook
revenue
240–255 $million
FY 2027
official guidance
ebitda
28.5–30.5 pct
FY 2027
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings transcripts
- Issuer IR
2026 earnings call transcript
TYRO PAYMENTS LIMITED
- Issuer webcast
2026 earnings call transcript
TYRO PAYMENTS LIMITED
- Issuer IR
H1 2026 earnings call transcript
TYRO PAYMENTS LIMITED
- Issuer webcast
2025 earnings call transcript
TYRO PAYMENTS LIMITED
- Issuer IR
H1 2025 earnings call transcript
TYRO PAYMENTS LIMITED
- Issuer IR
Earnings call transcript
TYRO PAYMENTS LIMITED
Documents
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