How Tyro Payments Is Shaping FY26 Growth With AI and Market Expansion
Tyro Payments Limited reported FY25 results with strong top-line growth and margin expansion, setting a confident outlook for FY26 backed by AI-driven efficiency and an expanded market.
- FY25 gross profit reached $220.1 million, aligning with guidance
- EBITDA margin expanded to 28.0%, demonstrating improved profitability
- Payments volume growth and banking portfolio gains continue into FY26
- Addressable market expanded by over $40 billion through new partnerships
- AI integration boosts operational efficiency and customer service
Strong FY25 Performance Anchors Future Growth
Tyro Payments Limited has delivered a robust FY25 financial performance, reporting a gross profit of $220.1 million and an EBITDA margin of 28.0%, both comfortably within the company’s guidance range. This marks a continuation of steady growth and margin expansion, underpinned by disciplined financial management and strategic focus.
CEO Jon Davey highlighted that FY25 was a foundational year, setting the stage for sustained momentum in both payments and banking segments as the company moves into FY26. The firm’s gross profit grew by 4.4% year-on-year, while EBITDA increased by over 10%, reflecting improved operational leverage and cost control.
Payments and Banking, Dual Engines of Growth
Tyro’s payments business showed resilience despite macroeconomic headwinds, with transaction volumes (TTV) stabilizing and even showing positive growth in recent months. New business written grew by 19% overall, and by 29% in the retail and hospitality sectors, signaling strong front-book momentum. Meanwhile, the banking division saw a 27% increase in active accounts and a 15% rise in loan originations, contributing to improved profitability and deposit growth.
The company’s strategic expansion into new verticals, including pet insurance, aged care, and automotive services, has broadened its addressable market by more than $40 billion. This diversification is complemented by enhanced product offerings such as next-generation terminals, embedded payments on mobile platforms, and instant payment links for merchants.
Leveraging AI for Efficiency and Innovation
Tyro has made significant strides in integrating artificial intelligence across its operations, achieving notable reductions in call handling times and faster resolution of customer queries. AI-driven process automation and data-driven decision-making have improved productivity and service quality, positioning the company to scale innovation while maintaining cost discipline.
CFO Emma Burke emphasized the company’s strong cash generation, with free cash flow remaining robust despite one-off items. Tyro’s available own funds stand at approximately $140 million, providing flexibility for further investment or potential shareholder returns, subject to regulatory approval.
Looking Ahead, Confident FY26 Guidance
Tyro’s outlook for FY26 remains positive, with guidance targeting gross profit between $230 million and $240 million and an EBITDA margin of 28.5% to 30%. The company aims to leverage its proprietary payment technology, omni-channel capabilities, and integrated banking solutions to drive profitable growth. The focus on SME, large, and enterprise customers, combined with a refined strategic approach, underpins expectations for continued market share gains and improved customer economics.
Overall, Tyro Payments appears well-positioned to capitalize on its investments in technology and market expansion, delivering value to shareholders while navigating a competitive and evolving financial services landscape.
Bottom Line?
Tyro’s FY25 results lay a solid foundation, but execution on AI initiatives and market expansion will be key to sustaining momentum in FY26.
Questions in the middle?
- How will Tyro balance investment in growth with maintaining cost discipline amid competitive pressures?
- What impact will AI-driven efficiencies have on long-term customer acquisition and retention?
- Can Tyro sustain its banking portfolio growth while managing credit risk in a changing economic environment?
