Earnings call transcript: Tyro Payments posts stronger FY 2026 cash flow, shares edge up

Tyro Payments Limited reported stronger FY 2026 results, surpassing expectations with higher earnings, robust cash generation, and accelerated core payment growth. The company's stock rose 0.57% to $0.88 from $0.875. Tyro's gross profit increased 5.3% to AUD 231.8 million, EBITDA grew 8.6% to AUD 66.9 million, and free cash flow jumped 49.5% to AUD 29.4 million.

Management highlighted the accelerating adoption of banking services and consistent gains in health care, despite regulatory changes and a challenging small-business environment. The payments business contributed the most, with total transaction value up 2.9% to AUD 44.3 billion and core payment volumes growing 4.4%. Health care transactions increased 6.4% to AUD 7.9 billion, with significant growth in allied health (26%) and dental (19%).

Banking also gained traction, with active accounts rising to 14,500 from 10,500, deposits up 27.3% to AUD 118.9 million, and loan originations up 19.4% to AUD 187.8 million. Tyro expects health care growth to normalize once bulk billing funding changes are fully implemented in late 2025. CEO Nigel Lee emphasized the company's focus on execution and selective growth, noting the company is well-positioned to capitalize on market opportunities despite regulatory challenges.