Tyro shares slide after FY25 profit fell 31%
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More news: Shares in Tyro Payments have fallen after the payments technology provider reported that statutory net profit fell 31% year on year in FY25 and total transaction value (TTV) was flat amid takeover interest.
At 12:09pm AEST, shares in Tyro had slipped 5% to $1.14.
UBS analysts meanwhile flagged that while Tyro’s payments revenue for the second half of 2025 lifted by 2% year on year, it missed UBS expectations by 2%.
They also flagged that the FY26 EBITDA margin guidance range implies that EBITDA will be “roughly inline with consensus at mid-point”. The analysts noted it is “positive to see signs of a turning point in TTV churn and improved TTV growth trends through” the fourth quarter of FY25 and into July and August 2025.
Tyro net profit falls to $17.8m following takeover interest
The news: Tyro Payments has posted a statutory net profit after tax of $17.8 million, down from $25.7 million the year prior as the company fields takeover interest.
The numbers: It comes as transaction value remained largely flat, hitting $43 billion in FY24, up just 0.2% on the year prior.
The company's EBITDA grew 10.6% to $61.6 million with a margin of 28% in FY25.
Gross profit grew 4.4% to $220.1 million driven by payments growth especially in Tyro Health.
There was a 43% increase in banking users and 6.7% growth in gross banking profit to $13.4 million.
Tyro continued to generate free cash flow, recording $19.6 million over the financial year, as the company cut operating costs by 2.2%.
The company guided gross profit growth of between 4.5% and 9% for FY26, providing a range of $230 million to $240 million, and EBITDA margins in the range of 28.5% and 30%.
The context: The full year financial results came two weeks after Tyro told the ASX it had received a number of unsolicited non-binding takeover offers.
In its annual report on Tuesday, chair Fiona Pak-Poy said a well-capitalised balance sheet would give the company the ability to pursue its own M&A and other opportunities.
"This gives us significant capacity to pursue future opportunities, both organic and inorganic. During the year, we actively explored an acquisition of a competitor that would have leveraged our strong financial position in a transaction we believed would unlock meaningful value for shareholders of both businesses," Pak-Poy said.
"While the transaction didn’t proceed, the board remains fully committed to supporting management as we continue to assess a range of potential M&A and strategic opportunities."
The sources: ASX, UBS research
