Tyro Payments Ltd (ASX: TYR), a prominent player in the S&P/ASX 300 Index (ASX: XKO), is experiencing a notable surge in its share price today. As of late morning trade on Wednesday, Tyro shares have risen to $1.012, marking a 0.7% increase from yesterday’s closing price of $1.005. This rise is particularly significant given that the ASX 300 index remains relatively flat during the same period.
This upward trend is consistent with Tyro’s performance throughout 2025, with its share price climbing 21.2% year-to-date. In contrast, the benchmark index has only seen a 4.9% increase. Looking ahead, financial experts like Jabin Hallihan from Family Financial Solutions predict continued outperformance for this ASX 300 tech share.
Reasons to Consider Investing in Tyro Payments
Jabin Hallihan, a noted financial analyst, provides several compelling reasons to consider investing in Tyro Payments. He emphasizes the company’s robust financial outlook and innovative strategies as key factors driving his buy recommendation.
Strong Financial Guidance
One of the primary reasons Hallihan advocates for Tyro is the company’s reaffirmed fiscal 2026 guidance. “The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5% and 30%,” Hallihan noted. This strong financial forecast underscores Tyro’s potential for sustained growth.
Innovative Banking Solutions
Another factor contributing to Tyro’s appeal is its launch of a new banking platform aimed at enhancing merchant adoption. Hallihan remarked, “Tyro is launching a new banking platform to boost merchant adoption.” This move is expected to further solidify Tyro’s position in the competitive financial services sector.
Growth Potential and Valuation
Hallihan also highlighted Tyro’s modern technology and strong performance as key drivers of its growth potential. Additionally, he pointed out that Tyro shares are currently trading more than 28% below Family Financial’s fair value estimate. “Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock,” he concluded.
Recent Developments and Strategic Initiatives
Tyro Payments recently closed up 2% on November 26, coinciding with its annual general meeting (AGM). During the AGM, CEO Jon Davey expressed optimism about the company’s strategic progress and profitability. Davey stated, “We have made good progress against our strategic initiatives and in making Tyro a more profitable business.”
In FY25, we increased our gross profit to $220.1 million, representing growth of 4.4% and we improved our EBITDA margin to 28.0%. Today we are reaffirming our FY26 guidance, which is to generate between $230 million and $240 million of gross profit and an EBITDA margin of between 28.5% and 30%.
Exploring Growth Opportunities
Tyro’s chair, Fiona Pak-Poy, also highlighted the company’s focus on exploring growth opportunities across three key areas. She explained, “The first is building greater payments scale, as the transaction with SmartPay offered. The second is acquiring payments capabilities or software in support of our omnichannel offering, much like Medipass has done for Tyro Health. The third category is banking, and we will explore opportunities to grow our banking book where there is strong payments overlap.”
Implications and Future Outlook
The strategic initiatives and financial guidance provided by Tyro Payments signal a promising future for the company. As it continues to innovate and expand its offerings, the tech share is well-positioned to capitalize on emerging opportunities within the financial services industry.
Investors and market analysts will be closely monitoring Tyro’s progress as it implements its strategic plans and seeks to enhance shareholder value. With its current trajectory, Tyro Payments remains a standout in the ASX 300 tech sector, offering potential rewards for those willing to invest in its growth story.
