Fund Manager Summary on Tyro Payments Ltd (ASX:TYR)
In December 2025, Tamim Funds Management commented that Tyro Payments Ltd (ASX:TYR) agreed to acquire Thriday, an AI-powered financial management platform to expand beyond payments into integrated SME banking, cash-flow management and accounting automation and deepen customer engagement. Across fund manager commentary the consensus is that Tyro has materially strengthened its operating performance and is pursuing strategic expansion and potential consolidation: managers point to a profitable FY25 H1 with EBITDA rising to $33 million and net profit around $10.5 million, gross profit growth and improved margins, merchant scale of over 73,000, and strong traction in healthcare where Tyro processes $7 billion against a large total addressable market; they highlight banking growth (rising active accounts), new services under development, operating leverage and cost discipline as drivers of medium-term profit improvement, while strategic actions include the Smartpay approach and multiple takeover approaches (including reported interest from Stripe) and now the Thriday acquisition which should increase revenue per merchant and embed payments into broader services (with Smartpay previously cited as potentially delivering sizeable synergies). Reported risks and strategic considerations include regulatory exposure from the RBA payments review and past surcharging debate, execution and integration risk from acquisitions and management turnover, sensitivity to consumer spending in hospitality and retail, uncertainty around takeover pricing and board decisions, and the need to convert banking and vertical initiatives into sustained gross profit and EBITDA growth; investors should therefore monitor regulatory developments, integration progress on Thriday (and any Smartpay outcome), banking penetration and active account metrics, margin and EBITDA trajectory, and any firm takeover proposals or board responses.
Commentary From The Managers
There are 16 insights from 5 fund managers regarding their investment in Tyro Payments Ltd (ASX:TYR) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Tamim Funds Management
31 Dec 2025
$1.00
Summary
- Tamim Funds Management believes the acquisition of Thriday meaningfully accelerates Tyro's transition to an integrated SME banking and financial management platform and continues to hold because it strengthens customer engagement and monetisation potential.
- Deal details: Agreed in December 2025; completion expected January 2026; Thriday is an AI-powered financial management platform for small businesses.
- Product expansion: Extends Tyro beyond payments into SME banking, cash-flow management and accounting automation, creating a broader value proposition for merchants.
- Strategic rationale: Embedding payments inside a wider financial services ecosystem increases stickiness, deepens engagement and creates multiple cross‑sell and upsell pathways.
- Customer value: An integrated stack simplifies small business finance, improving retention and lifetime value for merchants.
- Execution focus: Rapid integration of Thriday’s AI capabilities and alignment of product roadmaps are critical to realise the anticipated benefits.
- Competitive positioning: The combined offering differentiates Tyro by moving from standalone payments toward an end‑to‑end small business financial platform.
- Upside drivers: Higher take‑rates on embedded banking services, increased revenue per merchant and a more recurring revenue mix.
- Risks to monitor: Integration execution, delivery against timeline and SME adoption rates will determine the pace of value capture.
Monash Investors
30 Sept 2025
$1.12
Summary
- Monash Investors views Tyro Payments as a relatively recent position in their portfolio.
- Tyro experienced a strong rise in August due to takeover speculation.
- In September, Tyro's stock has been drifting back as speculation has not resulted in follow-through.
- The company has received multiple approaches, but pricing has not been acceptable to the Board.
- Monash Investors acknowledges working with imperfect information regarding the offers made to Tyro.
- They find Tyro attractive on a stand-alone and going concern basis.
- Monash Investors believes Tyro has strategic value and will either be acquired or continue to grow independently.
- Overall, Monash Investors considers Tyro to be an attractive asset for their portfolio.
DMX Asset Management
30 Sept 2025
$1.12
Summary
- DMX Asset Management considers Tyro Payments a relatively recent and small position in their portfolio.
- Tyro Payments saw a strong rise in August due to takeover speculation.
- In September, the stock has been drifting back as speculation hasn’t been met with follow-through.
- The company has received multiple approaches, but pricing hasn’t been acceptable to the Board.
- DMX Asset Management acknowledges working with imperfect information regarding the offers made.
- On a stand-alone and going concern basis, DMX finds the asset attractive due to its strategic value.
- DMX believes Tyro will either be taken out or continue to grow in its current independent form.
- Overall, DMX Asset Management views Tyro as an attractive asset for the portfolio.
Jencay Capital
30 Sept 2025
$1.12
Summary
- Leading provider of merchant acquiring and payment services in Australia.
- Significant share in the health, hospitality, and retail segments.
- F25 results were in line with expectations and guidance.
- The new year has started positively with transaction volumes lifting due to improved consumer spending.
- Gaining traction in the automotive servicing vertical, integrated with a leading POS partner.
Tamim Funds Management
31 Aug 2025
$1.25
Summary
- Tamim Funds Management notes Tyro (ASX: TYR) reported a solid financial performance with 10.6% year-on-year growth and a 4.5% increase in gross profit to $220.1 million.
- The company is experiencing positive momentum across key areas: banking, payments, and new verticals.
- Tyro's banking platform saw a 43% increase in active accounts, following the launch of a new platform.
- The payments business showed a 5.3% growth, while the health segment continues to perform strongly with 15% TTV growth and higher margins.
- Tamim Funds Management highlights the company's optimism about future growth, targeting 4.5-9% gross profit growth in FY26 and improved EBITDA efficiency.
- The focus is on strategic areas like pet insurance, automotive, and health payments, leveraging unique market positioning.
- The macro environment is showing signs of improvement, positioning Tyro at an inflection point with potential to reach the top end of guidance.
- During the month, Tyro announced several takeover approaches have been received, indicating a high likelihood of acquisition.
- Similar to previous investments, such as Smartpay (SMP), Tamim Funds Management believes TYR is a strategic target for acquisition in Australia.
- Any potential takeover bid could lead to a bidding war.
Forager Funds
31 Aug 2025
$1.25
Summary
- Tyro Payments (TYR) reported a decent financial result.
- There is ongoing takeover speculation surrounding the company.
- Tyro confirmed it has received interest from multiple parties.
- However, the offers are not yet at board-acceptable prices.
- Forager Funds continues to hold its position in Tyro Payments due to these developments.
DMX Asset Management
31 Aug 2025
$1.25
Summary
- Recent portfolio addition: DMX Asset Management has included Tyro Payments in its portfolio.
- Revenue and profit growth: Tyro Payments reported revenue and profit growth in-line with guidance.
- FY2026 guidance: The company has provided FY2026 guidance that reflects the continuation of these trends.
- Increased profitability: Profitability has increased and is expected to continue as the company benefits from operating leverage.
- New services development: Tyro Payments is developing new services which are expected to support medium to longer-term growth.
- Share performance: Shares rose 30% due to confirmed takeover speculation, with multiple parties interested in acquiring the business.
- Advances in portfolio: The portfolio benefited from advances with a number of smaller holdings, particularly Tyro Payments.
Forager Funds
19 June 2025
$0.84
Summary
- Tyro operates Australia’s largest non-bank payment terminal network, servicing over 73,000 merchants in healthcare, hospitality, and retail.
- Gross profit grew by 7% in the first half of the 2025 financial year, with expenses well controlled.
- Earnings increased by 21% and guidance for the year was reaffirmed.
- The business is on solid footing again, with attractive valuations.
- Recent reports indicate that Stripe is considering Tyro, which could enhance its scale in Australia.
- Tyro has previously attracted interest from acquirers, including Potentia and Westpac in late 2022.
- Potentia's bid of $1.60 represented an almost 80% premium to current trading levels.
- With the upcoming departure of Tyro’s CEO, potential for acquisition is heightened.
Forager Funds
18 June 2025
$0.84
Summary
- Forager Funds notes that Tyro operates Australia’s largest non-bank network of payment terminals, servicing over 73,000 merchants in key sectors.
- The business achieved 7% growth in gross profit during the first half of the 2025 financial year, with expenses controlled effectively.
- Earnings increased by 21%, and guidance for the year has been reaffirmed.
- Tyro's business is on solid footing with attractive valuations.
- Recent reports indicate that private payments provider Stripe is evaluating Tyro, recognizing its potential for scaling in Australia.
- The acquisition interest is notable, as Tyro previously attracted bids from Potentia and Westpac.
- During late 2022, Potentia offered $1.60, representing an 80% premium to current trading levels.
- With the upcoming departure of Tyro's CEO, the potential for an acquisition remains open.
Tamim Funds Management
3 Apr 2025
$0.76
Summary
- Tyro Payments Ltd is a profitable fintech leader expanding across multiple high-growth verticals.
- In FY25 H1, Tyro achieved its most profitable period since IPO, with EBITDA growing 12x to $33 million and net profit reaching $10.5 million.
- Gross profit has compounded at 18% annually since listing.
- The healthcare payments vertical is particularly strong, processing $7 billion annually with a 7% market share.
- This segment has a total addressable market of $100 billion, providing significant growth potential.
- Tyro is outpacing industry growth, especially in general practice and allied health, with potential to generate $39 million in gross profit over the next three years.
- The company is developing its banking arm through a partnership with Constantinople, aiming to increase banking's contribution to 20% of gross profit.
- New lending and deposit products are expected to deepen merchant relationships.
- Tyro remains a strategic asset with M&A appeal, with past takeover bids priced at $1.50+.
- The current valuation of 5.3x EBITDA is considered compelling.
- With a strong balance sheet, optional buybacks, and visible growth in fintech and banking infrastructure, Tyro is positioned as a platform business ready to scale.
Forager Funds
31 Mar 2025
$0.77
Summary
- Forager Funds updates their investment thesis on Tyro Payments Ltd (TYR).
- Tyro has made a non-binding bid for competing terminal provider Smartpay (SMP).
- Smartpay focuses on surcharging payment solutions for small merchants in Australia and New Zealand.
- The company fell out of favour due to RBA Payments Review and potential surcharging bans.
- Forager Funds continues to hold because they see strategic value in the acquisition.
Jencay Capital
31 Mar 2025
$0.77
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Tamim Funds Management
28 Feb 2025
$0.88
Summary
- Tamim Funds Management highlights Tyro Payments (ASX: TYR) as a leading fintech player.
- Tyro has demonstrated a remarkable financial turnaround, achieving its most profitable period in the first half of FY25.
- Since its IPO, Tyro has experienced an 18% compound annual growth in gross profit, increasing from $68 million to $112 million.
- EBITDA growth has surged 12x, reaching $33 million, with a shift from an $11 million loss to a $10.5 million profit.
- The company’s strategy focuses on disciplined cost management and targeted expansion into high-growth sectors.
- The healthcare sector is a key growth engine, with Australia’s healthcare payments market projected to reach $100 billion annually.
- Tyro processes $7 billion in healthcare payments, capturing a 7% market share and achieving a 24% compound annual growth rate in healthcare transactions.
- Tyro’s omni-channel capabilities integrate online and in-person payment solutions effectively.
- The company connects with over 120 payment providers, including private health insurers and Medicare.
- In key healthcare segments, Tyro holds a 30% market share in general practitioners, 2% in allied health, and 1% in dental.
- Tyro is entering a new vertical with a total addressable market of $5-10 billion, aiming to automate processes and enhance merchant value.
- This initiative is expected to generate $2-3 billion in transaction value over three years, with a gross profit potential of approximately $39 million.
- Tyro’s banking division currently contributes 7% of gross profit, with plans to increase this to 20% through partnerships.
- The banking expansion strategy includes transaction accounts, cash flow lending solutions, and term deposits.
- With $155 million in cash, Tyro is exploring capital management strategies, including potential share buybacks.
- The company is evaluating strategic acquisitions to enhance its technological infrastructure, with Smartpay (SMP) as a compelling opportunity.
- Processing SMP transactions in-house could unlock significant cost synergies, potentially adding $40 million in EBITDA.
- CEO John David has outlined a roadmap focused on further penetration in healthcare, expansion into new verticals, and advancing banking services.
- Tyro is well-positioned to capitalize on evolving market dynamics, trading at 5.3x EBITDA and appearing significantly undervalued.
- Given previous takeover bids at $1.50+ per share in 2022, Tyro remains an attractive acquisition target.
Jencay Capital
31 Dec 2024
$0.82
Summary
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Forager Funds
31 Dec 2024
$0.82
Summary
- Forager Funds acknowledges the recent regulatory uncertainty impacting Tyro Payments Ltd.
- The RBA's review and government announcements have created challenges in the payments sector.
- Tyro's exposure to debit card surcharging is assessed as small and manageable.
- Tyro benefits from a diversified suite of payment products, serving nearly seventy thousand merchants.
- The company's scale positions it well to adapt to a new regulatory environment.
- Some competitors are less equipped, offering Tyro a chance to grow at their expense.
- A stabilisation of economic conditions and regulatory clarity is expected to bolster Tyro's growth.
- Forager Funds continues to hold because of the potential for increased investor attention as growth resumes.
Forager Funds
30 Sept 2024
$0.94
Summary
- Tyro Payments Ltd. reported 9% gross profit growth.
- 32% increase in earnings before interest, tax, depreciation and amortisation.
- Business faced macro-driven headwinds in discretionary payments.
- Banking division experienced lower deposits and originations.
- Improved cost control enhanced margins, expected to continue.
- Projected acceleration of gross profit growth to over 10% next year.
- This growth should support free cash flow growth.
- Forager Funds continues to hold because of the ongoing improvements in margin and growth prospects.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Tyro Payments Ltd (ASX:TYR)?
Fund managers including Forager Funds, Jencay Capital, DMX Asset Management, Tamim Funds Management and Monash Investors have invested in Tyro Payments Ltd (ASX:TYR).
Why do fund managers invest in Tyro Payments Ltd?
Fund managers invest in Tyro Payments Ltd due to its strong market position as a leading provider of payment services in Australia, with solid growth prospects in key sectors like healthcare, hospitality, and retail. The company has shown impressive earnings growth and cost management, reaffirming revenue guidance. Additionally, Tyro's potential acquisition of Smartpay may create significant synergies. With a robust financial foundation and ongoing expansion, Tyro presents an attractive risk/reward profile for investors.
What happened to Tyro Payments Ltd (ASX:TYR)?
Fund managers view Tyro Payments Ltd as an attractive investment due to its strategic value within the merchant acquiring and payment services sector in Australia. Despite recent fluctuations in share price driven by takeover speculation, they recognize the company's significant market share in health, hospitality, and retail, along with positive performance indicators for F25. Notable growth in transaction volumes and advancements into new verticals, such as automotive servicing, further bolster their confidence in Tyro's independent growth potential.
What is the short interest in Tyro Payments Ltd (ASX:TYR)?
The short interest in Tyro Payments Ltd (ASX:TYR) is 1.40% which makes it the 179th most shorted stock on the ASX. Of the 530.7M shares that Tyro Payments Ltd has on issue, 7.4M have been sold short.
What does Tyro Payments Ltd (ASX:TYR) do?
Tyro Payments Ltd. engages in the provision of merchant credit, debit and EFTPOS acquisition services. It operates through the Payments and Banking segments. The Payments segment provides electronic payment transactions from merchants. The Banking segment deals with banking services and loans to merchants. The company was founded by Peter Haig, Andrew Rothwell, and Paul Wood in 2003 and is headquartered in Sydney, Australia.