Shares of Tyro Payments Ltd (TYR.AU) plunged 10.42% in Tuesday's trading session following the release of its fiscal year 2025 financial results, which fell short of analysts' expectations. The disappointing earnings report has raised concerns among investors about the company's growth trajectory and profitability.
Tyro Payments reported earnings of AU$0.0331 per share for the fiscal year ended June 30, 2025, down from AU$0.0477 in the previous year. This figure missed the FactSet analysts' consensus estimate of AU$0.04 per share. Revenue also declined to AU$487.3 million from AU$497.7 million a year earlier, falling short of the AU$492.3 million forecast by analysts. The company's net income for the fiscal year stood at AU$17.8 million, while EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at AU$61.6 million.
Despite the disappointing results, Tyro Payments provided guidance for fiscal year 2026, projecting gross profit growth between AU$230 million and AU$240 million. The company also expects an EBITDA margin of 28.5% to 30% for FY2026. However, these forward-looking statements were not enough to offset the negative sentiment caused by the earnings miss, leading to the sharp sell-off in the stock. Investors will be closely watching Tyro's performance in the coming quarters to see if the company can meet its projected targets and regain market confidence.