Here's why the Tyro (ASX:TYR) share price is leaping 5% today

Tyro shares are rallying to year-to-date highs.

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The Tyro Payments Ltd (ASX: TYR) share price is a top performer today, rallying 5.87% to $3.97.

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What's lifting the Tyro share price on Monday?

Weekly COVID-19 trading update

Tyro has been providing weekly transaction value updates since March 2020. This measure was introduced to provide transparency as to the impact of COVID-19 on its EFTPOS machines business.

This week's update highlighted a 28% increase in date-on-date transaction values to 3 September of $219 million.

While September year-to-date figures were up 23% to $4.579 billion.

Tyro's transaction value has remained buoyant despite prolonged lockdowns taking place across Victoria and New South Wales.

Tyro joins the ASX 200

S&P Dow Jones Indices announced a rebalance on Friday 3 September. The rebalance will be effective before market open on 20 September.

The Tyro share price, in addition to Lifestyle Communities Limited (ASX: LIC), Pinnacle Investment Management Group Ltd (ASX: PNI) and SeaLink Travel Group Ltd (ASX: SLK), will be added to the S&P/ASX 200 Index (ASX: XJO).

While weak performers G8 Education Ltd (ASX: GEM), NRW Holdings Limited (ASX: NWH), Nuix Ltd (ASX: NXL) and Westgold Resources Ltd (ASX: WGX) will be removed from the index.

Tyro shares performing strongly post-FY21 results

The Tyro share price has rallied 10.5% since releasing its FY21 results on Thursday 26 August.

Despite terminal connectivity issues in January and rolling COVID-19 lockdowns across major cities, the company delivered a well-rounded result.

The payment solutions company delivered a 26% increase in transaction values to a record $25.5 billion and a 13% increase in revenue to $238.5 million.

The company's bottom line showed signs of improvement with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.2 million compared to a $4.4 million loss in FY20. This is in addition to a normalised net loss before tax of $10.9 million, compared to a $25.9 million loss in FY20.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended PINNACLE FPO and Tyro Payments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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