Tyler Technologies Inc
NYSE:TYL
Tyler Technologies Inc
Tyler Technologies Inc., founded in 1966 and headquartered in Plano, Texas, is a company that has masterfully positioned itself at the intersection of technology and governance, effectively becoming the digital backbone for countless municipal, county, and state agencies across the United States. Its suite of software solutions addresses a wide spectrum of administrative needs — from public safety and courts to tax appraisal and school management. Rather than simply selling off-the-shelf software, Tyler engages in a deeply consultative sale process, customizing its offerings to fit the distinctive workflows and regulatory requirements of each client. This tailored approach not only enhances operational efficiency but also fosters long-term client relationships.
The revenue engine for Tyler Technologies hums on a business model that combines both upfront software licensing and a recurrent stream of subscription and maintenance fees. By securing long-term contracts, the company enjoys a steady and predictable income from its client base, which values the stability and ongoing support that Tyler provides. With governments increasingly seeking to modernize their technology infrastructures, Tyler capitalizes on this trend by offering cloud-based solutions and seamlessly integrating its products into existing systems. The dependability and security of Tyler’s offerings, coupled with its domain expertise, make it a formidable player in the public sector technology market, sustaining its growth and profitability over the years.
Tyler Technologies Inc., founded in 1966 and headquartered in Plano, Texas, is a company that has masterfully positioned itself at the intersection of technology and governance, effectively becoming the digital backbone for countless municipal, county, and state agencies across the United States. Its suite of software solutions addresses a wide spectrum of administrative needs — from public safety and courts to tax appraisal and school management. Rather than simply selling off-the-shelf software, Tyler engages in a deeply consultative sale process, customizing its offerings to fit the distinctive workflows and regulatory requirements of each client. This tailored approach not only enhances operational efficiency but also fosters long-term client relationships.
The revenue engine for Tyler Technologies hums on a business model that combines both upfront software licensing and a recurrent stream of subscription and maintenance fees. By securing long-term contracts, the company enjoys a steady and predictable income from its client base, which values the stability and ongoing support that Tyler provides. With governments increasingly seeking to modernize their technology infrastructures, Tyler capitalizes on this trend by offering cloud-based solutions and seamlessly integrating its products into existing systems. The dependability and security of Tyler’s offerings, coupled with its domain expertise, make it a formidable player in the public sector technology market, sustaining its growth and profitability over the years.
Revenue: Q4 revenue was $575.2 million, up 6.3%, though growth would have been 8.1% excluding a one-time reserve for a contract dispute.
Recurring Revenue: Recurring revenue rose 11%, with SaaS revenue up just over 20% and transaction-based revenue up 12%.
Free Cash Flow: Free cash flow for Q4 reached a record $236.9 million, up nearly 10%, with a margin of 41%.
SaaS Momentum: SaaS bookings rose 9.6% in Q4, with strong momentum in flipping on-prem clients to cloud. Annual contract value from flips soared 64.5% YoY.
2026 Guidance: 2026 revenue is guided to $2.5–$2.55 billion (implying ~8.3% growth); SaaS revenue expected to grow 20.5–22.5%.
Capital Allocation: Tyler announced a new $1 billion share repurchase program, citing strong cash flow and balance sheet to support both buybacks and M&A.
AI Progress: Tyler highlighted successful deployment of its AI assistant in 6 states and is integrating more AI-powered features, with practical, embedded solutions prioritized.
M&A Activity: Four acquisitions completed in 2025; a definitive deal signed to acquire For The Record, expected to close in Q1 2026.
