Tyler Technologies (NYSE: TYL) delivers 2025 SaaS growth and sets 2026 outlook

Rhea-AI Filing Summary

Tyler Technologies, Inc. reported solid growth for the fourth quarter and full year 2025. Fourth quarter revenues were $575.2 million, up 6.3%, with recurring revenues of $514.4 million rising 10.9% and making up 89.4% of total revenue. SaaS revenues grew 20.2% to $208.3 million, while a non-cash loss reserve of about $9.7 million reduced non-recurring revenue and operating income. For 2025, total revenues reached $2.3 billion, up 9.1%, and GAAP net income was $315.6 million, or $7.20 per diluted share, up 20.0%. Free cash flow was $620.8 million, up 8.0%, and the company repurchased 303,067 shares for approximately $175 million while completing four strategic acquisitions, including CloudGavel and Edulink. For 2026, Tyler forecasts revenues of $2.50–$2.55 billion, GAAP EPS of $8.36–$8.61, non-GAAP EPS of $12.40–$12.65, and free cash flow margin of 26–28%.

Insights

Equity research analyst

Tyler posts steady 2025 growth, strong SaaS expansion, and offers detailed 2026 guidance.

Tyler Technologies delivered 2025 revenue of $2.3 billion, up 9.1%, with recurring revenue of $2.0 billion growing 12.5%. SaaS revenue rose more than 20%, reaching $777.8 million, underscoring the ongoing shift toward subscription-based models.

Profitability metrics also advanced, with GAAP net income of $315.6 million up 20.0% and adjusted EBITDA of $650.4 million, up 14.5%. Free cash flow of $620.8 million and year-end cash of $1,015.4 million highlight strong cash generation, alongside a non-cash $9.7 million contract dispute reserve in Q4.

Capital allocation remained active: four acquisitions, including CloudGavel and Edulink, totaled about $54 million in Q4, and $175 million of stock was repurchased in 2025. For 2026, management guides to revenue of $2.50–$2.55 billion, non-GAAP EPS of $12.40–$12.65, and free cash flow margin of 26–28%, framing expectations for the next year.

0000860731false00008607312026-02-112026-02-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________

FORM 8-K

_____________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 11, 2026 (February 11, 2026)

Date of Report (Date of earliest event reported)

_____________________________________________

TYLER TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

_____________________________________________

Delaware

1-10485

75-2303920

(State or other jurisdiction of incorporation organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

5101 TENNYSON PARKWAY			PLANO			Texas			75024
(Address of principal executive offices)			(City)			(State)			(Zip code)

(972) 713-3700

(Registrant’s telephone number, including area code)

    Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

Title of each class			Trading symbol			Name of each exchange on which registered
COMMON STOCK, $0.01 PAR VALUE			TYL			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02     Results of Operations and Financial Condition         

On February 11, 2026, Tyler Technologies, Inc. issued the earnings news release announcing results from operations and financial condition as of December 31, 2025, attached hereto as Exhibit 99.1, which news release is incorporated by reference herein.

Exhibit number						Exhibit description
99.1						News Release issued by Tyler Technologies, Inc. dated February 11, 2026
104						Cover Page Interactive Data File (embedded in the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						TYLER TECHNOLOGIES, INC.
									/s/ Brian K. Miller
February 11, 2026						By:			Brian K. Miller Executive Vice President and Chief Financial Officer (principal financial officer)

Tyler Technologies Reports Earnings for Fourth Quarter 2025

SaaS revenues grew 20.2% and cash flow reached a new high for a fourth quarter

PLANO, Texas – February 11, 2026 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value S&P 500 company, today announced financial results for the fourth quarter ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights (all comparisons are to the fourth quarter of 2024):

Revenues

Total revenues were $575.2 million, up 6.3%.

•During the fourth quarter, we recorded a non-cash loss reserve related to a previously disclosed contract dispute, which reduced non-recurring revenues and operating income by approximately $9.7 million.

Recurring Revenues

Recurring revenues were $514.4 million, up 10.9%, and comprised 89.4% of total revenues, up from 85.7%.

•Subscription revenues were $405.0 million, up 16.1%.

◦Within subscriptions:

◦SaaS revenues grew 20.2% to $208.3 million.

◦Transaction-based revenues grew 12.1% to $196.7 million.

•Annualized recurring revenue (ARR) was $2.1 billion, up 10.9%.

Earnings/EBITDA

•GAAP operating income was $75.0 million, up 4.6%. Non-GAAP operating income was $138.5 million, up 5.1%.

•GAAP net income was $65.5 million, or $1.50 per diluted share, up 0.5%. Non-GAAP net income was $115.1 million, or $2.64 per diluted share, up 7.8%.

•Adjusted EBITDA was $149.0 million, up 4.4%.

Cash Flow

•Cash flows from operations were $243.9 million, up 8.5%.

•Free cash flow was $236.9 million, up 9.7%.

Acquisitions

During the fourth quarter, we completed the acquisitions of CloudGavel and Edulink for a total of approximately $54 million in cash, net of cash acquired.

Tyler Technologies Reports Earnings

for Fourth Quarter 2025

February 11, 2026

Page 2

Full Year 2025 Financial Highlights (all comparisons are to the full year of 2024):

Revenues

Total revenues were $2.3 billion, up 9.1%.

Recurring Revenues

Recurring revenues were $2.0 billion, up 12.5%, and comprised 87.1% of 2025 revenues, up from 84.5%.

•Subscription revenues were $1.6 billion, up 18.1%.

◦Within subscriptions:

◦SaaS revenues grew 20.6% to $777.8 million.

◦Transaction-based revenues grew 15.8% to $808.4 million.

Earnings/EBITDA

•GAAP operating income was $357.7 million, up 19.4%. Non-GAAP operating income was $606.7 million, up 15.8%.

•GAAP net income was $315.6 million, or $7.20 per diluted share, up 20.0%. Non-GAAP net income was $495.5 million, or $11.31 per diluted share, up 19.3%.

•Adjusted EBITDA was $650.4 million, up 14.5%.

Cash Flow

•Cash flows from operations were $653.5 million, up 4.6%.

•Free cash flow was $620.8 million, up 8.0%.

•We repurchased 303,067 shares of our common stock during the year for approximately $175 million.

“We closed 2025 with solid fourth quarter results, as our key performance metrics of recurring revenues and free cash flow both surpassed expectations,” said Lynn Moore, Tyler’s president and chief executive officer. “SaaS revenue growth exceeded 20%, and free cash flow reached a new high for a fourth quarter at $237 million.

“Total SaaS bookings in the quarter grew 9.6%, reflecting continued strength in the public sector market, supported by generally healthy budgets that continue to drive an active pipeline for Tyler's solutions. We saw strong momentum from cloud conversions, as both the number and value of flips signed during the quarter represented new quarterly highs, and the SaaS annual contract value from flip signings rose 64.5%. Leading sales indicators remain stable at elevated levels as public sector agencies continue their digital modernization efforts, including growing adoption of our integrated AI-enabled applications.

Tyler Technologies Reports Earnings

for Fourth Quarter 2025

February 11, 2026

Page 3

"We remain highly focused on disciplined capital allocation and being responsible stewards of Tyler's capital to drive long-term shareholder value. During the year, we completed four strategic acquisitions to deepen our capabilities and expand our addressable market, with two of those closed in the fourth quarter. We repurchased $175 million of our stock, and directed targeted investments to support growth and efficiency, including investments in client-centric, embedded AI solutions grounded in deep domain expertise, security, and trust. Our recently announced board authorization of a new $1 billion share repurchase program reflects our confidence in the trajectory of our business, supported by our extremely strong balance sheet and reliable cash generation. We enter 2026 with tremendous optimism about the future of Tyler and continued confidence in achieving our 2030 targets,” concluded Moore.

Annual Guidance for 2026

As of February 11, 2026, Tyler Technologies is providing the following guidance for the full year 2026:

•Total revenues are expected to be in the range of $2.50 billion to $2.55 billion.

◦Subscription revenues are expected to grow between 12% and 15%.

▪Within subscriptions:

•SaaS revenues are expected to grow between 20.5% and 22.5%.

•Transaction revenues are expected to grow between 5% and 7% (between 10% and 12% excluding the impact of the termination of the Texas payments contract).

◦Maintenance revenues are expected to decline between 5% and 7%.

◦Professional services revenues are expected to grow between 3% and 5%.

◦Software licenses and royalties are expected to grow between 15% and 17%.

◦Hardware and other revenues are expected to decline between 17% and 19%.

•GAAP diluted earnings per share are expected to be in the range of $8.36 to $8.61.

•Non-GAAP diluted earnings per share are expected to be in the range of $12.40 to $12.65.

•Free cash flow margin is expected to be in the range of 26% to 28%.

•Research and development expense is expected to be in the range of $242 million to $247 million.

•Capital expenditures are expected to be in the range of $24 million to $26 million, including approximately $10 million of capitalized software development costs.

•Net interest income is expected to be in the range of $25 million to $27 million.

Tyler Technologies Reports Earnings

for Fourth Quarter 2025

February 11, 2026

Page 4

GAAP to non-GAAP guidance reconciliation			2026
GAAP diluted earnings per share (1)			$8.36- $8.61
Plus:
Share-based compensation expense			3.23
Amortization of acquired software and other intangibles			1.93
Less:
Income tax impact (1)			(1.12)
Non-GAAP diluted earnings per share			$12.40 - $12.65
Shares used in computing diluted earnings per share (millions)			44.0
GAAP estimated annual effective tax rate used in computing GAAP diluted earnings per share (1)			23.5%
Non-GAAP estimated annual effective tax rate used in computing non-GAAP diluted earnings per share (2)			23.0%
(1) GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.
(2) The non-GAAP estimated annual effective tax rate is expected to be 23.0%, up from 22.5% in 2025.

Conference Call

Tyler Technologies will hold a conference call and website on Thursday, February 12, 2026, at 10:00 a.m. ET to discuss the company’s results. Participants can pre-register for the teleconference here. Alternatively, participants can also join the teleconference by dialing 646-307-1951 and providing the operator with the conference name before admittance to the call.

The live audio webcast and archived replay can also be accessed at the Events & Presentations section of Tyler's investor relations website.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 45,000 successful installations across 15,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Tyler Technologies Reports Earnings

for Fourth Quarter 2025

February 11, 2026

Page 5

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period while isolating the effects of some items that vary from period to period without correlation to core operating performance. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. EBITDA is net income before interest expense, other income, income taxes, depreciation, and amortization. Non-GAAP and adjusted financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.

Tyler used a non-GAAP tax rate of 22.5% for the year ended December 31, 2025, and expects to use a non-GAAP tax rate of 23.0% in 2026. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Tyler Technologies Reports Earnings

for Fourth Quarter 2025

February 11, 2026

Page 6

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, including local, state and federal government agencies, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks, the use of artificial intelligence (“AI”) security vulnerabilities and software updates, or changes in our ability to access third-party software and services; (3) our ability to protect client information from security breaches or misuse through AI and to provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to actively monitor developments in AI regulation and ethical standards as we expect that future changes in the regulatory landscape may affect our product development timelines, compliance costs, and market opportunities related to AI; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and changes in interest rates; (9) technological and market risks associated with the development of new technologies, products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with rising labor costs, the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

Contact: Hala Elsherbini

Senior Director, Investor Relations

Tyler Technologies, Inc.

972-713-3770

hala.elsherbini@tylertech.com

Source: Tyler Technologies

#TYL_Financial

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TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

						Three Months Ended December 31,												Twelve Months Ended December 31,
						2025						2024						2025						2024
Revenues:
Subscriptions						$	405,045					$	348,836					$	1,586,203					$	1,342,931
Maintenance						109,378						115,018						445,614						463,132
Professional services						55,310						62,795						242,700						263,991
Software licenses and royalties						(2,941)						6,106						12,816						26,357
Hardware and other						8,387						8,376						45,007						41,392
Total revenues						575,179						541,131						2,332,340						2,137,803
Cost of revenues:
Subscriptions, maintenance and professional services						289,171						283,013						1,148,889						1,112,778
Software licenses and royalties						2,588						1,282						8,006						6,277
Amortization of software development						5,584						4,998						22,663						18,806
Amortization of acquired software						9,446						9,241						37,435						36,964
Hardware and other						6,407						5,778						31,647						27,217
Total cost of revenues						313,196						304,312						1,248,640						1,202,042
Gross profit						261,983						236,819						1,083,700						935,761
Sales and marketing expense						38,225						41,536						148,570						157,731
General and administrative expense						80,423						80,348						316,447						300,938
Research and development expense						54,114						29,435						204,588						117,939
Amortization of other intangibles						14,246						13,814						56,419						59,627
Operating income						74,975						71,686						357,676						299,526
Interest expense						(1,252)						(1,259)						(4,995)						(5,931)
Other income, net						11,240						6,340						37,637						14,572
Income before income taxes						84,963						76,767						390,318						308,167
Income tax provision						19,432						11,546						74,715						45,141
Net income						$	65,531					$	65,221					$	315,603					$	263,026
Earnings per common share:
Basic						$	1.52					$	1.52					$	7.32					$	6.17
Diluted						$	1.50					$	1.49					$	7.20					$	6.05
Weighted average common shares outstanding:
Basic						43,057						42,864						43,095						42,611
Diluted						43,543						43,912						43,812						43,497

TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

						Three Months Ended December 31,												Twelve Months Ended December 31,
Reconciliation of non-GAAP gross profit and margin						2025						2024						2025						2024
GAAP gross profit						$	261,983					$	236,819					$	1,083,700					$	935,761
Non-GAAP adjustments:
Add: Share-based compensation expense included in cost of revenues						9,217						8,340						36,129						31,322
Add: Amortization of acquired software						9,446						9,241						37,435						36,964
Non-GAAP gross profit						$	280,646					$	254,400					$	1,157,264					$	1,004,047
GAAP gross margin						45.5%						43.8%						46.5%						43.8%
Non-GAAP gross margin						48.8%						47.0%						49.6%						47.0%

						Three Months Ended December 31,												Twelve Months Ended December 31,
Reconciliation of non-GAAP operating income and margin						2025						2024						2025						2024
GAAP operating income						$	74,975					$	71,686					$	357,676					$	299,526
Non-GAAP adjustments:
Add: Share-based compensation expense						38,645						34,353						151,276						122,813
Add: Employer portion of payroll tax related to employee stock transactions						688						1,303						2,966						3,606
Add: Acquisition-related costs						467						—						714						29
Add: Lease restructuring costs and other						60						1,374						165						1,250
Add: Amortization of acquired software						9,446						9,241						37,435						36,964
Add: Amortization of other intangibles						14,246						13,814						56,419						59,627
Non-GAAP adjustments subtotal						$	63,552					$	60,085					$	248,975					$	224,289
Non-GAAP operating income						$	138,527					$	131,771					$	606,651					$	523,815
GAAP operating margin						13.0%						13.2%						15.3%						14.0%
Non-GAAP operating margin						24.1%						24.4%						26.0%						24.5%

						Three Months Ended December 31,												Twelve Months Ended December 31,
Reconciliation of non-GAAP net income and earnings per share						2025						2024						2025						2024
GAAP net income						$	65,531					$	65,221					$	315,603					$	263,026
Non-GAAP adjustments:
Add: Total non-GAAP adjustments to operating income						63,552						60,085						248,975						224,289
Less: Income tax impact						(13,984)						(18,561)						(69,126)						(71,999)
Non-GAAP net income						$	115,099					$	106,745					$	495,452					$	415,316
GAAP earnings per diluted share						$	1.50					$	1.49					$	7.20					$	6.05
Non-GAAP earnings per diluted share						$	2.64					$	2.43					$	11.31					$	9.55

TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)

						Three Months Ended December 31,												Twelve Months Ended December 31,
Detail of share-based compensation expense						2025						2024						2025						2024
Cost of revenues						$	9,217					$	8,340					$	36,129					$	31,322
Operating expenses						29,428						26,013						115,147						91,491
Total share-based compensation expense						$	38,645					$	34,353					$	151,276					$	122,813

						Three Months Ended December 31,												Twelve Months Ended December 31,
Reconciliation of EBITDA and adjusted EBITDA						2025						2024						2025						2024
GAAP net income						$	65,531					$	65,221					$	315,603					$	263,026
Amortization of other intangibles						14,246						13,814						56,419						59,627
Depreciation and amortization included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense						19,921						20,235						81,135						80,963
Interest expense						1,252						1,259						4,995						5,931
Other income, net						(11,240)						(6,340)						(37,637)						(14,572)
Income tax provision						19,432						11,546						74,715						45,141
EBITDA						$	109,142					$	105,735					$	495,230					$	440,116
Share-based compensation expense						38,645						34,353						151,276						122,813
Acquisition-related costs						467						—						714						29
Employer portion of payroll tax related to employee stock transactions						688						1,303						2,966						3,606
Lease restructuring costs and other						60						1,374						165						1,250
Adjusted EBITDA						$	149,002					$	142,765					$	650,351					$	567,814

						Three Months Ended December 31,												Twelve Months Ended December 31,
Reconciliation of free cash flow						2025						2024						2025						2024
Net cash provided by operating activities						$	243,883					$	224,774					$	653,543					$	624,633
Less: additions to property and equipment						(4,317)						(3,801)						(16,015)						(20,535)
Less: investment in software development						(2,640)						(4,989)						(16,778)						(29,401)
Free cash flow						$	236,926					$	215,984					$	620,750					$	574,697
Free cash flow margin						41.2		%				39.9		%				26.6		%				26.9		%

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

						December 31, 2025						December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents						$	1,015,400					$	744,721
Accounts receivable, net						638,798						587,634
Short-term investments						81,800						23,257
Prepaid expenses and other current assets						84,142						73,192
Income tax receivable						23,748						11,975
Total current assets						1,843,888						1,440,779
Accounts receivable, long-term portion						5,968						7,153
Operating lease right-of-use assets						35,602						31,433
Property and equipment, net						160,355						163,775
Other assets:
Software development costs, net						68,371						76,117
Goodwill						2,590,013						2,531,653
Other intangibles, net						780,414						831,966
Non-current investments						60,698						10,758
Other non-current assets						93,599						86,381
Total assets						$	5,638,908					$	5,180,015
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities						$	365,346					$	354,526
Operating lease liabilities						9,598						9,643
Deferred revenue						780,838						701,438
Current portion of convertible senior notes due 2026, net						599,663						—
Total current liabilities						1,755,445						1,065,607
Convertible senior notes due 2026, net						—						597,934
Deferred revenue, long-term						20,988						22,376
Deferred income taxes						95,063						47,503
Operating lease liabilities, long-term						33,347						30,791
Other long-term liabilities						31,276						27,382
Total liabilities						1,936,119						1,791,593
Shareholders' equity						3,702,789						3,388,422
Total liabilities and shareholders' equity						$	5,638,908					$	5,180,015

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

						Three Months Ended December 31,												Twelve Months Ended December 31,
						2025						2024						2025						2024
Cash flows from operating activities:
Net income						$	65,531					$	65,221					$	315,603					$	263,026
Adjustments to reconcile net income to cash     provided by operations:
Depreciation and amortization						34,427						34,671						138,358						143,437
Losses from sale of investments						(8)						26						(8)						24
Share-based compensation expense						38,645						34,353						151,276						122,813
Provision (reductions in allowance) for losses and sales adjustments - accounts receivable						14,647						(5,504)						14,647						(5,504)
Operating lease right-of-use assets expense						2,346						1,670						9,506						8,932
Deferred income tax provision (benefit)						17,469						10,841						43,851						(30,663)
Other						(2)						(21)						80						207
Changes in operating assets and liabilities,       exclusive of effects of acquired companies						70,828						83,517						(19,770)						122,361
Net cash provided by operating activities						243,883						224,774						653,543						624,633
Cash flows from investing activities:
Additions to property and equipment						(4,317)						(3,801)						(16,015)						(20,535)
Purchase of marketable security investments						(48,499)						(32,448)						(228,465)						(32,448)
Proceeds and maturities from marketable security investments						45,583						8,294						121,890						15,994
Investment in software development						(2,640)						(4,989)						(16,778)						(29,401)
Cost of acquisitions, net of cash acquired						(48,515)						—						(83,652)						(1,395)
Other						1						5						526						173
Net cash used by investing activities						(58,387)						(32,939)						(222,494)						(67,612)
Cash flows from financing activities:
Payment on term loans						—						—						—						(50,000)
Payment of debt issuance costs						—						—						—						(2,637)
Purchase of treasury shares						—						—						(174,650)						—
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award settlement						(9,162)						9,780						3,144						57,213
Contributions from employee stock purchase plan						4,965						4,810						18,848						17,631
Other						—						—						(7,712)						—
Net cash (used) provided by financing activities						(4,197)						14,590						(160,370)						22,207
Net increase in cash and cash equivalents						181,299						206,425						270,679						579,228
Cash and cash equivalents at beginning of period						834,101						538,296						744,721						165,493
Cash and cash equivalents at end of period						$	1,015,400					$	744,721					$	1,015,400					$	744,721

FAQ

How did Tyler Technologies (TYL) perform in the fourth quarter of 2025?

Tyler Technologies reported fourth quarter 2025 revenue of $575.2 million, up 6.3% from 2024. Recurring revenue grew 10.9% to $514.4 million, representing 89.4% of total revenue, while SaaS revenue climbed 20.2% to $208.3 million.

What were Tyler Technologies’ full-year 2025 financial results?

For 2025, Tyler Technologies generated total revenues of $2.3 billion, up 9.1% year over year. GAAP net income was $315.6 million, or $7.20 per diluted share, and adjusted EBITDA reached $650.4 million, reflecting 14.5% growth versus 2024.

How fast did Tyler Technologies’ SaaS and subscription revenues grow in 2025?

Subscription revenues for 2025 were $1.6 billion, up 18.1% from 2024. Within this, SaaS revenues rose 20.6% to $777.8 million, while transaction-based revenues increased 15.8% to $808.4 million, highlighting strong momentum in recurring cloud-based offerings.

What was Tyler Technologies’ 2025 free cash flow and cash position?

Tyler Technologies reported 2025 free cash flow of $620.8 million, up 8.0% from the prior year. Net cash provided by operating activities was $653.5 million, and cash and cash equivalents totaled $1,015.4 million at December 31, 2025, supporting ongoing investment and capital returns.

What guidance did Tyler Technologies give for 2026 revenue and earnings?

For 2026, Tyler Technologies expects total revenue between $2.50 billion and $2.55 billion. GAAP diluted EPS is projected at $8.36–$8.61, and non-GAAP diluted EPS at $12.40–$12.65, with a targeted free cash flow margin of 26–28%.

How is Tyler Technologies allocating capital through acquisitions and buybacks?

In 2025, Tyler Technologies completed four strategic acquisitions, including CloudGavel and Edulink, spending about $54 million in Q4. The company also repurchased 303,067 shares of common stock during the year for approximately $175 million, reflecting active capital deployment.

What are Tyler Technologies’ key non-GAAP performance measures?

Tyler Technologies highlights non-GAAP metrics such as non-GAAP operating income, non-GAAP net income, adjusted EBITDA, and free cash flow. These exclude items like share-based compensation, acquisition-related costs, and amortization of acquired intangibles to present underlying operational performance trends.

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