Tyler Technologies (NYSE: TYL) posts Q1 2026 growth, raises cash and sets 2026 targets
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Tyler Technologies reported strong first-quarter 2026 results, with total revenues of $613.5 million, up 8.6% from a year earlier. Recurring revenues rose to $538.6 million, up 10.4% and now 87.8% of total revenue, driven by subscription revenues of $429.8 million and SaaS revenues of $222.4 million, which grew 23.5%. Annualized recurring revenue reached $2.15 billion, up 10.4%.
GAAP net income was $81.2 million, or $1.88 per diluted share, while non-GAAP net income was $133.4 million, or $3.09 per diluted share, up 9.3%. Adjusted EBITDA was $177.3 million, up 9.3%. Free cash flow climbed to $102.8 million, up 112.9%. The company repaid $600 million of convertible senior notes, repurchased about 2.5% of its shares year-to-date, and completed the $223 million acquisition of For The Record. Full-year 2026 guidance calls for revenues of $2.535–$2.575 billion, non-GAAP EPS of $12.50–$12.75, and free cash flow margin of 26–28%.
Positive
- Strong recurring and SaaS growth: Recurring revenues rose 10.4% to $538.6 million, with SaaS revenues up 23.5% to $222.4 million, reinforcing the company’s high-visibility subscription model.
- Free cash flow and deleveraging: Free cash flow increased 112.9% to $102.8 million and supported repayment of $600 million of convertible senior notes, materially reducing debt.
- Capital returns and EPS growth: About 2.5% of outstanding shares were repurchased year-to-date, while non-GAAP diluted EPS rose 9.3% to $3.09, indicating both shareholder returns and underlying earnings growth.
- Supportive 2026 outlook: Full-year 2026 guidance of $2.535–$2.575 billion in total revenues and non-GAAP EPS of $12.50–$12.75 points to continued top-line and earnings expansion.
Negative
- None.
Insights
Q1 shows durable SaaS-led growth, rising cash generation, and balance-sheet de-risking.
Tyler Technologies delivered 8.6% revenue growth to $613.5M, with recurring revenue up 10.4% and SaaS revenue up 23.5% to $222.4M. High-quality recurring revenue now represents 87.8% of total, supported by annualized recurring revenue of $2.15B.
Profitability remained solid: GAAP operating income reached $99.8M, non-GAAP operating income $166.6M, and adjusted EBITDA $177.3M, each growing around high single to low double digits. Free cash flow more than doubled to $102.8M, lifting free cash flow margin to 16.8%.
Management used this strength to repay $600M of convertible notes and repurchase roughly 2.5% of shares year-to-date, while funding the $223M For The Record acquisition. 2026 guidance of $2.535B–$2.575B in revenue and non-GAAP EPS of $12.50–$12.75 signals continued growth, though actual outcomes will depend on bookings, renewals, and integration of recent M&A.
8-K Event Classification
Item 2.02 — Results of Operations and Financial Condition
1 item
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Key Figures
Total revenue Q1 2026: $613.5 million
Recurring revenue Q1 2026: $538.6 million
SaaS revenue Q1 2026: $222.4 million
+5 more
8 metrics
Total revenue Q1 2026
$613.5 million
Up 8.6% vs Q1 2025
Recurring revenue Q1 2026
$538.6 million
87.8% of total revenue, up 10.4%
SaaS revenue Q1 2026
$222.4 million
Grew 23.5% year over year
Annualized recurring revenue
$2.15 billion
As of Q1 2026, up 10.4%
Non-GAAP diluted EPS Q1 2026
$3.09 per share
Up 9.3% from $2.78 in Q1 2025
Free cash flow Q1 2026
$102.8 million
Up 112.9%, margin 16.8%
Debt repayment
$600 million
Convertible senior notes repaid in March 2026
For The Record acquisition
$223 million cash
Closed April 14, 2026
Key Terms
annualized recurring revenue (ARR), adjusted EBITDA, free cash flow margin, convertible senior notes, +1 more
5 terms
annualized recurring revenue (ARR) financial
"Annualized recurring revenue (ARR) was $2.15 billion, up 10.4%."
Annualized recurring revenue (ARR) is the predictable amount of income a business expects to earn from ongoing customer subscriptions or contracts over a year. It provides a clear picture of the company's steady revenue stream, much like estimating the annual salary based on consistent monthly pay. Investors use ARR to gauge the company's growth and stability over time.
adjusted EBITDA financial
"Adjusted EBITDA was $177.3 million, up 9.3%."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow margin financial
"Free cash flow margin | | | | | | 16.8 | %"
Free cash flow margin is a measure of how much cash a company generates relative to its sales, showing the percentage of revenue that remains after covering operating expenses and investments in growth. It indicates how efficiently a company turns its sales into available cash that can be used for things like paying dividends, reducing debt, or expanding the business. A higher margin suggests better financial health and more flexibility to invest or return value to shareholders.
convertible senior notes financial
"We repaid our $600 million of convertible debt when it matured in March"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
Earnings Snapshot
Total revenue: $613.5 million · Guidance included
Q1 2026
Total revenue
$613.5 million
+8.6% YoY
Recurring revenue
$538.6 million
+10.4% YoY
SaaS revenue
$222.4 million
+23.5% YoY
GAAP diluted EPS
$1.88
+0.2% YoY
Non-GAAP diluted EPS
$3.09
+9.3% YoY
Adjusted EBITDA
$177.3 million
+9.3% YoY
Free cash flow
$102.8 million
+112.9% YoY
Guidance
2026 guidance: total revenues $2.535–$2.575 billion, non-GAAP diluted EPS $12.50–$12.75, free cash flow margin 26–28%.
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
Date of Report (Date of earliest event reported)
_____________________________________________
(Exact name of registrant as specified in its charter)
_____________________________________________
| (State or other jurisdiction of incorporation organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (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):
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
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 April 29, 2026, Tyler Technologies, Inc. issued the earnings news release announcing results from operations and financial condition as of March 31, 2026, 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 April 29, 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 | |||||||||||
April 29, 2026 | By: | Brian K. Miller Executive Vice President and Chief Financial Officer (principal financial officer) | |||||||||
Tyler Technologies Reports Earnings for First Quarter 2026
SaaS revenues grew 23.5% as bookings growth accelerated
PLANO, Texas – April 29, 2026 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value S&P 500 technology company, today announced financial results for the first quarter ended March 31, 2026.
"Our first quarter results exceeded expectations for our key performance measures, with recurring and total revenues setting new quarterly records," said Lynn Moore, Tyler's president and chief executive officer. "We achieved double-digit recurring revenue growth, led by exceptional SaaS growth, extending our impressive track record with 21 consecutive quarters of 20% or greater SaaS growth. The healthy public sector demand environment was reflected in our strong bookings growth, and continued momentum with strategic initiatives across our business reinforces our confidence in achieving or exceeding our 2030 goals. We continue to invest in innovation and long-term growth through both product development and M&A," concluded Moore.
First Quarter 2026 Financial Highlights (all comparisons are to the first quarter of 2025):
Revenues
•Total revenues were $613.5 million, up 8.6%.
•Recurring revenues were $538.6 million, up 10.4%, and comprised 87.8% of total revenues, up from 86.3%.
•Subscription revenues were $429.8 million, up 14.6%.
◦SaaS revenues grew 23.5% to $222.4 million.
◦Transaction revenues grew 6.4% to $207.4 million.
•Annualized recurring revenue (ARR) was $2.15 billion, up 10.4%.
Earnings/EBITDA
•GAAP operating income was $99.8 million, up 11.9%. Non-GAAP operating income was $166.6 million, up 10.0%.
•GAAP net income was $81.2 million, or $1.88 per diluted share, up 0.2%. Non-GAAP net income was $133.4 million, or $3.09 per diluted share, up 9.3%.
•Adjusted EBITDA was $177.3 million, up 9.3%.
Cash Flow
•Cash flows from operations were $107.3 million, up 91.0%.
•Free cash flow was $102.8 million, up 112.9%.
Tyler Technologies Reports Earnings
for First Quarter 2026
April 29, 2026
Page 2
"Our first quarter results were highlighted by strong recurring revenue growth, solid margin improvement, and free cash flow that more than doubled last year's first quarter," said Brian Miller, Tyler's executive vice president and chief financial officer. "We drove margin expansion through revenue mix improvement, cloud efficiency gains, and disciplined expense management. We repaid our $600 million of convertible debt when it matured in March and executed $250 million in share repurchases under our expanded $1 billion authorization. Including approximately $100 million of share repurchases in April, we have repurchased approximately 2.5% of our outstanding shares this year, underscoring our confidence in Tyler's long-term value. Our updated 2026 guidance also reflects the April acquisition of For The Record," concluded Miller.
Recent Business Highlights
Investment
•We repurchased 799,856 shares of our common stock during the first quarter under our previously announced repurchase authorization.
•Subsequent to the end of the quarter, we repurchased 298,144 shares of our common stock. As of April 29, approximately $653 million remains available under the share repurchase authorization.
Acquisition
•On April 14, we completed the acquisition of For The Record for approximately $223 million in cash. For The Record is our third largest acquisition to date, and enhances our justice portfolio by bringing advanced legal-grade speech-to-text and real-time, multilingual transcription technology powered by AI.
Financial Outlook for 2026
As of April 29, 2026, Tyler Technologies is providing the following guidance for the full year 2026:
Guidance for 2026 | Range | ||||
Total revenues | $2.535 billion to $2.575 billion | ||||
Non-GAAP diluted earnings per share | $12.50 to $12.75 | ||||
Free cash flow margin | 26% to 28% | ||||
Research and development expense | $245 million to $250 million | ||||
Capital expenditures | $18 million to $20 million | ||||
| Capitalized software development costs included in capex | $6 million | ||||
Net interest income | $8 million to $10 million | ||||
Tyler Technologies Reports Earnings
for First Quarter 2026
April 29, 2026
Page 3
Tyler Technologies has not reconciled forward-looking full-year non-GAAP financial measures to their most directly comparable GAAP measures, as permitted by item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to stock-based compensation, acquisition transactions, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
Conference Call
Prepared remarks, an investor presentation providing additional information and analysis, and supplemental materials can be found at the Financials section of Tyler's investor relations website. Tyler Technologies will hold a Q&A conference call on Thursday, April 30, 2026, at 10:00 a.m. ET. Participants can pre-register for the teleconference here. Alternatively, participants can join the teleconference by dialing 646-307-1951 and providing the operator with the conference name.
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 First Quarter 2026
April 29, 2026
Page 4
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 restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.
Tyler currently uses a non-GAAP tax rate of 23.0%. 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.
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
Tyler Technologies Reports Earnings
for First Quarter 2026
April 29, 2026
Page 5
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, evolving 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
26-19
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Revenues: | ||||||||||||||
| Subscriptions | $ | 429,745 | $ | 374,989 | ||||||||||
| Maintenance | 108,874 | 112,801 | ||||||||||||
| Professional services | 60,807 | 64,050 | ||||||||||||
| Other | 14,077 | 13,325 | ||||||||||||
| Total revenues | 613,503 | 565,165 | ||||||||||||
| Cost of revenues: | ||||||||||||||
| Subscriptions, maintenance, and professional services | 293,547 | 278,053 | ||||||||||||
| Amortization of software development | 5,624 | 5,379 | ||||||||||||
| Amortization of acquired software | 8,984 | 9,294 | ||||||||||||
| Other | 8,914 | 5,358 | ||||||||||||
| Total cost of revenues | 317,069 | 298,084 | ||||||||||||
| Gross profit | 296,434 | 267,081 | ||||||||||||
| Sales and marketing expense | 38,797 | 36,473 | ||||||||||||
| General and administrative expense | 83,965 | 79,452 | ||||||||||||
| Research and development expense | 59,727 | 47,844 | ||||||||||||
| Amortization of other intangibles | 14,133 | 14,139 | ||||||||||||
| Operating income | 99,812 | 89,173 | ||||||||||||
| Interest expense | (1,066) | (1,246) | ||||||||||||
| Other income, net | 7,676 | 7,363 | ||||||||||||
| Income before income taxes | 106,422 | 95,290 | ||||||||||||
| Income tax provision | 25,242 | 14,238 | ||||||||||||
| Net income | $ | 81,180 | $ | 81,052 | ||||||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 1.90 | $ | 1.88 | ||||||||||
| Diluted | $ | 1.88 | $ | 1.84 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||
| Basic | 42,805 | 43,024 | ||||||||||||
| Diluted | 43,147 | 43,943 | ||||||||||||
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
| Three months ended March 31, | ||||||||||||||
| Reconciliation of non-GAAP gross profit and margin | 2026 | 2025 | ||||||||||||
| GAAP gross profit | $ | 296,434 | $ | 267,081 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||
| Add: Share-based compensation expense included in cost of revenues | 9,474 | 8,714 | ||||||||||||
| Add: Amortization of acquired software | 8,984 | 9,294 | ||||||||||||
| Non-GAAP gross profit | $ | 314,892 | $ | 285,089 | ||||||||||
| GAAP gross margin | 48.3 | % | 47.3 | % | ||||||||||
| Non-GAAP gross margin | 51.3 | % | 50.4 | % | ||||||||||
| Three months ended March 31, | ||||||||||||||
| Reconciliation of non-GAAP operating income and margin | 2026 | 2025 | ||||||||||||
| GAAP operating income | $ | 99,812 | $ | 89,173 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||
| Add: Share-based compensation expense | 37,159 | 37,660 | ||||||||||||
| Add: Employer portion of payroll tax related to employee stock transactions | 792 | 1,064 | ||||||||||||
| Add: Acquisition-related costs | 224 | 33 | ||||||||||||
| Add: Restructuring costs and other | 5,489 | 24 | ||||||||||||
| Add: Amortization of acquired software | 8,984 | 9,294 | ||||||||||||
Add: Amortization of other intangibles | 14,133 | 14,139 | ||||||||||||
| Non-GAAP adjustments subtotal | 66,781 | 62,214 | ||||||||||||
| Non-GAAP operating income | $ | 166,593 | $ | 151,387 | ||||||||||
| GAAP operating margin | 16.3 | % | 15.8 | % | ||||||||||
| Non-GAAP operating margin | 27.2 | % | 26.8 | % | ||||||||||
| Three months ended March 31, | ||||||||||||||
| Reconciliation of non-GAAP net income and earnings per share | 2026 | 2025 | ||||||||||||
| GAAP net income | $ | 81,180 | $ | 81,052 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||
| Add: Total non-GAAP adjustments to operating income | 66,781 | 62,214 | ||||||||||||
| Less: Income tax impact | (14,595) | (21,200) | ||||||||||||
| Non-GAAP net income | $ | 133,366 | $ | 122,066 | ||||||||||
| GAAP earnings per diluted share | $ | 1.88 | $ | 1.84 | ||||||||||
| Non-GAAP earnings per diluted share | $ | 3.09 | $ | 2.78 | ||||||||||
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
| Three months ended March 31, | ||||||||||||||
| Detail of share-based compensation expense | 2026 | 2025 | ||||||||||||
| Cost of revenues | $ | 9,474 | $ | 8,714 | ||||||||||
| Operating expenses | 27,685 | 28,946 | ||||||||||||
| Total share-based compensation expense | $ | 37,159 | $ | 37,660 | ||||||||||
| Three months ended March 31, | ||||||||||||||
| Reconciliation of EBITDA and adjusted EBITDA | 2026 | 2025 | ||||||||||||
| GAAP net income | $ | 81,180 | $ | 81,052 | ||||||||||
| Amortization of other intangibles | 14,133 | 14,139 | ||||||||||||
| Depreciation and amortization included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense | 19,723 | 20,209 | ||||||||||||
| Interest expense | 1,066 | 1,246 | ||||||||||||
| Other income, net | (7,676) | (7,363) | ||||||||||||
| Income tax provision | 25,242 | 14,238 | ||||||||||||
| EBITDA | $ | 133,668 | $ | 123,521 | ||||||||||
| Share-based compensation expense | 37,159 | 37,660 | ||||||||||||
| Acquisition-related costs | 224 | 33 | ||||||||||||
| Employer portion of payroll tax related to employee stock transactions | 792 | 1,064 | ||||||||||||
| Lease restructuring costs and other | 5,489 | 24 | ||||||||||||
| Adjusted EBITDA | $ | 177,332 | $ | 162,302 | ||||||||||
| Three months ended March 31, | ||||||||||||||
| Reconciliation of free cash flow | 2026 | 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 107,262 | $ | 56,158 | ||||||||||
| Less: additions to property and equipment | (3,237) | (2,335) | ||||||||||||
| Less: investment in software development | (1,260) | (5,550) | ||||||||||||
| Free cash flow | $ | 102,765 | $ | 48,273 | ||||||||||
| Free cash flow margin | 16.8 | % | 8.5 | % | ||||||||||
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 316,010 | $ | 1,015,400 | |||||||
| Accounts receivable, net | 572,998 | 638,798 | |||||||||
| Short-term investments | 30,344 | 81,800 | |||||||||
| Prepaid expenses and other current assets | 107,129 | 84,142 | |||||||||
| Income tax receivable | 14,613 | 23,748 | |||||||||
| Total current assets | 1,041,094 | 1,843,888 | |||||||||
| Accounts receivable, long-term portion | 8,271 | 5,968 | |||||||||
| Operating lease right-of-use assets | 40,454 | 35,602 | |||||||||
| Property and equipment, net | 158,815 | 160,355 | |||||||||
| Other assets: | |||||||||||
| Software development costs, net | 58,836 | 68,371 | |||||||||
| Goodwill | 2,591,709 | 2,590,013 | |||||||||
| Other intangibles, net | 755,741 | 780,414 | |||||||||
| Non-current investments | 51,455 | 60,698 | |||||||||
| Other non-current assets | 92,244 | 93,599 | |||||||||
| Total assets | $ | 4,798,619 | $ | 5,638,908 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 319,399 | $ | 365,346 | |||||||
| Operating lease liabilities | 10,594 | 9,598 | |||||||||
| Deferred revenue | 709,780 | 780,838 | |||||||||
| Current portion of convertible senior notes due 2026, net | — | 599,663 | |||||||||
| Total current liabilities | 1,039,773 | 1,755,445 | |||||||||
| Deferred revenue, long-term | 21,059 | 20,988 | |||||||||
| Deferred income taxes | 109,210 | 95,063 | |||||||||
| Operating lease liabilities, long-term | 37,366 | 33,347 | |||||||||
| Other long-term liabilities | 32,978 | 31,276 | |||||||||
| Total liabilities | 1,240,386 | 1,936,119 | |||||||||
| Shareholders' equity | $ | 3,558,233 | $ | 3,702,789 | |||||||
| Total liabilities and shareholders' equity | $ | 4,798,619 | $ | 5,638,908 | |||||||
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
| Three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 81,180 | $ | 81,052 | ||||||||||
| Adjustments to reconcile net income to cash provided by operations: | ||||||||||||||
| Depreciation and amortization | 38,949 | 34,621 | ||||||||||||
| (Gains) losses from sale of investments | (3) | 1 | ||||||||||||
| Share-based compensation expense | 37,159 | 37,660 | ||||||||||||
| Operating lease right-of-use assets expense | 2,323 | 2,288 | ||||||||||||
| Deferred income tax benefit | 14,213 | (11,080) | ||||||||||||
| Changes in operating assets and liabilities, exclusive of effects of acquired companies | (66,559) | (88,384) | ||||||||||||
| Net cash provided by operating activities | 107,262 | 56,158 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Additions to property and equipment | (3,237) | (2,335) | ||||||||||||
| Purchase of marketable security investments | (1,358) | (71,993) | ||||||||||||
| Proceeds and maturities from marketable security investments | 61,858 | 1,756 | ||||||||||||
| Investment in software development | (1,260) | (5,550) | ||||||||||||
| Cost of acquisitions, net of cash acquired | (20) | (18,024) | ||||||||||||
| Other | (8) | (23) | ||||||||||||
| Net cash provided (used) by investing activities | 55,975 | (96,169) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Payment on convertible senior notes | (600,000) | — | ||||||||||||
| Purchase of treasury shares | (250,063) | — | ||||||||||||
| Payment of employee taxes paid for withheld shares upon equity award settlement, net of proceeds from exercise of stock options | (16,365) | 1,526 | ||||||||||||
| Contributions from employee stock purchase plan | 3,801 | 3,970 | ||||||||||||
| Other | — | (4,477) | ||||||||||||
| Net cash (used) provided by financing activities | (862,627) | 1,019 | ||||||||||||
| Net (decrease) in cash and cash equivalents | (699,390) | (38,992) | ||||||||||||
| Cash and cash equivalents at beginning of period | 1,015,400 | 744,721 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 316,010 | $ | 705,729 | ||||||||||
FAQ
How did Tyler Technologies (TYL) perform financially in Q1 2026?
Tyler Technologies delivered solid Q1 2026 results with total revenues of $613.5 million, up 8.6% year over year. Recurring revenues reached $538.6 million, rising 10.4%, while GAAP net income was $81.2 million and non-GAAP net income was $133.4 million.
What were Tyler Technologies’ SaaS and recurring revenue results for Q1 2026?
SaaS remained a key growth driver, with SaaS revenues up 23.5% to $222.4 million in Q1 2026. Overall subscription revenues were $429.8 million, up 14.6%, and total recurring revenues were $538.6 million, representing 87.8% of total company revenues.
What earnings and margins did Tyler Technologies (TYL) report for Q1 2026?
GAAP operating income for Q1 2026 was $99.8 million with a 16.3% operating margin. Non-GAAP operating income reached $166.6 million and non-GAAP operating margin was 27.2%. GAAP diluted EPS was $1.88, while non-GAAP diluted EPS was $3.09, up 9.3%.
How strong was Tyler Technologies’ cash flow in Q1 2026?
Cash generation improved significantly. Cash flows from operations were $107.3 million, up 91%. Free cash flow reached $102.8 million, increasing 112.9%, and free cash flow margin improved to 16.8%, compared with 8.5% in the prior-year quarter.
What capital allocation actions did Tyler Technologies take in early 2026?
Tyler repaid $600 million of convertible senior notes at maturity in March 2026 and repurchased about 2.5% of outstanding shares year-to-date. First-quarter repurchases totaled 799,856 shares, with a further 298,144 shares bought after quarter-end under a $1 billion authorization.
What are Tyler Technologies’ financial guidance targets for full-year 2026?
For 2026, Tyler guides to total revenues of $2.535–$2.575 billion, non-GAAP diluted EPS of $12.50–$12.75, and a free cash flow margin of 26–28%. Guidance also includes research and development spending of $245–$250 million and capital expenditures of $18–$20 million.
What acquisition did Tyler Technologies (TYL) complete in April 2026?
On April 14, 2026, Tyler completed the acquisition of For The Record for approximately $223 million in cash. The acquired business adds advanced legal-grade speech-to-text and real-time, multilingual transcription technology powered by AI to Tyler’s justice portfolio.