10-K 0000860731-26-000016 (2026-02-18) vs 10-K 0000860731-25-000007 (2025-02-19)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 7,812 |
7.4% |
| MD&A | Item 7 | 7,658 |
26.1% |
| Legal Proceedings | Item 3 | 185 |
4.7% |
| Accounting Policies | 10-K text (note not found) | 0 |
not compared |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 176 words changed in this paragraph; it is 35% similar to last year's version.
Goodwill and Other Intangible Assets. We perform an impairment assessment annually on October 1, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of each reporting unit’s goodwill. If the conclusion of an impairment assessment is that it is more likely than not that the fair value of Qualitative factors include general economic conditions, market conditions, actual or expected financial performance, a sustained decrease in share price or other changes in the reporting unit is more than its carrying value, goodwill is not considered impaired, units that are judgmentally weighted. Quantitative factors may include estimates of future revenues, operating costs, and we are not required to perform capital costs, growth rates, and discount rates reflecting the quantitative goodwill impairment test. If the conclusion judgmental assessment of an impairment assessment is that it is more likely than not that the fair value is less than its carrying value, we perform the quantitative goodwill impairment test, which compares the fair value of the reporting unit to its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value. There have been no impairments to goodwill risk in any of the periods presented. See Note 8, “Goodwill and Other Intangible Assets,” for additional information. those assumptions.
Source: Item 7, 10-K 0000860731-26-000016 vs Item 7, 10-K 0000860731-25-000007
Risk Factors 79 words changed in this paragraph; it is 86% similar to last year's version.
Many of our product and service offerings incorporate proprietary information, trade secrets, know-how, and other intellectual property rights. We rely on a combination of contracts, contract rights, copyrights, and trade secret laws to establish and protect our proprietary rights in our technology. We cannot be certain that we have taken all appropriate steps to deter misappropriation of our intellectual property, including to the extent our data is consumed by generative artificial intelligence technology. There has also been an apparent evolution a recent change in the legal standards and regulations that courts and the U.S. patent office may apply in favorably evaluating software patent rights. rights (see the United States Patent and Trademark Office Memorandum dated December 5, 2025 to the Patent Examining Corp from Charles Kim, Deputy Commissioner for Patents regarding the advance notice of change to the Manual of Patent Examining Procedure in light of Ex Parte Desjardins, Appeal No. 2024-000567 (PTAB September 26, 2025, Appeals Review Panel Decision)). We are not currently involved in any material intellectual property litigation; however, we may be a party to such litigation in the future to protect our proprietary information, trade secrets, know-how, and other intellectual property rights. We cannot assure you provide assurance that third parties will not assert infringement or misappropriation claims against us with respect to current or future products. Any claims or litigation, with or without merit, could be time-consuming, costly, and a diversion to divert the time and attention of management. Any such claims and litigation could also cause product shipment delays or require us to enter into royalty or licensing arrangements. Such royalty or licensing arrangements, if required, may not be available on terms acceptable to us, if at all. Therefore, litigation to defend and enforce our intellectual property rights could have a material adverse effect on our business, regardless of the final outcome of such litigation.
Source: Item 1A, 10-K 0000860731-26-000016 vs Item 1A, 10-K 0000860731-25-000007
Legal Proceedings 13 words changed in this paragraph; it is 95% similar to last year's version.
The client was unresponsive to our outreach for several months, and on August 23, 2022, we filed a lawsuit to enforce our rights and remedies under the applicable contractual arrangement. The client subsequently asked us to negotiate directly with the client to attempt to resolve the dispute. The negotiations were not successful, and on March 20, 2024, we reinitiated our lawsuit. A December 2025 mediation did not result in a resolution of the dispute. Although we believe our products and services were delivered in accordance with the terms of our contract and that we are entitled to payment in connection with the termination for convenience, at this time the matter remains unresolved. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contract.
Source: Item 3, 10-K 0000860731-26-000016 vs Item 3, 10-K 0000860731-25-000007
Every change, by type
Sentences and paragraphs of TYL's Risk Factors and MD&A, 10-K 2026-02-18 against 10-K 2025-02-19.
Each links to the text at sec.gov.
RemovedRisk Factors
Because an increasing portion of our revenues are recurring, the effect of public health-related shutdown on our results of operations may also not be fully reflected for some time. We may see some more immediate impact on our business should there be new delays in government procurement processes and uncertainty around public sector budgets, or new delays in implementations caused by travel restrictions, closed offices, or clients shifting focus to more pressing issues.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Appraisal projects and software implementations may be delayed if clients put projects on hold or slow projects by extending go-live dates. While we have the ability to deliver most of our professional services remotely, some of our professional services, including appraisal assessments, are more effective when performed on-site, and certain clients may continue to insist on on-site services in any event. In addition, our delivery of some professional services requires the availability of client personnel. There may be a negative impact on our revenues if we are unable to deliver these services. Also, we expect software licenses and subscriptions revenues to be negatively affected if there are delays in procurement processes. Some clients could request changes to payment terms, negatively impacting the timing of collections of accounts receivables in future periods.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
We have historically evaluated goodwill for impairment annually as of October 1, or more frequently if impairment indicators arose. Subsequent to our annual goodwill impairment analysis, we monitor for any events or changes in circumstances, such as significant adverse changes in business climate or operating results, changes in management’s business strategy, an inability to successfully introduce new products in the marketplace, an inability to successfully achieve internal forecasts or significant declines in our stock price, which may represent an indicator of impairment. The occurrence of any of these events, which could be caused or impacted by a public health crisis similar to the COVID-19 pandemic, may require us to record future goodwill impairment charges.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
We believe we are a leading provider of integrated software solutions for the public sector.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
In the event the conditional conversion feature of the notes is triggered, holders of our Convertible Senior Notes will be entitled to convert the Convertible Senior Notes at any time during specified periods at their option. If one or more holders elect to convert their Convertible Senior Notes, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity. In addition, even if holders do not elect to convert their Convertible Senior Notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Transactions relating to our Convertible Senior Notes may affect the value of our common stock.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
Our Convertible Senior Notes may become convertible in the future at the option of their holders under certain circumstances. If holders of our Convertible Senior Notes elect to convert their notes, we may settle our conversion obligation by delivering to them a significant number of shares of our common stock, which would cause dilution to our existing shareholders.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedRisk Factors
•Announcements of technological innovations, new products, or new contracts by us or our competitors
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
On October 31, 2023, we acquired Resource Exploration, Inc. (“ResourceX”), a leading provider of budgeting software to the public sector, and ARInspect, Inc. (“ARInspect”), a leading provider of AI powered machine learning solutions for public sector field operations.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
On August 8, 2023, we acquired Computing System Innovations, LLC (“CSI”), a leading provider of artificial intelligence automation, redaction, and indexing solution for courts, recorders, attorneys, and others.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
For arrangements that involve significant production, modification or customization of the software, or where professional services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the client over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
The increase in professional services revenues compared to prior period is primarily attributable to higher new contract volume along with increased billing rates.
Read it in 10-K 2025-02-19 at sec.gov ↗
RemovedMD&A
In 2024, the cost of subscriptions, maintenance and professional services grew 11% primarily due to increased hosting costs as we expand our SaaS client base and transition from our proprietary data centers to the public cloud, together with higher personnel costs. Our professional services staff grew by 121 employees since December 31, 2023, as we increased hiring to ensure that we are well-positioned to serve our growing client base. The increases were partially offset by a reduction in merchant fee expense associated with the change from the gross model to the net model for payments revenue under one of our state enterprise agreements.
Read it in 10-K 2025-02-19 at sec.gov ↗