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.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
We must timely adapt to and implement technological changes to be remain competitive.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedRisk Factors
•Announcements of technological innovations, new products, or new contracts by us or our competitors, including uncertainties surrounding new and evolving artificial intelligence tools that could be perceived automate functions that may reduce the demand for certain products and services
Read it in 10-K 2026-02-18 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 ↗
RewordedRisk Factors
Pursuant to their terms, holders Holders may convert their Convertible Senior Notes at their option prior to the scheduled maturities maturity date of their the Convertible Senior Notes under certain circumstances. Notes, March 15, 2026.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
A material portion of our historical growth has resulted from strategic acquisitions. acquisitions, and we expect to continue to identify and pursue strategic acquisitions with suitable candidates.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The introduction of products embodying new New products, technologies and the emergence of new industry standards can render our existing products obsolete and unmarketable.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
We If a fundamental change occurs, we may not have sufficient cash flow from our business to pay our indebtedness, and we may not otherwise have the ability to raise the funds necessary to settle for cash conversions of the Convertible Senior Notes or to repurchase the Convertible Senior Notes upon a fundamental change, Notes, or to repay our indebtedness obligations under our 2024 Credit Agreement, each of which could adversely affect our business and results of operations.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
The labor costs associated with our business are subject to several external factors, including unemployment levels and the quality and the size of the labor market, prevailing wage rates, minimum wage laws, wages and other forms of remuneration and benefits offered to prospective employees by competitor employers, health insurance costs and other insurance costs costs, and changes in employment and labor legislation or other workplace regulation. regulation, such as changing immigration policies affecting the labor market.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Upon conversion of the Convertible Senior Notes, unless we elect to deliver solely shares of our common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be obligated to make cash payments. share).
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Disclosure of personally identifiable information and/or other sensitive client data has resulted in the past, and may result in the future, in obligations to send “data breach” notifications under applicable state laws, or to assist our clients in doing so, and/or which could result in liability and harm our reputation.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Our ability to operate our internal systems and/or to serve our clients and deliver our solutions in a timely manner depends on our ability to retain and maintain relationships relationships, including contractual arrangements, with third-party vendors and service providers and the ability of these third parties to meet their obligations in a timely manner, as well as on our effective oversight of their performance.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Our business may be adversely affected if we are unable to develop or acquire new software products or develop enhancements to existing products on a timely and cost-effective basis, or if such new products or enhancements do are not achieve market acceptance. adopted and purchased by the market.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
We may also use third parties to ensure that our services and solutions integrate with the software, systems, or infrastructure requirements of other vendors and service providers. providers used by us internally or by our clients.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Increases in labor costs, including wages, and an overall tightening of the U.S labor market, generally, or as the result of changing U.S. policy could adversely affect our business, results of operations or financial condition.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedRisk Factors
Third-party performance deficiencies could result in breaches of our obligations with respect to, under, or the termination terminations for default defaults of, one or more of our client contracts.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
A material portion of our business is provided through software hosting services, which are sometimes generally hosted from and use computing infrastructure provided by third parties, including AWS.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
Part Significant part of our future success continues to depend on the use of the Internet as a means to access public information and perform transactions electronically, including, for example, electronic filing of court documents and electronic payment processing.
Read it in 10-K 2026-02-18 at sec.gov ↗
Quiet changesRisk Factors
We cannot assure you investors that we will be able to compete successfully against current and future competitors, and the failure to do so would could have a material adverse effect upon our business.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On December 2, 2025, we acquired Edu.Link, Inc. (“Edulink”). Edulink is a SaaS company focused on educator evaluation, performance management, professional development, and compliance tracking geared specifically to the unique needs of K-12 schools. The total cash purchase price, net of cash acquired of $716,000, was approximately $37.3 million, subject to certain post-closing adjustments, including holdbacks of $2.5 million.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On November 19, 2025, we acquired CloudGavel, LLC (“CG”). CG is a SaaS company specializing in cloud electronic warrant solutions that allows for real time interaction for judges and law enforcement personnel. The total cash purchase price, net of cash acquired of $147,000, was approximately $16.6 million, subject to certain post-closing adjustments, including holdbacks of $2.9 million.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On July 28, 2025, we acquired Emergency Networking, Inc. (“EN”). EN is a SaaS company specializing in cloud-native software for fire departments and emergency medical services agencies. The total cash purchase price, net of cash acquired of $497,000, was approximately $19.4 million, subject to certain post-closing adjustments, including holdbacks of $2.5 million.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On January 31, 2025, we acquired MyGov, LLC (“MyGov”), a provider of SaaS platform solutions for community development. The total cash purchase price, net of cash acquired of $215,000, was approximately $18.2 million.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
ARR was $2.06 billion and $1.86 billion for the periods ending December 31, 2025, and 2024, respectively. ARR increased approximately 11% compared to the prior period primarily due to an increase in subscriptions revenue resulting from an ongoing shift toward SaaS arrangements for both new and existing clients and expansion in transaction-based fee arrangements.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Any adverse change in these factors or changes in estimates could have a significant impact on the recoverability of goodwill or other intangible assets.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
Professional services revenue decreased 8% compared to the prior period. The decrease is primarily due to loss reserves related to agencies within two state governments. The remainder of the decrease in professional services revenues compared to the prior period is related to an intentional reduction in custom development work as well as efficiencies in the delivery of professional services.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
In 2025, the cost of subscriptions, maintenance and professional services grew 3% compared to the prior period. The increase is primarily due to a $25.4 million increase in merchant fees and other third-party fees related to higher transaction volumes, a $21.0 million increase in hosting costs, and a $4.8 million increase in stock-based compensation expense. The increase was partially offset by the redeployment of resources to research and development due to continued migration of clients to our SaaS products and the consolidation of versions of on-premises software products with support obligations.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
The increase of 21% in the ES segment operating income in 2025 is primarily due to the $215.0 million increase in subscription revenues as a result of the ongoing shift toward SaaS arrangements for both new and existing clients, along with growth in certain transaction-based revenues from new and existing customers. The increase is partially offset by lower revenues of $34.0 million compared to prior period from software licenses, maintenance, and professional services, including a loss reserve of approximately $9.7 million of remaining exposure related to a contract dispute previously disclosed. Also partially offsetting the increase in segment operating income is an increase in total personnel expense of $22.1 million and an increase in total hosting costs of $18.2 million compared to the prior period.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
The decrease of 9% in the PT segment operating income in 2025 is primarily due to loss reserves of approximately $10.7 million for two state contracts, primarily impacting lower revenue from professional services, as well as higher merchant fees. Somewhat offsetting the decline in the PT segment operating income is an increase in subscription revenues compared to prior period.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
See Note 2 “Segment and Related Information” for a reconciliation between our operating segment and consolidated financial results for the periods presented.
Read it in 10-K 2026-02-18 at sec.gov ↗
AddedMD&A
On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes a broad range of tax reform provisions that may affect our Company. The OBBBA allows an elective deduction for domestic Research and Development (“R&D”), a reinstatement of elective 100% first-year bonus depreciation, and a more favorable tax rate on Foreign-Derived Deduction Eligible Income and income from non-U.S. subsidiaries (“Net CFC Tested Income”), among other provisions. In 2025, we recognized the effects of the OBBBA, which resulted in a $72.9 million decrease in our deferred tax asset associated with capitalized research and experimental expenditures and a corresponding reduction in current income tax liabilities. The legislation did not have a material impact on our income tax expense for 2025.
Read it in 10-K 2026-02-18 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 ↗
RewordedMD&A
The decrease increase in the effective income tax rate in 2024, compared to the prior period 2025 is driven by higher lower excess tax benefits from share-based compensation and decreases in liabilities for uncertain tax positions, state income taxes, and non-deductible business expenses offset by a decrease in research tax credit benefits relative to income before taxes. and an increase in state taxes, offset by lower uncertain tax positions.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The increase in the income tax provision in 2024 2025 compared to the prior period is primarily due to higher income before taxes, increased liabilities for taxes and state income taxes and decreases in excess tax benefits from share-based compensation and research tax credits, offset by lower uncertain tax positions, and higher state income taxes. positions.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Subscriptions, maintenance, and professional services 49.3 52.1 51.3 Software licenses, royalties, and amortization of acquired software 1.9 2.0 2.4 Amortization of software development 1.0 0.9 0.6 Hardware and other 1.3 1.2 1.5 Sales and marketing expense 6.4 7.4 7.7 General and administrative expense 13.6 14.1 15.8 Research and development expense 8.8 5.5 5.6 Amortization of other intangibles 2.4 2.8 3.8 Operating income 15.3 14.0 11.3 Interest expense (0.2) (0.3) (1.2) Other income, net 1.6 0.7 0.2 Income before income taxes 16.7 14.4 10.3 Income tax provision 3.2 2.1 1.7 Net income 12.3 13.5 % 8.6% 12.3%
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Our new software contract mix for the twelve months ended December 31, 2024, 2025, was 11% perpetual software license arrangements and approximately 89% subscription-based arrangements, compared to approximately 12% perpetual software license arrangements and approximately 88% subscription-based arrangements, compared to approximately 17% perpetual software license arrangements and approximately 83% subscription-based arrangements for the twelve months ended December 31, 2023. 2024.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Corporate segment operating loss primarily consists unallocated amounts are comprised of non-cash amortization of intangible assets associated with acquisitions, depreciation associated with unallocated property and equipment assets, compensation costs for the executive management team, team and certain shared services staff, and share-based compensation expense for the entire company.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
For the twelve months ended December 31, 2024, the increase in 2025, SaaS fees increased compared to the prior period is primarily attributable to new SaaS clients as well as existing on-premises clients who converted to our SaaS model. period.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The decline increase in the overall gross margin compared to the prior period is primarily attributed to lower a shift in our revenue from software licenses and maintenance, higher software development amortization expense, and higher personnel costs. mix toward higher-margin SaaS revenues.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The share-based exercise and vesting activity in 2025 generated $15.0 million of excess tax benefits, while exercise and vesting activity in 2024 generated $21.1 million of excess tax benefits, while exercise and vesting activity in 2023 generated $9.3 million of excess tax benefits.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
Although the mix of new contracts between subscription-based and perpetual license arrangements may vary from quarter to quarter and year to year, we We expect that software license revenues will continue to decline as we shift our model away from perpetual software license to SaaS.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
In 2024, 2025, amortization of other intangibles decreased 20% 5% compared to the prior period due to the impact of certain trade name intangible assets becoming fully amortized as a result of accelerated amortization expense in 2024, partially offset by the fourth quarter impact of 2023 and partially amortization of new other intangibles from acquisitions completed in 2024. 2025.
Read it in 10-K 2026-02-18 at sec.gov ↗
RewordedMD&A
The CODM Chief Operating Decision Maker (“CODM”) uses segment operating income or loss from operations before income taxes, not including gains to assess performance and losses on investments, to allocate resources (including employees, property, and financial or capital resources) for each segment segment, predominantly in the annual budget and forecasting process.
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RewordedMD&A
(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; updates, or changes in our ability to access third-party software and services;
Read it in 10-K 2026-02-18 at sec.gov ↗