Tyler Technologies Reports Earnings for Third Quarter 2026
October 28, 2026 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value S&P 500 company, today announced financial results for the third quarter ended September 30, 2026.
"We achieved solid third quarter results, with double-digit recurring revenue growth, robust margin expansion, strong bookings, and record quarterly free cash flow," said Lynn Moore, Tyler's executive chair, president and chief executive officer. "Strong SaaS bookings reinforce healthy public sector demand, reflected in a growing sales pipeline and driven by continued public sector investment in digital modernization. Our government-grade AI strategy is delivering tangible progress, with approximately 300 deals containing AI sold across our client base to date. Combined with disciplined capital allocation, including our repurchase of approximately 8.5% of our outstanding shares year-to-date, these achievements position us well for a strong finish to 2026 and reinforce our confidence in our long-term growth initiatives that underpin our Tyler 2030 objectives," concluded Moore.
• Recurring revenues were $568.8 million, up 11.0%, and comprised 87.8% of total revenues.
• GAAP operating income was $117.0 million, up 19.5%. Non-GAAP operating income was $182.1 million, up 14.8%.
• GAAP net income was $95.1 million, or $2.33 per diluted share, up 12.7%. Non- GAAP net income was $143.4 million, or $3.52 per diluted share, up 10.0%.
"Third quarter results reflect the strength and resilience of Tyler's recurring revenue model. Recurring revenues grew 11.0%, driven by SaaS revenue growth of 21.2%. Transaction-based revenues growth accelerated to 9.5% (14.2% excluding the impact of the Texas payments contract wind-down). Free cash flow reached a quarterly record of $277 million, up 11.9%, supported by earnings growth and improved working capital performance," said Brian Miller, Tyler's executive vice president and chief financial officer. "During the quarter, we deployed capital across both strategic growth initiatives and shareholder returns, including the acquisition of CODY Systems and the repurchase of 1.1 million shares of our common stock. Supported by our strong balance sheet, robust cash generation, and significant remaining share repurchase authorization, we maintain financial flexibility to invest in growth initiatives, pursue disciplined acquisition opportunities, and continue building shareholder value," concluded Miller.
• On July 30, we completed the acquisition of CODY Systems, an established public safety company that provides SaaS software and data management, integration, and exchange solutions for public safety, law enforcement, and other public sector entities, for approximately $27.7 million in cash.
• We repurchased 1,148,389 shares of our common stock during the quarter for approximately $379 million, with approximately $1.37 billion remaining under our previously announced repurchase authorizations.
As of October 28, 2026, Tyler Technologies is providing the following guidance for the full year 2026:
Guidance for 2026 Range Total revenues $2.535 billion to $2.565 billion Non-GAAP diluted earnings per share $12.95 to $13.20 Free cash flow margin 26% to 28% Research and development expense $245 million to $250 million Capital expenditures $20 million to $22 million Capitalized software development costs included in $5 million capex Net interest income $15 million to $17 million
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.
Prepared remarks, the quarterly earnings 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, October 29, 2026, at 8:30 a.m. ET. Participants can pre-register for the teleconference here. Alternatively, participants can join the teleconference by dialing 833-461-5787 with the meeting ID 900 456 382.
The live audio webcast and archived replay can also be accessed at the Events & Presentations section of Tyler's investor relations website.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively 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 strengthen the core operations of government and help agencies turn insight into action for their communities. With more than 50,000 installations across 16,000 client locations, Tyler serves 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 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, restructuring costs and other, gain on remeasurement of equity investment, and non-recurring items in other income, net. 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.
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, 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 successfully research, develop, integrate, and commercialize AI capabilities into our solutions, to achieve client adoption of those capabilities, and to effectively monetize them is subject to significant risks, including the continued need for substantial investment, competition from new and existing market participants offering alternative AI solutions, and the possibility that clients may not adopt or pay for AI features at the levels we expect, any of which could result in disruption to our business, adversely affect our revenue and margins, and harm our competitive position; (8) 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; (9) general economic, political and market conditions, including inflation and changes in interest rates; (10) 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; (11) 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; (12) 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 (13) 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
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share data) (Unaudited)
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share data) (Unaudited)
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except per share data) (Unaudited)
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 788,222 $ 1,015,400 Accounts receivable, net 684,176 638,798 Short-term investments 91,172 81,800 Prepaid expenses and other current 88,937 84,142 assets Income tax receivable 9,469 23,748 Total current assets 1,661,976 1,843,888 Accounts receivable, 16,567 5,968 long-term portion Operating lease 37,551 35,602 right-of-use assets Property and equipment, net 160,823 160,355 Other assets: Software development costs, 48,645 68,371 net Goodwill 2,770,159 2,590,013 Other intangibles, net 834,981 780,414 Non-current investments 25,289 60,698 Other non-current assets 89,439 93,599 Total assets $ 5,645,430 $ 5,638,908 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and $ 390,117 $ 365,346 accrued liabilities Operating lease liabilities 11,182 9,598 Deferred revenue 846,284 780,838 Current portion of convertible senior — 599,663 notes due 2026, net Total current liabilities 1,247,583 1,755,445 Convertible senior notes 1,410,110 — due 2031, net Deferred revenue, long-term 17,971 20,988 Deferred income taxes 110,451 95,063 Operating lease 34,011 33,347 liabilities, long-term Other long-term liabilities 34,969 31,276 Total liabilities 2,855,095 1,936,119 Shareholders' equity $ 2,790,335 $ 3,702,789 Total liabilities and shareholders' $ 5,645,430 $ 5,638,908 equity
Full text with the tables
Tyler Technologies Reports Earnings for Third Quarter 2026
SaaS revenues grew 21.2% and free cash flow reached a new quarterly high
PLANO, Texas –
October 28, 2026 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and
value S&P 500 company, today announced financial results for the third quarter
ended September 30, 2026.
"We achieved solid third quarter results, with double-digit recurring revenue
growth, robust margin expansion, strong bookings, and record quarterly free cash
flow," said Lynn Moore, Tyler's executive chair, president and chief executive
officer. "Strong SaaS bookings reinforce healthy public sector demand, reflected
in a growing sales pipeline and driven by continued public sector investment in
digital modernization. Our government-grade AI strategy is delivering tangible
progress, with approximately 300 deals containing AI sold across our client base
to date. Combined with disciplined capital allocation, including our repurchase
of approximately 8.5% of our outstanding shares year-to-date, these achievements
position us well for a strong finish to 2026 and reinforce our confidence in our
long-term growth initiatives that underpin our Tyler 2030 objectives," concluded
Moore.
Third Quarter 2026 Financial Highlights
(all comparisons are to the third quarter of 2025):
Revenues
• Total revenues were $647.6 million, up 8.7%.
• Recurring revenues were $568.8 million, up 11.0%, and comprised 87.8% of total
revenues.
•
Subscription revenues were $462.6 million, up 15.3%.
◦ SaaS revenues grew 21.2% to $242.2 million.
◦ Transaction revenues grew 9.5% to $220.4 million.
• Annualized recurring revenue (ARR) was $2.28 billion, up 11.0%.
Earnings/EBITDA
• GAAP operating income was $117.0 million, up 19.5%. Non-GAAP operating income
was $182.1 million, up 14.8%.
• GAAP net income was $95.1 million, or $2.33 per diluted share, up 12.7%. Non-
GAAP net income was $143.4 million, or $3.52 per diluted share, up 10.0%.
•
Adjusted EBITDA was $192.7 million, up 13.4%.
Cash Flow
•
Cash flows from operations were $282.5 million, up 10.7%.
• Free cash flow was $277.0 million, up 11.9%.
Tyler Technologies Reports Earnings
for Third Quarter 2026
October 28, 2026
Page 2
"Third quarter results reflect the strength and resilience of Tyler's recurring
revenue model. Recurring revenues grew 11.0%, driven by SaaS revenue growth of
21.2%. Transaction-based revenues growth accelerated to 9.5% (14.2% excluding
the impact of the Texas payments contract wind-down). Free cash flow reached a
quarterly record of $277 million, up 11.9%, supported by earnings growth and
improved working capital performance," said Brian Miller, Tyler's executive vice
president and chief financial officer. "During the quarter, we deployed capital
across both strategic growth initiatives and shareholder returns, including the
acquisition of CODY Systems and the repurchase of 1.1 million shares of our
common stock. Supported by our strong balance sheet, robust cash generation, and
significant remaining share repurchase authorization, we maintain financial
flexibility to invest in growth initiatives, pursue disciplined acquisition
opportunities, and continue building shareholder value," concluded Miller.
Recent Business Highlights
• On July 30, we completed the acquisition of CODY Systems, an established
public safety company that provides SaaS software and data management,
integration, and exchange solutions for public safety, law enforcement, and
other public sector entities, for approximately $27.7 million in cash.
• We repurchased 1,148,389 shares of our common stock during the quarter for
approximately $379 million, with approximately $1.37 billion remaining under our
previously announced repurchase authorizations.
Financial Outlook for 2026
As of October 28, 2026, Tyler Technologies is providing the following guidance
for the full year 2026:
Guidance for 2026 Range
Total revenues $2.535 billion to $2.565 billion
Non-GAAP diluted earnings per share $12.95 to $13.20
Free cash flow margin 26% to 28%
Research and development expense $245 million to $250 million
Capital expenditures $20 million to $22 million
Capitalized software development costs
included in $5 million
capex
Net interest income $15 million to $17 million
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.
Tyler Technologies Reports Earnings
for Third Quarter 2026
October 28, 2026
Page 3
Conference Call
Prepared remarks, the quarterly earnings 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, October 29, 2026, at 8:30 a.m. ET.
Participants can pre-register for the teleconference here. Alternatively,
participants can join the teleconference by dialing 833-461-5787 with the
meeting ID 900 456 382.
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 technology solutions
purpose-built exclusively 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 strengthen the core operations of
government and help agencies turn insight into action for their communities.
With more than 50,000 installations across 16,000 client locations, Tyler serves
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 .
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, restructuring costs and
other, gain on remeasurement of equity investment, and non-recurring items in
other income, net. 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
Tyler Technologies Reports Earnings
for Third Quarter 2026
October 28, 2026
Page 4
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 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 successfully research, develop, integrate, and commercialize
AI capabilities into our solutions, to achieve client adoption of those
capabilities, and to effectively monetize them is subject to significant risks,
including the continued need for substantial investment, competition from new
and existing market participants offering alternative AI solutions, and the
possibility that clients may not adopt or pay for AI features at the levels we
expect, any of which could result in disruption to our business, adversely
affect our revenue and margins, and harm our competitive position; (8) 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; (9) general economic, political and market
conditions, including inflation and changes in interest rates; (10)
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; (11) 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; (12) 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
Tyler Technologies Reports Earnings
for Third Quarter 2026
October 28, 2026
Page 5
personnel; and (13) 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
26-41
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Nine
months months
ended ended
Septem… Septe…
30, 30,
Reve… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Subs… $ 462,6… $ 401,094 $ 1,346,… $ 1,181…
Main… 106,2… 111,312 320,923 336,2…
Prof… 62,968 64,728 186,941 187,3…
serv…
Other 15,757 18,745 52,230 52,377
Total 647,5… 595,879 1,906,… 1,757…
reve…
Cost
of
reve…
Subs…
main…
and 305,9… 289,070 906,254 859,7…
prof…
serv…
Amor…
of 5,470 6,195 16,673 17,079
soft…
deve…
Amor…
of 8,786 9,376 26,302 27,989
acqu…
soft…
Other 9,177 9,786 35,236 30,658
Total
cost 329,3… 314,427 984,465 935,4…
of
reve…
Gross 318,2… 281,452 921,700 821,7…
prof…
Sales
and 40,023 37,560 118,671 110,3…
mark…
expe…
Gene…
and 81,561 79,971 259,259 236,0…
admi…
expe…
Rese…
and 63,349 51,788 185,908 150,4…
deve…
expe…
Amor…
of 16,239 14,201 45,918 42,173
other
inta…
Oper… 117,0… 97,932 311,944 282,7…
inco…
Inte… -3,773 -1,235 -7,813 -3,743
expe…
Gain
on
reme… — — 25,048 —
of
equi…
inve…
Other
inco… 7,893 10,855 19,031 26,397
net
Inco…
befo… 121,1… 107,552 348,210 305,3…
inco…
taxes
Inco…
tax 26,083 23,159 78,444 55,283
prov…
Net $ 95,074 $ 84,393 $ 269,766 $ 250,0…
inco…
Earn…
per
comm…
shar…
Basic $ 2.35 $ 1.96 $ 6.55 $ 5.80
Dilu… $ 2.33 $ 1.93 $ 6.51 $ 5.70
Weig…
aver…
comm…
shar…
outs…
Basic 40,491 43,135 41,179 43,085
Dilu… 40,731 43,834 41,451 43,879
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data) (Unaudited)
R…
of Thr… Nine
n… mon… mon…
g… end… end…
p… Sep… Sep…
a… 30, 30,
m… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
G…
g… $ 318… $ 28… $ 921… $ 82…
p…
N…
a…
A…
S…
c…
e…
i… 9,1… 9,… 28,… 26…
in
c…
of
r…
A…
A…
of 8,7… 9,… 26,… 27…
a…
s…
N…
g… $ 336… $ 30… $ 976… $ 87…
p…
G…
g… 49… % 47.2 % 48… % 46.8 %
m…
N…
g… 51… % 50.4 % 51… % 49.9 %
m…
R…
of Thr… Nine
n… mon… mon…
o… end… end…
i… Sep… Sep…
a… 30, 30,
m… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
G…
o… $ 117… $ 97… $ 311… $ 28…
i…
N…
a…
A…
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c…
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to
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s…
t…
A…
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c…
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c… 189 57 6,0… 105
a…
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of 8,7… 9,… 26,… 27…
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A…
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o…
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N…
a… 65,… 60… 202… 18…
s…
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o… $ 182… $ 15… $ 514… $ 46…
i…
G…
o… 18… % 16.4 % 16… % 16.1 %
m…
N…
o… 28… % 26.6 % 27… % 26.6 %
m…
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data) (Unaudited)
Rec…
of
non…
net Three Nine
inc… mont… months
and ended ended
ear… Sept… Septe…
per 30, 30,
sha… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net $ 95,0… $ 84,3… $ 269,… $ 250,0…
inc…
Non…
adj…
Add:
Tot…
non…
adj… 65,0… 60,6… 202,… 185,4…
to
ope…
inc…
Les…
Gain
on
rem… — — -25,… —
of
equ…
inv…
Add:
Non…
ite…
in — — 1,406 —
oth…
inc…
net
Les…
Inc… -16,… -14,… -42,… -55,1…
tax
imp…
Non…
net $ 143,… $ 130,… $ 405,… $ 380,3…
inc…
GAAP
ear…
per $ 2.33 $ 1.93 $ 6.51 $ 5.70
dil…
sha…
Non…
ear…
per $ 3.52 $ 2.97 $ 9.79 $ 8.67
dil…
sha…
Three Nine
Det… mont… mont…
of ended ended
sha… Sept… Sept…
com… 30, 30,
exp… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost
of $ 9,167 $ 9,307 $ 28,145 $ 26,9…
rev…
Ope… 30,0… 27,362 91,890 85,7…
exp…
Tot…
sha… $ 39,2… $ 36,669 $ 120,0… $ 112,…
com…
exp…
Rec… Three Nine
of mont… months
EBI… ended ended
and Sept… Septe…
adj… 30, 30,
EBI… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net $ 95,0… $ 84,3… $ 269,… $ 250,0…
inc…
Amo…
of 16,2… 14,2… 45,9… 42,173
oth…
int…
Dep…
and
amo…
inc…
in
cost
of
rev…
sal…
and
mar… 19,3… 20,6… 58,4… 61,214
exp…
gen…
and
adm…
exp…
and
res…
and
dev…
exp…
Int… 3,773 1,235 7,813 3,743
exp…
Gain
on
rem… — — -25,… —
of
equ…
inv…
Oth…
inc… -7,8… -10,… -19,… -26,3…
net
Inc…
tax 26,0… 23,1… 78,4… 55,283
pro…
EBI… $ 152,… $ 132,… $ 416,… $ 386,0…
Sha…
com… 39,2… 36,6… 120,… 112,6…
exp…
Acq… 492 214 2,803 247
cos…
Emp…
por…
of
pay…
tax 103 159 1,332 2,278
rel…
to
emp…
sto…
tra…
Lea…
res…
cos… 189 57 6,004 105
and
oth…
Adj… $ 192,… $ 169,… $ 546,… $ 501,3…
EBI…
TYLER TECHNOLOGIES, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data) (Unaudited)
Rec… Three Nine
of mont… mont…
free ended ended
cash Sept… Sept…
flow 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
pro… $ 282,… $ 255,… $ 514,… $ 409,…
by
ope…
act…
Les…
add…
to -4,4… -3,8… -12,… -11,…
pro…
and
equ…
Les…
inv…
in -1,0… -3,7… -3,1… -14,…
sof…
dev…
Free
cash $ 276,… $ 247,… $ 498,… $ 383,…
flow
Free
cash 42.8 % 41.5 % 26.1 % 21.8 %
flow
mar…
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 788,222 $ 1,015,400
Accounts receivable, net 684,176 638,798
Short-term investments 91,172 81,800
Prepaid expenses and other
current 88,937 84,142
assets
Income tax receivable 9,469 23,748
Total current assets 1,661,976 1,843,888
Accounts receivable, 16,567 5,968
long-term portion
Operating lease 37,551 35,602
right-of-use assets
Property and equipment, net 160,823 160,355
Other assets:
Software development costs, 48,645 68,371
net
Goodwill 2,770,159 2,590,013
Other intangibles, net 834,981 780,414
Non-current investments 25,289 60,698
Other non-current assets 89,439 93,599
Total assets $ 5,645,430 $ 5,638,908
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and $ 390,117 $ 365,346
accrued liabilities
Operating lease liabilities 11,182 9,598
Deferred revenue 846,284 780,838
Current portion of
convertible senior — 599,663
notes due 2026, net
Total current liabilities 1,247,583 1,755,445
Convertible senior notes 1,410,110 —
due 2031, net
Deferred revenue, long-term 17,971 20,988
Deferred income taxes 110,451 95,063
Operating lease 34,011 33,347
liabilities, long-term
Other long-term liabilities 34,969 31,276
Total liabilities 2,855,095 1,936,119
Shareholders' equity $ 2,790,335 $ 3,702,789
Total liabilities and
shareholders' $ 5,645,430 $ 5,638,908
equity
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Three Nine
Cash months months
flows ended ended
from Septe… Septem…
oper… 30, 30,
acti… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 95,074 $ 84,393 $ 269,7… $ 250,072
inco…
Adju…
to
reco…
net
inco…
to
cash
prov…
by
oper…
Depr…
and 37,131 34,988 111,8… 103,931
amor…
Gains
from
sale — — -4 —
of
inve…
Shar…
comp… 39,214 36,669 120,0… 112,631
expe…
Oper…
lease
righ… 1,988 2,300 7,880 7,160
asse…
expe…
Defe…
inco… 9,492 37,462 41,358 26,382
tax
prov…
Gain
on
reme… — — -25,0… —
of
equi…
inve…
Other 194 43 227 82
Chan…
in
oper…
asse…
and
liab… 99,380 59,336 -11,9… -90,598
excl…
of
effe…
of
acqu…
comp…
Net
cash
prov… 282,473 255,1… 514,1… 409,660
by
oper…
acti…
Cash
flows
from
inve…
acti…
Addi…
to
prop… -4,433 -3,876 -12,7… -11,698
and
equi…
Purc…
of
mark… -4,725 -72,6… -56,2… -179,9…
secu…
inve…
Proc…
and
matu…
from 8,090 42,023 81,850 76,307
mark…
secu…
inve…
Inve…
in -1,062 -3,738 -3,167 -14,138
soft…
deve…
Cost
of
acqu…
net -24,739 -16,9… -239,… -35,137
of
cash
acqu…
Other -9 -1 4 525
Net
cash
used -26,878 -55,1… -229,… -164,1…
by
inve…
acti…
Cash
flows
from
fina…
acti…
Repa…
of
conv…
seni… — — -600,… —
notes
due
2026
Proc…
from
issu…
of
conv… — — 1,437… —
seni…
notes
due
2031
Purc…
of
capp… — — -187,… —
call
tran…
Paym…
of
debt — — -31,7… —
issu…
costs
Purc…
of -369,0… -173,… -1,12… -174,6…
trea…
shar…
Paym…
of
empl…
taxes
paid
for
with…
shar…
upon
equi… 5,526 15,461 -16,6… 12,306
award
sett…
net
of
proc…
from
exer…
of
stock
opti…
Cont…
from
empl… 4,376 4,561 13,554 13,883
stock
purc…
plan
Other -3,531 -335 -3,531 -7,712
Net
cash
used -362,7… -153,… -512,… -156,1…
by
fina…
acti…
Net
(dec…
incr…
in -107,1… 46,654 -227,… 89,380
cash
and
cash
equi…
Cash
and
cash
equi… 895,353 787,4… 1,015… 744,721
at
begi…
of
peri…
Cash
and
cash
equi… $ 788,222 $ 834,1… $ 788,2… $ 834,101
at
end
of
peri…