A Business at a Glance
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TYLER TECHNOLOGIES INC
TYL
$13.0B
Mkt Cap
$297.15
+3.12%
TYLER TECHNOLOGIES INC (TYL) has a current P/E ratio of 41.3, compared to its historical median P/E of 72.7. The stock is currently considered Cheap based on its historical valuation range.
TYLER TECHNOLOGIES INC (TYL) has a 5-year average return on invested capital (ROIC) of 7.0%. This is below average and may indicate limited pricing power.
TYLER TECHNOLOGIES INC (TYL) has a market capitalization of $14.3B. It is classified as a large-cap stock.
TYLER TECHNOLOGIES INC (TYL) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.97%.
Based on historical P/E analysis, TYLER TECHNOLOGIES INC (TYL) appears cheap. The current P/E of 41.3 is 43% below its historical median of 72.7. The estimated fair value CAGR (P/E method) is 5.8%.
TYLER TECHNOLOGIES INC (TYL) operates in the Services-Prepackaged Software industry, within the Technology sector.
TYLER TECHNOLOGIES INC (TYL) reported annual revenue of $2.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Tyler Technologies is a leading provider of integrated software and technology management solutions for the public sector, serving federal, state, and local government agencies across mission-critical functions including public safety, justice, taxation, budgeting, infrastructure, K-12 education, and social services. The company operates through three primary revenue streams: subscription-based services (including Software-as-a-Service and transaction-based fees), maintenance and support contracts, and professional services (implementation, training, and data conversion). Tyler's business model emphasizes recurring revenue through long-term client relationships, with SaaS arrangements typically contracted for one to three years and maintenance contracts automatically renewing annually unless terminated; the company processes nearly half a billion transactions annually through its market-leading payments platform. The company's competitive differentiation rests on the breadth and depth of its integrated product portfolio, deep industry expertise with proven implementation success, technological innovation including platform technologies for low-code application development and digital resident experience, and strong brand recognition and financial stability. Tyler maintains dedicated state-level offices in 30 states with enterprise contracts and serves a highly fragmented market comprising hundreds of federal agencies, all 50 states, approximately 3,000 counties, 36,000 cities and towns, 12,600 school districts, and approximately 40,000 special districts, each with unique information management requirements.
【Cloud transition accelerating】 Management expects the peak of on-premises-to-cloud migration activity to occur during 2027–2029, with the company targeting 80% or more of on-premises customers moved to the cloud by 2030; the company expects the volume of flips to be higher in 2026 than in 2025 and maintains high confidence in achieving this goal based on client conversations. SaaS revenue growth is expected to continue at approximately 20% or above, driven by a combination of new SaaS bookings, flips from on-premises systems, renewals, and cross-sell opportunities to existing customers. The company is pursuing a phased expansion of AI-embedded solutions through 2026 and beyond, with early deployments demonstrating 10–30% productivity gains and 2–3x return on investment on targeted processes, while maintaining the reliability and trust that public sector clients demand. Management remains disciplined on capital allocation, expecting to leverage significant free cash flow and reasonable levels of debt to fund future growth through acquisitions and opportunistic share repurchases, while continuing targeted investments in product development and cloud operations.
| Metric | Target | Period |
|---|---|---|
| Total revenues | $2.5–2.55 billion | FY2026 |
| Non-GAAP diluted EPS | $12.40–12.65 | FY2026 |
| Free cash flow margin | 26%–28% | FY2026 |
| SaaS revenue growth | 20.5%–22.5% | FY2026 |
| Subscription revenue growth | 12%–15% | FY2026 |
| Transaction revenue growth | 5%–7% | FY2026 |
| Maintenance revenue growth | decline 5%–7% | FY2026 |
| Professional services revenue growth | 3%–5% | FY2026 |
| License revenue growth | 15%–17% | FY2026 |
| Research and development expense | $242–247 million | FY2026 |
| For The Record acquisition revenue contribution |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.4B | 2.3B | 2.1B | 2.0B | 1.9B | 1.6B |
| Net Income | 316M | 316M | 263M | 166M | 164M | 161M |
| EPS | $6.56 | $7.20 | $6.05 | $3.88 | $3.87 | $3.82 |
| Free Cash Flow | 688M | 638M | 604M | 360M | 359M | 338M |
| ROIC | 9.0% | 8.9% | 7.7% | 5.3% | 5.5% | 7.8% |
| Gross Margin | 46.8% | 46.5% | 43.8% | 44.1% | 42.4% | 44.6% |
| Debt/Equity | 0.00 | 0.17 | 0.19 | 0.24 | 0.40 | 0.60 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 368M | 358M | 300M | 219M | 214M | 181M |
| Operating Margin | 15.5% | 15.3% | 14.0% | 11.2% | 11.6% | 11.4% |
| ROE | 8.9% | 8.9% | 8.3% | 6.0% | 6.6% | 7.5% |
| Shares Outstanding | 48M | 44M | 43M | 43M | 42M | 42M |
| Metric | 2018 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 493M | 591M | 756M | 841M | 935M | 1.1B | 1.1B | 1.6B | 1.9B | 2.0B | 2.1B | 2.3B | 2.4B |
| Gross Margin | 47.3% | 46.9% | 47.5% | 47.5% | 47.0% | 47.6% | 48.6% | 44.6% | 42.4% | 44.1% | 43.8% | 46.5% | 46.8% |
| R&D | 26M | 30M | 43M | 47M | 63M | 81M | 88M | 93M | 105M | 110M | 118M | 205M | 216M |
| SG&A | 108M | 133M | 165M | 176M | 208M | 258M | 260M | 391M | 267M | 309M | 301M | 316M | 321M |
| EBIT | 95M | 108M | 138M | 163M | 152M | 156M | 173M | 181M | 214M | 219M | 300M | 358M | 368M |
| Op. Margin | 19.2% | 18.3% | 18.2% | 19.4% | 16.3% | 14.4% | 15.5% | 11.4% | 11.6% | 11.2% | 14.0% | 15.3% | 15.5% |
| Net Income | 59M | 65M | 114M | 170M | 147M | 147M | 195M | 161M | 164M | 166M | 263M | 316M | 316M |
| Net Margin | 12.0% | 11.0% | 15.0% | 20.2% | 15.8% | 13.5% | 17.4% | 10.1% | 8.9% | 8.5% | 12.3% | 13.5% | 13.3% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -45K | -1K | -24K | 8K | 8K |
| Returns on Capital | |||||||||||||
| ROIC | 39.8% | 11.9% | 12.4% | 17.5% | 13.7% | 11.4% | 12.9% | 7.8% | 5.5% | 5.3% | 7.7% | 8.9% | 9.0% |
| ROE | 20.2% | 10.7% | 12.6% | 16.0% | 11.7% | 10.0% | 10.8% | 7.5% | 6.6% | 6.0% | 8.3% | 8.9% | 8.9% |
| ROA | 11.6% | 6.7% | 8.3% | 11.3% | 8.7% | 7.4% | 8.1% | 4.4% | 3.5% | 3.5% | 5.3% | 5.8% | 6.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 143M | 134M | 192M | 196M | 250M | 255M | 355M | 372M | 381M | 380M | 625M | 654M | 705M |
| Free Cash Flow | 133M | 122M | 154M | 153M | 223M | 217M | 332M | 338M | 359M | 360M | 604M | 638M | 688M |
| Owner Earnings | 113M | 95M | 112M | 105M | 136M | 118M | 206M | 131M | 119M | 118M | 358M | 364M | 411M |
| CapEx | 9.3M | 13M | 38M | 43M | 27M | 37M | 23M | 34M | 23M | 21M | 21M | 16M | 17M |
| Maint. CapEx | 15M | 20M | 50M | 53M | 62M | 77M | 82M | 136M | 159M | 154M | 143M | 138M | 143M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 15M | 20M | 50M | 53M | 62M | 77M | 82M | 136M | 159M | 154M | 143M | 138M | 143M |
| CapEx/OCF | 6.5% | 9.3% | 19.7% | 22.0% | 11.0% | 14.6% | 6.4% | 9.1% | 5.9% | 5.4% | 3.3% | 2.5% | 2.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 23M | 645K | 112M | 7.5M | 147M | 18M | 15M | 13M | 0 | 0 | 0 | 175M | 425M |
| Buyback Yield | 0.6% | 0.0% | 2.0% | 0.1% | 2.0% | 0.1% | 0.1% | 0.1% | N/A | N/A | N/A | 0.9% | 3.0% |
| Stock-Based Comp | 15M | 20M | 30M | 37M | 53M | 60M | 67M | 105M | 103M | 108M | 123M | 151M | 151M |
| Debt Repayment | 0 | 2.1M | 0 | 0 | 0 | 0 | 0 | 27M | 0 | 0 | 2.6M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | 85M | -36M | -229M | -179M | -249M | -654M | 1.0B | 835M | 521M | -130M | -455M | -346M |
| Cash & Equiv. | 206M | 33M | 36M | 186M | 134M | 233M | 604M | 309M | 174M | 165M | 745M | 1.0B | 346M |
| Long-Term Debt | N/A | 66M | 10M | 0 | 0 | 0 | 0 | 1.3B | 957M | 596M | 598M | 600M | 600M |
| Debt/Equity | 0.69 | 0.15 | 0.02 | 0.00 | 0.00 | 0.01 | 0.01 | 0.60 | 0.40 | 0.24 | 0.19 | 0.17 | 0.00 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | 77.1 | 170.7 | 7.8 | 7.5 | 9.2 | 50.5 | 71.6 | 76.5 |
| Equity | 337M | 874M | 935M | 1.2B | 1.3B | 1.6B | 2.0B | 2.3B | 2.6B | 2.9B | 3.4B | 3.7B | 3.6B |
| Total Assets | 570M | 1.4B | 1.4B | 1.6B | 1.8B | 2.2B | 2.6B | 4.7B | 4.7B | 4.7B | 5.2B | 5.6B | 4.8B |
| Total Liabilities | 233M | 483M | 444M | 420M | 466M | 575M | 621M | 2.4B | 2.1B | 1.7B | 1.8B | 1.9B | 1.2B |
| Intangibles | 35M | 295M | 267M | 230M | 277M | 379M | 322M | 1.1B | 1.0B | 929M | 832M | 780M | 756M |
| Retained Earnings | 261M | 326M | 436M | 624M | 772M | 917M | 1.1B | 1.3B | 1.4B | 1.6B | 1.9B | 2.2B | 2.3B |
| Working Capital | 104M | -69M | -79M | 149M | 95M | 171M | 549M | 135M | -42M | -141M | 375M | 88M | 1.3M |
| Current Assets | 337M | 268M | 283M | 521M | 519M | 680M | 1.1B | 964M | 847M | 861M | 1.4B | 1.8B | 1.0B |
| Current Liabilities | 233M | 338M | 362M | 371M | 424M | 509M | 564M | 830M | 890M | 1.0B | 1.1B | 1.8B | 1.0B |
| Per Share Data | |||||||||||||
| EPS | 1.66 | 1.77 | 2.92 | 4.32 | 3.68 | 3.65 | 4.69 | 3.82 | 3.87 | 3.88 | 6.05 | 7.20 | 6.56 |
| Owner EPS | 3.19 | 2.58 | 2.89 | 2.68 | 3.39 | 2.94 | 4.96 | 3.11 | 2.81 | 2.76 | 8.24 | 8.30 | 8.54 |
| Book Value | 9.49 | 23.85 | 24.00 | 30.36 | 33.06 | 40.28 | 47.81 | 54.99 | 61.84 | 68.70 | 77.94 | 84.47 | 73.90 |
| Cash Flow/Share | 4.02 | 3.67 | 4.93 | 4.99 | 6.24 | 6.35 | 8.55 | 8.80 | 8.99 | 8.90 | 14.37 | 14.91 | 9.52 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 35.5M | 36.6M | 38.9M | 39.3M | 40.1M | 40.1M | 41.5M | 42.3M | 42.4M | 42.8M | 43.5M | 43.8M | 48.1M |
| Valuation | |||||||||||||
| P/E Ratio | 68.7 | 102.0 | 49.0 | 41.1 | 49.3 | 82.3 | 92.1 | 139.1 | 81.4 | 107.8 | 97.0 | 64.0 | 45.3 |
| P/FCF | 30.3 | 54.3 | 36.2 | 45.6 | 32.6 | 55.5 | 54.0 | 66.5 | 37.2 | 49.7 | 42.3 | 31.7 | 20.8 |
| EV/EBIT | N/A | 62.0 | 40.2 | 41.4 | 46.5 | 75.4 | 99.8 | 129.6 | 66.0 | 84.2 | 84.6 | 55.1 | 37.9 |
| Price/Book | 12.0 | 7.6 | 6.0 | 5.8 | 5.5 | 7.5 | 9.0 | 9.7 | 5.1 | 6.1 | 7.5 | 5.5 | 4.0 |
| Price/Sales | 6.7 | 8.5 | 7.9 | 7.8 | 9.2 | 8.7 | 13.0 | 12.3 | 8.7 | 8.2 | 10.5 | 10.3 | 6.0 |
| FCF Yield | 3.3% | 1.8% | 2.8% | 2.2% | 3.1% | 1.8% | 1.9% | 1.5% | 2.7% | 2.0% | 2.4% | 3.2% | 4.8% |
| Market Cap | 4.1B | 6.6B | 5.6B | 7.0B | 7.3B | 12.1B | 17.9B | 22.5B | 13.4B | 17.9B | 25.5B | 20.2B | 14.3B |
| Avg. Price | 93.24 | 137.58 | 152.64 | 166.65 | 215.07 | 234.19 | 349.97 | 462.20 | 381.28 | 375.04 | 514.16 | 549.97 | 297.15 |
| Year-End Price | 114.09 | 180.52 | 143.16 | 177.43 | 181.51 | 300.57 | 431.93 | 531.19 | 314.91 | 418.29 | 587.10 | 461.06 | 297.15 |
TYLER TECHNOLOGIES INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
TYLER TECHNOLOGIES INC trades at 41.3x trailing earnings, compared to its 15-year median P/E of 72.7x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 20.0x vs a median of 43.9x. The company's 5-year average ROIC is 7.0% with a gross margin of 44.3%. Total shareholder yield (buybacks) is 3.0%. At current prices, the estimated annualized return to fair value is +12.1%.
TYLER TECHNOLOGIES INC (TYL) has a net profit margin of 13.5%. This is a healthy margin.
TYLER TECHNOLOGIES INC (TYL) generated $638 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TYLER TECHNOLOGIES INC (TYL) has a debt-to-equity ratio of 0.17. This indicates a conservatively financed balance sheet.
TYLER TECHNOLOGIES INC (TYL) reported earnings per share (EPS) of $7.20 in its most recent fiscal year.
TYLER TECHNOLOGIES INC (TYL) has a return on equity (ROE) of 8.9%. This indicates moderate shareholder returns.
TYLER TECHNOLOGIES INC (TYL) has a 5-year average gross margin of 44.3%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for TYLER TECHNOLOGIES INC (TYL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TYLER TECHNOLOGIES INC (TYL) has a book value per share of $84.47, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the peak of on-premises-to-cloud migration activity to occur during 2027–2029, with the company targeting 80% or more of on-premises customers moved to the cloud by 2030; the company expects the volume of flips to be higher in 2026 than in 2025 and maintains high confidence in achieving this goal based on client conversations. SaaS revenue growth is expected to continue at approximately 20% or above, driven by a combination of new SaaS bookings, flips from on-premises systems, renewals, and cross-sell opportunities to existing customers. The company is pursuing a phased expansion of AI-embedded solutions through 2026 and beyond, with early deployments demonstrating 10–30% productivity gains and 2–3x return on investment on targeted processes, while maintaining the reliability and trust that public sector clients demand. Management remains disciplined on capital allocation, expecting to leverage significant free cash flow and reasonable levels of debt to fund future growth through acquisitions and opportunistic share repurchases, while continuing targeted investments in product development and cloud operations.
Based on recent SEC filings and earnings calls, TYLER TECHNOLOGIES INC (TYL) has provided the following forward guidance: Total revenues: $2.5–2.55 billion (FY2026); Non-GAAP diluted EPS: $12.40–12.65 (FY2026); Free cash flow margin: 26%–28% (FY2026); SaaS revenue growth: 20.5%–22.5% (FY2026); Subscription revenue growth: 12%–15% (FY2026), plus 7 additional metrics.
| ~$30 million |
| FY2026 |
| Transaction revenue from Colorado Department of Corrections contract | ~$2 million ARR | FY2025 onwards |
Total revenues (FY2026): “We expect total revenues will be between $2.5 billion and $2.55 billion.”
Non-GAAP diluted EPS (FY2026): “We expect non-GAAP diluted EPS will be between $12.40 and $12.65.”
Free cash flow margin (FY2026): “We expect our free cash flow margin will be between 26% and 28%.”
SaaS revenue growth (FY2026): “Within subscriptions, SaaS revenues are expected to grow between 20.5% and 22.5%.”
Subscription revenue growth (FY2026): “Subscription revenues in total are expected to grow between 12% and 15%.”
Transaction revenue growth (FY2026): “Transaction revenues are expected to grow between 5% and 7%.”
Maintenance revenue growth (FY2026): “Maintenance revenues are expected to decline 5%-7%.”
Professional services revenue growth (FY2026): “Professional services revenues are expected to grow 3%-5%.”