Results
Tyler Technologies Reports Earnings for Third Quarter 2026
7SaaS 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.
1Our government-grade AI strategy is delivering tangible progress, with approximately 300 deals containing AI sold across our client base to date.
5Combined 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
8Total 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
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"Third quarter results reflect the strength and resilience of Tyler's recurring revenue model.
2Recurring revenues grew 11.0%, driven by SaaS revenue growth of 21.2%.
3Transaction-based revenues growth accelerated to 9.5% (14.2% excluding the impact of the Texas payments contract wind-down).
6Free 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 2026Range
Total revenues$2.535 billion to $2.565 billion
Non-GAAP diluted earnings per share$12.95 to $13.20
Free cash flow margin26% to 28%
Research and development expense$245 million to $250 million
Capital expenditures$20 million to $22 million
Capitalized software development costs included in capex$5 million
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
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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.
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.
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
Tyler Technologies Reports Earnings
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October 28, 2026
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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.
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.
4We 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
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personnel; and (13) costs of compliance and any failure to comply with government and stock exchange regulations.
(Comparative results follow)
Contact: Hala Elsherbini
Senior Director, Investor Relations
Tyler Technologies, Inc.
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