TYLER TECHNOLOGIES INC

TYLER TECHNOLOGIES INC

TYLVertical SaaSMixed Growth (Organic + M&A)

Tyler Technologies is the largest pure-play software company serving the US public sector.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026
ARR Multiple
5.5x
+0.9x
ARR
$2.6B
+5.1%
YoY Growth
8.2%
-0.3pp
Market Cap
$14.2B
+18.6%
Revenue (Q)
$645M
+5.1%
Gross Margin
47.6%
-0.7pp
Op. Margin
14.7%
-1.5pp
Rule of 40
23.0
+0.9
Magic Number
3.26
-0.75

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Jun 2026 quarter-end (4.6x).

Valuation by quarter

Current ARR Multiple: 4.6x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

Strategy recommendations

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AI Replacement RiskLOW
12/ 100
LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score
Finance & operationsCategory baseline
mid base
Workflow complexity5/5
-12 risk
Data moat3/5
-1 risk
Integration depthHigh
-10 risk
SegmentGovernment
-12 risk
IndustryOther
neutral
Own AI integration2/5
+1.6 risk

Company overview

Tyler Technologies is the largest pure-play software company serving the US public sector. It provides integrated technology solutions for state governments, local governments, counties, cities, schools, courts, and federal agencies. Founded in 1966 in Plano, Texas, Tyler assembled the most comprehensive government technology portfolio in the industry through decades of development and over 40 acquisitions.

The product suite covers nearly every government function. Enterprise ERP and financial management through Munis and Infinite Visions. Courts and justice through Odyssey, the leading court case management system used in 28 states. Public safety through New World Systems. Tax and appraisal through iasWorld, ProVal, and Orion. Planning and regulatory through Energov. School ERP and student information through Infinite Campus. Data and insights through Socrata, a platform for open government data. And Tyler Payments, a unified government payment platform.

The company invested heavily in moving to cloud-native SaaS delivery. Its Connected Communities vision enables data sharing between government agencies within and across jurisdictions. Cloud offerings reduce the IT burden on resource-strapped government organizations and enable faster deployment with continuous updates. Subscription and SaaS revenue now make up the majority of total revenue.

More than 15,000 local government offices use Tyler's software across all 50 states. Annual revenue is roughly $2.2 billion. Recurring revenue exceeds 80% of total. Blended gross margins are about 50%, though software-only margins are much higher. About 7,500 employees work at the company. Tyler dominates multiple government software categories with very little competition from the large horizontal enterprise vendors.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearDec 31
IncorporatedDelaware
Phone(972) 713-3700
Address5101 TENNYSON PKWY, PLANO, TX, 75024
Mailing address5101 TENNYSON PKWY, PLANO, TX, 75024
EIN75-2303920
Entity typeoperating
SEC industry framework06 Technology
Former namesTYLER CORP /NEW/ (to 1999-03-31)

SaaS KPIs

Reported in at least 3 quarters

Non-GAAP Operating Margin

22 quarters
25.7%
Q2 FY2026-1.5pp

Free Cash Flow

20 quarters
$118.5M
Q2 FY2026+15.3%

Adjusted EBITDA

16 quarters
$176.4M
Q2 FY2026+18.4%

Annualized Recurring Revenue (ARR)

12 quarters
$2.24B
Q2 FY2026+4.2%

New SaaS Clients Added

12 quarters
672
Q1 FY2025+271.3%

Recurring Revenues

12 quarters
$514.4M
Q4 FY2025-0.5%

Management outlook

Given with Q2 FY2026 results (Jun 2026)
ReportedGuidanceFY2025 (cumulative)

Guided revenue, FY2026$2.535B – $2.575B
Midpoint$2.555B
Growth vs FY2025+9.5%
Reported, Q1–Q2$1.259B
Implied Q3–Q4$1.276B – $1.316B
Full Year 2026
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$18 million to $20 million
Capitalized software development costs included in capex$6 million
Net interest income$19 million to $21 million

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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