Tyler Technologies (TYL) investor relations material

Executive summary

• Q3 2025 revenues reached $595.9 million, up 9.7%–10% year-over-year, driven by 20% SaaS and 11.5% transaction revenue growth, with recurring revenues comprising 85%–86% of the total and ARR at $2.05 billion, up 10.7%–11%.

• Net income for Q3 2025 was $84.4 million ($1.93 per diluted share), up 11.2%, and non-GAAP net income was $130.4 million ($2.97 per diluted share), up 18.5%.

• Adjusted EBITDA grew 14.4% to $169.9 million, and non-GAAP diluted EPS increased 17.9%.

• Major public sector contract wins, SaaS conversions, and AI-driven solutions contributed to growth, with two acquisitions (MyGov and Emergency Networking) expanding SaaS offerings.

• No material impact from public sector demand changes, government shutdown, or related initiatives.

Financial highlights

• Q3 2025 total revenues: $595.9 million, up from $543.3 million in Q3 2024; recurring revenues were $512.4 million, up 10.7%.

• SaaS revenues reached $199.8 million, up 20% year-over-year; transaction revenues were $201.3 million, up 11.5%.

• Non-GAAP operating margin expanded to 26.6%, and non-GAAP gross margin rose to 50.4%.

• Cash flows from operations and free cash flow were $255.2 million and $247.6 million, respectively.

• GAAP gross margin was 47.2%, and GAAP operating margin was 16.4%.

Outlook and guidance

• 2025 revenue guidance: $2.335–$2.360 billion, implying ~10% growth.

• GAAP diluted EPS expected between $7.28 and $7.48; non-GAAP diluted EPS between $11.30 and $11.50; non-GAAP tax rate estimated at 22.5%.

• Free cash flow margin projected at 25%–27%; R&D expense expected at $202–$205 million.

• Capital expenditures forecasted at $31–$33 million, including $18 million for software development.

• SaaS revenue growth for 2026 expected at ~20%; total recurring revenue growth targeted at 10%–12% excluding Texas payments contract wind-down.