Tyler Technologies (TYL) Investor presentation summary

Enduring advantage and market position

• Holds #1 market position in public sector software with $2.33B revenue and 87% recurring revenues in 2025.

• Gross client retention at 98% and free cash flow margin at ~27% in 2025.

• Broadest, most integrated solutions and deep domain expertise drive market share.

• Largest installed client base enables significant cross-sell and upsell opportunities.

• Strategic acquisitions and innovation, including AI, expand capabilities and TAM.

Growth strategy and recurring revenue engines

• SaaS and transaction segments are key growth drivers, with SaaS revenue growing at 22% CAGR (FY22–FY25).

• Maintenance-to-SaaS conversions expected to increase recurring revenue by ~1.7x, with 85% conversion by 2030.

• Transaction-funded software and embedded payments drive ARR growth through higher attach rates and expanded portfolio.

• AI adoption creates new TAM and incremental ARR layers, leveraging trusted relationships and public sector expertise.

• M&A strategy delivers faster-growing, scalable revenue streams, with acquisitions growing >2x faster than core business.

Financial outlook and capital allocation

• 2026 revenue guidance: $2.535B–$2.575B, with SaaS growth of 21.5–23.5% and transaction growth of 6–8%.

• 2026 non-GAAP diluted EPS guidance: $12.80–$13.05; free cash flow margin: 26–28%.

• 2030 recurring revenue target: $3.3B–$3.4B, with 10–12% organic CAGR and >90% recurring revenue mix.

• Non-GAAP operating margin expected to reach mid-30s% by 2030, with free cash flow margin in the low 30s%.

• Capital allocation priorities: invest in organic growth, strategic acquisitions, and opportunistic share repurchases.