Start here if you're new
what it is
Tyler sells the systems cities, counties, schools, and courts use to run basic government work.
how it gets paid
Last year Tyler Technologies made $2.3B in revenue. SaaS subscriptions was the main engine at $1.10B, or 48% of sales.
why it's growing
FY 2025 revenue was ~$2.3B (+9.1%). Q4 2025 revenue was ~$575.2M (+6.3%) per the Feb 11, 2026 release— do not confuse that quarterly print with the FY total in the table below.
what just happened
Q4 2025 GAAP diluted EPS was $1.50 (flat vs. $1.49 prior-year quarter); non-GAAP diluted EPS was $2.64. FY 2025 GAAP diluted EPS was $7.20— the old “46% miss” line was feed garbage mixed across metrics.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
95/100 earnings predictability — you can trust these numbers
38.6x trailing p/e — you're paying up for this one
13.5% return on capital — nothing to write home about
xvary composite: 76/100 — average
What they do
Tyler sells the systems cities, counties, schools, and courts use to run basic government work.
Tyler wins because local governments do not rip out core systems unless they have to. The company serves more than 13,000 local government offices, according to web-sourced industry coverage, and that scale matters when your tax, court, and records systems all need to talk to each other. Switching costs (changing a core system) → painful retraining, data migration, and political risk → so your customer usually stays put.
How they make money
$2.3B
annual revenue · their business grew +9.1% last year
SaaS subscriptions
$1.10B
+10.7%
Transaction-based services
$0.37B
+9.1%
Software licenses and maintenance
$0.33B
+6.0%
Professional services
$0.28B
+6.0%
Appraisal and tax services
$0.22B
+6.0%
The products that matter
runs government workflows
Public-sector software and services
$2.3B revenue · +9.1% growth
it's the full $2.3B business today, and that 9.1% growth rate is the number you watch if you want to know whether 38.6x earnings still makes sense.
entire business
Key numbers
38.6x
trailing p/e
P/E (price-to-earnings) → what you pay for each $1 of profit → so what: you are paying a premium price for a company growing revenue 9.1%.
$562
18-month target
If a ~$562 handle is still in your feed, reconcile it to the Feb 2026 print and current street mean— stale targets drift fast after guidance updates.
95
predictability score
That score says earnings have been unusually steady, which helps justify a higher multiple when government budgets stay stable.
15.3%
operating margin
Operating margin → profit after running the business → so what: Tyler keeps about 15 cents from each revenue dollar before interest and taxes.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 70 / 100
- net profit margin 22.8% — keeps 23 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in TYL 3 years ago → it's now worth $13,890.
The index would have given you $14,770.
source: institutional data · total return
What just happened
Q4 + FY25 reported
Q4 2025 revenue ~$575.2M (+6.3%); GAAP diluted EPS $1.50; non-GAAP diluted EPS $2.64.
FY 2025 revenue ~$2.3B (+9.1%); GAAP net income ~$315.6M; GAAP diluted EPS $7.20 (+20.0%). A ~$9.7M non-cash loss reserve hit Q4 non-recurring revenue/operating income— read the 8-K tables, not mangled consensus scrapers.
~$575.2M
Q4 2025 revenue
$1.50
Q4 GAAP diluted EPS
$7.20
FY 2025 GAAP diluted EPS
the number that mattered
Recurring revenue was ~89% of Q4 sales with SaaS up ~20%— that mix is what supports the premium, not a fake “EPS miss” headline.
-
Q4 2025 revenue ~$575.2M; recurring revenue ~$514.4M (~89.4% of total).SaaS revenue ~$208.3M in the quarter (+20.2% YoY)— Feb 11, 2026 earnings materials.
-
FY 2025 free cash flow ~$620.8M (+8.0%); ~$175M buybacks (303,067 shares).
-
2026 outlook: revenue ~$2.50–$2.55B; GAAP diluted EPS ~$8.36–$8.61; non-GAAP diluted EPS ~$12.40–$12.65.
-
Q4 included a non-cash ~$9.7M loss reserve tied to a disclosed contract dispute.Check operating income and non-recurring revenue lines in the filing— it is easy to misread “miss” if you blend GAAP, non-GAAP, and one-offs.
source: Tyler Technologies Form 8-K / Q4–FY 2025 release (Feb 11, 2026) · investors.tylertech.com
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is state and local government budget timing.
med
state and local government budget timing
Tyler sells into public agencies. When budgets get delayed or procurement slows, deals can slip even if demand does not disappear. A business growing 9.1% does not have a lot of room for timing noise if investors are paying 38.6x earnings.
the business may stay healthy while the stock reprices anyway. That's the quiet part.
med
cloud transition needs to keep earning its premium
This snapshot points to SaaS winning most new contracts and efficiency gains from data center consolidation. Good. But if cloud mix rises without better margins or faster growth, the story turns from operating leverage to expensive maintenance.
with quarterly net margin at 14.2% and full-year net margin at 21.3%, the market is already expecting the model to stay efficient.
med
premium multiple on merely solid growth
TYL looks like a dependable software compounder, but the stock trades at 38.6x trailing earnings and about 36.4x this year's estimated earnings. If revenue growth drifts below the current 9.1% pace, the multiple can do the damage before the business does.
this is what paying up looks like. You get a sturdier business and a less forgiving stock.
a slowdown from 9.1% growth or weaker margin conversion would matter more here than balance-sheet risk, because the shares already price in quality.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
revenue growth holding near 9.1%
That is the simplest test of whether Tyler still deserves a premium multiple. If growth fades and the p/e does not, you have a math problem.
trend
SaaS mix and transaction revenue
This snapshot says SaaS is taking most new contracts and payments activity is helping transaction revenue. You want both trends to keep compounding.
risk
government budget timing
The customers are sticky, but procurement cycles can still move around. A delayed deal pipeline can hit the stock before it breaks the business.
calendar
next earnings vs. FY2026 non-GAAP guide
Management guided non-GAAP diluted EPS ~$12.40–$12.65 for 2026— track whether execution holds inside that band as revenue moves toward ~$2.5–$2.55B.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup here, not a stock with unusual near-term velocity.
safety
above average
stability score 2 — safer than roughly 80% of stocks. The business looks steadier than the valuation.
chart momentum
average
technical score 3 — the chart is moving with the market more than leading it.
earnings predictability
95 / 100
management tends to deliver what the market expects. That reduces surprise risk, not valuation risk.
source: institutional data
Institutional activity
378 buyers vs. 389 sellers in 3q2025. total institutional holdings: 40.7M shares.
source: institutional data
Price targets
3-5 year target range
$389
$735
$440
current price
$562
target midpoint · +28% from current · 3-5yr high: $775 (+75% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive