Tyler Technologies (TYL) AI Stock Analysis

• Market Cap: $24.75B
• Dividend Yield: N/A
• Average Volume (3M): 359.80K
• Price to Earnings (P/E): 81.8
• Beta (1Y): 0.75
• Revenue Growth: 10.69%
• EPS Growth: 45.43%
• Country: US
• Employees: 7,462
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 3.01
• Shares Outstanding: 43,261,810
• 10 Day Avg. Volume: 334,094
• 30 Day Avg. Volume: 359,804
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 11.48
• Enterprise Value/Gross Profit: 25.42
• Enterprise Value/Ebitda: 50.30
• 1Y Price Target: $678.50
• Price Target Upside: 19.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $626.00 ▲(10.25% Upside)

Tyler Technologies' strong financial performance and positive earnings call are the most significant factors contributing to the stock score. However, the high P/E ratio and bearish technical indicators moderate the overall score.

Positive Factors

Financial Performance

Tyler delivered strong second quarter 2025 results with SaaS revenues growing by 21.5%, to $189.6 million, and transaction-based revenues growing 21.3%, to $215.5 million.

Government Contracts

The company announced continued extension of its contract with the State of Texas for a transaction-based system, which should now end in 2026.

Market Opportunities

Tyler's market share is still very low at 6% despite being the share leader, which demonstrates the fragmented nature of the state and local government market and the room still ahead for growth.

Negative Factors

Contract Delays

Visibility improved with concerns not materializing other than a few scattered delays or cancellations.

Revenue Challenges

Assuming a $41M headwind from the Texas payments contract in FY26 as it is taking longer to roll off.

SaaS Growth

SaaS ARR from new deals will likely be down due to tough comparisons.

Tyler Technologies Business Overview & Revenue Model

Company Description

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; Appraisal and Tax; and NIC. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities; utility billing systems for the billing and collection of metered and non-metered services; products to automate city and county functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools. The company also provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems; public safety software solutions; systems and software to automate the appraisal and assessment of real and personal property, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; software applications to enhance and automate operations involving records and document management; and data and insights solutions. In addition, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. The company has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. Tyler Technologies, Inc. was founded in 1966 and is headquartered in Plano, Texas.

How the Company Makes Money

Tyler Technologies generates revenue primarily through the sale of software licenses, maintenance contracts, and professional services. The company offers subscription-based software solutions, allowing clients to pay annually for access to their platforms. Key revenue streams include the sale of its ERP (Enterprise Resource Planning) systems, public safety software, and court case management systems. Additionally, Tyler earns revenue from consulting services that assist in the implementation and integration of its software solutions. Strategic partnerships with government entities and industry collaborations enhance its market reach and contribute to its earnings, as does the increasing demand for digital transformation in the public sector. The company's commitment to innovation and expansion into new markets further bolsters its financial performance.

Tyler Technologies Financial Statement Overview

Summary

Tyler Technologies demonstrates strong financial performance with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The balance sheet is healthy with manageable debt levels and strong equity, although liabilities are sizable.

Income Statement

Tyler Technologies demonstrates strong revenue growth with a consistent increase in total revenue from $1.59 billion in 2021 to $2.25 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin remains robust at 45.2% TTM, indicating efficient cost management. The net profit margin improved to 13.7% TTM, reflecting enhanced profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The company's balance sheet is solid with increasing stockholders' equity, reaching $3.63 billion TTM. The debt-to-equity ratio is favorable at 0.18, showing prudent leverage management. ROE improved to 8.4% TTM, indicating effective utilization of equity. The equity ratio of 69.1% TTM reflects a strong equity base, but the total liabilities remain significant.

Cash Flow

Tyler Technologies exhibits strong cash flow management with free cash flow increasing to $620.5 million TTM. The operating cash flow to net income ratio of 2.10 TTM highlights robust cash generation relative to net income. Free cash flow growth is steady, supporting financial flexibility and potential for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.14B	1.95B	1.85B	1.59B	1.12B
Gross Profit	1.01B	935.76M	861.10M	783.86M	709.64M	542.51M
EBITDA	512.74M	466.47M	392.63M	388.01M	328.12M	254.58M
Net Income	306.80M	263.03M	165.92M	164.24M	161.46M	194.82M
Balance Sheet
Total Assets	5.43B	5.18B	4.68B	4.69B	4.73B	2.61B
Cash, Cash Equivalents and Short-Term Investments	892.35M	767.98M	175.88M	210.89M	361.47M	675.81M
Total Debt	641.72M	638.37M	696.89M	1.05B	1.39B	22.18M
Total Liabilities	1.79B	1.79B	1.74B	2.06B	2.41B	621.16M
Stockholders Equity	3.63B	3.39B	2.94B	2.62B	2.32B	1.99B
Cash Flow
Free Cash Flow	620.53M	604.10M	327.43M	331.30M	316.14M	326.62M
Operating Cash Flow	642.96M	624.63M	380.44M	381.45M	371.75M	355.09M
Investing Cash Flow	-151.27M	-67.61M	-76.96M	-172.53M	-2.09B	-98.32M
Financing Cash Flow	45.03M	22.21M	-311.84M	-344.24M	1.42B	114.17M

Tyler Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 567.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYL, the sentiment is Negative. The current price of 567.82 is below the 20-day moving average (MA) of 576.18, below the 50-day MA of 576.60, and below the 200-day MA of 585.80, indicating a bearish trend. The MACD of 2.11 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TYL.

Tyler Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSNC	78 Outperform	$21.21B	27.35	12.07%	1.15%	6.75%	15.99%
PAYC	78 Outperform	$12.57B	29.38	25.76%	0.67%	10.21%	-10.56%
TYL	72 Outperform	$24.75B	81.80	9.07%	―	10.69%	45.43%
PCTY	70 Outperform	$9.49B	42.81	20.04%	―	13.74%	10.99%
GWRE	68 Neutral	$17.80B	545.99	2.61%	―	18.61%	―
HUBS	62 Neutral	$23.15B	7,452.21	-0.65%	―	18.96%	58.78%
Sector *	57 Neutral	HK$14.83B	9.08	-0.60%	4.27%	7.14%	-38.21%

Tyler Technologies Corporate Events

Tyler Technologies CEO Nominated as Board Chair

In a strategic move for Tyler Technologies, the independent directors of the Board have unanimously agreed to nominate H. Lynn Moore, Jr., the current President and CEO, to assume the role of Board Chair at the 2026 Annual Meeting. This decision follows Mr. Marr’s choice not to stand for reelection, and the Board plans to maintain a Lead Independent Director to ensure governance balance as the Board Chair will not be independent.

The most recent analyst rating on (TYL) stock is a Buy with a $700.00 price target. To see the full list of analyst forecasts on Tyler Technologies stock, see the TYL Stock Forecast page.