Revenue growth reached 8.6% in 2026Q1, while gross margins improved significantly from 40.1% in 2024Q1 to 48.3% as the company scales its software-heavy business model.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.38B | 2.33B | 2.14B | 1.95B | 1.85B | 1.59B | 1.12B | 1.09B | 935.28M | 840.66M | 756.04M | 591.02M | 493.1M | 416.64M | 363.3M | 309.39M | 288.63M | 290.29M | 265.1M | 219.8M | 195.3M | 170.46M | 172.27M | 145.45M | 133.9M | 117.89M | 93.2M | 108.4M | 50.5M | 76.4M | 128.4M |
| Revenue Growth % | 8.68% | 9.1% | 9.53% | 5.49% | 16.2% | 42.59% | 2.78% | 16.16% | 11.26% | 11.19% | 27.92% | 19.86% | 18.35% | 14.68% | 17.43% | 7.19% | -0.57% | 9.5% | 20.61% | 12.54% | 14.58% | -1.05% | 18.44% | 8.63% | 13.58% | 26.49% | -14.02% | 114.66% | -33.9% | -40.5% | -8.68% |
| Cost of Goods Sold | 1.3B | 1.31B | 1.26B | 1.17B | 1.13B | 927.49M | 595.81M | 590.97M | 511.92M | 454.9M | 414.42M | 319.74M | 264.28M | 227.96M | 199.88M | 170.81M | 163.54M | 164.23M | 157.75M | 136.85M | 121.82M | 110.24M | 109.7M | 88.62M | 85.92M | 77.87M | 56.14M | 50.47M | 25.5M | 41.8M | 56.9M |
| COGS % of Revenue | - | 55.95% | 59.02% | 59.7% | 60.95% | 58.25% | 53.36% | 54.4% | 54.73% | 54.11% | 54.81% | 54.1% | 53.59% | 54.71% | 55.02% | 55.21% | 56.66% | 56.57% | 59.51% | 62.26% | 62.37% | 64.67% | 63.68% | 60.93% | 64.17% | 66.05% | 60.24% | 46.56% | 50.5% | 54.71% | 44.31% |
| Gross Profit | 1.08B | 1.03B | 876.13M | 786.47M | 722.5M | 664.79M | 520.85M | 495.45M | 423.36M | 386M | 341.62M | 271.28M | 228.82M | 188.69M | 163.42M | 138.58M | 125.09M | 126.06M | 107.35M | 82.95M | 73.49M | 60.22M | 62.57M | 56.83M | 47.98M | 40.02M | 37.06M | 57.93M | 25M | 34.6M | 71.5M |
| Gross Margin % | 45.57% | 44.05% | 40.98% | 40.3% | 39.05% | 41.75% | 46.64% | 45.6% | 45.27% | 45.92% | 45.19% | 45.9% | 46.41% | 45.29% | 44.98% | 44.79% | 43.34% | 43.43% | 40.49% | 37.74% | 37.63% | 35.33% | 36.32% | 39.07% | 35.84% | 33.95% | 39.76% | 53.44% | 49.5% | 45.29% | 55.69% |
| Gross Profit Growth % | - | 17.25% | 11.4% | 8.85% | 8.68% | 27.64% | 5.13% | 17.03% | 9.68% | 12.99% | 25.93% | 18.55% | 21.27% | 15.46% | 17.93% | 10.78% | -0.77% | 17.43% | 29.42% | 12.87% | 22.03% | -3.76% | 10.1% | 18.45% | 19.9% | 7.99% | -36.03% | 131.74% | -27.75% | -51.61% | -11.29% |
| Operating Expenses | 716.66M | 669.61M | 576.61M | 567.93M | 506.25M | 458.96M | 347.92M | 339.09M | 270.87M | 223.24M | 210.31M | 157.34M | 134M | 122.26M | 106.85M | 92.06M | 83.45M | 81.27M | 70.21M | 56.17M | 51.57M | 46.24M | 45.45M | 41.32M | 37.24M | 37.73M | 42.49M | 49.17M | 20M | 34M | 84M |
| OpEx % of Revenue | - | 28.71% | 26.97% | 29.1% | 27.36% | 28.82% | 31.16% | 31.21% | 28.96% | 26.55% | 27.82% | 26.62% | 27.18% | 29.34% | 29.41% | 29.76% | 28.91% | 28% | 26.48% | 25.55% | 26.41% | 27.13% | 26.38% | 28.41% | 27.81% | 32% | 45.59% | 45.36% | 39.6% | 44.5% | 65.42% |
| Selling, General & Admin | 471.85M | 465.02M | 458.67M | 458.35M | 401.07M | 365.48M | 259.56M | 257.75M | 207.6M | 175.91M | 167.16M | 127.42M | 108.26M | 98.99M | 86.71M | 75.65M | 69.48M | 70.11M | 62.92M | 51.72M | 48.27M | 43.84M | 42.95M | 38.39M | 33.91M | 31.07M | 32.8M | 37.91M | 14.5M | 31.9M | 79.5M |
| SG&A % of Revenue | - | 19.94% | 21.46% | 23.48% | 21.68% | 22.95% | 23.24% | 23.72% | 22.2% | 20.93% | 22.11% | 21.56% | 21.95% | 23.76% | 23.87% | 24.45% | 24.07% | 24.15% | 23.74% | 23.53% | 24.72% | 25.72% | 24.93% | 26.39% | 25.33% | 26.35% | 35.2% | 34.97% | 28.71% | 41.75% | 61.92% |
| Research & Development | 216.47M | 204.59M | 117.94M | 109.58M | 105.18M | 93.48M | 88.36M | 81.34M | 63.26M | 47.32M | 43.15M | 29.92M | 25.74M | 23.27M | 20.14M | 16.41M | 13.97M | 11.16M | 7.29M | 4.44M | 3.3M | 2.4M | 2.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 8.77% | 5.52% | 5.61% | 5.68% | 5.87% | 7.91% | 7.49% | 6.76% | 5.63% | 5.71% | 5.06% | 5.22% | 5.58% | 5.54% | 5.31% | 4.84% | 3.84% | 2.75% | 2.02% | 1.69% | 1.41% | 1.45% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.93M | 3.33M | 6.66M | 9.69M | 11.26M | 5.5M | 2.1M | 4.5M |
| Operating Income | 368.31M | 357.68M | 299.53M | 218.54M | 216.25M | 205.84M | 172.93M | 156.37M | 152.49M | 162.76M | 131.31M | 113.94M | 94.82M | 66.42M | 56.58M | 46.52M | 41.64M | 44.78M | 37.14M | 26.78M | 21.91M | 13.98M | 17.12M | 15.51M | 10.74M | 2.29M | -5.43M | 8.76M | 5M | 600K | -12.5M |
| Operating Margin % | 15.47% | 15.34% | 14.01% | 11.2% | 11.69% | 12.93% | 15.49% | 14.39% | 16.3% | 19.36% | 17.37% | 19.28% | 19.23% | 15.94% | 15.57% | 15.04% | 14.43% | 15.43% | 14.01% | 12.18% | 11.22% | 8.2% | 9.94% | 10.66% | 8.02% | 1.94% | -5.83% | 8.08% | 9.9% | 0.79% | -9.74% |
| Operating Income Growth % | - | 19.41% | 37.06% | 1.06% | 5.06% | 19.03% | 10.59% | 2.54% | -6.31% | 23.95% | 15.24% | 20.17% | 42.75% | 17.4% | 21.63% | 11.71% | -7.02% | 20.58% | 38.69% | 22.2% | 56.77% | -18.35% | 10.37% | 44.45% | 368.75% | 142.17% | -161.99% | 75.28% | 733.33% | 104.8% | -600% |
| EBITDA | 500.85M | 505.54M | 451.89M | 389.3M | 388.29M | 351.68M | 254.58M | 233.04M | 213.29M | 216.06M | 181.61M | 133.52M | 109.43M | 80.21M | 69.29M | 57.19M | 52.43M | 54.28M | 49.75M | 37.99M | 32.02M | 24.42M | 28.51M | 24.91M | 19.26M | 13.2M | 4.25M | 20.02M | 10.5M | 2.7M | -8M |
| EBITDA Margin % | 21.04% | 21.68% | 21.14% | 19.95% | 20.99% | 22.09% | 22.8% | 21.45% | 22.81% | 25.7% | 24.02% | 22.59% | 22.19% | 19.25% | 19.07% | 18.49% | 18.16% | 18.7% | 18.77% | 17.28% | 16.39% | 14.33% | 16.55% | 17.12% | 14.38% | 11.2% | 4.56% | 18.47% | 20.79% | 3.53% | -6.23% |
| EBITDA Growth % | 6.93% | 11.87% | 16.08% | 0.26% | 10.41% | 38.14% | 9.24% | 9.26% | -1.28% | 18.97% | 36.02% | 22.01% | 36.43% | 15.76% | 21.15% | 9.09% | -3.41% | 9.11% | 30.95% | 18.66% | 31.1% | -14.33% | 14.45% | 29.32% | 45.91% | 210.39% | -78.76% | 90.71% | 288.89% | 133.75% | -212.68% |
| D&A (Non-Cash Add-back) | 132.54M | 147.86M | 152.37M | 170.77M | 172.04M | 145.84M | 81.66M | 76.67M | 60.8M | 53.3M | 50.3M | 19.57M | 14.61M | 13.79M | 12.71M | 10.68M | 10.79M | 9.5M | 12.61M | 11.21M | 10.1M | 10.44M | 11.39M | 9.4M | 8.52M | 10.91M | 9.69M | 11.26M | 5.5M | 2.1M | 4.5M |
| EBIT | 379.67M | 357.68M | 314.1M | 221.87M | 215.97M | 182.28M | 175.04M | 159.84M | 155.87M | 163.46M | 131.31M | 108.42M | 94.47M | 65.82M | 53.87M | 44.11M | 39.9M | 44.64M | 29.28M | 28.58M | 22.86M | 13.63M | 17.65M | 15.51M | 10.74M | 2.29M | -5.43M | 1.87M | 264K | -3M | -6.8M |
| Net Interest Income | -4.82M | -5M | 8.64M | -20.3M | -26.66M | -21.75M | 2.12M | 3.47M | 3.38M | 698K | -2M | 381K | 0 | 0 | 0 | 0 | 0 | 1.1M | 1.18M | 1.8M | 1.4M | 0 | 446K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 14.57M | 3.33M | 1.72M | 1.54M | 2.12M | 3.47M | 3.38M | 698K | 0 | 381K | 0 | 0 | 0 | 0 | 0 | 1.1M | 1.18M | 1.8M | 1.4M | 0 | 638K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.82M | 5M | 5.93M | 23.63M | 28.38M | 23.3M | 0 | 0 | 0 | 0 | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 192K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 33.13M | 32.64M | 8.64M | -20.3M | -28.66M | -46.85M | 2.12M | 3.47M | 3.38M | 698K | -2M | -5.52M | -355K | -605K | -2.71M | -2.4M | -1.74M | -146K | -7.86M | 1.8M | 940K | -354K | 340K | 23.57M | -698K | -479K | -4.88M | 470K | -3.38M | 899K | 5.9M |
| Pretax Income | 401.45M | 390.32M | 308.17M | 198.24M | 187.59M | 158.98M | 175.04M | 159.84M | 155.87M | 161.63M | 129.31M | 108.42M | 94.47M | 65.82M | 53.87M | 44.11M | 39.9M | 44.64M | 29.28M | 28.58M | 22.86M | 13.63M | 17.44M | 39.08M | 10.04M | 1.81M | -10.32M | 2.34M | 3.1M | -1.4M | -64.3M |
| Pretax Margin % | 16.86% | 16.73% | 14.42% | 10.16% | 10.14% | 9.98% | 15.68% | 14.71% | 16.67% | 19.23% | 17.1% | 18.35% | 19.16% | 15.8% | 14.83% | 14.26% | 13.82% | 15.38% | 11.04% | 13% | 11.7% | 7.99% | 10.12% | 26.87% | 7.5% | 1.54% | -11.07% | 2.16% | 6.14% | -1.83% | -50.08% |
| Income Tax | 85.72M | 74.72M | 45.14M | 32.32M | 23.35M | -2.48M | -19.78M | 13.31M | 8.41M | -2.32M | 19.45M | 43.55M | 35.53M | 26.72M | 20.87M | 16.56M | 14.85M | 17.63M | 14.41M | 11.08M | 8.49M | 5.43M | 7.31M | 13.11M | 3.87M | 1.54M | -2.81M | 2.4M | 2M | -200K | -4.3M |
| Effective Tax Rate % | 21.35% | 19.14% | 14.65% | 16.3% | 12.45% | -1.56% | -11.3% | 8.33% | 5.39% | -1.43% | 15.04% | 40.17% | 37.61% | 40.59% | 38.75% | 37.53% | 37.21% | 39.49% | 49.23% | 38.76% | 37.16% | 39.87% | 41.92% | 33.53% | 38.53% | 84.99% | 27.24% | 102.74% | 64.52% | 14.29% | 6.69% |
| Net Income | 315.73M | 315.6M | 263.03M | 165.92M | 164.24M | 161.46M | 194.82M | 146.53M | 147.46M | 163.94M | 109.86M | 64.87M | 58.94M | 39.1M | 32.99M | 27.56M | 25.05M | 27.01M | 14.86M | 17.5M | 14.36M | 8.19M | 10.13M | 26.4M | 7.99M | 269K | -24.6M | -2.82M | -8.4M | -3.3M | -61.3M |
| Net Margin % | 13.26% | 13.53% | 12.3% | 8.5% | 8.88% | 10.14% | 17.45% | 13.49% | 15.77% | 19.5% | 14.53% | 10.98% | 11.95% | 9.38% | 9.08% | 8.91% | 8.68% | 9.3% | 5.61% | 7.96% | 7.35% | 4.81% | 5.88% | 18.15% | 5.97% | 0.23% | -26.39% | -2.61% | -16.63% | -4.32% | -47.74% |
| Net Income Growth % | 8.91% | 19.99% | 58.53% | 1.02% | 1.72% | -17.12% | 32.96% | -0.63% | -10.05% | 49.23% | 69.35% | 10.06% | 50.74% | 18.51% | 19.73% | 9.99% | -7.24% | 81.74% | -15.08% | 21.86% | 75.3% | -19.11% | -61.64% | 230.48% | 2869.89% | 101.09% | -771% | 66.38% | -154.55% | 94.62% | -260.59% |
| Net Income (Continuing) | 315.73M | 315.6M | 263.03M | 165.92M | 164.24M | 161.46M | 194.82M | 146.53M | 147.46M | 169.57M | 109.86M | 64.87M | 58.94M | 39.1M | 32.99M | 27.56M | 25.05M | 27.01M | 14.86M | 17.5M | 14.36M | 8.19M | 10.15M | 25.98M | 6.17M | 272K | -7.51M | -1.97M | -2.46M | -1.2M | -5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.31 | 7.20 | 6.05 | 3.88 | 3.87 | 3.82 | 4.69 | 3.65 | 3.68 | 4.32 | 2.92 | 1.77 | 1.66 | 1.13 | 1.00 | 0.83 | 0.71 | 0.74 | 0.38 | 0.42 | 0.34 | 0.19 | 0.23 | 0.58 | 0.12 | 0.01 | -0.54 | -0.07 | -0.25 | -0.16 | -3.09 |
| EPS Growth % | 9.04% | 19.01% | 55.93% | 0.26% | 1.31% | -18.55% | 28.49% | -0.82% | -14.81% | 47.95% | 64.97% | 6.63% | 46.9% | 13% | 20.48% | 16.9% | -4.05% | 94.74% | -9.52% | 23.53% | 78.95% | -17.39% | -60.34% | 383.33% | 1100% | 101.85% | -664.87% | 71.76% | -56.25% | 94.82% | -259.3% |
| EPS (Basic) | - | 7.32 | 6.17 | 3.95 | 3.95 | 3.95 | 4.87 | 3.79 | 3.84 | 4.55 | 3.12 | 1.90 | 1.79 | 1.23 | 1.09 | 0.88 | 0.74 | 0.77 | 0.39 | 0.45 | 0.37 | 0.21 | 0.25 | 0.64 | 0.17 | 0.01 | -0.55 | -0.07 | -0.25 | -0.16 | -3.09 |
| Diluted Shares Outstanding | 43.19M | 43.81M | 43.5M | 42.77M | 42.4M | 42.24M | 41.53M | 40.1M | 40.12M | 39.25M | 38.96M | 36.55M | 35.4M | 34.59M | 32.92M | 33.15M | 35.53M | 36.62M | 39.18M | 41.35M | 41.87M | 42.08M | 44.57M | 45.03M | 49.49M | 47.98M | 45.38M | 40M | 34.29M | 20.63M | 19.84M |
| Basic Shares Outstanding | 42.73M | 43.09M | 42.61M | 42.02M | 41.54M | 40.85M | 40.03M | 38.64M | 38.45M | 37.27M | 36.45M | 34.14M | 33.01M | 31.89M | 30.33M | 31.27M | 34.08M | 35.24M | 37.71M | 38.73M | 38.82M | 39.44M | 41.29M | 43.08M | 47.4M | 47.18M | 44.95M | 40M | 34.29M | 20.63M | 19.84M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Implementation and integration complexity
According to recent financial disclosures, Tyler Technologies maintained a consistent revenue growth trajectory, recording 8.6% year-over-year expansion in 2026Q1, which suggests that the company's strategic shift toward recurring SaaS models is successfully offsetting the inherent lumpiness of legacy municipal software licensing and project-based implementation cycles.
The revenue profile appears resilient, supported by the essential nature of public sector software demand. While growth rates have hovered in the high single digits, the transition to cloud-based delivery may be masking underlying demand strength as upfront license revenue is replaced by ratable subscription fees.
As reported in quarterly filings, Tyler Technologies achieved a gross margin of 48.3% in 2026Q1, representing a notable improvement from the 40.1% levels observed in early 2024, which indicates that the company is successfully leveraging its software-heavy revenue mix to drive structural profitability improvements.
The expansion in gross margins suggests that the company is gaining efficiency in its cloud-hosted offerings and potentially benefiting from the higher-margin transactional nature of the NIC segment. Investors should monitor whether this trend persists as the company continues to absorb the costs associated with its AWS migration strategy.
Based on the provided income statement data, operating income scaled to $99.8 million in 2026Q1, demonstrating improved operating leverage as the company manages its SG&A expenses relative to the growth in gross profit, despite the ongoing investments required for specialized municipal software development and deployment.
The ability to expand operating margins while simultaneously increasing R&D investment suggests a disciplined approach to overhead management. This operational efficiency appears to be a key driver of the company's ability to maintain profitability while navigating the complex, labor-intensive requirements of government-sector software implementation.
Analysis of the income statement reveals that R&D expenditures have climbed to $59.7 million in 2026Q1 from $26.2 million in 2023Q4, indicating a significant and sustained commitment to modernizing the company's product suite to meet evolving cybersecurity and cloud-native standards for public sector clients.
This escalation in R&D spending warrants further investigation into whether these costs are being expensed or capitalized, as the latter could artificially inflate short-term earnings. The trend suggests that maintaining a competitive moat in the fragmented municipal market requires continuous, high-cost innovation to satisfy complex regulatory and security mandates.
While the company shows positive momentum, the persistent increase in stock-based compensation, which reached $37.2 million in 2026Q1, suggests that investors should remain cautious regarding the true economic cost of talent retention during the company's complex transition to a cloud-first, AWS-integrated operational model.
Short-sellers may focus on the potential for margin compression if the dual-running costs of legacy and cloud systems persist longer than anticipated. Furthermore, the reliance on milestone-based revenue recognition for government contracts introduces a layer of unpredictability that could lead to earnings volatility if implementation timelines slip.
Quick answers to the most common questions about buying TYL stock.
For fiscal year 2025, Tyler Technologies, Inc. (TYL) reported total revenue of $2.33B. This represents a 1716.5% increase compared to $128.4M in 1996.
Tyler Technologies, Inc. (TYL) is profitable, generating $315.6M in net income for the fiscal year ending 2025 with a net profit margin of 13.5%.
Tyler Technologies, Inc. (TYL) reported an operating income of $357.7M, resulting in an operating profit margin of 15.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Tyler Technologies, Inc. (TYL) generated $1.03B in gross profit for the year, representing a gross profit margin of 44.0%. This demonstrates the company's core pricing power and production efficiency.