PLANO, Texas – July 30, 2025 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value equity company, today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights (all comparisons are to the second quarter of 2024):

Revenues

Total revenues were $596.1 million, up 10.2%.

Recurring Revenues

Recurring revenues were $517.2 million, up 15.2%, and comprised 86.8% of total revenues, up from 83.0%.

•Subscription revenues were $405.1 million, up 21.4%.

◦Within subscriptions:

◦SaaS revenues grew 21.5% to $189.6 million.

◦Transaction-based revenues grew 21.3% to $215.5 million.

•SaaS arrangements comprised approximately 96% of the total new software contract value, down from approximately 97%.

•Annualized recurring revenue (ARR) was $2.07 billion, up 15.2%.

Earnings/EBITDA

•GAAP operating income was $95.6 million, up 22.5%. Non-GAAP operating income was $158.1 million, up 19.3%.

•GAAP net income was $84.6 million, or $1.93 per diluted share, up 24.9%. Non-GAAP net income was $127.9 million, or $2.91 per diluted share, up 23.1%.

•Adjusted EBITDA was $169.1 million, up 18.3%.

Cash Flow

•Cash flows from operations were $98.3 million, up 52.9%.

•Free cash flow was $88.0 million, up 80.9%.

"Second quarter revenues, earnings, and cash flow again surpassed expectations as we continue to execute at a high level against each of the key pillars of our growth strategy," said Lynn Moore, Tyler's president and chief executive officer. "SaaS revenues grew 21.5%, marking our 18th consecutive quarter of SaaS growth of 20% or more. New transaction-based services and higher volumes drove transaction revenue growth of 21.3%. In addition, both gross and operating margins continue to expand, reflecting a positive shift in revenue mix, efficiency gains across our cloud operations, and favorable operating expense trends.

"As anticipated, we saw solid sequential improvement in SaaS bookings for the second quarter. Public sector market conditions and our sales pipeline remain strong, supported by generally healthy budgets and a growing focus on technology investments that drive efficiency through digital modernization. And recently, Tyler was recognized as both a Leader and Visionary in the first-ever Gartner Magic QuadrantTM for Cloud-Based ERP for U.S. Local Government. We believe this represents a clear testament to the strength of our competitive position, innovation, and the differentiated value of our uniquely integrated suite of public sector solutions," concluded Moore.

As of July 30, 2025, Tyler Technologies is providing the following guidance for the full year 2025:

•Total revenues are expected to be in the range of $2.33 billion to $2.36 billion.

•GAAP diluted earnings per share are expected to be in the range of $7.40 to $7.70.

•Non-GAAP diluted earnings per share are expected to be in the range of $11.20 to $11.50.

•Free cash flow margin is expected to be in the range of 25% to 27%.

•Research and development expense is expected to be in the range of $202 million to $205 million.

•Capital expenditures are expected to be in the range of $31 million to $33 million, including approximately $18 million of capitalized software development costs.

•Net interest income is expected to be in the range of $29 million to $31 million.

Tyler Technologies will hold a conference call and webcast on Thursday, July 31, 2025, at 10:00 a.m. ET to discuss the company’s results. Participants can pre-register for the teleconference here. Alternatively, participants can also join the teleconference by dialing 646-307-1963 and providing the operator with the conference name before admittance to the call.

The live audio webcast and archived replay can also be accessed at the Events & Presentations section of Tyler's investor relations website.

Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 45,000 successful installations across 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures.

This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period while isolating the effects of some items that vary from period to period without correlation to core operating performance. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. EBITDA is net income before interest expense, other income, income taxes, depreciation, and amortization. Non-GAAP and adjusted financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.

Tyler currently uses a non-GAAP tax rate of 22.5%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements.

We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, including local, state and federal governments agencies, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks, security vulnerabilities and software updates; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with rising labor costs, the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

Contact: Hala Elsherbini

Senior Director, Investor Relations

Tyler Technologies, Inc.

972-713-3770

hala.elsherbini@tylertech.com

Source: Tyler Technologies

#TYL_Financial

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						Three months ended June 30,												Six months ended June 30,
Reconciliation of non-GAAP operating income and margin						2025						2024						2025						2024
GAAP operating income						$	95,596					$	78,035					$	184,769					$	145,013
Non-GAAP adjustments:
Add: Share-based compensation expense						38,302						30,407						75,962						57,273
Add: Employer portion of payroll tax related to employee stock            transactions						1,055						873						2,119						1,678
Add: Acquisition-related costs						—						2						33						29
Add: Lease restructuring costs and other						24						167						48						(159)
Add: Amortization of acquired software						9,319						9,240						18,613						18,479
Add: Amortization of other intangibles						13,833						13,845						27,972						31,963
Non-GAAP adjustments subtotal						62,533						54,534						124,747						109,263
Non-GAAP operating income						$	158,129					$	132,569					$	309,516					$	254,276
GAAP operating margin						16.0		%				14.4		%				15.9		%				13.8		%
Non-GAAP operating margin						26.5		%				24.5		%				26.7		%				24.1		%

						Three months ended June 30,												Six months ended June 30,
Reconciliation of free cash flow						2025						2024						2025						2024
Net cash provided by operating activities						$	98,311					$	64,304					$	154,469					$	136,143
Less: additions to property and equipment						(5,487)						(6,568)						(7,822)						(13,850)
Less: investment in software development						(4,850)						(9,107)						(10,400)						(16,493)
Free cash flow						$	87,974					$	48,629					$	136,247					$	105,800
Free cash flow margin						14.8		%				9.0		%				11.7		%				10.0		%