TYLER TECHNOLOGIES INC (TYL)

Tyler Technologies, Inc. is a provider of integrated software and technology management solutions for the public sector. Its solutions serve local, state, and federal government entities, supporting functions such as public safety, justice, public health, taxation and budgeting, infrastructure and land use, outdoor recreation, utility and civic services, regulation, K-12 education, and social services. The company supplies both back-office systems-of-record for specific agencies and platform technologies designed to connect across many agencies. It has dedicated state-level offices in the 30 states where it holds enterprise contracts.

Its offerings are organized into several suites. Platform and transformative technology solutions include cybersecurity, data and insights, digital solutions, an integrated payments platform that processes nearly half a billion transactions annually, a low-code application development platform, and outdoor recreation solutions. Public administration solutions cover civic services, ERP, property and recording, and regulatory management. Courts and public safety solutions cover corrections, courts and justice, and public safety. K-12 education solutions include school ERP and student transportation, and health and human services solutions include environmental health and disability and benefits. Revenue comes from subscription-based services (SaaS arrangements and transaction-based fees), maintenance and support, and professional services such as implementation, data conversion, and training. Software licenses, royalties, and hardware made up 2.5% of 2025 revenues. Recurring revenue from subscriptions and maintenance and support was $2.0 billion, or 87% of 2025 total revenues, and annualized recurring revenue was $2.06 billion at December 31, 2025.

Customers are primarily federal, state, county, and municipal agencies, school districts, and other local government offices, including county officials, courts, sheriffs, police, and municipal departments. The company has clients in all 50 states, Canada, the Caribbean, the United Kingdom, Australia, and other international locations. Its traditional focus has been small and mid-sized governments, though it is increasingly selling to larger jurisdictions. Client turnover is approximately 2% annually. Products are marketed mainly through direct sales personnel in the United States, supplemented in some cases by a partner network, mostly in the state and federal markets.

The company has been moving from hosting clients in its own data centers to Amazon Web Services under a strategic collaboration agreement, and it has pursued a cloud-first sales approach since late 2019. It grows organically and through selective acquisitions, including NIC Inc. in April 2021. Hardware and other equipment are available from several third-party sources, and it has had no significant supply problems. Competitors include Oracle, Infor, SAP, Workday, CentralSquare Technologies, Thomson Reuters, Motorola Solutions, Axon Enterprise, and Constellation Software, along with smaller regional firms, consulting and systems integration firms, and governments' internal IT departments. It protects its intellectual property mainly through contractual restrictions and trade secret laws rather than patents. As of December 31, 2025, it had approximately 7,800 team members, about 93% of them in 63 U.S. offices or working remotely in the U.S., and roughly 650 in Canada, the Philippines, or India.