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EX-99.1

2 a991earningsrelease-9302026.htm

EX-99.1

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Tyler Technologies Reports Earnings for Third Quarter 2026

SaaS revenues grew 21.2% and free cash flow reached a new quarterly high

PLANO, Texas – October 28, 2026 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value S&P 500 company, today announced financial results for the third quarter ended September 30, 2026.

"We achieved solid third quarter results, with double-digit recurring revenue growth, robust margin expansion, strong bookings, and record quarterly free cash flow," said Lynn Moore, Tyler's executive chair, president and chief executive officer. "Strong SaaS bookings reinforce healthy public sector demand, reflected in a growing sales pipeline and driven by continued public sector investment in digital modernization. Our government-grade AI strategy is delivering tangible progress, with approximately 300 deals containing AI sold across our client base to date. Combined with disciplined capital allocation, including our repurchase of approximately 8.5% of our outstanding shares year-to-date, these achievements position us well for a strong finish to 2026 and reinforce our confidence in our long-term growth initiatives that underpin our Tyler 2030 objectives," concluded Moore.

Third Quarter 2026 Financial Highlights (all comparisons are to the third quarter of 2025):

Revenues

•Total revenues were $647.6 million, up 8.7%.

•Recurring revenues were $568.8 million, up 11.0%, and comprised 87.8% of total revenues.

•Subscription revenues were $462.6 million, up 15.3%.

◦SaaS revenues grew 21.2% to $242.2 million.

◦Transaction revenues grew 9.5% to $220.4 million.

•Annualized recurring revenue (ARR) was $2.28 billion, up 11.0%.

Earnings/EBITDA

•GAAP operating income was $117.0 million, up 19.5%. Non-GAAP operating income was $182.1 million, up 14.8%.

•GAAP net income was $95.1 million, or $2.33 per diluted share, up 12.7%. Non-GAAP net income was $143.4 million, or $3.52 per diluted share, up 10.0%.

•Adjusted EBITDA was $192.7 million, up 13.4%.

Cash Flow

•Cash flows from operations were $282.5 million, up 10.7%.

•Free cash flow was $277.0 million, up 11.9%.

Tyler Technologies Reports Earnings

for Third Quarter 2026

October 28, 2026

Page 2

"Third quarter results reflect the strength and resilience of Tyler's recurring revenue model. Recurring revenues grew 11.0%, driven by SaaS revenue growth of 21.2%. Transaction-based revenues growth accelerated to 9.5% (14.2% excluding the impact of the Texas payments contract wind-down). Free cash flow reached a quarterly record of $277 million, up 11.9%, supported by earnings growth and improved working capital performance," said Brian Miller, Tyler's executive vice president and chief financial officer. "During the quarter, we deployed capital across both strategic growth initiatives and shareholder returns, including the acquisition of CODY Systems and the repurchase of 1.1 million shares of our common stock. Supported by our strong balance sheet, robust cash generation, and significant remaining share repurchase authorization, we maintain financial flexibility to invest in growth initiatives, pursue disciplined acquisition opportunities, and continue building shareholder value," concluded Miller.

Recent Business Highlights

•On July 30, we completed the acquisition of CODY Systems, an established public safety company that provides SaaS software and data management, integration, and exchange solutions for public safety, law enforcement, and other public sector entities, for approximately $27.7 million in cash.

•We repurchased 1,148,389 shares of our common stock during the quarter for approximately $379 million, with approximately $1.37 billion remaining under our previously announced repurchase authorizations.

Financial Outlook for 2026

As of October 28, 2026, Tyler Technologies is providing the following guidance for the full year 2026:

Guidance for 2026

Range

Total revenues

$2.535 billion to $2.565 billion

Non-GAAP diluted earnings per share

$12.95 to $13.20

Free cash flow margin

26% to 28%

Research and development expense

$245 million to $250 million

Capital expenditures

$20 million to $22 million

Capitalized software development costs included in capex $5 million

Net interest income

$15 million to $17 million

Tyler Technologies has not reconciled forward-looking full-year non-GAAP financial measures to their most directly comparable GAAP measures, as permitted by item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to stock-based compensation, acquisition transactions, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ si

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