2025 Fourth Quarter Earnings Review 2026 Annual Guidance February 12, 2026 Statement Regarding Use of Non-GAAP Measures 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 p ...

分组1 - Tyler Technologies reported quarterly earnings of $2.64 per share, missing the Zacks Consensus Estimate of $2.71 per share, but showing an increase from $2.43 per share a year ago, resulting in an earnings surprise of -2.40% [1] - The company posted revenues of $575.18 million for the quarter ended December 2025, which was 2.45% below the Zacks Consensus Estimate and an increase from $541.13 million year-over-year [2] - Over the last four quarters, Tyler Technologies has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 20.6% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the coming quarter is $2.98 on revenues of $609.08 million, and for the current fiscal year, it is $12.62 on revenues of $2.54 billion [7] - The Zacks Industry Rank for Internet - Software and Services is currently in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Viewpoint - Tyler Technologies has forecasted lower-than-expected annual revenue for 2026 due to reduced software spending by government entities amid economic uncertainty, leading to an over 8% drop in its shares during extended trading [1]. Group 1: Revenue Forecast - For 2026, Tyler Technologies expects revenue between $2.50 billion and $2.55 billion, which is below Wall Street's expectation of $2.56 billion [1]. - The company anticipates annual subscription revenue growth of 12% to 15%, while analysts had projected a growth of 15.4% [1]. Group 2: Quarterly Performance - In the fourth quarter, Tyler reported revenue of $575.2 million, missing the average analyst expectation of $591.1 million [1]. - Adjusted earnings per share for the quarter were $2.64, falling short of estimates of $2.72 [1]. Group 3: Market Conditions - The company is heavily reliant on public sector budgets, which are being tightened due to economic slowdown and funding shortfalls, potentially impacting bookings and organic growth [1]. - Concerns have risen regarding the pace of cloud migrations over the next two years, as government approvals for projects are taking longer amid budget constraints [1].

Core Insights - Tyler Technologies reported its financial results for the fourth quarter ended December 31, 2025, highlighting its position as a leading provider of integrated software and technology services for the public sector [1][1][1] Financial Performance - The company generated revenues of $1.850 billion in 2022, with a net income of $164.2 million for the same year [1][1][1] Shareholder Actions - Tyler Technologies' board of directors approved a share repurchase plan for its Class A Common Stock, amounting to $1 billion [1][1][1] Strategic Developments - The company signed a definitive agreement to acquire For The Record, a pioneer in digital court-recording technology, indicating a strategic move to enhance its service offerings [1][1][1] Upcoming Events - A conference call and webcast is scheduled for February 12, 2026, to discuss the fourth quarter 2025 results, allowing stakeholders to engage directly with the company's leadership [1][1][1]

Core Insights - Tyler Technologies, Inc. (TYL) is expected to report fourth-quarter 2025 results on February 11, with revenues projected to increase by 8.96% year-over-year to $589.6 million and earnings estimated at $2.71 per share, reflecting an 11.52% increase from the previous year [1][2]. Revenue Segments - The Subscription segment is anticipated to generate revenues of $400 million, marking a 14.7% year-over-year increase, driven by sustained demand for SaaS offerings as the public sector modernizes its technology infrastructure [3]. - Revenues from the Software Licenses and Royalties segment are estimated at $5.6 million, indicating an 8.2% decline year-over-year due to the ongoing transition to SaaS [4]. - Professional Services revenues are projected to reach $63.9 million, reflecting a modest 1.7% increase year-over-year, while Maintenance segment revenues are expected to decline by 8.1% to $105.7 million [4]. - Total revenues across all segments are estimated at $569.6 million, representing an 8.2% year-over-year increase [5]. Market Dynamics - Despite macroeconomic uncertainties affecting procurement decisions, Tyler's diversified client base and strong public sector demand are likely to support steady sales activity, contributing positively to the company's top line [6]. - The shift towards a higher mix of SaaS and transaction-based revenues is expected to aid in margin expansion for the quarter [6]. Earnings Prediction - Current analysis indicates that the model does not predict a definitive earnings beat for Tyler Technologies, with an Earnings ESP of -0.92% and a Zacks Rank of 3 (Hold) [7].

Core Viewpoint - Tyler Technologies Inc. has experienced a significant decline in stock price over the past month and year, raising questions about its valuation despite a recent price increase [1]. Group 1: Stock Performance - The current stock price of Tyler Technologies is $340.86, reflecting a 1.85% increase in the current market session [1]. - Over the past month, the stock has decreased by 22.57%, and over the past year, it has fallen by 43.26% [1]. Group 2: Valuation Metrics - The P/E ratio is a critical measure for investors, comparing the current share price to the company's earnings per share (EPS) [2]. - A higher P/E ratio typically suggests that investors expect better future performance, which may indicate overvaluation, but it can also reflect optimism about future dividends [2]. - Tyler Technologies has a lower P/E ratio compared to the software industry average of 68.18, suggesting that the stock may be undervalued despite the potential for underperformance relative to peers [3].

Group 1: Company Overview - Tyler Technologies (TYL) shares increased by 3.4% to close at $343.24, following a significant trading volume compared to typical sessions, despite a 25.2% loss over the past four weeks [1] - The company announced a $1 billion share repurchase authorization, indicating management's confidence in long-term growth prospects [1] Group 2: Earnings Expectations - Tyler Technologies is expected to report quarterly earnings of $2.71 per share, reflecting an 11.5% year-over-year increase, with revenues projected at $589.62 million, a 9% rise from the previous year [2] - The consensus EPS estimate for the quarter has been revised slightly higher in the last 30 days, suggesting a positive trend that may lead to price appreciation [3] Group 3: Industry Context - Tyler Technologies is part of the Zacks Internet - Software and Services industry, which includes other companies like Sabre (SABR), that experienced a 3.6% decline to $1.2, with a return of -9.5% over the past month [4] - Sabre's consensus EPS estimate remains unchanged at -$0.07, representing a 12.5% increase from the previous year [5]

Core Viewpoint - Tyler Technologies announced the approval of a share repurchase plan for its Class A Common Stock by its board of directors [1] Company Summary - The share repurchase plan indicates the company's strategy to return value to shareholders and potentially enhance earnings per share [1]

Core Viewpoint - Tyler Technologies (TYL) has signed a definitive agreement to acquire For The Record for approximately $212.5 million, with the transaction expected to close in the first quarter of 2026, pending regulatory approvals and customary closing conditions [1]. Group 1: Acquisition Details - The acquisition price for For The Record is approximately $212.5 million [1]. - The transaction is anticipated to close in the first quarter of 2026, subject to regulatory approvals [1]. Group 2: For The Record's Offerings - For The Record is described as a digital court-recording pioneer with over 30 years of experience [1]. - The company provides sophisticated, secure, and accurate digital recording solutions that address operational challenges in all 50 U.S. states and globally [1]. - For The Record has developed "legal grade" speech-to-text and real-time multilingual transcription technology powered by artificial intelligence [1]. - Its proprietary, cloud-enabled software is tailored for the complexities of modern courtrooms [1].

Core Viewpoint - For The Record has entered into a definitive agreement to be acquired by Tyler Technologies for an enterprise value of $258 million, aimed at enhancing the public sector's efficiency in the justice process [1]. Company Overview - Tyler Technologies is a leading provider of integrated software and technology services for the public sector, offering end-to-end solutions that enable government entities to operate efficiently and transparently [2]. Acquisition Details - The integration of For The Record's solutions into Tyler's Courts & Justice portfolio will create a complete court record, enhancing visibility and productivity through advanced AI tooling [3]. - This acquisition is expected to bridge legal data with digital records in near real-time, allowing court staff to focus on high-value work [3]. Strategic Insights - The acquisition is seen as a synergy between digital records and case files, with a focus on responsible AI to support judicial workflows [4]. - Both companies share a mission to improve access to justice through transformative technology, aiming to create a seamless courtroom ecosystem for judges, clerks, and attorneys [4]. Company Background - For The Record is a global leader in courtroom recording and speech-to-text technologies, with over 30 years of experience and installations in more than 80 countries [5]. - The company is committed to modernizing how justice is documented and delivered, enhancing transparency and accessibility through innovative solutions [5].