Tyler Technologies (TYL)
Information Technology · $16.4B market cap · SEC CIK 0000860731
ahead of 43% of the S&P 500 · #46 of 73 in Information Technology
Next reports on Feb 9, 2027, after the close, with analysts expecting $3.44 in earnings per share.
52-week range $270.71 to $481.57. 12% below its 52-week high and 56% above its low.
The case for TYL
- Generated $638M of free cash flow in FY2025, 27% of revenue.
- Holds more cash ($1.0B) than long-term debt ($600M).
- Has compounded revenue at 15.9% a year over five years.
- Moves less than the market (beta 0.73).
The case against
- Expensive for its growth: 49.0× earnings, where 11% a year of growth would justify about 24×.
- Priced at 6.6× sales with revenue growing only 8.0%.
- Trailed the S&P 500 by 22 points over the past year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 35 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 52 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 45 |
| Momentumhow the price has behaved lately | 65 |
| Stabilityhow violently it moves, what it owes and what it pays you | 88 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +8.0% |
|---|---|
| Over 5 years | +15.9% a year |
| FY2025 revenue | $2.3B (+9%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $638M |
|---|---|
| Of revenue | 27% |
| Of profit | 202% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 48% |
|---|---|
| Operating margin | 16% |
| Net margin, FY24 → FY25 → now | 12.3% → 13.5% → 13.5% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $1.0B |
|---|---|
| Long-term debt | $600M |
| Net cash | $416M |
| Years to repay | 0.9 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 49.0× |
|---|---|
| Fair P/E for its growth | 24× |
| P/FCF | 25.8× |
| Forward P/E | 30.9× |
| EV / EBITDA | 38.1× |
At 49.0× earnings it trades well above the 24× that 11% a year of growth would justify. At 25.8× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Tyler Technologies's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $2.3B | $2.1B | $2.0B | $1.9B | $1.6B |
| Change on the year | +9% | +10% | +5% | +16% | — |
| Free cash flow | |||||
| Free cash flow | $638M | $604M | $360M | $359M | $338M |
| Of revenue | 27% | 28% | 18% | 19% | 21% |
| Profit margins | |||||
| Gross margin | 46.5% | 43.8% | 44.1% | 42.4% | 44.6% |
| Operating margin | 15.3% | 14.0% | 11.2% | 11.6% | 11.4% |
| Net margin | 13.5% | 12.3% | 8.5% | 8.9% | 10.1% |
| Debt vs. cash | |||||
| Cash | $1.0B | $745M | $165M | $174M | $309M |
| Long-term debt | $600M | $598M | $596M | $957M | $1.3B |
| Net cash (debt) | $416M | $147M | −$431M | −$784M | −$1.0B |
What Tyler Technologies says it does
DESCRIPTION OF BUSINESS Tyler Technologies, Inc. (“Tyler” or “Company”) is a leading provider of integrated software and technology management solutions for the public sector. Our solutions empower local, state, and federal government entities to create smarter, safer, and stronger communities. We offer the broadest range of software solutions and services designed for every level of public sector government agency. Our solutions deliver mission-critical technology to support the essential functions of government, including 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. We provide both the back-office systems-of-record that serve the operational needs of specific government agencies, as well as platform technology solutions that are designed to integrate with our back-office solutions and be…