Tyler Technologies serves public sector clients with a software platform that generates 172% free cash flow conversion and has beaten earnings in 3 of 4 recent quarters, but a confirmed death cross, falling on-balance volume, and an elevated put/call ratio of 2.65 signal that price needs time and a catalyst before the 38% analyst upside becomes accessible.
Thesis pillars
- Exceptional Free Cash Conversion→Stable
- Analyst Upside 38 Pct→Stable
- Public Sector Concentration Risk→Stable
- +1 more pillar — see the Why tab for full reasoning
Tyler Technologies, Inc. (TYL) Stock Analysis
Recovery setup · Catalyst-Driven edge
Technology · Software - Application
Sell if holding. Multiple concerning factors at $318.10: Leverage penalty (D/E 1.3): -0.5; Concentration risk — Customer: public sector clients.
Tyler Technologies sells integrated software and technology management solutions exclusively to public sector clients — cities, counties, states, and federal agencies across all 50 states. Recurring revenues of $2.0 billion represented 87% of total 2025 revenues, with client... Read more
Sell if holding. Multiple concerning factors at $318.10: Leverage penalty (D/E 1.3): -0.5; Concentration risk — Customer: public sector clients. Chart setup: Death cross but MACD improving, RSI 61. Score 5.1/10, moderate confidence.
Passes 7/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 26d clear, semi cycle peak clear, materials cycle peak clear). Suitability: speculative.
About Tyler Technologies, Inc.
About Tyler Technologies, Inc.
Tyler Technologies generated $2.0 billion in recurring revenue in 2025, representing 87% of total revenues, while annualized recurring revenue (ARR) reached $2.06 billion at December 31, 2025 — an approximately 11% increase year-over-year. Subscription-based revenues alone climbed from $784.4 million in 2021 to $1.6 billion in 2025, driven by a sustained shift toward SaaS delivery. The company serves public sector clients across all 50 states, including dedicated enterprise contracts in 30 states, and employed approximately 7,800 team members at December 31, 2025.
Tyler's revenues flow from three streams: subscription-based services (SaaS arrangements and transaction-based fees from the payments platform, which processes nearly half a billion transactions annually, plus digital government and e-filing services), maintenance and support for on-premises clients billed as a percentage of license fees and renewed annually, and professional services for implementation, training, and data conversion billed hourly or on a fixed-fee basis. Software licenses and hardware represented only 2.5% and 3.2% of total revenues in 2025 and 2024, respectively, confirming the recurring-revenue pivot is structurally advanced. SaaS contracts typically span one to three years and include fee escalators on renewal; on-premises clients historically renew at roughly 98% annually. AWS provides the primary cloud infrastructure under a strategic collaboration agreement; Tyler acknowledges that switching providers would require significant cost and potential service interruption, making the relationship a material operational dependency. Named competitors include Oracle Corporation, SAP AG, Infor, Workday, Motorola Solutions, Axon Enterprise, and Constellation Software.
Show full overview
Tyler's public sector client base creates structural budget dependency: revenues derived substantially from government entities are subject to termination clauses tied to lack of future appropriations, open bidding requirements, and political factors including changes in governmental administrations. In May 2026, the company disclosed via Form 8-K an Amended and Restated Credit Agreement providing a $1 billion unsecured revolving facility with Wells Fargo Bank, National Association, maturing May 28, 2031 — expanding capacity above the prior $700 million line and extending tenor ahead of the 2029 scheduled maturity. The expanded facility provides financial flexibility for acquisitions and ongoing migration of legacy on-premises clients to cloud SaaS arrangements.
See also: Technology · Software - Application
From Tyler Technologies, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-07-06Recent Developments — Tyler Technologies, Inc.
Latest news
- NEWS Tyler Technologies: Q1 Earnings Snapshot - KTVB — KTVB neutral
- NEWS Tyler Technologies (TYL) Stock: Discount or Premium? (Bullish Momentum) 2026-04-22 - Community Chart Signals - UBND thàn — UBND thành phố Hải Phòng positive
- NEWS TD Cowen cuts Tyler Tech stock price target on bookings concerns - Investing.com — Investing.com negative
- NEWS Tyler Technologies Announces 2026 Investor Day - Business Wire — Business Wire positive
- NEWS [Form 4] TYLER TECHNOLOGIES INC Insider Trading Activity - Stock Titan — Stock Titan neutral
Generated 2026-07-06T05:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerpublic sector clients10-K Item 1A: 'We derive substantially all of our revenues from sales of software and services to state, county, and city governments, other federal or municipal agencies, and other public entities.'
- MEDIUMSupplierAmazon Web Services (AWS)10-K Item 1A: 'A material portion of our business is provided through software hosting services...provided by third parties, including AWS.'
Material Events(8-K, last 90d)
- 2026-05-29Item 1.01LOWTyler Technologies entered into Amended and Restated Credit Agreement with Wells Fargo Bank as Administrative Agent providing $1 billion unsecured revolving facility maturing May 28, 2031, replacing the prior $700 million facility. No borrowings outstanding at closing.SEC filing →
- 2026-05-29Item 1.02MEDIUMTyler Technologies terminated its existing $700 million unsecured credit agreement dated September 25, 2024 with Wells Fargo Bank as Administrative Agent, replaced by the new $1 billion facility maturing May 28, 2031.SEC filing →
- 2026-05-29Item 2.03LOWTyler Technologies created a direct financial obligation under the new $1 billion unsecured revolving credit facility with Wells Fargo Bank. No borrowings were outstanding at closing.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Analyst Consensus
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $318.10: Leverage penalty (D/E 1.3): -0.5; Concentration risk — Customer: public sector clients. Chart setup: Death cross but MACD improving, RSI 61. Prior stop was $295.83. Score 5.1/10, moderate confidence.
Take-profit target: $393.77 (+23.8% upside). Prior stop was $295.83. Stop-loss: $295.83.
Concentration risk — Customer: public sector clients; Leverage penalty (D/E 1.3): -0.5; Weak growth.
Tyler Technologies, Inc. trades at a P/E of 43.9 (forward 21.5). TrendMatrix value score: 5.0/10. Verdict: Sell.
27 analysts cover TYL with a consensus score of 4.1/5. Average price target: $438.
What does Tyler Technologies, Inc. do?Tyler Technologies sells integrated software and technology management solutions exclusively to public sector clients —...
Tyler Technologies sells integrated software and technology management solutions exclusively to public sector clients — cities, counties, states, and federal agencies across all 50 states. Recurring revenues of $2.0 billion represented 87% of total 2025 revenues, with client turnover running approximately 2% annually due to deep multi-year implementation cycles for mission-critical government systems.