Tyler Technologies makes software that runs local governments—from court cases and property taxes to 911 dispatch and school buses. Think of it as the operating system for your city hall.
Money comes from recurring software subscriptions and maintenance, with revenue growing from USD 1.95B in 2023 to USD 2.33B in 2025. Gross margin sits around 46.6%, and net margin improved to 13.4% as they shift to cloud services.
Switching costs are brutal: replacing Tyler's court or tax systems means retraining staff and migrating decades of records. Competitors like Oracle and SAP would face a years-long sales cycle to displace an entrenched installation. But the moat is eroding as A
Hold (sector percentile 31) — value B-, growth C-, profitability C+, momentum C, revisions B. Updated daily, sector-relative, identical for every user.
Key events, in time order
Earnings call highlights SaaS growth, record bookings and FCF, though revenue missed consensus
American Capital raised stake by 348.9%, Arrowstreet by 238.6%, indicating institutional inflows
Institutional stake reduction disclosed in latest 13F filing
Company announces six conference appearances following Q2 earnings
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Tyler Technologies is undervalued relative to its earnings, with a target price suggesting significant upside potential based on industry multiples.
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