# Tyler Technologies (TYL.US)

Canonical: https://gigainvestors.com/s/TYL

Analysis as of: 2026-10-16T07:32:37.786Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $363.62 per share; close as of 2026-10-15.

Estimated value: low $125.00 per share, central $139.14 per share, high $157.95 per share. Buy at or below the central value $139.14 per share. Valuation as of 2026-10-16T07:32:37.786Z; scenarios are not confidence intervals.

Expected annual return: 5.3% at the stated quote. About 5.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.16×

- FY2019: 0.14×

- FY2020: 0.15×

- FY2021: 0.13×

- FY2022: 0.12×

- FY2023: 0.11×

- FY2024: 0.14×

- FY2025: 0.15×

- LTM to Jun 2026: 0.15×

### moat: pass

- ROIC, median of available years: 35.1%

- ROIC, second-lowest year: 19.7%

- Typical minus recent gross margin: 2.6 pp

- Typical gross margin (annual median): 46.7%

- Recent gross margin (lower of latest and 3-year median): 44.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.8%

- ROIC including acquisitions, ten-year median: 13.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 52.0%

- FY2017: 53.4%

- FY2018: 36.8%

- FY2019: 27.1%

- FY2020: 35.0%

- FY2021: 20.8%

- FY2022: 19.5%

- FY2023: 19.7%

- FY2024: 35.2%

- FY2025: 43.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.55×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.7B

- Net income, five-year total: $1.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -6.8 pp

- Working capital / revenue, final three-year average: 22.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.56×

- FY2022: 1.74×

- FY2023: 1.71×

- FY2024: 1.50×

- FY2025: 1.42×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 52.0% vs 35.2%

- Per-share earnings: 2.82 to 6.05 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: $14B

- Cumulative retained earnings: $1.7B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.0%

- Per-share value change: $3.23

- Per-share value, starting three-year median: $2.82

- Per-share value, ending three-year median: $6.05

- Buybacks concentrated in cheaper years (correlation): 0.67

- Average buyback yield: 0.6%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $2.8B

- Cumulative net income, 10 years: $1.8B

- ROIC, first three-year median: 52.0%

- ROIC, last three-year median: 35.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.82

- FY2017: $4.18

- FY2018: $3.68

- FY2019: $3.65

- FY2020: $4.69

- FY2021: $3.82

- FY2022: $3.87

- FY2023: $3.88

- FY2024: $6.05

- FY2025: $7.20

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 23.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.07×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.91×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.0%

- FY2017: -2.0%

- FY2018: -5.7%

- FY2019: -4.9%

- FY2020: -6.1%

- FY2021: -4.4%

- FY2022: -4.6%

- FY2023: -4.6%

- FY2024: -7.0%

- FY2025: -6.0%

## Holders

## Price story

Down 42% since Nov 2024 · "Tyler Technologies forecasts downbeat annual revenue on slower software spending" (finance.yahoo.com, Feb 2026) · sales +4.2%

Story as of 2026-10-16T09:59:44.716Z; price observation 2026-10-15.

Price needs cash profits to grow 14.5% a year for ten years

- 2025-06-14: Tyler Technologies' SWOT analysis: cloud transition, AI boost stock outlook ([investing.com](https://www.investing.com/news/swot-analysis/tyler-technologies-swot-analysis-cloud-transition-ai-boost-stock-outlook-93CH-4095939))

- 2026-02-11: Tyler Technologies forecasts downbeat annual revenue on slower software spending ([finance.yahoo.com](https://finance.yahoo.com/news/tyler-technologies-forecasts-downbeat-annual-220038657.html))

- 2026-08-31: Tyler Technologies (TYL) Boosts 2030 Financial Goals After Successful Cloud Transition ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/tyler-technologies-tyl-boosts-2030-134223842.html))

### Sales · FY2025–2026

sales +4.2%; source https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm; observed 2026-02-18.

- FY2017: $841M 

- FY2018: $935M 

- FY2019: $1.1B 

- FY2020: $1.1B 

- FY2021: $1.6B 

- FY2022: $1.9B 

- FY2023: $2.0B 

- FY2024: $2.1B 

- FY2025: $2.3B 

- FY2026: $2.4B 

### Gross margin · FY2025

gross margin 46.5%; source https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm; observed 2026-02-18.

- FY2016: 47.5% 

- FY2017: 47.5% 

- FY2018: 47.0% 

- FY2019: 47.6% 

- FY2020: 48.6% 

- FY2021: 44.6% 

- FY2022: 42.4% 

- FY2023: 44.1% 

- FY2024: 43.8% 

- FY2025: 46.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 2.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm (filed 2026-02-18); FY2025: revenue 2332340000; grossProfit 1083700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TYL.US: Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector in the United States. It operates in two segments, Enterprise Software and Platform Technologies. The company designs, develops, markets, and supports a range of software solutions to serve mission-critical back-office functions. It also offers platform and transformative technology solutions, such as cybersecurity, data and insights, digital solutions, payments, platform technologies, and outdoor recreation; public administration solutions, including civic services, ERP, property and recording, and regulatory; and corrections, courts and justice, and public safety solutions. In addition, the company provides school ERP and student transportation K-12 education solutions; and health and human services solutions comprising environmental health, and disability and benefits. It has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was formerly known as Tyler Corporation and changed its name to Tyler Technologies, Inc. in June 1999. Tyler Technologies, Inc. was founded in 1966 and is based in Plano, Texas.

### Why customers stay

Margins ranged from 43.8% to 46.5% during 2023–25; it earns 35.1% on its capital.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860731.json#0000860731-26-000016 (filed 2026-02-18); FY2023: grossProfit / revenue = 44.1%.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860731.json#0000860731-26-000016 (filed 2026-02-18); FY2024: grossProfit / revenue = 43.8%.

- Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860731.json#0000860731-26-000016 (filed 2026-02-18); FY2025: grossProfit / revenue = 46.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.5198905099252804],[2017,0.5342213060945828],[2018,0.3675169787419046],[2019,0.2714513788494588],[2020,0.35001295399711774],[2021,0.2076919739389885],[2022,0.19511018880763623],[2023,0.19733635224394214],[2024,0.3515747632188112],[2025,0.43940502824011146]]; median 0.35079385860796447. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 18.7% of cash earnings; paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 0; upkeep 37726000; cash acquisitions 9394000; owner earnings 122432000. Growth capex plus acquisitions / owner earnings = 0.07672830632514376.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 0; upkeep 43057000; cash acquisitions 11344000; owner earnings 174283000. Growth capex plus acquisitions / owner earnings = 0.06508953827969452.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 0; upkeep 27424000; cash acquisitions 178093000; owner earnings 181797000. Growth capex plus acquisitions / owner earnings = 0.9796256263854739.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2019: growth capex 0; upkeep 42040000; cash acquisitions 218734000; owner earnings 181159000. Growth capex plus acquisitions / owner earnings = 1.2074144812015963.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2020: growth capex 0; upkeep 28466000; cash acquisitions 1292000; owner earnings 248011000. Growth capex plus acquisitions / owner earnings = 0.005209446355201987.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 0; upkeep 55612000; cash acquisitions 2089706000; owner earnings 251686000. Growth capex plus acquisitions / owner earnings = 8.302829716392647.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 0; upkeep 50151000; cash acquisitions 163921000; owner earnings 286130000. Growth capex plus acquisitions / owner earnings = 0.572889945129836.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 0; upkeep 53009000; cash acquisitions 62759000; owner earnings 283677000. Growth capex plus acquisitions / owner earnings = 0.2212340091019011.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 0; upkeep 20535000; cash acquisitions 1395000; owner earnings 394860000. Growth capex plus acquisitions / owner earnings = 0.003532897735906397.

- Source: https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm (filed 2026-02-18); FY2025: growth capex 0; upkeep 16015000; cash acquisitions 83652000; owner earnings 447452000. Growth capex plus acquisitions / owner earnings = 0.18695189651627436.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,109872000],[2022,14871000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm (filed 2026-02-18); FY2025: cash repurchases 152658000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TYL.US SharesStats.PercentInsiders = 0.519 percentage points; cache date 2026-10-16.

### What could break it

"Risks Associated with Selling Products and Services into the Public Sector Marketplace" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm (filed 2026-02-18); Risks Associated with Selling Products and Services into the Public Sector Marketplace

### What the price says

The price assumes cash profits grow 14.5% yearly over ten years; actual growth was 17.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.19617081718105667. Price 363.62; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.9682096738892536 → FY2025 10.213001004291062. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $160.40 per share

- 2016-11: $148.90 per share

- 2016-12: $142.77 per share

- 2017-01: $146.02 per share

- 2017-02: $151.65 per share

- 2017-03: $154.56 per share

- 2017-04: $163.59 per share

- 2017-05: $170.88 per share

- 2017-06: $175.67 per share

- 2017-07: $171.81 per share

- 2017-08: $172.80 per share

- 2017-09: $174.32 per share

- 2017-10: $177.29 per share

- 2017-11: $182.92 per share

- 2017-12: $177.05 per share

- 2018-01: $201.51 per share

- 2018-02: $203.11 per share

- 2018-03: $210.96 per share

- 2018-04: $218.92 per share

- 2018-05: $231.62 per share

- 2018-06: $222.10 per share

- 2018-07: $224.99 per share

- 2018-08: $246.95 per share

- 2018-09: $245.06 per share

- 2018-10: $211.66 per share

- 2018-11: $192.76 per share

- 2018-12: $185.82 per share

- 2019-01: $189.19 per share

- 2019-02: $204.79 per share

- 2019-03: $204.40 per share

- 2019-04: $231.91 per share

- 2019-05: $213.35 per share

- 2019-06: $216.02 per share

- 2019-07: $233.35 per share

- 2019-08: $256.54 per share

- 2019-09: $262.50 per share

- 2019-10: $268.52 per share

- 2019-11: $290.17 per share

- 2019-12: $300.02 per share

- 2020-01: $323.68 per share

- 2020-02: $313.35 per share

- 2020-03: $296.56 per share

- 2020-04: $320.69 per share

- 2020-05: $375.31 per share

- 2020-06: $346.88 per share

- 2020-07: $357.25 per share

- 2020-08: $345.31 per share

- 2020-09: $348.56 per share

- 2020-10: $384.38 per share

- 2020-11: $427.60 per share

- 2020-12: $436.52 per share

- 2021-01: $422.79 per share

- 2021-02: $463.42 per share

- 2021-03: $424.53 per share

- 2021-04: $424.86 per share

- 2021-05: $403.16 per share

- 2021-06: $452.37 per share

- 2021-07: $492.64 per share

- 2021-08: $485.70 per share

- 2021-09: $458.65 per share

- 2021-10: $543.22 per share

- 2021-11: $518.98 per share

- 2021-12: $537.95 per share

- 2022-01: $473.80 per share

- 2022-02: $428.26 per share

- 2022-03: $444.89 per share

- 2022-04: $394.71 per share

- 2022-05: $355.82 per share

- 2022-06: $332.48 per share

- 2022-07: $399.00 per share

- 2022-08: $371.51 per share

- 2022-09: $347.50 per share

- 2022-10: $323.33 per share

- 2022-11: $342.74 per share

- 2022-12: $322.41 per share

- 2023-01: $322.77 per share

- 2023-02: $321.25 per share

- 2023-03: $354.64 per share

- 2023-04: $379.03 per share

- 2023-05: $396.96 per share

- 2023-06: $416.47 per share

- 2023-07: $396.63 per share

- 2023-08: $398.43 per share

- 2023-09: $386.14 per share

- 2023-10: $372.90 per share

- 2023-11: $408.84 per share

- 2023-12: $418.12 per share

- 2024-01: $422.75 per share

- 2024-02: $437.14 per share

- 2024-03: $425.01 per share

- 2024-04: $461.55 per share

- 2024-05: $480.36 per share

- 2024-06: $502.78 per share

- 2024-07: $568.11 per share

- 2024-08: $587.87 per share

- 2024-09: $583.72 per share

- 2024-10: $605.59 per share

- 2024-11: $629.17 per share

- 2024-12: $576.64 per share

- 2025-01: $601.64 per share

- 2025-02: $608.43 per share

- 2025-03: $581.39 per share

- 2025-04: $543.30 per share

- 2025-05: $576.99 per share

- 2025-06: $592.84 per share

- 2025-07: $584.56 per share

- 2025-08: $562.88 per share

- 2025-09: $523.16 per share

- 2025-10: $476.26 per share

- 2025-11: $469.62 per share

- 2025-12: $453.95 per share

- 2026-01: $369.40 per share

- 2026-02: $354.69 per share

- 2026-03: $342.38 per share

- 2026-04: $341.14 per share

- 2026-05: $313.15 per share

- 2026-06: $292.46 per share

- 2026-07: $309.60 per share

- 2026-08: $372.22 per share

- 2026-09: $318.60 per share

- 2026-10: $363.62 per share

## Annual estimated value (USD per share)

- FY2016: low $33.77 per share, central $47.53 per share, high $55.54 per share

- FY2017: low $43.32 per share, central $59.57 per share, high $69.03 per share

- FY2018: low $54.79 per share, central $75.82 per share, high $88.33 per share

- FY2019: low $71.83 per share, central $101.93 per share, high $118.71 per share

- FY2020: low $86.80 per share, central $117.25 per share, high $134.98 per share

- FY2021: low $100.26 per share, central $130.10 per share, high $150.95 per share

- FY2022: low $94.33 per share, central $121.30 per share, high $141.15 per share

- FY2023: low $82.04 per share, central $92.91 per share, high $107.38 per share

- FY2024: low $101.59 per share, central $113.29 per share, high $128.88 per share

- FY2025: low $115.95 per share, central $128.63 per share, high $145.52 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:23.178Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/860731/000086073126000016/tyl-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.