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2025 Third Quarter Earnings Review Tyler Technologies | October 30, 2025
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Statement Regarding Use of Non-GAAP Measures 2 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 per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period while isolating the effects of some items that vary from period to period without correlation to core operating performance. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. EBITDA is net income before interest expense, other income, income taxes, depreciation, and amortization. Non-GAAP and adjusted financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance. Tyler currently uses a non-GAAP tax rate of 22.5%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included in this presentation and our earnings press release.
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Forward-Looking Statements 3 This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, including local, state and federal government agencies, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks, security vulnerabilities and software updates; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to actively monitor developments in artificial intelligence ("AI") regulation and ethical standards as we expect that future changes in the regulatory landscape may affect our product development timelines, compliance costs, and market opportunities related to AI; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and changes in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with rising labor costs, the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.
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The Leader in Software Solutions to the Public Sector TYLER AT A GLANCE 4 MARKET POSITION 1 RECURRING REVENUES 2024 85% FREE CASH FLOW MARGIN 2024 GROSS CLIENT RETENTION 98% ERP / FINANCIAL 32% OTHER 2% COURTS & JUSTICE 15% PUBLIC SAFETY 7% APPRAISAL & TAX 5% PLATFORM TECHNOLOGIES 29% CIVIC SERVICES 3% K-12 SCHOOLS 7% 2024 REVENUE BREAKDOWN 26.9%
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Tyler 2030 | Pillars of Growth Goals: Grow revenues, expand margins, and invest in our people & tools Leveraging Our Strong Client Base Expanding Into New Markets Completing Our Cloud Transition Growing Our Payments Business 5
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Q3 2025 Summary
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Third Quarter Results Non-GAAP Operating Margin1Revenues $2.97 EPS, up 17.9%Total Revenues $595.9M, up 9.7% SaaS Revenues $199.8M, up 20% ARR $2.05B, up 10.7% 26.6%, up 120 bps CONTINUED STRONG PERFORMANCE ACROSS KEY METRICS Non-GAAP Earnings1 ¹ See the reconciliation of GAAP to Non-GAAP measures included in this presentation and in our earnings release. 7
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Third Quarter Results KEY HIGHLIGHTS Healthy public sector demand Elevated sales activity indicators RFP pipeline and demo trends Stable public sector market reflected in strong leading demand indicators of RFP and demo trends Transactions bookings grew 11.5% YoY Strong margin expansion – cloud efficiency gains driving scalability across our platform Strong balance sheet with zero net leverage; significant share repurchase of approx. 300,000 shares, offsetting potential dilution from $600M convertible debt maturing March 2026 Healthy public sector budgets primarily funded by property taxes – a stable funding source underlying long-term demand; prioritizing tech investments to drive efficiencies 8 Accelerated SaaS adoption with total SaaS bookings, including expansions, renewals, and flips, up 5% sequentially from Q2,and up 5.8% YoY, reaching an all-time high.
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Strong Recurring Revenue Growth 9 • Recurring revenues up 10.7% • Subscriptions rose 15.5% o SaaS revenues grew 20% o Transaction revenues increased 11.5%, driven by increased adoption and deployment of transaction- based services o Maintenance revenues declined 3.7%, reflecting the ongoing migration on-premises clients to SaaS Total Revenues $595.9M % of Total Revenues 86.0% 14.0% $111.3M (3.7)% $201.3M +11.5% $199.8M +20% Recurring Non-recurring Maintenance Revenues Transaction Revenues SaaS Revenues Recurring Revenues $512.4M YoY Growth Q3 2025
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Q3 2025 Strong Performance Across Key Metrics ¹ See the reconciliation of GAAP to Non-GAAP measures included in this presentation and in our earnings release. 10 Total Revenues $595.9M +9.7% Adjusted EBITDA1 $169.9M +14.4% Cash from Operations $255.2M -3.2% Gross Margin1 GAAP 47.2% +350 bps Non-GAAP 50.4% +350 bps Operating Margin1 GAAP 16.4% +120 bps Non-GAAP 26.6% +120 bps Free Cash Flow1 $247.6M -2.1% FCF Margin 41.5% Recurring Revenues $512.4M +10.7% Diluted EPS1 GAAP $1.93 +10.9% Non-GAAP $2.97 +17.9%
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• South Carolina Department of Education • Student Transportation • Coweta County, GA • Enterprise Public Safety • Competitive win • Arapahoe County, CO • Enterprise Assessment & Tax • $10.4M total contract value • City of Dothan, AL • Enterprise ERP + Enterprise Asset M anagement • Replacing Oracle • Garland Independent School District, TX • Enterprise ERP Notable Q3 Wins ACCELERATING SAAS MOMENTUM New Software deals • Augmented Field Operations • Indiana S tate Police, leveraged Indiana State Enterprise agreement • Document Automation • Hillsborough County, FL • North Dakota Court System • Priority- Based Budgeting • State of Arizona • Resident Engagement • South Carolina Dept of Administration SaaS flips • Brazoria County, TX • Enterprise Justice • Gwinnett County, GA • Enterprise Justice • Second largest county in GA • Wayne County, MI • Enterprise Public Safety • City of Chesapeake, VA • Enterprise Public Safety • Macon-B ibb County, GA • Enterprise Public Safety • City of Las Cruces, NM • Enterprise ERP • City of Charleston, SC • Enterprise Permitting & Licensing 11 AI-Driven deals
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• City of Columbia, MO • New Enterprise Public Safety client • Existing ERP client • Jonah Special Utility District, TX • ERP Pro + Payments • Suffolk County, NY • Enterprise Records Management + Vitals Access + P ayments Notable Q3 Wins • Chesterfield County, VA • Payments • Colorado Department of Corrections • Transaction-b ased Inmate Financial Services • Massachusetts Registry of Motor Vehicles • Payments • Leveraged state enterprise agreement • Prince George's County, MD • Disbursements – Court Funds • U.S. Department of Veteran Affairs • Data & Insights • Hawaii Dept of Land and Natural Resources • Outdoor Recreation • State Enterprise Awards • Iowa State Enterprise. 1-y ear extension • Vermont State Enterprise, 1-y ear extension • Virginia S tate IT Agency, 1 -year renewal State / Federal / Transactions 12 Multi-Product / Cross-Sell wins
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2025 Annual Guidance
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2025 Annual Guidance EXECUTING LONG - TERM GROWTH AND CLOUD - FIRST STRATEGY Most recent 2025 guidance provided on 10/29/25 14 2024 2025 Guidance Total Revenues $2.14B $2.335B - $2.360B Revenue Guidance midpoint implies growth of approx. 10% Net interest income in the range of $29 million to $31 million
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2024 2025 Guidance 2024 2025 Guidance Free Cash Flow Margin 26.9% 2025 Annual Guidance 15 25% -27% Diluted EPS - Non-GAAP $11.30 - $11.50 $9.55 Diluted EPS - GAAP Most recent 2025 guidance provided on 10/29/25 2024 2025 Guidance $7.28 - $7.48 $6.05 2024 2025 Guidance $202M - $205M $117.9M R&D Expense
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Tyler’s AI Commitment
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Tyler’s AI Commitment Built on foundational principles Governed with strong oversight Strengthened with deep partnerships Secure & private Auditable & transparent Practical Human centered AI governance committee GenAI specific guardrails and protections Adversarial testing & strict evaluations AWS + Anthropic Azure + Open AI
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Tyler has the foundational elements to succeed WHY WE WIN + + Data Produced daily by over 15,000 clients Expertise From decades of public sector experience managing complex workflows Tyler AI Internal & partnerships with Microsoft + OpenAI + AWS + Anthropic Trust Clients trust us to lead +
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Appendix
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Non-GAAP Measures THE TABLE RECONCILES THE NON- GAAP MEASURES USED IN THIS PRESENTATION GAAP 20
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Non-GAAP Measures THE TABLE RECONCILES THE NON- GAAP MEASURES USED IN THIS PRESENTATION GAAP 21
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