Slides
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2026 Second Quarter Earnings Review 2026 Annual Guidance July 29, 2026
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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, restructuring costs and other, gain on remeasurement of equity investment, and other non-recurring items in other income. 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 23.0%. This rate is based on T yler'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 T yler'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 below in this 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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TYLER AT A GLANCE The Leader in Software Solutions to the Public Sector 4 MARKET POSITION#1 RECURRING REVENUES 202587% GROSS CLIENT RETENTION 98% FREE CASH FLOW MARGIN 2025 27% State & Federal 27% Public Safety 7% Courts & Justice 15% K-12 Schools 7% ERP / Financial 33% Civic Services 5% Other 2% Appraisal & Tax 4% Diversified Revenue StreamsKey Metrics 2025 REVENUE BREAKDOWN Revenue $2.33B ~
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• Flips / Upsell • Cross-s ell • AI adoption Leveraging Installed Base Consistent Strategy with AI-Enhanced Growth Pillars 5 • Truly differentiated offering• Cloud-first drives long-term ARR growth + expanded FCF • Expanded AI market • Leverage M&A to grow in new and existing markets GOAL ARR Growth + Improved Margins = Expanded Free Cash Flow Driving Transactions GrowthCompleting Cloud TransitionExpanding TAM
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Q2 2026 Summary
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Second Quarter Results Revenues* Free Cash Flow1 Non-GAAP Operating Margin1 Total Revenues $645.1M, up 8.2% SaaS Revenues $230.6M, up 21.7% Transaction Revenues $223.1M, up 3.5% ARR $2.24B, up 8.2% $118.5M, up 34.7% FCF margin expanded to 18.4% 25.7%, down 80 bps RECORD SAAS BOOKINGS & FREE CASH FLOW *Excluding the impact of the Texas payments contract, total revenues grew 10.5% and transactions revenues grew 9.9% 1 See the reconciliation of GAAP to Non-GAAP measures included in this presentation and in our earnings release. 7
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Second Quarter Results RECORD TOTAL BOOKINGS AND SAAS BOOKINGS Healthy public sector demand Elevated sales activity indicators RFP pipeline and demo trends Stable public sector market and generally healthy budgets; high volume of RFP and demo trends reflecting sustained modernization priorities and continued tech investment to drive efficiencies and augment workforce capacity Strengthened balance sheet through highly successful $1.4B convertible debt offering; Net proceeds of $1.2B, after capped call and transaction fees. Also extended and upsized revolving credit facility from $700M to $1B. 8 SaaS revenue growth of 21.7% with SaaS bookings up 21.1% and total bookings up 12.5%, both new quarterly highs Strong growth of new SaaS ACV up 22.3%, including solid progress with cloud migrations, with flips ACV growth of 18.4% Expanding AI adoption initiatives, addressing practical use cases purpose-built for the public sector Strategic capital deployment: o Completed For The Record acquisition for $213M o Executed $505M in share repurchases, r epresenting 1.6M shares o Repurchased 5.6% of outstanding shares YTD o Expanded share repurchase authorization by an a dditional $1.5B (Board authorized July 24, 2026)
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Strong Recurring Revenue Growth 9 • Recurring revenues up 8.2% • Excluding the impact of the Texas payments contract, recurring revenues grew 10.9% • Subscriptions rose 12.0% • SaaS revenues grew 21.7% • Transaction revenues increased 3.5% o Excluding the impact of the Texas payments contract, transaction revenues grew 9.9%, subscription revenues grew 15.6%, and total revenues grew 10.5%. o Maintenance revenues declined 5.6%, reflecting the ongoing migration of on-premises clients to SaaS Total Revenues $645.1M % of Total Revenues 86.7% 13.3% $105.8M (5.6)% $223.1M +3.5% $230.6M +21.7% Recurring Non-recurring Maintenance Revenues Transaction Revenues SaaS Revenues Recurring Revenues $559.5M YoY Growth Q2 2026
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• Santa Cruz Regional 911, CA • Enterprise Public Safety • Louisiana Office of Technology S ervices • Tyler Supervision • Eldorado Irrigation District, CA • Enterprise ERP • Waller County Sheriff, TX • Enterprise Public Safety • City of Pineville, LA • Enterprise Public Safety • Spartanburg County School District, SC • School ERP Pro • Federal Courts of Australia • Existing For The Record client moved to d igital transcription Notable Q2 Wins ACCELERATING SAAS MOMENTUM • City of Orlando, FL • Enterprise Public Safety • Bonneville County, ID • Enterprise Public Safety • City of Manhattan Beach, CA • Enterprise ERP • Superior Court of California, Santa Cruz C ounty • Enterprise Justice • Brown County, WI • Enterprise ERP • City of Cupertino, CA • Enterprise ERP • Kencom 9 11, IL • Enterprise Public Safety • Galveston County, TX • Enterprise J ustice • Dallas County, TX • Civil Process New Software deals • Indiana Office of Judicial Administration • Document Automation AI add-on with renewal of existing eFiling contract • Monroe County, FL • Document Automation AI add-on • Existing Enterprise Justice client • State of South Carolina • Eighth state to adopt Resident AI Assistant - “B radley” • City of Doral, FL • Resident AI Assistant • Washtenaw County, MI • Priority-Ba sed Budgeting • Existing Enterprise ERP client, countywide d eployment SaaS flips 10 AI-Driven deals
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• Illinois Department of Agriculture • Data & I nsights • Cannabis Licensing • State of Mississippi Department of Health • Enterprise Permitting & Licensing, leveraging e xisting state relationship • City of Davis, CA • Enterprise ERP , Permitting & Licensing plus Tyler P ayments • City of College Station, TX • Enterprise Permitting & Licensing plus Tyler P ayments • Spartanburg County, SC • Enterprise ERP and EPL joint SaaS flips • Washington County, TX • ERP Pro and Municipal Justice Notable Q2 Wins • Transaction-ba sed State Contract • Digital Motor Vehicle Titling and Electronic Liens • Software funded through transactions • Estimated ARR >$10M at full adoption • State of New Jersey C hild Care Information System • Tyler Disbursements • Texa s Health and Human Services • Workforce Case Management • Alabama Board of Nursing • Tyler Payments • State Enterprise Contract Renewals / Extensions • Wisconsin • Arkansas State / Federal / Transactions 11 Multi-Product / Cross-Sell Synergies
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2026 Annual Guidance
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2026 Annual Guidance EXECUTING LONG - TERM GROWTH AND CLOUD - FIRST STRATEGY Most recent 2026 guidance provided on 7/29/2613 2025 2026 GUIDANCE TOTAL REVENUES $2.332B $2.535B - $2.575BGuidance midpoint implies growth of approx. 9.5% • Excluding impact of Texas payments contract, midpoint implies 11.3% growth Revenue percentage growth expectations: • Subscriptions growth of 13 - 16% • SaaS growth of 21.5 – 23.5% • Transaction growth of 6 - 8% • Excluding impact of Texas payments contract, growth of 11 – 13% • Maintenance decline of 3 - 5% • Professional services growth of 0 - 2% • Other revenue growth of 9 - 11% REVENUE DRIVERS
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2025 2026 Guidance Free Cash Flow Margin 26.6% 2026 Annual Guidance 14 26% -28% 2025 2026 Guidance Diluted EPS - Non-GAAP $12.95 - $13.20 $11.31 Most recent 2026 guidance provided on 7/29/26 Tyler Technologies has not reconciled forward-looking full-year non-GAAP financial measures to their most directly comparable GAAP measures, as permitted by item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to stock-based compensation, acquisition transactions, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non- GAAP counterparts. 2025 2026 Guidance $245M - $250M $204.6M 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 BUILT ON FOUNDATIONAL PRINCIPLES
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AI Makes Tyler More Valuable 7 RECURRING SOFTWARE REVENUE TODAY $2.0B Protected recurring base + AI WORLD New TAM The labor augmentation budget AI strengthens it. A new TAM we have the right to win.
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Tyler’s Government-Grade AI Has the Foundational Elements to Succeed WHY WE WIN + + Data Produced daily by over 16,000 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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GAAP 21 Non-GAAP Measures THE TABLE RECONCILES THE NON - GAAP MEASURES USED IN THIS PRESENTATION
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