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Mar 31
Tyler Q1 2025 Earnings Report
Tyler Technologies reported strong Q1 2025 results with double-digit revenue and net income growth driven by continued SaaS and transaction-based expansion.
Key Takeaways
Tyler Technologies delivered a strong first quarter with 10.3% revenue growth and a 49.6% surge in GAAP net income, highlighting robust demand in SaaS and transaction-based services.
Total revenue rose to $565,165,000, driven by strong SaaS performance.
GAAP net income grew 49.6% YoY to $81,052,000.
Non-GAAP EPS reached $2.78, compared to $2.20 a year earlier.
SaaS comprised 96% of new software contract value, reflecting strong cloud adoption.
Tyler
Tyler
Tyler Revenue by Segment
Forward Guidance
Tyler Technologies raised its full-year guidance, reflecting strong Q1 performance and expected continued strength in SaaS and transaction revenues.
Positive Outlook
- Revenue guidance raised to $2.31B–$2.35B.
- GAAP EPS expected at $7.50–$7.80.
- Non-GAAP EPS forecast at $11.05–$11.35.
- Free cash flow margin projected at 24%–26%.
- SaaS adoption remains high with strong pipeline indicators.
Challenges Ahead
- Operating cash flow declined 21.8% YoY.
- Free cash flow down 15.6% YoY.
- Hardware and license revenues showed YoY declines.
- Deferred revenue dropped from Q4 levels.
- R&D expenses increased significantly YoY, pressuring margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income