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Jun 30
Tyler Q2 2025 Earnings Report
Tyler Technologies reported strong financial results for the second quarter of 2025, driven by double-digit revenue growth and a significant increase in subscription revenues.
Key Takeaways
Tyler Technologies exceeded expectations in the second quarter of 2025, with total revenues increasing by 10.2% to $596.1 million. Recurring revenues, particularly subscription and transaction-based revenues, were key drivers of this growth, comprising 86.8% of total revenues. The company also saw strong improvements in net income, operating income, and cash flow.
Total revenues increased by 10.2% to $596.1 million.
Recurring revenues grew by 15.2% to $517.2 million, making up 86.8% of total revenues.
Subscription revenues surged by 21.4% to $405.1 million, with SaaS revenues up 21.5% and transaction-based revenues up 21.3%.
GAAP net income rose by 24.9% to $84.6 million, and GAAP operating income increased by 22.5% to $95.6 million.
Tyler
Tyler
Tyler Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comMaintenance Revenue
CapyFin.comProfessional services Revenue
CapyFin.comSoftware licenses and royalties Revenue
CapyFin.comHardware and other Revenue
CapyFin.com Forward Guidance
For the full year 2025, Tyler Technologies expects total revenues to be between $2.33 billion and $2.36 billion, with GAAP diluted earnings per share ranging from $7.40 to $7.70 and non-GAAP diluted earnings per share between $11.20 and $11.50. Free cash flow margin is projected to be 25% to 27%.
Positive Outlook
- Strong revenue growth expected, with total revenues projected between $2.33 billion and $2.36 billion.
- Healthy non-GAAP diluted earnings per share guidance of $11.20 to $11.50.
- Solid free cash flow margin expected in the range of 25% to 27%.
- Continued investment in research and development, with expenses projected between $202 million and $205 million.
- Positive net interest income expected between $29 million and $31 million.
Challenges Ahead
- GAAP diluted earnings per share may fluctuate due to discrete tax items, stock incentive awards, future acquisitions, and changes in tax legislation.
- Capital expenditures are expected to be between $31 million and $33 million, including capitalized software development costs.
- The non-GAAP estimated annual effective tax rate is expected to be 22.5%, up from 22.0% in 2024.
- Potential for fluctuations in GAAP effective tax rate due to various factors.
- The estimated tax rate on non-GAAP income may differ from GAAP tax rate and actual tax liabilities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income