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Jun 30, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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