📊 TYL Key Takeaways
Is Tyler Technologies Inc. (TYL) a Good Investment?
Tyler Technologies demonstrates solid revenue growth of 9.1% and exceptional free cash flow generation of $104M with a debt-free balance sheet, but profitability growth has stalled at 0% YoY despite revenue expansion, and returns on capital remain concerningly low for a mature software company.
Tyler Technologies shows solid fundamental quality with steady 9.1% revenue growth, strong free cash flow generation, and healthy profitability across gross, operating, and net margins. The balance sheet is conservative, with low leverage, over $1.0B in cash, and very strong interest coverage, supporting resilience and flexibility. The main limitation is that net income was flat year over year and liquidity is only adequate, so continued margin expansion and earnings conversion matter.
Tyler Technologies Inc. Key Strengths (TYL)
- Strong free cash flow generation of $104M (17% FCF margin) exceeding net income, indicating efficient operations and minimal capex requirements
- Fortress balance sheet with zero long-term debt, $316M cash reserves, and 7.7x interest coverage providing financial flexibility
- Healthy gross margin of 48.3% demonstrates pricing power, customer stickiness, and operational efficiency typical of successful software businesses
- Strong free cash flow generation with a 27.3% FCF margin and minimal capital expenditure needs
- Healthy profitability profile, including 46.5% gross margin and 15.3% operating margin
- Conservative financial position with low debt-to-equity, solid cash reserves, and 27.7x interest coverage
TYL Stock Risks: Tyler Technologies Inc. Investment Risks
- Net income growth completely stalled at 0% YoY despite 9.1% revenue growth, signaling margin compression or uncontrolled cost expansion
- Severely depressed returns on equity (2.3%) and assets (1.7%) indicate the company is generating inadequate returns on its $3.6B equity base and $4.8B asset base
- Tight liquidity position with current ratio and quick ratio both at 1.00x limits financial flexibility for strategic investments or downturns
- Net income was flat despite revenue growth, which may indicate cost pressure or slower operating leverage realization
- Current and quick ratios of 1.05x leave limited short-term liquidity cushion
- ROE of 8.5% is respectable but not especially strong for a software business, so capital efficiency should improve
Key Metrics to Watch
- Operating margin sustainability and path to profitability recovery
- Return on equity improvement and capital efficiency trends
- Free cash flow conversion ratio and underlying cash generation quality
- Operating margin and net income growth relative to revenue growth
- Free cash flow margin and cash conversion sustainability
Tyler Technologies Inc. (TYL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Tyler Technologies Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TYL Profit Margin, ROE & Profitability Analysis
TYL vs Technology Sector: How Tyler Technologies Inc. Compares
How Tyler Technologies Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Tyler Technologies Inc. Stock Overvalued? TYL Valuation Analysis 2026
Based on fundamental analysis, Tyler Technologies Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Tyler Technologies Inc. Balance Sheet: TYL Debt, Cash & Liquidity
TYL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Tyler Technologies Inc.'s revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.88 reflects profitable operations.
TYL Revenue Growth, EPS Growth & YoY Performance
TYL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $565.2M | $81.1M | $1.84 |
| Q3 2025 | $543.3M | $75.9M | $1.74 |
| Q2 2025 | $541.0M | $67.7M | $1.57 |
| Q1 2025 | $512.4M | $54.2M | $1.26 |
| Q3 2024 | $494.7M | $47.0M | $1.10 |
| Q2 2024 | $504.3M | $49.1M | $1.15 |
| Q1 2024 | $471.9M | $30.9M | $0.73 |
| Q3 2023 | $473.2M | $47.0M | $1.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Tyler Technologies Inc. Dividends, Buybacks & Capital Allocation
TYL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Tyler Technologies Inc. (CIK: 0000860731)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TYL
What is the AI rating for TYL?
Tyler Technologies Inc. (TYL) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TYL's key strengths?
Claude: Strong free cash flow generation of $104M (17% FCF margin) exceeding net income, indicating efficient operations and minimal capex requirements. Fortress balance sheet with zero long-term debt, $316M cash reserves, and 7.7x interest coverage providing financial flexibility. ChatGPT: Strong free cash flow generation with a 27.3% FCF margin and minimal capital expenditure needs. Healthy profitability profile, including 46.5% gross margin and 15.3% operating margin.
What are the risks of investing in TYL?
Claude: Net income growth completely stalled at 0% YoY despite 9.1% revenue growth, signaling margin compression or uncontrolled cost expansion. Severely depressed returns on equity (2.3%) and assets (1.7%) indicate the company is generating inadequate returns on its $3.6B equity base and $4.8B asset base. ChatGPT: Net income was flat despite revenue growth, which may indicate cost pressure or slower operating leverage realization. Current and quick ratios of 1.05x leave limited short-term liquidity cushion.
What is TYL's revenue and growth?
Tyler Technologies Inc. reported revenue of $613.5M.
Does TYL pay dividends?
Tyler Technologies Inc. does not currently pay dividends.
Where can I find TYL SEC filings?
Official SEC filings for Tyler Technologies Inc. (CIK: 0000860731) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TYL's EPS?
Tyler Technologies Inc. has a diluted EPS of $1.88.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TYL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Tyler Technologies Inc. has a A grade with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TYL stock overvalued or undervalued?
Valuation metrics for TYL: ROE of 2.3% (sector avg: 22%), net margin of 13.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is TYL's AI grade for 2026?
Our dual AI analysis gives Tyler Technologies Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TYL's free cash flow?
Tyler Technologies Inc.'s operating cash flow is $107.3M, with capital expenditures of $3.2M. FCF margin is 17.0%.
How does TYL compare to other Technology stocks?
Vs Technology sector averages: Net margin 13.2% (avg: 18%), ROE 2.3% (avg: 22%), current ratio 1.00 (avg: 2.5).