Tyler Technologies is held as a short position in the US Long/Short Strategy.
Tyler Technologies (TYL): Q2 2026 results
The company reported June quarter results after the close on Wednesday 29 July, with the conference call scheduled for the following morning.
Revenue rose 8.2 percent year on year to $645.1 million, slightly short of consensus estimates clustered around $647 to $648 million. Non-GAAP diluted earnings per share of $3.08 landed within a cent of the range analysts expected. GAAP diluted EPS of $2.23 rose 15.5 percent, helped by a $25.0 million gain on remeasurement of an equity investment that non-GAAP figures exclude.
| Metric | Actual | Consensus |
| Revenue | $645.1m | ~$647.5m |
| Non-GAAP EPS | $3.08 | ~$3.07 |
| SaaS revenue growth | 21.7% | n/a |
| FY26 non-GAAP EPS guidance | $12.95 to 13.20 | reaffirmed |
The subscription business held up. SaaS revenue rose 21.7 percent to $230.6 million, the twenty-second consecutive quarter of growth at 20 percent or better. Total subscriptions rose 12.0 percent to $453.7 million, and transaction revenue rose 3.5 percent to $223.1 million. Maintenance revenue fell to $105.8 million from $112.1 million as customers migrate to the cloud. Recurring revenue of $559.5 million represents 86.7 percent of the total, and annual recurring revenue reached $2.24 billion, up 8.2 percent. Tyler reported record SaaS and total bookings without disclosing a figure.
Margins compressed. Non-GAAP operating margin fell to 25.7 percent from 26.5 percent, with research and development rising to $62.8 million from $50.8 million and general and administrative to $93.7 million from $76.6 million. Adjusted EBITDA rose 4.3 percent to $176.4 million, well behind the 8.2 percent revenue growth. GAAP operating income was flat at $95.1 million and the GAAP margin fell to 14.7 percent from 16.0 percent.
Cash generation ran ahead of earnings. Free cash flow rose 34.7 percent to $118.5 million, a second quarter record, and half-year free cash flow reached $221.3 million against $136.2 million. The board approved a new $1.5 billion repurchase authorisation on 24 July, and Tyler has bought back 5.6 percent of its shares so far this year, including $505 million during the quarter.
Full-year guidance was reaffirmed unchanged: revenue of $2.535 to $2.575 billion, non-GAAP EPS of $12.95 to $13.20 and a free cash flow margin of 26 to 28 percent. Half-year non-GAAP EPS of $6.27 implies $6.68 to $6.93 in the second half. Shares closed at $333.35 on 28 July, up 5.5 percent; the reaction to these numbers had not settled by the time of writing.
