AI-extracted from the 10-Q filed 2026-07-29 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Tyler Technologies grew Q2 FY2026 revenue 8.2% YoY to $645.1M on continued SaaS conversion, while issuing $1.44B of 2031 convertible notes and repurchasing $511.2M of stock in the quarter.
Biggest Revenue Drivers
Enterprise Software$476.3M+10% YoY
Driven by a $50.5M rise in subscriptions revenue from continued SaaS shift and transaction-based growth, partly offset by declines in maintenance and professional services
Platform Technologies$160.9M+4% YoY
Growth in professional services and hardware revenue, partly offset by a decline in transaction-based fees from a state payment processing contract wind-down
Biggest Revenue Drivers
Total revenue: $645.1M+8.2% YoY
Enterprise Software$476.3M+10% YoY
Driven by a $50.5M rise in subscriptions revenue from continued SaaS shift and transaction-based growth, partly offset by declines in maintenance and professional services
Within Enterprise Software
SaaS fees$207.7M+23% YoY
Sales to new clients, expansions with existing clients, and on-premises clients converting to SaaS, plus annual price increases
Platform Technologies$160.9M+4% YoY
Growth in professional services and hardware revenue, partly offset by a decline in transaction-based fees from a state payment processing contract wind-down
Within Platform Technologies
Transaction-based fees$122.8M-3% YoY
Decline from the wind-down of one state's payment processing contract in Q4 2025, partly offset by new transaction clients and volume growth
Largest Expense Items
Subscriptions, maintenance, and professional services cost of revenue$306.8M+5% YoY
Higher merchant fees and interchange rates, increased hosting costs from SaaS/public cloud expansion, and recent acquisitions, partly offset by the state contract wind-down
General and administrative expense$93.7M+22% YoY
Higher litigation-related professional fees, increased share-based compensation, and acquisition/restructuring costs
Research and development expense$62.8M+24% YoY
Redeployment of resources to R&D from SaaS migration and consolidation of on-premises product versions, plus new product development investments
Sales and marketing expense$39.9M+10% YoY
Higher commission expense and increased personnel expense
Margins: Gross margin rose to 47.6% from 45.8% YoY, driven by a revenue mix shift toward higher-margin SaaS, partly offset by declines in software license and maintenance revenue and higher merchant/hosting/amortization costs.
Watch Items from the Filing
On May 14, 2026 Tyler issued $1.44B of 0.50% Convertible Senior Notes due 2031 to refinance the $600.0M 2026 Notes repaid at maturity, raising interest expense 136% YoY to $3.0M for the quarter.
Board authorized an additional $1.5B share repurchase plan on July 24, 2026, leaving approximately $1.745B of remaining buyback authorization as of July 29, 2026.
Platform Technologies transaction-based fees fell due to the Q4 2025 wind-down of one state's payment processing contract, cutting ~$12.5M of Q2 revenue and ~$24.8M for the six months.
The $25.0M gain on remeasurement of the previously held BFTR (For The Record) equity investment upon full acquisition is a one-time, non-operating boost that inflated reported net income by 27% YoY.
Effective tax rate rose to 22.5% from 17.4% YoY, primarily due to lower excess tax benefits from share-based compensation, partly offset by the nontaxable equity remeasurement gain.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Marr John S JrExecutive Chair of the BoardShares withheld for tax or exercise price · Mar 1, 2026
Congress trading in TYL
9 transactions in TYL reported by 3 members of Congress under the STOCK Act, most recent trade Aug 18, 2026. Reported transactions, not recommendations.
About TYLER TECHNOLOGIES INC (TYL): stock profile, AI score and financials
TYLER TECHNOLOGIES INC (TYL) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores TYL at 64.8/100 on a composite quality score built from its SEC filings, placing it at rank #513 of 2,925 stocks — the top 25% of the AI-ranked universe. TYL scores in the top quartile across free cash flow (83.7). Areas of concern include institutional flow (14.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 20.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), TYLER TECHNOLOGIES INC reports quarterly revenue of $645.1M, net income of $93.5M, an operating margin of 14.7%. Top institutional holders of TYL by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, NORGES BANK, based on the most recent SEC filings. TYL trades on the NYSE exchange and files with the SEC under CIK 860731. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate TYL daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for TYLER TECHNOLOGIES INC directly from SEC EDGAR.