TYL TYLER TECHNOLOGIES INC

Overview and Growth

TYLER TECHNOLOGIES INC generated $2.33B of revenue in fiscal 2025, with net income of $315.60M and an operating cash inflow of $653.54M. The $2.33B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 9.1% from $2.14B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $7.20, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 19.0% from $6.05 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 0.41x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $1.08B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 46.5% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $357.68M, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 15.3%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $315.60M for the fiscal year. The final earnings result represented 13.5% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $390.32M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 16.7%, relating income before taxes directly to revenue. Income tax expense totaled $74.72M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 19.1%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $5.64B, supported by $1.94B of liabilities and $3.70B of shareholder equity. The near-term balance sheet paired $1.84B of current assets with $1.76B of current liabilities at the reporting date. At 1.05x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $1.02B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 57.8%, excluding receivables and other current assets. Total debt was $599.66M, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.16x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 10.6%, showing how much of the asset base was matched by borrowing. Liabilities represented 34.3% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 18.0%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

The company reported $653.54M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 2.07x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $16.02M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 2.5% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $637.53M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 27.3%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 11.3%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.