Tyler Technologies Reports Q3 2026 Earnings: SaaS Revenue Up 21.2% & Free Cash Flow Hits Quarterly High

Financial Overview & Operating Results

Tyler Technologies, Inc. filed Form 8-K under Item 2.02 reporting financial results for the third quarter ended September 30, 2026.

Q3 2026 Performance Summary:

• Revenues:

  • Total Revenues: $647.6 million, up 8.7% compared to $595.9 million in Q3 2025.
  • Recurring Revenues: $568.8 million, up 11.0% YoY, representing 87.8% of total revenue.
  • Subscription Revenues: $462.6 million, an increase of 15.3% YoY.
    • SaaS Revenues: $242.2 million, up 21.2% YoY.
    • Transaction Revenues: $220.4 million, up 9.5% YoY (14.2% YoY growth excluding the wind-down of the Texas payments contract).
  • Annualized Recurring Revenue (ARR): Reached $2.28 billion, up 11.0% YoY.
  • Maintenance Revenues: $106.2 million vs. $111.3 million in Q3 2025.

• Profitability & Margins:

  • GAAP Operating Income: $117.0 million (+19.5% YoY).
  • Non-GAAP Operating Income: $182.1 million (+14.8% YoY).
  • GAAP Net Income / EPS: $95.1 million, or $2.33 per diluted share (+12.7% YoY).
  • Non-GAAP Net Income / EPS: $143.4 million, or $3.52 per diluted share (+10.0% YoY).
  • Adjusted EBITDA: $192.7 million (+13.4% YoY).

• Cash Flow & Balance Sheet:

  • Operating Cash Flow: $282.5 million (+10.7% YoY).
  • Free Cash Flow: $277.0 million (+11.9% YoY), setting a new quarterly company record.

Strategic Highlights & Capital Allocation

• M&A: Closed the acquisition of CODY Systems on July 30, 2026, for approximately $27.7 million in cash to strengthen its public safety data management and exchange capabilities.
• Share Repurchases: Repurchased 1,148,389 shares in Q3 for approximately $379 million. Year-to-date repurchases total approximately 8.5% of outstanding shares, leaving roughly $1.37 billion under active repurchase authorizations.
• AI Strategy: Reported continued momentum with approximately 300 deals featuring AI sold across its client base to date.

Full-Year 2026 Financial Guidance

• Total Revenues: $2.535 billion to $2.565 billion
• Non-GAAP Diluted EPS: $12.95 to $13.20
• Free Cash Flow Margin: 26% to 28%
• R&D Expense: $245 million to $250 million
• Capital Expenditures: $20 million to $22 million (including ~$5 million in capitalized software development)
• Net Interest Income: $15 million to $17 million