Tyler Technologies Inc. (TYL)

Tyler Technologies sells integrated software and technology management to the public sector, serving local, state and federal government. Its products cover public safety, justice, public health, taxation and budgeting, infrastructure and land use, outdoor recreation, utility and civic services, regulation, K-12 education and social services. It sells both the back-office systems of record that a particular agency runs on and platform technologies designed to connect across many agencies. It has dedicated state-level offices in the 30 states where it holds enterprise contracts.

The market it sells into is set out in the filing as hundreds of federal agencies, all 50 states, approximately 3,000 counties, 36,000 cities and towns, 12,600 school districts and approximately 40,000 special districts and other agencies. Clients include, in counties, the auditor, treasurer, tax assessor and collector, county clerk, district clerk, county and district court judges, probation officers, sheriff and county appraiser, and at municipal sites the directors of administration, finance, utilities, public works, code enforcement, personnel, purchasing, taxation, municipal court and police.

The platform technologies

These are the products meant to sit across agencies. Cybersecurity adds program design, round-the-clock threat detection and response, employee training and vulnerability testing. Data & Insights turns agency data into reporting on financial, operational and strategic outcomes. Digital Solutions gives a cross-department experience so an agency presents one front to a citizen. Payments is the integrated payments platform, which the filing says processes nearly half a billion transactions annually and covers the whole payments lifecycle, including integrated credit, debit and ACH processing, billing, invoice presentment, merchant onboarding, support, collections, reconciliation and disbursements. Platform Technologies is a low-code application development platform built for the public sector. Outdoor Recreation covers campsite reservations, activity registrations, licensing sales and renewals, and data for conservation and park management.

Public administration

Civic Services handles permitting, enforcement, health and safety inspections, compliance, maintenance and work orders and 311 requests. ERP integrates core financial applications with human resources, revenue management, tax billing, utilities, asset management and payment processing. Property & Recording manages the property tax life cycle, including appraisal services, valuation, tax billing and collections, assessment administration, and land and official records. Regulatory handles permitting, licensing and regulatory management.

Courts, public safety, schools and health

The courts and public safety products are used at municipal, county, state and federal level by courts, prosecutors, defenders, jails, sheriffs' offices, police departments and probation officers. Corrections connects courts, public safety and supervision agencies. Courts & Justice provides case management and shares data between courts, prosecutors, public defenders and the filing community. Public Safety provides real-time information and data sharing across jurisdictions while meeting state and federal reporting mandates.

In K-12 education, School ERP integrates financial, budgeting and procurement data along with human resource tools for payroll, employee information and hiring, and Student Transportation covers the school transport operation with software and telematic hardware. In health and human services, Environmental Health handles permits, health inspections, reports and complaint investigations, and Disability & Benefits helps agencies administer benefits including medical cannabis regulation, veterans' benefits, vocational rehabilitation and workers' compensation.

How it is paid

Revenue comes from three sources: subscription-based services, maintenance and support, and professional services. Subscriptions cover software-as-a-service arrangements and transaction-based fees. The filing says most products can be delivered on the SaaS model, taken by clients who do not want to maintain and operate the systems themselves or make up-front capital expenditure, on contracts ranging from one to 10 years and typically running one to three, usually alongside professional services and maintenance and support. Transaction-based fees come mainly from digital government services, online payment solutions and online dispute resolution. The professional information technology services cover cloud-based software deployment, data conversion and training.

Products are marketed primarily through direct sales and marketing staff across the United States, with other in-house staff on add-on sales, professional services and support, and a partner network for sales and professional services mainly in the state and federal markets. New system sales typically come from referrals from other government offices or departments, referrals from other local governments, relationships between sales representatives and officials, trade show contacts, direct mail, and approaches from prospects already familiar with the company.

From Tyler Technologies' annual report on Form 10-K for the year ended 31 December 2025. The filing