Tyler Technologies (TYL) Corporate presentation summary

Strategic growth and market positioning

• Achieved 20% CAGR in recurring revenues and 25% CAGR in SaaS revenues since 2020, with 87% of 2025 revenues recurring and a 98% client retention rate.

• Addressable market expanded to $21B, with only ~11% share, targeting antiquated systems across 88,000+ local governments and 450,000 potential systems.

• Leveraging the largest installed base in the public sector, with 45,000 client installations and significant cross-sell/upsell opportunities.

• Five core strengths: broad integrated solutions, singular vertical focus, largest installed base, innovation, and strategic acquisitions.

• 16 acquisitions in five years, expanding TAM, adding AI capabilities, and leveraging sales synergies.

Cloud-first transformation and operational efficiency

• Cloud-first strategy includes evacuating private data centers, migrating clients to AWS, and optimizing products for the cloud.

• By 2025, 100% of new clients are SaaS, private cloud fully evacuated, and 75-85% of on-premises clients targeted for cloud migration by 2030.

• Cloud transformation expected to contribute 400-500 bps to gross margin by 2030 through private cloud evacuation, solution optimization, and version consolidation.

• SaaS recurring revenues projected to reach ~$2B by 2030, with blended recurring revenue CAGR of 9-12% from FY22-FY30.

Financial performance and guidance

• 2025 revenues reached $2.332B, with 87% recurring; 2026 guidance targets $2.50B-$2.55B, 8.3% growth at midpoint.

• 2025 non-GAAP operating margin at 26%, gross margin at 49.6%, and free cash flow margin at 26.6%.

• 2030 targets: $3.6B-$3.8B revenues, 90%+ recurring, 30%+ operating margin, and ~$1B free cash flow.

• Payments and electronic disbursements identified as major growth channels, with transaction revenue growth modeled at 10-13% CAGR through 2030.