Tyler Technologies (TYL) Investor Day 2026 summary

Strategic progress and market positioning

• Achieved or surpassed all interim financial and operational targets set three years ago, with recurring revenues reaching $2.3 billion and a gross retention rate of 98%.

• Maintains the broadest, most integrated suite of public sector solutions, serving over 16,000 client locations and holding an 11% market share, with significant runway for expansion.

• SaaS is now the primary growth and margin engine, with structural advantages supporting durable, long-term compounded growth.

• Five key differentiators drive market leadership: comprehensive product portfolio, singular public sector focus, large client base, tailored innovation, and active M&A strategy.

• Increased R&D investment, especially in AI, and executed 16 acquisitions from 2021-2025 to expand TAM and capabilities.

Cloud and SaaS transformation

• Cloud transition is progressing in two phases: foundational migration to AWS and the upcoming 'Cloud Living' phase, which will standardize SaaS delivery and enhance operational efficiency.

• Over 95% of new client contracts are SaaS deployed in the public cloud, with private cloud data centers fully migrated to AWS by 2025.

• SaaS now represents 33% of revenue, with a 21% CAGR over three years; 95% of new contract value is SaaS, and 85% of maintenance revenue is targeted for cloud conversion by 2030.

• Maintenance-to-SaaS conversions increase recurring revenue by ~1.7x, with 85% of maintenance expected to convert by 2030.

• Cloud transition improves scale, client experience, and long-term economics, with version consolidation and standardized delivery unlocking margin expansion.

Transactions and payments growth

• Transactions revenue reached $808M in 2025, growing at a 13% CAGR, and now represents 35% of total revenue.

• Growth driven by higher transaction volumes, expanded attach rates, and new transaction-funded solutions.

• Significant market opportunity remains, with less than 30% of installed base SAM and 8% of total industry SAM captured.

• Three growth levers: increasing attach rates, expanding transaction-funded portfolio, and driving adoption to grow revenue per client by 10%+.

• End-to-end platform integration and deep workflow embedding create durable competitive advantages and high client retention.