Tyler Technologies Surpasses Q2 Earnings and Revenue Estimates

Tyler Technologies, Inc. TYL reported better-than-expected second-quarter 2025 results. The company reported second-quarter non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 4.7% and increased 21.3% year over year.Tyler Technologies surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 4.4%.Tyler Technologies’ second-quarter revenues increased 10.2% year over year to $596.1 million. The top line topped the Zacks Consensus Estimate of $586.2 million by 1.7%.The year-over-year improvement in the top line was primarily driven by a rise in subscription revenues. During the second quarter, software subscription arrangements comprised approximately 96% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.Tyler Technologies, Inc. Price, Consensus and EPS Surprise Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. QuoteTyler Technologies’ Q2 Revenue DetailsTyler Technologies’ recurring revenues from maintenance and subscriptions increased 15.2% year over year to $517.2 million and accounted for 86.8% of the total quarterly revenues. The company reported annualized recurring revenues on a non-GAAP basis of $2.07 billion, up 15.2% year over year.Segment-wise, Maintenance revenues (accounting for 18.8% of total revenues) were $112.1 million, down from $115.3 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $110 million.Subscription revenues (68% of total revenues) grew 21.4% year over year to $405.1 million, while our model estimate for the same was pinned at $387.6 million.Software licenses and royalties (0.6% of total revenues) of approximately $3.7 million fell year over year by 31.3%. Our model predicted that Software licenses and royalties’ sales would decrease 16.7% to $4.4 million.Professional Services revenues (9.8% of total revenues) amounted to $58.6 million, down 18.5% from the year-ago quarter. Our model estimate for the same was pegged at $71 million.Hardware and other revenues (2.8% of total revenues) were up 13% from the year-ago quarter to $16.6 million. Our model estimate for Hardware and other revenues was pegged at $12.5 million.Tyler Technologies’ Operating DetailsTyler Technologies’ non-GAAP gross profit increased 14.4% year over year to $291.4 million. Moreover, the non-GAAP gross margin improved 180 basis points (bps) to 48.9%.Adjusted EBITDA rose 18.3% year over year to $169.1 million.Non-GAAP operating income for the quarter totaled $158.1 million and jumped 19.3% year over year. The non-GAAP operating margin expanded 200 bps to 26.5%.Tyler Technologies’ Balance Sheet & Other DetailsAs of June 30, 2025, TYL’s cash and investments were $892.3 million compared with $807.4 million as of March 31, 2025.The company generated an operating cash flow of $98.3 million and a free cash flow of $88 million in the second quarter of 2025. In the first half of 2025, it generated operating and free cash flows of $154.5 million and $136.3 million, respectively.Tyler Revised FY25 GuidanceTyler Technologies now projects full-year 2025 revenues between $2.33 billion and $2.36 billion, up from the earlier guidance range of $2.31-$2.35 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $2.33 billion, indicating year-over-year growth of 8.9%.The company now projects its adjusted earnings per share in the range of $11.20-$11.50, up from the previously provided guidance of $11.05-$11.35. The consensus mark for 2025 earnings is pegged at $11.13 per share.TYL’s Zacks Rank & Stocks to ConsiderCurrently, Tyler Technologies carries a Zacks Rank #3 (Hold).Arista Networks ANET, Bumble BMBL and MongoDB MDB are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Arista Networks, Bumble and MongoDB sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised upward by a penny to $2.58 per share over the past 30 days and suggests a year-over-year increase of 13.7%. Arista Networks shares have soared 10.4% year to date.The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, calling for a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 7% year to date.The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward 20.4% to $3.07 per share in the past 60 days, implying a 16.1% year-over-year decline. MongoDB shares have risen 4.9% year to date.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET): Free Stock Analysis Report Tyler Technologies, Inc. (TYL): Free Stock Analysis Report MongoDB, Inc. (MDB): Free Stock Analysis Report Bumble Inc. (BMBL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks