Tyler is one of the few publicly traded companies in gov tech, meaning that each quarter it releases a treasure chest of financial and other data that helps illustrate trends in this growing sector of the economy.
For the whole of 2025, Tyler booked a 9.1 percent year-over-year revenue increase, to $2.3 billion. For the fourth quarter of last year, revenue rose 6.3 percent, to $575.2 million.
That Q4 figure, released late Wednesday, came in 2.45 percent lower than analyst estimates, leading to a double-digit decrease in Tyler’s stock price by Thursday afternoon.
No one seemed to be pushing the panic button, though, even as concerns about artificial intelligence and its impacts on the software-as-a-service market continue to build — to say nothing of overall worries about the larger economy.
“While it makes sense for an AI-enamored market to pare back expectations for many software stocks, I think its reaction to Tyler Technologies' stock has gone too far,” wrote analyst Josh Kohn-Lindquist. “Serving a wide array of customers across the public sector — local, state and federal governments, corrections facilities, schools, public safety offices, etc. — Tyler probably isn't as disruptible as most SaaS stocks.”
The latest earning also came days after Tyler said it would buy back $1 billion of the company’s Class A common stock.
In an email statement to Government Technology on Thursday, Tyler CFO Brian Miller said the repurchase plan signals that the company’s shares are undervalued.
“The repurchase plan underscores Tyler’s confidence in its business, strategic objectives and long-term opportunities,” Miller said. “Tyler’s consistently durable generation of free cash flow has allowed it to opportunistically return capital to shareholders, especially in periods of undervaluation, while also investing for sustained growth.”
Payments promises to fuel some of that growth in the coming year, according to Tyler leadership, consumer habits and perhaps even the sustained effort from the Trump administration to discourage paper checks in favor of digital transactions for government business.
The company has “consolidated our payments operations across Tyler under our new industry-proven leader, Ryan O’Connor, executing a unified payment strategy that positions us to capture greater value and drive operational efficiencies,” Tyler CEO H. Lynn Moore told analysts during Thursday’s post-release conference call.
He said the company will focus on “value-added transaction services” for such areas as utility billing, municipal courts, licensing and permitting, property taxes and parks and recreation.
One example of that comes from Maryland. Moore said Tyler has signed a contract with the state’s Administrative Office of the Courts to handle “payments and disbursements.”
In New Mexico, meanwhile, Tyler won a contract to supply the Corrections Department with Tyler’s Inmate Services Financial Suite and Warehouse Management Administration Suite, he said.
Tyler, in fact, just made a fresh bet on justice system technology, via its recently announced $212.5 million acquisition of For the Record, a deal designed to boost courtroom transcription capabilities and what Tyler called “judicial intelligence.”
And like pretty much all gov tech operations, Tyler remains optimistic about AI even as worries about a bubble persist.
Over the past year, the company’s Resident AI Assistant tool has gone live in six states, according to Moore: Alabama, Hawaii, Indiana, Mississippi, Nebraska and South Carolina. Tyler touts that product as a customer service technology that can also help public agencies deal with shrinking workforces.
In Indiana, Moore said, about 17,000 people use the AI assistant every month, generating about 50,000 questions about government services.
“We also saw continued commercial momentum with our AI-enabled solutions in Q4,” Moore told analysts, with contracts signed with such agencies as the Alabama Department of Corrections and the city of Plano, Texas.
The early part of 2026 will bring more AI moves from Tyler.
The company plans to work with “select customers” to integrate agentic AI “capabilities directly into our enterprise permitting and licensing and supervision platforms,” Moore said. “By embedding AI into the operational workflows that drive daily decision-making, we expect to unlock significant efficiency and service improvements.”
