Tyler Technologies Eyes 21%-23% SaaS Growth, $2.33B-$2.36B 2025 Revenue

Tyler Technologies expects SaaS revenue growth of 21%-23% and targets $2.33B-$2.36B in 2025 revenue, driven by its cloud-first strategy. The company's Q2 2025 results exceeded expectations with double-digit total revenue growth, strong profitability, and exceptional free cash flow. Tyler's cloud-first strategy has accelerated its growth, and the company is well-positioned for continued success in the market.

Tyler Technologies, Inc. (NYSE: TYL) delivered robust second-quarter (Q2) 2025 financial results, exceeding market expectations and underscoring the company's continued growth trajectory. The company reported earnings per share (EPS) of $2.91, surpassing the forecast of $2.77, and revenue of $596.1 million, up 10.2% year-over-year (YoY) compared to the anticipated $587.59 million [1].

Key highlights of Tyler Technologies' Q2 performance include:

- Revenue Growth: Total revenue increased by 10.2% YoY, driven by strong SaaS and subscription growth.
- SaaS Revenue: SaaS revenues grew by 21.5%, marking the eighteenth consecutive quarter of SaaS growth of 20% or more.
- Operating Margin: The non-GAAP operating margin expanded to 26.5%.
- Free Cash Flow: Free cash flow grew by 80.9% to $88 million.
- Stock Performance: Following the earnings release, Tyler Technologies' stock rose by 2.8% in premarket trading, reaching $569.5 [1].

Tyler Technologies' CEO Lynn Moore attributed the strong performance to its "cloud first strategy," which is anchored by unifying principles that drive toward a single release stream. This strategy has enabled the company to scale, innovate, and deliver improved time to value for its clients. The company's strategic focus on AI and cloud solutions is anticipated to drive future growth, with new AI features planned for release by year-end [1].

The company maintained its leadership position in cloud-based ERP solutions for U.S. local governments and reaffirmed its full-year 2025 revenue guidance of $2.33 to $2.36 billion, representing a 10% growth. The company expects subscription revenues to grow by 17-19% and SaaS revenues by 21-23% [1].

Despite macroeconomic uncertainties, Tyler Technologies reported stable demand in the public sector, contributing to its positive results. The company's acquisition of Emergency Networking further strengthened its public safety portfolio, enhancing its competitive position in the industry [1].

References:
[1] https://ng.investing.com/news/transcripts/earnings-call-transcript-tyler-technologies-q2-2025-reports-strong-eps-beat-93CH-2037594