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# Tyler Technologies Posts Record $277 Million Quarterly Free Cash Flow As SaaS Revenue Climbs 21.2%
- URL: https://www.bullished.co/tyler-technologies-posts-record-277-million-quarterly-free-cash-flow-as-saas-revenue-788df9b9/
- Published: 2026-10-28T20:39:40.000Z
- Updated: 2026-10-28T20:39:40.000Z
- Description: The government software maker's third-quarter revenue rose 8.7% to $647.6 million, and it issued a 2026 revenue forecast of $2.535 billion to $2.565 billion.
- Author: Matteo Parrino
- Tags: Earnings, TYL, Industry: Technology

Tyler Technologies, which makes software for state and local governments, said third-quarter [free cash flow reached $277.0 million](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/a991earningsrelease-9302026.htm?ref=bullished.co), a quarterly record, as sales of its cloud-hosted software grew 21.2% to $242.2 million, according to an [8-K filed Wednesday](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/tyl-20261028.htm?ref=bullished.co).

## Cash flow leads the quarter

Free cash flow rose 11.9%, and operating cash flow of $282.5 million rose 10.7%. Chief Financial Officer Brian Miller attributed the cash record to earnings growth and better working capital performance.

Total revenue was $647.6 million, up 8.7% from a year earlier. Recurring revenue, which is subscriptions plus maintenance, hit $568.8 million, up 11.0% and 87.8% of the total. Subscription revenue was $462.6 million, up 15.3%, and transaction revenue grew 9.5% to $220.4 million. Excluding the wind-down of a Texas payments contract, transaction growth was 14.2%, the company said.

Annualized recurring revenue, the quarter's recurring sales multiplied out for a year, was $2.28 billion, up 11.0%.

## Profit and the 2026 forecast

Net income under standard accounting was $95.1 million, or $2.33 per diluted share, up 12.7%. Adjusted earnings were $3.52 per share, up 10.0%. Operating income under standard accounting rose 19.5% to $117.0 million.

For 2026, Tyler forecast revenue of $2.535 billion to $2.565 billion and adjusted earnings of $12.95 to $13.20 per share. It expects a free cash flow margin of 26% to 28%.

## Buybacks, a small deal and AI

Tyler repurchased 1,148,389 shares in the quarter for about $379 million, leaving about $1.37 billion under its repurchase authorizations. CEO Lynn Moore said the company has bought back approximately 8.5% of its outstanding shares year to date.

On July 30, the company completed the purchase of CODY Systems, a public safety software provider, for about $27.7 million in cash.

Moore said roughly 300 deals containing AI have been sold across Tyler's client base to date. The company, which sells subscriptions, support and services to government agencies, will hold a Q&A call Thursday at 8:30 a.m. ET.

Tyler's Q&A call Thursday at 8:30 a.m. ET is the next chance to hear management on the forecast and its AI sales.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — TYLER TECHNOLOGIES INC (TYL)](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/tyl-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a991earningsrelease-9302026.htm — TYLER TECHNOLOGIES INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/a991earningsrelease-9302026.htm?ref=bullished.co) — SEC EDGAR