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# Tyler Technologies Spent $1.124 Billion On Buybacks In Nine Months, Much Of It Borrowed
- URL: https://www.bullished.co/tyler-technologies-spent-1-124-billion-on-buybacks-in-nine-months-much-of-it-borrowed-ca86a9c9/
- Published: 2026-10-28T21:31:42.000Z
- Updated: 2026-10-28T21:31:42.000Z
- Description: Third-quarter earnings per share beat net income growth because the share count shrank, and a $1.44 billion convertible bond helped fund it.
- Author: Matteo Parrino
- Tags: Earnings, TYL, Industry: Technology

[Tyler Technologies](https://www.bullished.co/tag/tyl/), which makes software for governments, [repurchased about $1.124 billion of its stock](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000058/tyl-20260930.htm?ref=bullished.co) in the first nine months of 2026, a program funded in part by a new $1.44 billion convertible bond. The shrinking share count is a big reason third-quarter diluted earnings per share reached $2.33, up from $1.93, while net income rose from $84.4 million to $95.1 million.

## Fewer shares, faster per-share growth

The 10-Q, filed Wednesday, says the nine-month repurchase figure excludes $19.9 million in accrued excise taxes and accrued repurchases. At the end of June, the [prior quarterly report](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000050/tyl-20260630.htm?ref=bullished.co) put repurchases at about $755.0 million for six months.

Weighted diluted shares fell to 40,731 thousand in the third quarter from 43,834 thousand a year earlier. Net income rose by roughly 13%, but per-share earnings rose faster because that denominator shrank.

The company's [earnings release](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/a991earningsrelease-9302026.htm?ref=bullished.co) said revenue was $647.6 million, up 8.7%, with SaaS revenue up 21.2% and free cash flow at a quarterly record of $277.0 million. Chief Executive Lynn Moore pointed to the repurchase of about 8.5% of outstanding shares year to date.

## Turning over the balance sheet

Tyler repaid a $600.0 million convertible note in cash at maturity on March 15\. On May 14 it issued 0.50% convertible notes due 2031, with net proceeds of $1.41 billion, and used about $320.7 million that day to buy back 1,026,900 shares.

Shareholders' equity fell to $2.79 billion at September 30 from $3.70 billion at December 31\. Cash dropped to $788.2 million from $1.02 billion, and the 2031 notes carried a net $1.41 billion on the balance sheet.

The notes convert at about $405.94 a share. The company says its average stock price stayed below that level, so they add no dilution to diluted earnings per share yet. Tyler also paid about $187.2 million for capped call contracts covering roughly 3.5 million shares, with a cap price of $655.77.

## A government software business

Tyler sells software and services to federal, state and local agencies, earning money from subscriptions, maintenance and professional services. Subscriptions and maintenance made up 87% of its 2025 revenue, according to its annual report.

Subscription revenue rose 15.3% in the quarter, while maintenance fell 5% as clients moved from on-premises licences to cloud. It bought CODY Systems, a public safety software company, on July 30 for about $27.7 million in cash.

## Buyback room left

The board added a $1.5 billion repurchase plan on July 24\. About $1.334 billion of authorization remained as of Wednesday, per the 10-Q.

Tyler gave 2026 guidance of $2.535 billion to $2.565 billion in revenue and adjusted earnings of [$12.95 to $13.20 per share](https://finance.yahoo.com/markets/stocks/articles/tyler-technologies-q3-earnings-snapshot-203755591.html?ref=bullished.co).

Tyler holds its earnings call Thursday at 8:30 a.m. ET.

### Sources

- [10-Q Filing — Tyler Technologies (TYL)](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000058/tyl-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Tyler Technologies (TYL), Q2 FY2026 filed 2026-07-29 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000050/tyl-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, a991earningsrelease-9302026.htm) — Tyler Technologies, filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000056/a991earningsrelease-9302026.htm?ref=bullished.co) — SEC EDGAR
- [Tyler Technologies Non-GAAP EPS of $3.52 beats by $0.03, revenue of $647.6M misses by $4.38M (TYL:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4659616-tyler-technologies-non-gaap-eps-of-352-beats-by-003-revenue-of-6476m-misses-by-438m?ref=bullished.co) — seekingalpha.com
- [Tyler Technologies (TYL) Positioned for Continued Value Creation](https://finance.yahoo.com/markets/stocks/articles/tyler-technologies-tyl-positioned-continued-141135198.html?ref=bullished.co) — Yahoo Finance
- [Tyler Technologies: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/tyler-technologies-q3-earnings-snapshot-203755591.html?ref=bullished.co) — Associated Press
- [Tyler Tech. To Pay $1.5M To Settle NC ECourts Class Action - Law360](https://www.law360.com/articles/2542639/tyler-tech-to-pay-1-5m-to-settle-nc-ecourts-class-action?ref=bullished.co) — law360.com
- [TYL to Report Q3 Earnings: What's in the Cards for the Stock?](https://finance.yahoo.com/markets/stocks/articles/tyl-report-q3-earnings-whats-143000420.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Tyler Technologies

- [Tyler Technologies Posts Record $277 Million Quarterly Free Cash Flow As SaaS Revenue Climbs 21.2%](https://www.bullished.co/tyler-technologies-posts-record-277-million-quarterly-free-cash-flow-as-saas-revenue-788df9b9/)

[All Tyler Technologies (TYL) coverage →](https://www.bullished.co/tag/tyl/)