How does Tyler Technologies (TYL) make money?

Tyler Technologies (TYL) generates revenue primarily from Saas Arrangements, which accounted for 28.5% of total revenue in TTM through Q2 2026. The company reported $2.43B in revenue and converted 13.4% of it into net profit, equivalent to roughly $325M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Tyler Technologies (TYL)?

Tyler Technologies (TYL) reported a gross profit margin of 46.6% in TTM through Q2 2026, equivalent to $1.13B in gross profit on $2.43B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Tyler Technologies (TYL)?

Tyler Technologies (TYL) reported an operating profit margin of 15.1% in TTM through Q2 2026, equivalent to $368M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Tyler Technologies (TYL)?

Tyler Technologies (TYL) reported a net profit margin of 13.4% in TTM through Q2 2026, equivalent to $325M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Tyler Technologies (TYL) profitable?

Yes. Tyler Technologies (TYL) reported $325M in net income for TTM through Q2 2026, with a net profit margin of 13.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Tyler Technologies (TYL) invest in research and development?

Tyler Technologies (TYL) invested $228M in research and development during TTM through Q2 2026, roughly 9.4% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Tyler Technologies (TYL) spend on capital expenditures?

Tyler Technologies (TYL) spent $16.5M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 0.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Tyler Technologies (TYL) generate?

Tyler Technologies (TYL) generated $714M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 29.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Tyler Technologies (TYL)?

Tyler Technologies (TYL) had an effective tax rate of 22.6% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Tyler Technologies (TYL)?

Tyler Technologies (TYL) reports revenue across 6 reportable product segments, led by Saas Arrangements at 28.5% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Tyler Technologies Makes Money: 2026 Visual Revenue Map

Tyler Technologies (TYL) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

Tyler Technologies discloses geographic revenue only in annual filings. to view the full breakdown.

Tyler Technologies (TYL) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Tyler Technologies (TYL), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Saas Arrangements	$692M	28.5%
Maintenance	$665M	27.4%
Transaction Based Fees	$658M	27.1%
Professional Services	$373M	15.3%
Hardware and Other	$33.7M	1.4%
Software Licenses And Royalties	$7.79M	0.3%
Total	$2.43B	100%

Saas Arrangements$692M
Maintenance$665M
Transaction Based Fees$658M
Professional Services$373M
Hardware and Other$33.7M
Software Licenses And Royalties$7.79M
Total$2.43B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Tyler Technologies (TYL) reports revenue across 6 reportable product segments; the largest segment was Saas Arrangements at 28.5%, followed by Maintenance (27.4%) and Transaction Based Fees (27.1%).

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