Tyler Q3 Revenue Misses ($647.6M vs $651.6M), but SaaS Grows 21.2% and FCF Hits Record $277M
TYL sits 26% above its 52-week low of $270.71.
Summary
Tyler missed Q3 revenue estimates ($647.6M vs $651.6M), but SaaS grew 21.2%, free cash flow hit a record $277M, and full-year 2026 guidance was set at $2.535-$2.565B in revenue and $12.95-$13.20 non-GAAP EPS.
Key Events · Earnings and Guidance · TYL
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Q3 Revenue Misses Consensus
Total revenues rose 8.7% year over year to $647.6 million, but fell short of the $651.6 million IBES estimate.
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SaaS and Recurring Mix Improve
SaaS revenues climbed 21.2% to $242.2 million; recurring revenues of $568.8 million made up 87.8% of total, and ARR reached $2.28 billion, up 11.0%.
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Record Free Cash Flow
Free cash flow rose 11.9% to $277.0 million, a 42.8% quarterly margin, while operating cash flow was $282.5 million.
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Full-Year 2026 Guidance Set
Revenue is guided to $2.535-$2.565 billion, non-GAAP diluted EPS to $12.95-$13.20, and free cash flow margin to 26%-28%.
Analysis · TYL · Technology
A rare top-line shortfall: Q3 revenue of $647.6 million came in below the $651.6 million consensus, a stumble for a company that has compounded recurring revenue reliably. The offset is a steadily improving mix. SaaS grew 21.2% to $242.2 million, recurring revenue now represents 87.8% of the total, and free cash flow reached a quarterly record of $277.0 million at a 42.8% margin. Management also provided full-year 2026 guidance: revenue of $2.535-$2.565 billion and non-GAAP EPS of $12.95-$13.20, giving investors a concrete bar for the rest of the year. Per-share numbers are getting heavy support from the buyback—1.1 million shares repurchased for about $379 million in the quarter and roughly 8.5% of shares retired year-to-date—which explains why EPS grew faster than net income. The debate now is whether 8.7% total revenue growth is a one-quarter timing issue or a sign of a slower demand environment.
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At the time of this filing, TYL was trading at $342.23 on NYSE in the Technology sector, with a market capitalization of approximately $14.8B. The 52-week trading range was $270.71 to $513.32. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.