Tyler Technologies shares fall 5.3% after hours, Q3 profit in line

Tyler Technologies Inc. (TYL) said in a filing on Oct. 28 that third-quarter 2026 non-GAAP earnings were $3.52 per diluted share, in line with the consensus estimate compiled by Finnhub. Revenue was $647.57 million, below the $658.15 million estimate.

Shares fell 5.3% in after-hours trading as of 5:16 p.m. ET, from a regular-session close of $360.96.

The company said revenue rose 8.7% from a year earlier. Recurring revenue grew 11.0%, and the company said it made up 87.8% of total revenue.

Here's how the company did:

• Revenue: $647.57 million vs. $595.88 million a year earlier, below the $658.15 million consensus estimate compiled by Finnhub
• Non-GAAP EPS: $3.52 vs. $2.97 a year earlier, in line with the $3.52 consensus estimate compiled by Finnhub
• GAAP EPS: $2.33 vs. $1.93 a year earlier
• Free cash flow: $276.98 million, up 11.9% from a year earlier

Executive Chair, President and Chief Executive Officer Lynn Moore said "We achieved solid third quarter results, with double-digit recurring revenue growth, robust margin expansion, strong bookings, and record quarterly free cash flow."

Revenue detail

Subscription revenue was $462.6 million, up 15.3% from a year earlier. SaaS revenue grew 21.2% to $242.2 million.

Transaction revenue grew 9.5% to $220.4 million. The company said annualized recurring revenue was $2.28 billion, up 11.0%.

The company said free cash flow reached a quarterly record of $277 million, supported by earnings growth and improved working capital performance.

2026 guidance

The company lowered the top end of its 2026 total revenue forecast to $2.565 billion. The range is $2.535 billion to $2.565 billion, from the $2.535 billion to $2.575 billion it gave on July 29.

Its 2026 non-GAAP diluted EPS forecast of $12.95 to $13.20 is unchanged. The free cash flow margin forecast of 26% to 28% is also unchanged.

The company now expects capital expenditures of $20 million to $22 million, up from $18 million to $20 million. Its net interest income forecast is $15 million to $17 million, down from $19 million to $21 million.

Buybacks and acquisition

The company repurchased 1,148,389 shares of its common stock during the quarter for about $379 million. It said about $1.37 billion remains under its previously announced repurchase authorizations.

The company completed its acquisition of CODY Systems on July 30 for about $27.7 million in cash, according to the release.