Mission Statement, Vision, & Core Values of Tyler Technologies, Inc. (TYL)

You're looking at Tyler Technologies' foundational documents-Mission, Vision, and Core Values-but what do they actually mean for a company guiding public sector digital transformation? Honestly, these aren't just corporate wall art; they are the strategic blueprint that underpins their projected full-year 2025 revenue guidance of up to $2.360 billion, a roughly 10% jump from the prior year. How does a commitment to empowering smarter communities translate into an Annual Recurring Revenue (ARR) of $2.05 billion, and specifically, a 20% surge in Q3 2025 SaaS revenue? Does their vision of a transformed public sector justify a market capitalization of over $20 billion? Let's dig into the core principles-Focus, Integrity, and Growth-that turn abstract goals into concrete financial performance.

Tyler Technologies, Inc. (TYL) Overview

Tyler Technologies, Inc. is the dominant force in providing integrated software and technology services to the U.S. public sector. This isn't a tech company trying to pivot; they've been focused on empowering government entities-from cities and counties to courts and schools-since their founding in 1966.

Their product portfolio is deep, covering mission-critical functions that are unique to the public sector. You're looking at everything from enterprise resource planning (ERP) systems like Munis for financial management to the Odyssey platform for court administration. They also handle complex areas like utility billing, public safety dispatch, and electronic warrant solutions, which was recently bolstered by the acquisition of CloudGavel in November 2025.

The company's scale is significant. As of November 2025, their trailing twelve months (TTM) revenue stood at approximately $2.30 billion, demonstrating consistent demand for digital modernization across government agencies.

Recent Financial Strength: Q3 2025 Highlights

If you want to see a textbook example of a successful cloud transition, look at Tyler Technologies' latest numbers. The company's third-quarter 2025 results, reported in October, showed total revenues of $595.9 million, which was a 9.7% increase year-over-year.

The real story is in the shift to recurring revenue, which is the cornerstone of their business model. Recurring revenues accounted for a massive 86% of their total Q3 revenue, totaling $512.4 million. This stable, predictable income stream is what analysts love to see.

Specifically, their Software as a Service (SaaS) revenue surged by an impressive 20% to $199.8 million in the quarter. Plus, transaction-based services, which are a main product sale, grew by 11.5%, reflecting higher volumes as more government services move online. Here's the quick math: that strong growth in cloud-based services drove their Annual Recurring Revenue (ARR) to reach $2.05 billion.

• Q3 2025 Total Revenue: $595.9 million.
• SaaS Revenue Growth: 20% year-over-year.
• Full-Year 2025 Revenue Guidance: $2.335 billion to $2.360 billion.
• Non-GAAP Diluted EPS (Q3 2025): $2.97, beating consensus estimates.

The full-year 2025 revenue guidance is projected to be between $2.335 billion and $2.360 billion, representing approximately 10% growth from 2024. Honestly, that kind of consistent, double-digit growth in a specialized, sticky market like the public sector is defintely a strong indicator of financial health. If you want to dive deeper into the metrics, you can check out Breaking Down Tyler Technologies, Inc. (TYL) Financial Health: Key Insights for Investors.

Market Leadership in Public Sector Software

Tyler Technologies is not just a player; they are the market leader in public sector software solutions across North America. They are the largest company solely focused on this market, which gives them a distinct competitive advantage.

Their dominance is consistently validated. In May 2025, Gartner recognized the company as a Leader in the inaugural Magic Quadrant for Cloud-Based ERP for U.S. Local Government. This kind of third-party validation, plus their remarkable 98% gross client retention rate, highlights the quality and stickiness of their Enterprise Resource Planning (ERP) solutions.

They've also been consistently named to the 2025 GovTech 100 List, which recognizes the top companies making a difference in state and local government. This market position, coupled with a pristine balance sheet featuring zero net leverage, gives them the financial flexibility to continue strategic acquisitions and investments in new technology like Agentic AI solutions.

So, what drives a company to such a dominant, financially robust position in a specialized market? You need to look beyond the balance sheet. To truly understand why Tyler Technologies is so successful, you need to examine the bedrock of their long-term strategy.

Tyler Technologies, Inc. (TYL) Mission Statement

As a financial analyst, I see a mission statement not just as a marketing slogan, but as a clear strategic roadmap that guides capital allocation and operational focus. Tyler Technologies, Inc.'s mission is direct: Tyler Technologies, Inc. (TYL): History, Ownership, Mission, How It Works & Makes Money. It states, We empower the public sector to create smarter, safer, and stronger communities. This statement is crucial because it anchors their entire business model-selling integrated software and technology services-to a tangible public benefit, which is a powerful driver for their recurring revenue streams.

The company's focus on the public sector, which is generally stable and less cyclical than the private market, is why their financial performance remains so robust. For the full fiscal year 2025, Tyler Technologies projects total revenue guidance between $2.335 billion and $2.360 billion, representing approximately 10% growth from 2024. That kind of consistent growth in a specialized sector shows their mission isn't just words; it's driving real-world financial results and client loyalty.

1. Creating Smarter Communities: Driving Efficiency and Transparency

The first component, creating 'smarter communities,' centers on operational efficiency and transparency for government entities. This is where Tyler Technologies' core Enterprise Resource Planning (ERP) and financial management systems come into play, helping local governments move past archaic paper-based processes (or on-premise solutions) to modern, cloud-based software-as-a-service (SaaS) models.

The shift to cloud is a massive tailwind for their financials. For the third quarter of 2025, SaaS revenue alone grew by an impressive 20% year-over-year to $199.8 million. Their solutions give public servants better data, so they can make better, faster decisions. It's simple: better technology means better government service.

• Streamlining permitting and licensing processes.
• Providing citizens with transparent access to public records.
• Using AI-powered tools to improve budget allocation.

This focus on client success is reflected in their phenomenal gross client retention rate, which sits at approximately 98%. You defintely don't see that in many software companies.

2. Creating Safer Communities: Enhancing Public Safety and Justice

The 'safer communities' component directly addresses the critical needs of law enforcement, courts, and public safety agencies. This involves providing solutions for computer-aided dispatch (CAD), law enforcement records management, and court case management (like their Odyssey system). This is non-negotiable, mission-critical software.

A concrete example of this commitment is the company's November 2025 acquisition of CloudGavel, which specializes in electronic warrant solutions. This move strengthens Tyler Technologies' position in the courts and justice markets by allowing officers to receive warrant approval in minutes, not hours, from any internet-connected device. That speed and efficiency directly translates to increased public safety and accountability on the ground.

Tyler Technologies' solutions are installed in over 15,000 locations, including public safety agencies across all 50 states. The sheer scale of their footprint means their technology is a foundational layer for public safety infrastructure across the US. They are a utility, not a luxury.

3. Creating Stronger Communities: Fostering Resilience and Growth

Finally, 'stronger communities' speaks to the long-term financial health and resilience of their public sector clients, and by extension, Tyler Technologies itself. This is about building a sustainable digital infrastructure that can handle growth and change, which is why recurring revenue is the lifeblood of their model.

Recurring revenues-primarily from subscriptions and maintenance-made up 86% of Tyler Technologies' total revenue in Q3 2025, totaling $512.4 million. This high percentage of predictable revenue is the ultimate sign of a strong business model, providing stability for strategic investments like their focus on Artificial Intelligence (AI) and cloud migration. Their Annual Recurring Revenue (ARR) reached $2.05 billion in Q3 2025, up 10.7% year-over-year. Here's the quick math: that ARR figure is nearly the entire projected 2025 revenue, which tells you how sticky their client base is.

The company also reinforces this component through its core values, such as Inclusion and Growth. They were named to Newsweek's "America's Greatest Workplaces for Inclusion & Diversity 2025" list, which demonstrates a commitment to a diverse workforce that can better understand and serve a diverse public sector client base. This internal strength is what makes them a reliable partner for their clients' long-term growth.

Tyler Technologies, Inc. (TYL) Vision Statement

You're looking at Tyler Technologies, Inc.'s (TYL) vision and mission because you want to know if their stated purpose aligns with their financial trajectory. The short answer is yes: their vision-A transformed public sector that serves thriving, connected communities-is directly supported by their aggressive cloud migration and AI investment, which is driving their strong recurring revenue growth in 2025.

As a seasoned analyst, I see this vision as a clear strategic roadmap, not just a feel-good phrase. They are the market leader in public sector software, with a remarkable 98% gross client retention rate, meaning they rarely lose a customer once they're in. This stability is the bedrock for their 2025 full-year revenue guidance, which is projected to land between $2.335 billion and $2.360 billion. That's defintely a solid foundation for transformation.

A Transformed Public Sector: The Cloud and AI Catalyst

The first part of the vision, 'A transformed public sector,' is where the capital expenditure hits the road. Transformation in government technology (GovTech) means moving off decades-old, on-premise systems and into the cloud (Software as a Service, or SaaS). Tyler Technologies is executing Phase 2 of this cloud transition, which is all about operationalizing the cloud and creating a scalable foundation.

Here's the quick math on that transition: in Q3 2025, their SaaS revenues surged by an impressive 20% year-over-year to $199.8 million. This shift is critical because Subscription revenues are more predictable, driving their Annual Recurring Revenue (ARR) to $2.05 billion, up 10.7%. Plus, they are doubling down on innovation, planning to significantly increase their Research & Development investment to between $202 million and $205 million in 2025, a massive jump from $117.9 million in 2024.

• SaaS is the new standard for public sector efficiency.
• AI is addressing the 'graying effect' of the government workforce.
• The Los Angeles County deal for their AI-powered Priority Based Budgeting solution is a concrete example of this transformation in action.

Thriving, Connected Communities: Mission in Action

The second part of the vision, 'thriving, connected communities,' is the tangible outcome of their mission: 'We empower the public sector to create smarter, safer, and stronger communities.' This isn't just about selling software; it's about integrating systems-courts, public safety, finance, and citizen engagement-so they all talk to each other. That's what makes a community 'connected.'

This integration strategy is also a huge revenue driver through cross-selling. They aim to expand their product offerings per customer from an average of two to three up to eight to ten. The recurring revenue streams-subscriptions and transactions-accounted for 86% of total revenues in Q3 2025, totaling $512.4 million. This deep integration makes their solutions sticky, which is why analysts anticipate the full-year 2025 Non-GAAP diluted Earnings Per Share (EPS) will be strong, guided between $11.30 and $11.50.

Core Values: The Foundation of Predictable Growth

A high-growth tech company serving the public sector needs rock-solid values to maintain trust, and Tyler Technologies' six core values-Accountability, Integrity, Focus, Inclusion, Community, and Growth-are the operating principles behind their financial predictability.

The 'Focus' value, for example, means they are 'disciplined and resilient' and 'good stewards of time and resources.' This translates directly to their operational efficiency. Their non-GAAP operating margin expanded by 120 basis points to 26.6% in Q3 2025, demonstrating improved efficiency as they scale their cloud offerings. The 'Integrity' value, insisting on making the right choice over the easy choice, is essential when dealing with sensitive government data.

Their commitment to 'Inclusion' and 'Community' also reinforces their reputation, which is vital for securing long-term government contracts. They achieved an MSCI ESG rating upgrade to AA in 2025, a mark of strong corporate responsibility that builds stakeholder trust. This isn't soft stuff; it's a competitive advantage that helps them secure those multi-year deals that feed that recurring revenue machine.

Tyler Technologies, Inc. (TYL) Core Values

You're looking for a clear map of what drives Tyler Technologies, Inc. (TYL) beyond the quarterly earnings report, and honestly, that's smart. The mission, vision, and core values are the bedrock for their long-term strategy, especially in the public sector where trust is the ultimate currency. Tyler's mission is simple but powerful: 'We empower the public sector to create smarter, safer, and stronger communities.' Their six core values-Accountability, Integrity, Focus, Inclusion, Community, and Growth-are the operational guideposts that turn that mission into tangible results.

For a company that's guiding government digital transformation, these values aren't just posters on a wall; they directly translate into the software features and client relationships that drove their updated FY 2025 Total Revenues guidance to a range of \$2.335 billion to \$2.360 billion.

Accountability

Accountability is about owning the outcome, not just the process. For a public sector technology provider, this means delivering solutions that enhance transparency and operational reliability for their clients. It's what earns public trust.

In 2025, the company reinforced this through both internal governance and client-facing solutions. The executive compensation program is defintely tied to this, designed to reward for performance based on achieving key operational results and responsible growth of revenue and operating margin. That's a direct line from performance to pay.

• Cloud-based invoice approvals track payments in real time.
• Cybersecurity disclosure submitted in Form 10-K in February 2025.
• Executive pay linked to operational results and margin growth.

A great example is how their Enterprise Resource Planning (ERP) Pro's AP Automation helps clients like a county government improve accountability by tracking payments in real time using cloud-based invoice approvals. When a client's system works better, Tyler is accountable for that success.

Integrity

Integrity means making the right choice over the easy choice, especially when handling sensitive government data. This value is non-negotiable for a company that serves over 13,000 public sector clients.

Tyler Technologies demonstrated its commitment to ethical business practices in 2025 by updating its Code of Business Conduct and Ethics to tighten language concerning conflicts of interest and payments to government personnel. Also, they adopted a Human Rights Policy, reinforcing their ethical stance globally. On the product side, client adoption of the Payments platform ensures Payment Card Industry (PCI) compliance for online transactions, which is a fundamental layer of data integrity and security for residents. You simply cannot afford a breach of public trust.

Focus

Focus is the discipline to deliver results and be a good steward of time and resources. For a tech company, this means prioritizing key investment areas that will drive long-term value. For fiscal year 2025, Tyler's focus is clearly on cloud, AI, and client experience.

Here's the quick math: the company's guidance for Research and Development (R&D) expense for the full year 2025 is between \$193 million and \$198 million. That's a serious commitment to forward thinking. This investment is directly funding their cloud migration strategy, which is on track to transition their Maine-based data center operations to Amazon Web Services (AWS) by the end of 2025. That move alone is a massive operational focus on efficiency and scalability.

Inclusion

Inclusion is about recognizing that a diverse team is essential for success, especially when building software for a diverse public sector. It's about welcoming new perspectives to solve complex public problems.

This value was visibly validated in early 2025 when Tyler Technologies was named to Newsweek's 'America's Greatest Workplaces for Inclusion & Diversity 2025' list for the second time. This recognition is based on an independent study that incorporates over 339,000 employee interviews. It shows their efforts, from talent acquisition to retention, are creating an environment where everyone can thrive. That's a good sign for innovation pipeline health.

Community

The Community value aligns directly with the company's mission to create stronger communities. Their corporate responsibility efforts, known as 'Tyler Cares,' include charitable giving through the Tyler Foundation.

In 2025, their community impact was quantifiable. The 'Tyler Gives' campaign, a local Giving Tuesday fundraiser, raised nearly \$290,000-specifically \$289,460-for United Way's partnering nonprofits in February. Also, team members and clients partnered with the San Antonio Food Bank to fill 1,000 backpacks with food for school-aged children. These are concrete actions that go beyond software and directly support local residents.

Growth

Growth is the forward-looking driver, encouraging new approaches to old problems and continuously improving products and relationships. For investors, this translates directly into the top and bottom lines.

In the third quarter of 2025, Tyler Technologies reported revenue of \$595.9 million, a 9.7\% increase year-over-year, with recurring revenue comprising 86.0\% of that total. This financial performance is the result of strategic growth actions, such as the November 2025 acquisition of CloudGavel, which immediately strengthened their position in the Courts, Justice, and Public Safety markets by enhancing e-warrant solutions. Growth is both organic and through disciplined capital allocation, and you can see more on that strategy in Exploring Tyler Technologies, Inc. (TYL) Investor Profile: Who's Buying and Why?