Tyler Technologies, Inc. (TYL) Stock Analysis

Tyler Technologies’ competitive edge is rooted in its exclusive focus on the public sector, breadth of integrated solutions, and deep client relationships. The company serves over 15,000 jurisdictions with 45,000+ installations, giving it the largest installed base in U.S. government technology. This scale creates high switching costs and enables cross-selling; the average customer uses 2–3 Tyler products, with a potential to expand to 8–10.

Tyler’s product suite is broader and more integrated than most rivals. In ERP, it competes with large horizontal vendors like Oracle, SAP, and Workday, but these typically target only the largest governments. In public safety and courts, Tyler’s integration across adjacent domains (e.g., linking 911, courts, and probation) is unique; most competitors, such as CentralSquare, Accela, and OpenGov, offer narrower or less integrated solutions.

The company’s cloud transition is advanced: 97% of new software contract value in 2024 was SaaS, and over 80% of on-premises clients are targeted to migrate by 2030. This shift supports recurring revenue (87% in 2025) and gross client retention of 98%.

Tyler’s reputation for reliability, domain expertise, and long-term client relationships (annual attrition ~2%) further insulate it from new entrants. Its financial strength, with $1.0B+ in cash and no net debt, supports ongoing R&D and selective M&A, reinforcing its position as the sector consolidator.