TYLER TECHNOLOGIES INCTYL
TYLER TECHNOLOGIES INC Revenue Disclosure
DISAGGREGATION OF REVENUE
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS
Deferred commissions have been included with prepaid expenses for the current portion and other non-current assets for the long-term portion in the accompanying condensed consolidated balance sheets. Amortization expense related to deferred commissions is included in sales and marketing expense in the accompanying condensed consolidated statements of income.
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows.
Recurring Revenues
The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscription revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from to 10 years but are typically contracted for initial periods of to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues.
Recurring revenues and non-recurring revenues recognized during the period are as follows:
| For the year ended December 31, 2025 | Enterprise Software | Platform Technologies | Corporate Unallocated | Totals | |||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscriptions: | |||||||||||||||||||||||
| SaaS | $ | 691,288 | $ | 86,481 | $ | — | $ | 777,769 | |||||||||||||||
| Transaction-based fees | 318,143 | 490,291 | — | 808,434 | |||||||||||||||||||
| Maintenance | 422,886 | 22,728 | — | 445,614 | |||||||||||||||||||
| Total recurring revenues | 1,432,317 | 599,500 | — | 2,031,817 | |||||||||||||||||||
Professional services | 213,749 | 28,951 | — | 242,700 | |||||||||||||||||||
| Software licenses and royalties | 13,049 | (233) | — | 12,816 | |||||||||||||||||||
| Hardware and other | 35,306 | 336 | 9,365 | 45,007 | |||||||||||||||||||
| Total non-recurring revenues | 262,104 | 29,054 | 9,365 | 300,523 | |||||||||||||||||||
| Total revenues | $ | 1,694,421 | $ | 628,554 | $ | 9,365 | $ | 2,332,340 | |||||||||||||||
| For the year ended December 31, 2024 | Enterprise Software | Platform Technologies | Corporate Unallocated | Totals | |||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscriptions: | |||||||||||||||||||||||
| SaaS | $ | 559,842 | $ | 84,937 | $ | — | $ | 644,779 | |||||||||||||||
| Transaction-based fees | 234,633 | 463,519 | — | 698,152 | |||||||||||||||||||
| Maintenance | 438,455 | 24,677 | — | 463,132 | |||||||||||||||||||
| Total recurring revenues | 1,232,930 | 573,133 | — | 1,806,063 | |||||||||||||||||||
Professional services | 219,933 | 44,058 | — | 263,991 | |||||||||||||||||||
| Software licenses and royalties | 25,292 | 1,065 | — | 26,357 | |||||||||||||||||||
| Hardware and other | 33,447 | 992 | 6,953 | 41,392 | |||||||||||||||||||
| Total non-recurring revenues | 278,672 | 46,115 | 6,953 | 331,740 | |||||||||||||||||||
| Total revenues | $ | 1,511,602 | $ | 619,248 | $ | 6,953 | $ | 2,137,803 | |||||||||||||||
| For the year ended December 31, 2023 | Enterprise Software | Platform Technologies | Corporate Unallocated | Totals | |||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscriptions: | |||||||||||||||||||||||
| SaaS | $ | 459,544 | $ | 68,433 | $ | — | $ | 527,977 | |||||||||||||||
| Transaction-based fees | 174,718 | 456,817 | — | 631,535 | |||||||||||||||||||
| Maintenance | 442,781 | 23,880 | — | 466,661 | |||||||||||||||||||
| Total recurring revenues | 1,077,043 | 549,130 | — | 1,626,173 | |||||||||||||||||||
Professional services | 209,727 | 40,249 | — | 249,976 | |||||||||||||||||||
| Software licenses and royalties | 32,709 | 5,387 | — | 38,096 | |||||||||||||||||||
| Hardware and other | 30,176 | — | 7,330 | 37,506 | |||||||||||||||||||
| Total non-recurring revenues | 272,612 | 45,636 | 7,330 | 325,578 | |||||||||||||||||||
| Total revenues | $ | 1,349,655 | $ | 594,766 | $ | 7,330 | $ | 1,951,751 | |||||||||||||||
Total deferred revenue, including long-term, by segment is as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Enterprise Software | $ | 755,894 | $ | 683,909 | |||||||
| Platform Technologies | 39,443 | 36,117 | |||||||||
| Corporate | 6,489 | 3,788 | |||||||||
| Totals | $ | 801,826 | $ | 723,814 | |||||||
Changes in total deferred revenue, including long-term, were as follows:
| 2025 | |||||
| Balance at beginning of year | $ | 723,814 | |||
| Deferral of revenue | 1,549,541 | ||||
| Recognition of deferred revenue | (1,471,529) | ||||
| Balance at end of year | $ | 801,826 | |||
Remaining Performance Obligations
We expect to recognize as revenue approximately 97% of our deferred revenue balance as of December 31, 2025, in the next 12 months, and the remainder thereafter. We believe the portion of transaction price allocated to the remaining performance obligations which is not included in our deferred revenue balance is not a meaningful indicator of future revenue due to contracts with transaction-based fees that vary with transaction activity, the variability in subscription term lengths, and termination provisions included in some contracts that limit inclusion and cause variability from period to period.
DEFERRED COMMISSIONSDeferred commissions are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||
Prepaid commissions | $ | 24,006 | $ | 18,037 | ||||||||||
Long-term deferred commissions | 54,561 | 38,762 | ||||||||||||
Total deferred commissions | $ | 78,567 | $ | 56,799 | ||||||||||
Amortization expense related to deferred commissions is as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Amortization expense | $ | 21,881 | $ | 19,916 | $ | 18,589 | |||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.