TYLER TECHNOLOGIES INCTYL
TYLER TECHNOLOGIES INC Segments Disclosure
SEGMENT AND RELATED INFORMATION
Reportable operating segments are determined based on the Company’s management approach. The management approach, as defined by FASB ASC 280 “Segment Reporting,” is based on the way that the Chief Operating Decision Maker (“CODM”) organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our CODM, for purposes of FASB ASC 280, is our chief executive officer.
We report our results in two reportable segments. Our reportable segments are organized on the basis of a combination of the products and services they deliver to clients and the function that the public sector client performs. Operating segments that have met the aggregation criteria have been combined into our two reportable segments. The Enterprise Software (“ES”) reportable segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: public administration solutions, courts and public safety solutions, education solutions, and property and recording solutions. The Platform Technologies (“PT”) reportable segment provides public sector entities with platform and transformative solutions including digital solutions, payment processing, streamlined data processing, and improved operations and workflows.
The CODM uses segment operating income or loss to assess performance and to allocate resources (including employees, property, and financial or capital resources) for each segment, predominantly in the annual budget and forecasting process. During the fiscal periods presented, we had no significant transactions between reportable segments. Corporate unallocated amounts are comprised of non-cash amortization of intangible assets associated with acquisitions, depreciation associated with unallocated property and equipment assets, compensation costs for the executive management team and certain shared services staff, and share-based compensation expense for the entire company. Corporate unallocated amounts also include incidental revenues and expenses related to a company-wide user conference and rental income. The accounting policies of the reportable segments are the same as those described in Note 1, “Summary of Significant Accounting Policies.
| For the year ended December 31, 2025 | Enterprise Software | Platform Technologies | Totals | ||||||||||||||
| Revenues | |||||||||||||||||
| Subscriptions: | |||||||||||||||||
| SaaS | $ | 691,288 | $ | 86,481 | |||||||||||||
| Transaction-based fees | 318,143 | 490,291 | |||||||||||||||
| Maintenance | 422,886 | 22,728 | |||||||||||||||
Professional services | 213,749 | 28,951 | |||||||||||||||
| Software licenses and royalties | 13,049 | (233) | |||||||||||||||
| Hardware and other | 35,306 | 336 | |||||||||||||||
| Total segment revenues | 1,694,421 | 628,554 | 2,322,975 | ||||||||||||||
| Less: | |||||||||||||||||
| Cost of revenues | 725,718 | 431,657 | |||||||||||||||
| Sales and marketing expense | 101,243 | 19,931 | |||||||||||||||
| General and administrative expense | 45,483 | 53,057 | |||||||||||||||
| Research and development expense | 161,346 | 17,845 | |||||||||||||||
| Segment operating income | $ | 660,631 | $ | 106,064 | $ | 766,695 | |||||||||||
| For the year ended December 31, 2024 | Enterprise Software | Platform Technologies | Totals | ||||||||||||||
| Revenues | |||||||||||||||||
| Subscriptions: | |||||||||||||||||
| SaaS | $ | 559,842 | $ | 84,937 | |||||||||||||
| Transaction-based fees | 234,633 | 463,519 | |||||||||||||||
| Maintenance | 438,455 | 24,677 | |||||||||||||||
Professional services | 219,933 | 44,058 | |||||||||||||||
| Software licenses and royalties | 25,292 | 1,065 | |||||||||||||||
| Hardware and other | 33,447 | 992 | |||||||||||||||
| Total segment revenues | 1,511,602 | 619,248 | 2,130,850 | ||||||||||||||
| Less: | |||||||||||||||||
| Cost of revenues | 706,952 | 411,351 | |||||||||||||||
| Sales and marketing expense | 109,981 | 21,618 | |||||||||||||||
| General and administrative expense | 48,072 | 57,627 | |||||||||||||||
| Research and development expense | 100,182 | 12,126 | |||||||||||||||
| Segment operating income | $ | 546,415 | $ | 116,526 | $ | 662,941 | |||||||||||
| For the year ended December 31, 2023 | Enterprise Software | Platform Technologies | Totals | ||||||||||||||
| Revenues | |||||||||||||||||
| Subscriptions: | |||||||||||||||||
| SaaS | $ | 459,544 | $ | 68,433 | |||||||||||||
| Transaction-based fees | 174,718 | 456,817 | |||||||||||||||
| Maintenance | 442,781 | 23,880 | |||||||||||||||
| Professional services | 209,727 | 40,249 | |||||||||||||||
| Software licenses and royalties | 32,709 | 5,387 | |||||||||||||||
| Hardware and other | 30,176 | — | |||||||||||||||
| Total segment revenues | 1,349,655 | 594,766 | 1,944,421 | ||||||||||||||
| Less: | |||||||||||||||||
| Cost of revenues | 653,407 | 368,017 | |||||||||||||||
| Sales and marketing expense | 102,325 | 25,196 | |||||||||||||||
| General and administrative expense | 57,481 | 64,406 | |||||||||||||||
| Research and development expense | 92,686 | 12,701 | |||||||||||||||
| Segment operating income | $ | 443,756 | $ | 124,446 | $ | 568,202 | |||||||||||
| Reconciliation of reportable segment operating income to the Company's consolidated totals: | Years Ended December 31, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total segment operating income | $ | 766,695 | $ | 662,941 | $ | 568,202 | |||||||||||
Corporate unallocated: | |||||||||||||||||
| Total revenues | 9,365 | 6,953 | 7,330 | ||||||||||||||
| Cost of revenues | (91,265) | (83,739) | (69,228) | ||||||||||||||
| Sales and marketing expense | (27,396) | (26,132) | (22,249) | ||||||||||||||
| General and administrative expense | (217,907) | (195,239) | (186,688) | ||||||||||||||
| Research and development expense | (25,397) | (5,631) | (4,198) | ||||||||||||||
| Amortization of other intangibles | (56,419) | (59,627) | (74,632) | ||||||||||||||
| Interest expense | (4,995) | (5,931) | (23,629) | ||||||||||||||
| Other income, net | 37,637 | 14,572 | 3,328 | ||||||||||||||
| Income before income taxes | $ | 390,318 | $ | 308,167 | $ | 198,236 | |||||||||||
The following table presents reconciliations of segment revenues from external customers and other segment information to the Company’s consolidated totals:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||
| ES | $ | 1,694,421 | $ | 1,511,602 | $ | 1,349,655 | |||||||||||
| PT | 628,554 | 619,248 | 594,766 | ||||||||||||||
| Corporate unallocated | 9,365 | 6,953 | 7,330 | ||||||||||||||
| Total consolidated | $ | 2,332,340 | $ | 2,137,803 | $ | 1,951,751 | |||||||||||
| Depreciation and amortization expense: | |||||||||||||||||
| ES | $ | 29,372 | $ | 37,179 | $ | 25,445 | |||||||||||
| PT | 89,476 | 89,372 | 110,354 | ||||||||||||||
| Corporate unallocated | 19,510 | 16,886 | 18,280 | ||||||||||||||
| Total consolidated | $ | 138,358 | $ | 143,437 | $ | 154,079 | |||||||||||
| Software development expenditures: | |||||||||||||||||
| ES | $ | 2,387 | $ | 7,612 | $ | 6,619 | |||||||||||
| PT | 14,160 | 15,558 | 15,840 | ||||||||||||||
| Corporate | 231 | 6,231 | 10,031 | ||||||||||||||
Total consolidated | $ | 16,778 | $ | 29,401 | $ | 32,490 | |||||||||||
| Capital expenditures: | |||||||||||||||||
| ES | $ | 4,980 | $ | 15,283 | $ | 16,788 | |||||||||||
| PT | 5,739 | 4,168 | 2,380 | ||||||||||||||
| Corporate | 5,296 | 1,084 | 1,351 | ||||||||||||||
| Total consolidated | $ | 16,015 | $ | 20,535 | $ | 20,519 | |||||||||||
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Segment assets | ||||||||
| ES | $ | 534,864 | $ | 572,224 | ||||
| PT | 416,998 | 416,635 | ||||||
| Corporate | 4,687,046 | 4,191,156 | ||||||
| Total consolidated | $ | 5,638,908 | $ | 5,180,015 | ||||
Segment assets primarily consist of net accounts receivable, prepaid expenses and other current assets, and net property and equipment and software development costs, net. Corporate assets primarily consist of cash and investments; prepaid insurance; goodwill and intangibles associated with acquisitions; deferred income taxes; software development costs, net; and property and equipment, net mainly related to unallocated information and technology assets. Certain presentation items from previous years have been adjusted to conform with current year presentation.
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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 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.