TYL$278.91

Tyler Technologies’ most notable strength is its consistently improving profitability and cash generation, supported by durable mission-critical software demand. Revenue has compounded steadily to $2.38bn TTM, with gross margin in the mid-40s and operating margin near 15%, while EPS and free cash flow have accelerated and FCF margin remains robust around 29%. That said, the balance sheet is less pristine: cash fell back to $346m TTM after rising in FY2025, current liabilities increased sharply, and large goodwill and intangibles limit tangible asset quality despite falling leverage and improving returns. Growth remains healthy and more stable than in prior years, and forward earnings expansion appears well supported. Overall, TYL screens as a high-quality, cash-generative software franchise with solid but not flawless financial resilience, consistent with its strong operating ratings and moderately weaker balance sheet profile.