Tyler Technologies, Inc.

Tyler Technologies, Inc. is an American provider of integrated software and technology services built exclusively for the public sector, generating $2.33 billion in revenue in fiscal 2025 from subscription fees, maintenance contracts, and professional services delivered to local, state, and federal government agencies across all fifty states. The company occupies a peculiar position in the enterprise-software landscape: it owns what may be the broadest installed base in its niche, it enjoys structural barriers to exit that produce customer relationships measured in decades, and its recurring revenue runs at roughly 87% of the top line — yet it has spent most of the past three years trading well below the multiples of similarly situated vertical-software franchises.

This is a story about the durability of a government-technology franchise in a market that does not produce second chances. When a county commits to Tyler's enterprise resource planning or courts system, the switching cost is measured not in dollars but in institutional disruption: retraining hundreds of employees, re-litigating procurement, and risking the continuity of tax collection or public safety operations. The question the file turns on is whether the market is underappreciating that durability — or whether the very forces that make Tyler indispensable (slow procurement cycles, fragmented buyer base, statutory budget constraints) also cap the rate at which it can compound.