Tyler Technologies, Inc.

Ladies and gentlemen, hello and welcome to today's Tyler technologies fourth quarter 2025 conference call your host for today's call is Lynn Moore, President and CEO of Tyler technologies. At this time, all participants are in a listen only mode later, we will conduct a question and answer session and instructions will follow at that time. In order to address your questions and stay within the allotted time, please limit yourself to one question per person. you may get back into the queue for a follow-up. As a reminder, this conference is being recorded today, February 12th, 2026. I would like to turn the call over to Hala El-Sherbini, Tyler's Senior Director of Investor Relations. Please go ahead.

Thank you, Abby, and welcome to our call. With me today is Lynn Moore, our President and Chief Executive Officer, and Brian Miller, our Chief Financial Officer. After I gave the safe harbor statement, Lynn will have some initial comments on our quarter, and then Brian will review the details of our results and our annual guidance for 2026. Lynn will end with some additional comments, and then we'll take your questions. During this call, management may make statements that provide information other than historical information and may include projections concerning the company's future prospects, revenues, expenses, and profits. Such statements are considered forward-looking statements under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties which could cause actual results to differ materially from these projections. We would refer you to our Form 10-K and other SEC filings for more information on those risks. Also, in our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. We have also posted on the investor relations section of our website, under the financials tab, is scheduling and supplemental information, including information about our quarterly recurring revenues and bookings. On the events and presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. Please note that all growth comparisons we make on the call today will relate to the corresponding period of last year unless we specify otherwise. Lynn?

Thanks, Holla. Our fourth quarter results provided a solid finish to 2025, a year that demonstrated the resilience of our business and end markets. Throughout 2025, we demonstrated what decades of disciplined execution look like, navigating shifting macro sentiment while advancing our strategic priorities and delivering on key performance metrics. Recurring revenue growth and free cash flow are two key metrics. Both surpassed expectations in the fourth quarter. Recurring revenues grew 11%, led by SaaS revenue growth of just over 20% and transaction-based revenue growth of 12%. Free cash flow was a fourth-quarter record, up nearly 10%, with our free cash flow margin expanding to an exceptional 41%. Public sector market fundamentals and the demand environment remain strong. Generally healthy budgets are supporting an active pipeline, and RFP and sales demo activity remain at elevated levels, as agencies prioritize modernization of aging mission-critical systems essential to their digital transformation, workforce optimization, and efficiency initiatives. Our sales organization delivered solid execution in the fourth quarter, as total SaaS bookings grew 9.6%. In particular, we saw strong momentum from flips of on-premises clients to the cloud. Both the number and the value of flips signed during the quarter represented new quarterly highs. Annual contract value from flips signed this quarter rose 64.5% over last year and 54.8% sequentially. We are well positioned to capitalize on the significant opportunities ahead, supported by a proven business model and clear competitive advantages. Our four key growth pillars guide our execution, completing our cloud transition, leveraging our large client base, growing our transactions business, and expanding into new markets. Our transaction-based business continues to be a significant growth driver, and I want to highlight the progress we made during 2025. We consolidated our payments operations across Tyler under our new industry proven leader, Ryan O'Connor, executing a unified payment strategy that positions us to capture greater value and drive operational efficiencies. We are focused on value added transaction services that are deeply embedded in our software solutions across multiple use cases, like utility billing, municipal courts, licensing and permitting, property taxes, and parks and recreation. This full end-to-end integration provides significant value for our clients by streamlining operations and improving citizen experiences while also creating a differentiated competitive position for Tyler. Now I'd like to highlight a few fourth quarter wins that illustrate progress against our growth objectives with a broader list of key deals included in our quarterly earnings deck. We expanded our relationship with one of our major state enterprise clients, signing contracts for digital motor vehicle titling, which will be transaction-funded, and SAS contracts for a statewide cashiering solution, as well as our recreation dynamics and data and insight solutions. In Alabama, we signed SAS contracts for our enterprise ERP solution with two of the state's largest school districts, the Jefferson County Schools and the Huntsville City Schools. We also signed a SAS agreement for our enterprise jail solution with Riverside County, California, an existing court software client. I mentioned earlier it was one of our biggest quarters ever for flips. Contracts signed in Q4 for flips of on-premises clients included LA County, California, flipping their enterprise permitting licensing system, while also adding our fire prevention mobile solution in the cloud, as well as payments. Enterprise public safety flips with the cities of White Plains, New York, and Beverly Hills, California, our first public safety flip in California. Two of the six largest counties in Texas, Travis County and Collin County signed a contract to flip their enterprise justice solutions. Contra Costa County, California also is flipping their enterprise justice solution while adding traffic court, including payments, to their portfolio of Tyler solutions. And Enterprise ERP flips with Marin County, California and Madison, Wisconsin. We also continue to see sales success in transactions. with key wins and an active pipeline of opportunities that reinforce the strength of our unified payment strategy. Key fourth quarter wins included a payments contract with Multnomah County, Oregon, an existing appraisal and tax software client. We also signed a contract with the State of Maryland Administrative Office of the Courts, an existing enterprise justice software client for payments and disbursements. Finally, our state sales team is building early momentum, opening new doors and advancing strategic statewide opportunities. Through strong internal alignment and collaboration, we signed a statewide contract this quarter with the New Mexico Department of Corrections for our inmate services financial suite and warehouse management administration suite. Now I'd like Brian to provide more detail on the results for the quarter and our annual guidance for 2026.