Tyler Technologies, Inc.

Hello and welcome to today's Tyler Technologies first quarter 2026 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 everyone's question and save it in the allotted time, please limit yourself to one question and you may rejoin the queue for a follow-up question. And as a reminder, this conference is being recorded today. April 30th, 2026. I would like to turn the call over to Hala El-Sharbini, Tyler's Senior Director of Investor Relations. Please go ahead.

Thank you, John, and welcome to our call. With me today is Lynn Moore, our President and CEO, and Brian Miller, our CFO. In an effort to streamline our earnings communications and provide timely context around our quarterly earnings results, We published our prepared remarks yesterday, shortly after posting our full quarterly results release to the news section of our Best Relations website. This go-forward practice allows for more timely understanding of our earnings results release before our earnings call this morning. Additionally, beginning next quarter, we plan to hold our earnings call earlier in the day before the market opens. After I give the safe harbor statement, Lynn will provide a summary of our key quarter highlights and we'll move to our Q&A session. During this conference 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 Security Litigation Reform Act of 1995 and are subject to certain risks and uncertainties which could cause actual results to differ maturely from these projections. We refer you to our Form 10-K and other SEC filings for more information on those risks. We have also posted on the financial section of our Investor Relations website a schedule with supplemental information. During the past year, we've discussed our intent to simplify the supplemental information we present to focus on our key performance indicators, annualized recurring revenue, ARR, and free cash flow. along with other metrics we consider meaningful, including quarterly recurring revenues and bookings. We believe this will enable investors and others to focus on relevant metrics that best reflect the performance and trajectory of our business. Also, on the events and presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. Glenn?

Thanks, Holla. Our first quarter results provided a strong start to 2026. with better than expected recurring revenue growth and free cash flow generation. Total revenues and recurring revenues both reached new record highs, and free cash flow more than doubled last year's first quarter. Public sector demand remains robust, with an active pipeline and growing momentum across our cloud solutions, AI-enabled applications, and our unified transaction strategy. Operating margins continue to improve, benefiting from our cloud model transition. During the quarter, we repaid our convertible debt at maturity and executed meaningful opportunistic sharing purchases under our new authorization. And earlier this month, we completed the acquisition of For the Record, representing the third largest acquisition in Tyler's history. We are well positioned for 2026 with durable demand drivers, accelerating cloud momentum, and a trust-based approach to leading the public sector's AI evolution, supporting our confidence in delivering on our strategic initiatives and 2030 targets. We'll now take your questions.