Tyler Technologies, Inc.

Hello and welcome to today's Tyler Technologies second quarter 2026 conference call. Your host for today's call is Lynn Moore, Executive Chair, 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 questions and stay within the allotted time, please limit your question to one question and one follow-up. And as a reminder, this conference is being recorded today, July 30, 2026. I would like to turn the call over to Hala Elsherbini, Tyler's Senior Director of Investor Relations. Please go ahead.

Thank you and welcome to our call. With me today is Lynn Moore, Executive Chair, President and CEO, and Brian Miller, our Chief Financial Officer. In an effort to streamline our earnings communications and provide timely context around our quarterly earnings release, we published our prepared remarks yesterday shortly after posting our full quarterly results release to the news section of our investor relations website. We've also posted on the investor relations section of our website under the financials tab a schedule with supplemental information. Lastly, on the events and presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. After I give the safe harbor statement, Lynn will have some opening remarks and will directly go to Q&A. 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 Thanks, Hala.

As you can see, it was a very busy and exceptionally productive quarter for Tyler. We have accomplished a great deal strategically, including our investor day, where we detailed new, higher Tyler 2030 targets, our convertible debt offering, which enhanced our financial flexibility, significant share repurchases, reflecting confidence in our long-term growth, and the acquisition of For the Record, which strengthens our leadership position in the courts and justice market. all while continuing to deliver strong execution across the business. Operationally, we delivered another strong quarter, highlighted by 21.7% SAS revenue growth, record SAS bookings, record total bookings, and record second quarter free cash flow. Public sector demand remains healthy, supported by ongoing modernization priorities across government and continued investment in digital transformation, cybersecurity, operational efficiency, and constituent engagement. We also continue to see momentum in our transactions business, made meaningful progress with our cloud operations, and advanced our AI strategy with growing client engagement and early customer adoption across the portfolio. Overall, we're very pleased with our first half performance and remain well positioned for the second half of 2026 and beyond. Simply put, we got a lot done this quarter. and the progress we made reinforces our confidence in the opportunities ahead. We'll now take your questions.