Tyler Technologies Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays Services Corp - Analyst : Yes, absolutely. Brian, maybe just to start out for -- just to make sure everybody is on the same page. I think we're all familiar with Tyler. But can you just maybe recap some points from last quarter that you were particularly proud of, just to kind of keep us all on the same page?

Question: Saket Kalia - Barclays Services Corp - Analyst : Going to be proud of absolutely.

Question: Saket Kalia - Barclays Services Corp - Analyst : Yes, absolutely. I agree there. I think one of the highlights from last quarter was we got an early look at SaaS revenue growth in 2026, which I think you said we expect to be in the 20% range. I was wondering, right because that was what we got the most questions on afterwards. Could you maybe break that down and give us a sense for how much of that growth maybe comes from flips to SaaS, right, which, of course, are going to be increasing versus renewals? You've got a huge renewal base versus new business, which I don't think this is as big of a part of the format. But I'm curious how you sort of segment that 20% growth into next year?

Question: Saket Kalia - Barclays Services Corp - Analyst : 12%, 5%, and 3%, right? I think that right? And so that's -- I mean, that must give you so much more confidence, right, because the majority of that is coming from stuff that you've really already signed. And flips, I think the company has done a great job in terms of flipping customers just with the additional value that they get from South. So that's a really helpful breakdown. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 9:55PM, TYL.N - Tyler Technologies Inc at Barclays Global Technology Conference As we think about that growing SaaS revenue base, maybe one of the questions that I think about is, what do you view as the best forward-looking metric for the business. I think some of us tend to look at either total SaaS bookings. That's what I use in our model or I think we also got ARR from new SaaS deals and conversions. That's something that some investors look at. Maybe the question, Brian, is what are some of the puts and takes for investors to consider when looking at these metrics? And what do you think is the most important when kind of gauging the health of the SaaS business?

Question: Saket Kalia - Barclays Services Corp - Analyst : And how that's growing year over year, right, which is just -- I imagine there's going to be much more steady growth. So that's great to hear we definitely look forward to something like that. Maybe given the metrics that we've got, one of the questions that I've gotten from investors was around trying to bridge the growth in bookings in SaaS bookings specifically, right, which is maybe more -- kind of more in the single-digit range year to date. I think they looked at the decline in ARR from new SaaS deals. And then kind of compare that to 20% growth in SaaS revenue expected for next year. And again, you mentioned some of them, right, duration could always be a driver. But what are some of the dynamics that might be impacting the relationship between -- I consider SaaS bookings very much of a forward-looking metric. But what might be impacting the relationship between those forward-looking metrics and the resulting revenue that you expect to have next year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 9:55PM, TYL.N - Tyler Technologies Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Services Corp - Analyst : Got it. That's really interesting that the ARR might be really different from kind of what the bookings are showing?

Question: Saket Kalia - Barclays Services Corp - Analyst : It also that with the comps too, I imagine, right? Interesting. I want to talk about sort of the -- one of the points that you made just on the difficult compares, right, that we've seen this year on ARR from new SaaS deals, or on total SaaS bookings, right? Because to your point, there were some really healthy big deal activity in 2024. I don't know, if there's a way that you've talked about how to quantify that tough comp like in terms of 2025 growth versus a more normalized 24%. But really, maybe the more important question is, do those compares ease in 2026? And while we're talking about the subject, I mean, how does the big deal pipeline look currently?

Question: Saket Kalia - Barclays Services Corp - Analyst : Got it. Got it. Very helpful. Maybe just one last question just on kind of this 20% SaaS revenue growth for 2026. Apologies, you were nice enough to give it to us in Q3, and of course, we're all going to scrutinize it. But should we kind of think about that 20% or around 20% as a floor? I mean one of the questions that I've gotten coming out of that was, wait a second, that's a really healthy guide. Has Brian changed this guidance philosophy? And I don't think you have, but I want to make sure the question is out. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 9:55PM, TYL.N - Tyler Technologies Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Services Corp - Analyst : Whether the guidance approach has kind of changed or whether we should think about --

Question: Saket Kalia - Barclays Services Corp - Analyst : Yes, absolutely. Since you brought up kind of the concept of flips, I mean, that really -- to your point, that's kind of the incremental delta for what the business is growing versus kind of the 20% that we've talked about, right, or the high teens, right, kind of looking forward. You've talked about sort of a bell curve around flips, right? I mean can you just talk about sort of how you think about the pace and size of flips over the coming years and really as part of that path to Tyler 2030.

Question: Saket Kalia - Barclays Services Corp - Analyst : Yes, absolutely. Very helpful. I want to move away from the SaaS line. I know we've talked about it a bunch. I really want to shift to another part of the story that I'd love to see, which is the profitability, right? And I think that you've talked about being ahead of plan on operating margins, again, as we think back to Tyler 2030 targets. But you've also said that, that path to the 30%-plus margins in 2030 won't necessarily be linear. And so maybe the question is, how do you think about some of the moving parts of the puts and takes to that path from here? Particularly because one of the things I'm excited about in 2026 is that second data center closing. So how do you kind of think about the path from here to 30%-plus?

Question: Saket Kalia - Barclays Services Corp - Analyst : That's helpful. I appreciate that. I want to shift to free cash flow. I mean you've talked about several drivers there with the shift to SaaS and the transaction business along with kind of the margin expansion that you have seen so far, which we've talked about. And now we've got the reversal of Section 174 playing a role here as well. Remind me, what have you said around your expectations for free cash flow, free cash flow for margin expansion, whatever you want to talk about here in '25. And anything on sort of what that looks like as part of that path to 2030.

Question: Saket Kalia - Barclays Services Corp - Analyst : Which is a great segue the last question. So just around capital allocation. I think Tyler was an active buyer of the stock, right, this past quarter. I think we've got to convert coming due in the next couple of quarters. And M&A has always been an important part of the Tyler strategy, your story as well. So maybe the question is, how are you thinking about kind of prioritization or pecking order, right, in capital allocation around debt repayment, M&A, share repurchase going forward?

Question: Saket Kalia - Barclays Services Corp - Analyst : Got it. Very helpful. I think that's about all the time that we've got left. Brian, thanks so much for being with us here today. Is that okay?