TY
TYL
Dec 31, 2025
Quarter ended Dec 31, 2025 · FY2025 Q4

Tyler Technologies, Inc. stock research

Tyler Technologies (TYL) Free Cash Flow — Quarter Ended Dec 31, 2025

Revenue and operating cash flow both declined from the previous quarter, while free cash flow margin weakened slightly. Compared to the same quarter a year earlier, all metrics improved, with a higher free cash flow margin.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and operating cash flow both declined from the previous quarter, while free cash flow margin weakened slightly. Compared to the same quarter a year earlier, all metrics improved, with a higher free cash flow margin.

  • Revenue converted into operating cash flow at a rate that, after subtracting capital expenditure, resulted in a free cash flow margin above the year-ago level. The margin was stable relative to the preceding quarter, supported by a low capital expenditure relative to operating cash flow.
  • Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow margin decreased slightly. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow improving more than revenue.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$637.5M

Trailing twelve-month free cash flow.

Quarter free cash flow

$239.6M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$243.9M

Cash generated by operations before capital spending.

CapEx

$4.3M

Capital spending and related asset purchases.

FCF margin

41.7%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-03-31$565.2M$56.2M$2.3M$53.8M9.5%
2025-06-30$596.1M$98.3M$5.5M$92.8M15.6%
2025-09-30$595.9M$255.2M$3.9M$251.3M42.2%
2025-12-31$575.2M$243.9M$4.3M$239.6M41.7%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income365.6%Shows whether accounting earnings convert into cash.
CapEx / revenue0.8%Lower capital intensity usually supports FCF margin.
Net cash$415.7MCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Year-over-year cash flow improvement

Operating cash flow and free cash flow both increased versus the same quarter a year earlier, with free cash flow margin rising accordingly. This improvement occurred alongside higher revenue.

The stronger cash generation from operations relative to the prior year supports a more efficient cash cycle.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue converted into operating cash flow at a rate that, after subtracting capital expenditure, resulted in a free cash flow margin above the year-ago level. The margin was stable relative to the preceding quarter, supported by a low capital expenditure relative to operating cash flow.

Compared to the immediately preceding quarter, revenue and operating cash flow were lower, and free cash flow margin decreased slightly. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow improving more than revenue.

Monitor the trend in operating cash flow conversion given the sequential decline despite stable capital expenditure.

TYL Free Cash Flow — Quarter Ended Dec 31, 2025