Tyler Technologies, Inc. stock research
FY2025 Q1
Tyler Technologies (TYL) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased and cost of revenue decreased compared to the previous quarter, yielding a higher gross profit and an improved gross margin. Relative to the same quarter a year earlier, both revenue and gross profit grew, with gross profit rising faster than cost of revenue, resulting in a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased and cost of revenue decreased compared to the previous quarter, yielding a higher gross profit and an improved gross margin. Relative to the same quarter a year earlier, both revenue and gross profit grew, with gross profit rising faster than cost of revenue, resulting in a stronger gross margin.
- The sequential decline in cost of revenue, combined with revenue growth, is the most observable factor behind the gross margin improvement.
- Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. The prior quarter and year-ago quarter both reported lower gross margins.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.3%
Gross profit
$267.1M
Revenue
$565.2M
Cost of revenue
$298.1M
Quarter-over-quarter change
+3.5 pts
Year-over-year change
+3.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $541.0M | $237.8M | $303.2M | 44.0% |
| Sep 30, 2024 | $543.3M | $237.5M | $305.9M | 43.7% |
| Dec 31, 2024 | $541.1M | $236.8M | $304.3M | 43.8% |
| Mar 31, 2025 | $565.2M | $267.1M | $298.1M | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+3.5 pts
Year-over-year change
Mar 31, 2024
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in cost of revenue, combined with revenue growth, is the most observable factor behind the gross margin improvement.
Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier. The prior quarter and year-ago quarter both reported lower gross margins.
Monitor the direction of cost of revenue in future quarters, as its decrease contributed to the margin expansion.