Tyler Technologies, Inc. stock research
FY2025 Q2
Tyler Technologies (TYL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased compared with both the immediate prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross margin weakened from the prior quarter but improved relative to the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit increased compared with both the immediate prior quarter and the same quarter a year earlier, while cost of revenue also rose. Gross margin weakened from the prior quarter but improved relative to the year-ago quarter.
- The gross margin rate moved lower sequentially, as cost of revenue grew at a faster pace than revenue. Year over year, however, the margin rate strengthened, with gross profit increasing more than cost of revenue.
- Compared with the preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.8%
Gross profit
$273.2M
Revenue
$596.1M
Cost of revenue
$322.9M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $596.1M | $273.2M | $322.9M | 45.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-1.4 pts
Year-over-year change
Jun 30, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin rate moved lower sequentially, as cost of revenue grew at a faster pace than revenue. Year over year, however, the margin rate strengthened, with gross profit increasing more than cost of revenue.
Compared with the preceding quarter, gross margin was lower; compared with the same quarter one year earlier, gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as it outpaced revenue in the sequential comparison.