Tyler Technologies, Inc. stock research
FY2025 Q3
Tyler Technologies (TYL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was essentially flat compared to the prior quarter, while gross profit increased and cost of revenue declined, resulting in an improved gross margin. Compared to the same quarter last year, revenue grew, gross profit rose more sharply, and cost of revenue increased at a slower pace, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was essentially flat compared to the prior quarter, while gross profit increased and cost of revenue declined, resulting in an improved gross margin. Compared to the same quarter last year, revenue grew, gross profit rose more sharply, and cost of revenue increased at a slower pace, leading to a higher gross margin.
- The most notable driver was the decline in cost of revenue relative to stable revenue, which directly lifted gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin strengthened as revenue held steady while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit both increased and cost of revenue grew at a slower rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.2%
Gross profit
$281.5M
Revenue
$595.9M
Cost of revenue
$314.4M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+3.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $595.9M | $281.5M | $314.4M | 47.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.4 pts
Year-over-year change
Sep 30, 2024
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver was the decline in cost of revenue relative to stable revenue, which directly lifted gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin strengthened as revenue held steady while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit both increased and cost of revenue grew at a slower rate.
Monitor the trajectory of cost of revenue, as its movement relative to revenue will be key to sustaining gross margin.