Tyler Technologies, Inc. stock research
FY2025 Q4
Tyler Technologies (TYL) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased from the prior quarter while cost of revenue declined at a slower rate, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased from the prior quarter while cost of revenue declined at a slower rate, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.
- Gross profit was pulled lower by the revenue decline, as cost of revenue did not fall proportionally. The resulting gross margin weakened sequentially.
- Compared to the immediately preceding quarter, gross margin was lower; compared to 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
45.5%
Gross profit
$262.0M
Revenue
$575.2M
Cost of revenue
$313.2M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $575.2M | $262.0M | $313.2M | 45.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.7 pts
Year-over-year change
Dec 31, 2024
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit was pulled lower by the revenue decline, as cost of revenue did not fall proportionally. The resulting gross margin weakened sequentially.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was higher.
Monitor the relationship between revenue and cost of revenue trends, as cost of revenue did not decline at the same pace as revenue this quarter.