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DATE

Thursday, April 30, 2026 at 10 a.m. ET

CALL PARTICIPANTS

  • President and CEO — H. Lynn Moore
  • Chief Financial Officer — Brian K. Miller
  • VP, Corporate Communications — Hala Elsherbini

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TAKEAWAYS

  • New Record Revenues -- Both total revenues and recurring revenues reached all-time highs, as stated by management.
  • Free Cash Flow -- Free cash flow more than doubled versus the same period last year, primarily due to improved working capital and timing of accounts receivable collections, with no significant onetime items impacting the result.
  • FTR Acquisition Impact -- The acquisition of For The Record added approximately $30 million in annual revenue to current-year guidance and is the primary driver of the updated revenue outlook.
  • Share Repurchases -- Tyler Technologies (TYL 4.18%) repurchased 2.5% of its outstanding stock at an average price near $315 per share, utilizing its new buyback authorization and retaining about $650 million of remaining capacity.
  • Cloud Transition Progress -- Management reaffirmed its 2030 target of converting at least 80% of on-premise clients to the cloud and expects the highest activity to occur between 2027 and 2029, indicating current progress is on plan.
  • Bookings Performance -- The first quarter saw a robust volume of bookings without reliance on any large SaaS deals; a key $20 million annual transaction-based win does not impact bookings until next year.
  • AI and Cross-Sell Momentum -- AI features are gaining receptivity among clients, with several notable wins for document automation SaaS (including a $0.8 million Miami-Dade and near $1 million Harris County deal), and management aims to increase the average customer product count from three toward 10 to 12 over time.
  • Operating Margins -- Operating margins continued to improve due to the transition to a cloud model.
  • Transaction-Based Revenue Expansion -- A new statewide digital motor vehicle titling solution is projected to generate more than $20 million in annual transaction revenues at full ramp; revenue recognition will begin next year.
  • Maintenance Revenue Guide -- Maintenance revenue guidance was increased, mainly attributed to the FTR acquisition rather than changes in cloud adoption cadence.
  • R&D Cost Structure -- R&D investment grew via internal resource reallocation, with more development costs moved from COGS and less capitalized as projects wind down; AI development is balanced with other innovation areas.
  • FTR Strategic Rationale -- Management estimates the FTR addressable market (SAM) at $200 million, with full TAM potentially exceeding $1 billion through new monetization of transcript and audio data, as well as international expansion opportunities.
  • State and Federal Initiatives -- A dedicated state sales team, new account strategies, and migration from DIRs to funded-solution contracts have expanded traction in key states such as Oklahoma and Kansas.
  • Next Cloud Phase -- Management is advancing a "single code stream" initiative for each product to enable continuous delivery and gross margin improvement, with further details to be shared at the upcoming Investor Day.

SUMMARY

Management highlighted a significant upward revision to revenue expectations driven by the For The Record acquisition, which now contributes meaningfully to the full-year outlook. The company continues to experience high demand for its public sector SaaS and transaction-focused solutions, with transaction-based wins that will bolster future revenue streams but do not impact near-term bookings. Enhanced free cash flow resulted largely from improved collections and favorable working capital trends, while share repurchases signaled confidence in long-term cash generation. AI and document automation offerings are translating into higher average deal sizes and are beginning to support the ongoing cross-sell strategy, especially within existing large clients. State-focused sales and a transition to more scalable product architectures are expected to drive further market penetration and operational leverage.

  • FTR's contribution comprises roughly 70% software revenue (SaaS and maintenance) and the remainder hardware, and is currently undergoing its own SaaS transition.
  • Management said, "Hesitation [about cloud transition] in the past is really in the past," and observed that the public safety segment is now pretty much 100% going to the cloud.
  • AI feature adoption is being priced variably, with certain features embedded within core offerings and others as standalone modules; management noted several new AI-driven contract wins support the pricing model.
  • Clients’ trust and data security concerns were cited as pivotal in the adoption of AI applications, and high switching costs, are seen as a strategic advantage.
  • Internal use of AI is accelerating developer productivity and driving efficiency in service delivery, although management cautioned that it is still anecdotal at this point.
  • The quarterly cadence of on-premise flips is described as variable, reflecting client-specific infrastructure and readiness factors rather than contract structures.

INDUSTRY GLOSSARY

  • SAM (Serviceable Addressable Market): The portion of a total market that a company’s products can serve based on existing solutions and reach.
  • TAM (Total Addressable Market): The total market demand for a product or service, including all potential customers or revenue opportunities globally.
  • DIR (Digital Government Initiative Revenue Contracts): State-level funding contracts historically used in NIC's legacy model, now being transitioned to funded-solution agreements.
  • SaaS Flip: The migration of a client from an on-premise software solution to a cloud-delivered (Software-as-a-Service) model.

Full Conference Call Transcript

H. Lynn Moore, our President and CEO, and Brian K. Miller, our CFO. In an effort to streamline our earnings communication and provide timely context around our quarterly earnings results, we published our prepared remarks yesterday shortly after posting our full quarterly results release to the news section of our Investor Relations website. This go-forward practice allows for more timely understanding of our earnings results released before our earnings call this morning. Additionally, beginning next quarter, we plan to hold our earnings call earlier in the day before the market opens. After I give the safe harbor statement, Lynn will provide a summary of our key quarter highlights and then we will move to our Q&A session.

During this conference call, management may make statements that provide information other than historical information and may include projections concerning the company's future prospects, revenues, expenses, and profits. Such statements are considered forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties which could cause actual results to differ materially from these projections. We refer you to our Form 10-K and other SEC filings for more information on those risks. We have also posted on the financial section of our Investor Relations website a schedule with supplemental information.

During the past year, we have discussed our intent to simplify the supplemental information we present to focus on our key performance indicators—annualized recurring revenue (ARR) and free cash flow—along with other metrics we consider meaningful, including quarterly recurring revenues and bookings. We believe this will enable investors and others to focus on relevant metrics that best reflect the performance and trajectory of our business. Also, on the Events and Presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. Lynn?

H. Lynn Moore: Thanks, Hala. Our first quarter results provided a strong start to 2026, with better-than-expected recurring revenue growth and free cash flow generation. Total revenues and recurring revenues both reached new record highs.

Brian K. Miller: And free cash flow more than doubled last year's first quarter. Public sector demand remains robust, with an active pipeline and growing momentum across our cloud solutions, AI-enabled applications, and our unified transaction strategy. Operating margins continued to improve, benefiting from our cloud model transition. During the quarter, we repaid our convertible debt at maturity and executed meaningful opportunistic share repurchases under our new authorization. And earlier this month, we completed the acquisition of For The Record (FTR), representing the third largest acquisition in Tyler Technologies, Inc.'s history.

We are well positioned for 2026 with durable demand drivers, accelerating cloud momentum, and a trust-based approach to leading the public sector's AI evolution, supporting our confidence in delivering on our strategic initiatives and 2030 targets. We will now open the call for questions.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. If you are using a speakerphone, please pick up your handset and then press the star key and then the number one. To withdraw your request, press the star key and then the number two. As a reminder, please limit yourself to one question, and you may rejoin the queue for a follow-up. We will pause momentarily to assemble our roster. Our first question comes from the line of Terry Tillman with Truist. Please go ahead.

Terry Tillman: Yes. Hey, Lynn, Brian, and Hala, thanks for taking my question. We had the benefit of going to your conference—that was helpful. A lot about enablement for customers moving to cloud and building confidence that they are ready to move to cloud. Maybe this is for you, Lynn: in terms of confidence level 90 days since your last update on SaaS flips—the volume and velocity as we look through the year. I know you had ACV growth on the flip side of 10% year over year in Q1, but any more color you can share about the confidence level—has it increased, is it where it was—for SaaS flips for the rest of the year?

And related to that, is AI and agentic becoming an incremental stimulus or not necessarily? Thank you.

H. Lynn Moore: Thanks, Terry. I would say my confidence level in our cloud transition—both in terms of customers flipping to the cloud and what we are doing from an operational perspective—is really high. We showcased this at Connect, as you mentioned. We had a client advisory board where we talked about the future direction of Tyler Technologies, Inc.'s client cloud movement, and clients now are just really receptive to it. I think hesitation in the past is really in the past. Now it is a matter of execution going forward. One anecdote I would share is public safety. We used to talk about how that was a little bit slower to move to the cloud.

We are seeing now the public safety market is pretty much 100% going to the cloud. All those points lead me to feel just as confident as ever. Our 2030 plan has not changed. As it relates to AI, I think it is a tailwind. I would not say it is a big tailwind at this point. We have a lot of AI initiatives going. We have AI in a lot of our products. It is embedded in our workflows. We spent a lot of time showcasing it at Connect. There was a lot of buzz around what we are doing and the trust we have with our clients. They trust us to move forward with AI.

I like where we are positioned. We are making the right investments. Our clients are partnering with us on it, and I like where it is going.

Operator: Our next question comes from the line of Matthew David VanVliet with Cantor. Please go ahead.

Matthew David VanVliet: Hey, good morning. Thanks for taking the question. You mentioned in the prepared remarks you put up that RFP activity continues to improve and you are seeing a lot of momentum there. Curious what you are seeing coming out of that in terms of deal execution—win percentage—and then also, are customers looking to land a little bit bigger now that they are moving into the cloud and bolting things on is maybe a little bit more palatable up front? How are deal sizes and win rates looking?

H. Lynn Moore: I think the market dynamic is pretty steady. RFPs continue to be steady. Our win rates are steady. The market right now is good. As it relates to deal size, every time we flip to the cloud, it is an opportunity for us to upsell, and that continues. We are also seeing some increasing deal sizes by adding on things like AI. Overall, the market is good and steady.

Operator: Next question comes from the line of Ken Wong with Oppenheimer. Please go ahead.

Ken Wong: Fantastic. Thanks for taking my question. Brian, a question on the guidance. Nice to see the strong quarter and the raise. Any way to help us dissect some of the drivers of that increased raise—whether For The Record, the increased demand, timing of SaaS deals? Any color you can give would be fantastic.

Brian K. Miller: This early in the year, there are not any major changes to the guidance. The biggest factor is the addition of FTR, which is now included in our guidance for the year. That accounted for a meaningful amount of the revenue raise along with the outperformance in the first quarter, particularly around transactions. FTR adds somewhere in the neighborhood of $30 million of revenues to the full year and a modest amount to EPS. So it is a combination of the outperformance in the first quarter as well as the addition of FTR.

Ken Wong: Fantastic. Thank you very much.

Operator: Our next question comes from the line of Joshua Christopher Reilly with Needham and Company. Please go ahead.

Joshua Christopher Reilly: Great. Thanks for taking my question. After seeing some of the Tyler Foundry use cases at Tyler Connect and the packed room for the customer overview of the agent capabilities, clearly the demand is there for the AI products. How quickly can you ramp to market the roughly 40 to 50 use cases that you plan to release for the initial agentic use cases at the conference? And how is the sales and implementation process going to work for those initial use cases on the agentic side? Thank you.

H. Lynn Moore: Yes, Josh, you are right. The buzz at Connect was strong. I think our message generally around AI really resonated with our clients, and I cannot overemphasize how much our clients put their trust in us to deliver the AI solutions for them in the future. Buzz does not always translate to deals immediately. We are getting deals. As you mentioned, the use cases—we have some of those already in the hands of clients and in the market. But I would generally say it is going to be a slower ramp. Our sector generally moves a little slower than the private sector. There is a lot of receptiveness and excitement.

I think it is still TBD to see how much it is going to impact near-term financials.

Operator: Our next question comes from the line of Saket Kalia with Barclays. Please go ahead.

Saket Kalia: Appreciate the new format as well, so thank you. Brian, maybe for you, I would love to dig into some of the moving parts within the higher SaaS revenue guide. I think the $30 million from FTR is adding to that a little bit. Could you talk us through how the SaaS revenue guide is changing both organically and inorganically so that we are all on the same page?

Brian K. Miller: Around 70% of FTR's revenues are software revenues—a combination of SaaS and maintenance—and the rest is hardware. So they are the biggest piece of that increase. The other thing driving increased SaaS is a little bit around the timing of when some of the bookings come online, so it is really some fine-tuning. There is no fundamental change from the outlook we entered the year with. Obviously, strong bookings in the first quarter give us more confidence around that. There is a modest contribution from the acquisitions last year, but those were built into our guidance for the year from the start. So really it is modest tweaking around timing combined with the FTR acquisition.

And I would just add on the FTR acquisition, they are in the midst of their own SaaS transition. As we look out over the next few years, we expect SaaS to accelerate in their business as hardware and maintenance continue to decline.

Operator: Our next question comes from the line of Alex Zukin with Wolfe Research. Please go ahead.

Alex Zukin: A couple of really nice wins and a really strong bookings quarter for you, and it feels like even some of those wins are not fully reflected in the bookings number. What is driving the strength competitively here? Were there any onetime items, or are we pulling forward bookings from later in the year? Help us gauge how that ebb and flow should come in this year.

Brian K. Miller: I do not think there is anything pulled forward or unusual. It actually was a quarter in which there were not really any large deals—just a handful of SaaS deals with ARR of more than $0.5 million a year, so no kind of multimillion-dollar SaaS deals. As you know, bookings can be lumpy with respect to big deals. We have talked about the pipeline still containing a normal amount of large deals, but this quarter there really were not those. One of the biggest software deals is a transaction-based deal—a statewide digital motor vehicle titling solution—and so it does not appear in SaaS bookings.

It is one of those deals where we are providing software as well as payment processing and other services under a transaction-funded arrangement. So it does not hit SaaS bookings, does not hit bookings at all this year, and revenues really will not start for that until next year, but that is a deal that we estimate will generate in excess of $20 million a year in transaction revenues when it is at full ramp. Otherwise, we expected to see a good rebound in bookings. There were certainly some unusual events that impacted last year's first quarter, so the comp was a little bit easier.

But notwithstanding that, it was a very strong bookings quarter without any major onetime events—just a good solid volume quarter.

Operator: Our next question comes from the line of Jonathan Frank Ho with William Blair. Please go ahead.

Jonathan Frank Ho: Hi. Good morning, and thank you for the new format. One thing I wanted to understand a little bit better is how to think about the cadence of your on-premises flips this quarter and how that may progress over the course of the year, especially as you start to implement some of these cloud-first changes.

Brian K. Miller: We do not focus too much on the short-term cadence of flips. We have talked about our expectation over the next several years of getting to, by 2030, a point where 80% or more of our on-premise customers have moved to the cloud. We have said we are still on track for that. We expect the peak of that flip activity to be in the 2027 through 2029 time frame. At a high level, we expect the volume of flips—focused on dollars rather than number of flips—to be higher this year than last year.

The quarterly cadence is a bit hard to pin down, and as long as we are making appropriate progress towards those longer-term goals, we do not worry about the quarter-to-quarter as much. So expect that volume to be up this year. It is in line with our expectations, and we have a high degree of confidence, as Lynn mentioned earlier, from conversations with clients that it is a matter of when and not if, and we are on the right track to achieve our goals.

Operator: Our next question comes from the line of Robert Cooney Oliver with Baird. Please go ahead.

Robert Cooney Oliver: Great. Thank you. Good morning. Lynn, my question is for you. Coming out of Tyler Connect, I would be curious to get your view on the product-per-customer motion for you. I guess another way to ask the cross-sell question that Matt had earlier. I think your prepared remarks mentioned that you saw some really good progress internally. I know you have driven a lot of those initiatives. I think you said that the average customer has around three products, and that could go to seven to eight. Help us put some color around what you saw at Connect and how that appears to be trending now as customers move to the cloud.

H. Lynn Moore: Yes, Rob. I would actually say we are looking for an average of three to go to 10 to 12, not seven to eight, but I am not going to quibble. I think the momentum is there. We are also seeing a lot more cross-sell momentum coming out of our State and Federal group—getting more of our local products into state hands. We are seeing it with things like our document automation product and our priority-based budgeting product.

The initiatives that we have been talking about for the last year and a half—around improved client success, improved efficiencies and optimization in the cloud, making the cloud experience better for our clients—are only going to help grease the wheels and help us make that cross-sell motion go faster. It is not only the competitiveness of our products and putting AI in our products, but the whole basket of our strategic initiatives that will help drive those cross-sells and upsells as we head towards our 2030 goals.

Operator: Our next question comes from the line of Allan M. Verkhovski with BTIG. Please go ahead.

Allan M. Verkhovski: Hey, thanks for taking the question. Can you share how you are thinking about potentially including AI capabilities for your on-premise customers? And just really quick on the strong free cash flow in the quarter—what drove that? Any onetime items we should be aware of, and the level of prudence in the updated guide considering the strength you saw in the quarter?

H. Lynn Moore: Yes, Allan, as it relates to AI, as we look out over time, there have been a few questions around flips and getting clients in the cloud. Over the years, we have talked about carrots and sticks. I would not be surprised if, looking out in the future, AI becomes more and more available only in the cloud. We are not quite there yet, but that is something that we are looking at very hard.

Brian K. Miller: On the free cash flow side, it was mostly around working capital improvement. We had strong AR collections, and some of that is around timing. There is not really any onetime item in there, but the timing of working capital changes—particularly around collections—helped. CapEx was a little bit lower. And improved operating margin also flowed through to cash. Mostly timing events. Our expectation for the full year around free cash flow margin has not changed at all. Nothing particularly unusual to point out—just good execution.

Operator: Our next question comes from the line of Clarke Jeffries with Piper Sandler. Please go ahead.

Clarke Jeffries: Hello. Thank you for taking the question. Just a clarifying one for me. You raised the midpoint of maintenance revenue by about two points. I want to confirm that was entirely driven by For The Record. And you have made reference to the timeline being a few years for the SaaS transition. Is that at all impacted by the contract length, or just the comfortable pace that you want to go through that model transition? Thank you.

Brian K. Miller: Most of the maintenance increase is For The Record. Our expectation around flips and that impact on maintenance changes has not changed, so that would be the primary driver. On the longer-term pace of flips, there is not really a contract-length factor impacting that. It is really around a lot of complex issues that vary from client to client about when they are ready to move internally—things like their replacement cycles for hardware in their own data centers, their concerns about cybersecurity, their overall IT road maps, and how they can pace moving multiple products to the cloud. All of those things drive that long-term cadence around flips. It is a pace we are comfortable with.

We would love it to be faster, but we can certainly accommodate it while also serving our new customers and new implementations as well.

Hala Elsherbini: Thank you.

Operator: Our next question comes from the line of Charles S. Strauzer with CJS Securities. Please go ahead.

Charles S. Strauzer: Hi, good morning. Can we talk a little bit more on FTR and give your thoughts on the addressable market for that product line and client overlap with current valid plans? Thanks.

H. Lynn Moore: Sure, Charlie. FTR has already made a big splash in their space—45% of U.S. courtrooms are using it. We look at the combination as something that enables us to create something powerful we call judicial intelligence—something that does not exist today—to bring together what are right now disparate manual systems between the judge, the clerk, and the court reporter. Right now, using Tyler Technologies, Inc.'s client base, we think our current SAM is about a $200 million market. When you expand beyond that with their core offerings, that goes up to about $500 million. We are also excited that it opens the door for other revenue opportunities.

I do not want to get too carried away because we need to execute on our own SAM and then the TAM, but there are a lot of things we think we can do in terms of monetizing the audio and transcript data that could increase the overall TAM north of $1 billion—maybe $1.5 billion. I am talking about things like attorney remote access and third-party data sharing, online transcript certifications, attorney insights, even going international. There are a lot of other layers we see playing out in the future.

This fits well with our overall M&A strategy—expanding in new markets, filling gaps in our offerings that are adjacent to our core fundamentals, and targeting areas that can grow faster than we can. I am really excited about this acquisition. It will take time, like all our acquisitions do, but the runway is there, and leveraging our strong position in courts coupled with their offering makes it pretty exciting.

Operator: Our next question comes from the line of Adam Hotchkiss with Goldman Sachs. Please go ahead.

Adam Hotchkiss: Great. Thanks so much for taking the question. I wanted to ask Rob's question on cross-sell a little bit differently. You mentioned the success and execution on the dedicated state sales team side of things. Could you help us understand what is happening on the ground with the state and federal initiatives and how that differs from the strategy and resource allocation you have had historically?

H. Lynn Moore: Yes, Adam. We talked about this around this time last year. We created a whole new state sales team that is dedicated to that space—different from what was there before. Part of that is new strategic account plans, new strategic account managers, and actually targeting states where historically NIC did not have state enterprise contracts, so expanding our footprint there. We are also transforming the way historic NIC's business model worked. Historically, a lot of their state contracts were funded through DIRs, and we are moving to more of a funded-solution contract. We have already seen traction with Oklahoma and Kansas.

We continue to look at sales all the time and how we can tweak and make it better, and those are some of the things we are doing in the state space.

Operator: Our next question comes from the line of Mark William Schappel with Loop Capital Markets. Please go ahead.

Mark William Schappel: Hi. Thank you for taking my question. Lynn, in your prepared remarks, you discussed the goal of getting every client on a single code stream for each product. How far along are you in that journey? I suspect it is still early. Which business segments—such as courts or ERP—are furthest along?

H. Lynn Moore: You are right, Mark. This is what we call phase two of our cloud transition—cloud moving. You will get a lot more detail on that at the Investor Day in June. It is about getting all of our core portfolio products to a single release stream—continuous improvement, continuous delivery—with coordinated releases across our product portfolio. We have been working behind the scenes toward that, and we will give you more details at Investor Day. Part of that process is getting everybody to a single version—the cloud version—and each of our divisions is at different stages, but they are all making solid progress. It is exciting.

It is where we will start seeing real leverage in the gross margins of our cloud delivery.

Operator: Our next question comes from the line of Alexei Mihaylovich Gogolev with JPMorgan. Please go ahead.

Alexei Mihaylovich Gogolev: Thank you very much. Hello, everyone. Brian, I wanted to ask about the R&D step-up. I remember you are migrating some of the costs from COGS to R&D. Where is the investment concentrated? Is it the agentic AI versus core ERP, courts, or implementation tooling? And what are the clearest milestones to watch for this year?

Brian K. Miller: The R&D investment is pretty balanced across the things you mentioned. As you noted, there is an ongoing movement of development resources from the cost of sales line to the R&D line as we continue to evolve along that cloud transition—that is just a geography change. We have also reduced the amount of R&D that is being capitalized as some of those capitalizable projects have wound down, so more of the same resources are being expensed now that were formerly being capitalized—also not a change in work, just accounting geography.

When we look at the true increase in development spend, it is balanced across innovation investments across our entire portfolio—things that improve our competitiveness, drive higher win rates, and add more value to our existing customers—as well as growing investments in AI. We are continuing to move resources that are already on board to the AI side as we execute on version consolidation and free up more internal resources, so it is not a huge hiring push on the AI side, but we are dedicating more of our development resources to those efforts.

Operator: Our next question comes from the line of Analyst with Evercore ISI. Please go ahead.

Analyst: Hi, this is Bill on for Kirk, and thanks for taking my question. On the $20 million state digital motor vehicle titling and electronic lien win, can you provide more detail on what differentiated you on that deal? And how should we think about the implementation timeline and revenue ramp as we look out to 2027?

Brian K. Miller: That is an area where we have had a fair amount of success in the last couple of years. We have a partner in that space that we work with, and we have deployed that solution in a handful of states already. As those states move from paper titles to digital titles, they create a lot of efficiency in how they manage motor vehicle titling. Those have typically been funded by transaction revenues, so it has been a nice growth area for us. We continue to see a number of opportunities in our statewide client base, and I would say the solution we are deploying is a leader in that space. The implementation will take place over this year.

We expect revenues to start in the first half of next year. They will be transaction-based revenues, and we expect those, as they ramp up, to reach north of $20 million a year of transaction revenues.

Operator: Our next question comes from the line of Analyst with Stifel. Please go ahead.

Analyst: As you partner with your clients on their AI journey, could you provide some of the main points of feedback they are giving you on the current feature set, the roadmap, and the pricing model?

H. Lynn Moore: Yes, Parker, I think the most important feedback we have gotten is really the point we have emphasized a lot over the last year—trust. Our clients really trust us to be their partner more than anybody else. They are really concerned about their data and the protection of that data, which is something that we do. We talked a lot about the AI Foundry, and that includes all the security we have around it—around their data, around their processes—being embedded in their workflows and helping them do their business and make their jobs more efficient, freeing up their time from manual tasks so that they can accomplish other things. That message gives me the most confidence going forward.

Our clients have high switching costs, and that plays to our advantage as well. We have client focus groups. We had a client advisory board where we spent time talking about AI. Our ERP solutions have their own client AI working focus groups. The feedback, and working with our partners to make sure we are doing the things that are most meaningful to them, really resonates with our clients. As it relates to the pricing model, it is going to be priced differently. Some of these are going to be priced as SaaS. Some AI features will be included as part of our competitiveness, and some will be priced as separate modules.

We are still early, but we are getting wins and deals that validate our models. For example, this past quarter we won a couple of document automation deals. One in Miami-Dade—we mentioned that in our prepared remarks—where their existing maintenance and support agreement was a little over $0.25 million, and we sold a document automation SaaS deal for upwards of $0.8 million. That product is getting a lot of traction in the market. All the feedback we are getting is positive, and I like where we are sitting and our trajectory.

Brian K. Miller: And to add one thought to that example with Miami-Dade, it is a value-based approach, because with that uplift from the AI-driven document automation they will generate significant labor savings. There is a very strong ROI to that purchase from Tyler Technologies, Inc.

Operator: Our next question comes from the line of Analyst with Wells Fargo. Please go ahead.

Analyst: This is Austin Williams on for Michael Turrin. I wanted to follow up on the AI efficiencies internally that you are seeing. Any color on how you are leveraging AI and any cost savings that you are able to drive there? And as a follow-up, any thoughts on the pace of the buyback going forward? Thank you.

H. Lynn Moore: On internal AI efficiencies, we are seeing them, but it is still anecdotal at this point. Brian answered a question before about R&D, and the way we think about internal resources is we focus on capacity. In R&D, AI is increasing the capacity of our developers, which allows them to do more, which is great. We are seeing some anecdotal efficiencies in the service delivery area. For example, one of our clients in our appraisal and tax business doing a data conversion—in the past, this conversion would have taken many months and was reduced to a couple of weeks.

It is still early to say we can apply that across all of Tyler Technologies, Inc.'s solutions, but what we are seeing is positive and something we continue to focus on.

Brian K. Miller: On the share repurchase, we have repurchased 2.5% of our stock this year. The average price has been around $315. We still have another approximately $650 million under our authorization. When I look at our share repurchases and capital allocation, I think about our Tyler 2030 path and goals and the increasing confidence we have in our free cash flow generation that will exceed $1 billion in 2030 and we believe will continue to extend far out in the future. When I look at that, and have confidence in our 88% recurring moving to 90%+, it makes me think that today is a good value. We will continue to buy our shares when we think it is a good value.

Operator: Our next question comes from the line of Terry Tillman with Truist. Please go ahead.

Terry Tillman: The heart of my thunder was stolen with my follow-up on the AI-driven deals. I was going to focus on document automation, and I think both Lynn and Brian shared some perspective on that. But there were a lot of deals mentioned here. Did something happen or inflect in terms of go-to-market and the sales playbook? And with these document automation deals, does this go beyond the sphere of influence you had—whether courts or back-office ERP—and become a broader document automation use case that could go well beyond what you typically were doing? Thank you.

H. Lynn Moore: Yes, Terry. I do not know that there was anything more specific—it is more the timing of these deals. We had two big document automation deals. I mentioned one was about a $0.8 million deal. Another one was Harris County that was pushing $1 million. Brian mentioned the ROI selling point, which is something we focus on, and it resonates with our clients. As it relates to the acquisition of CSI and document automation, absolutely, we think it is applicable across more parts of our portfolio. Our initial focus has been in the court space—that is their bread and butter and where we have a strong presence—but I expect it to roll out across other Tyler Technologies, Inc. portfolio products.

Operator: Our next question comes from the line of Matthew David VanVliet with Cantor. Please go ahead.

Matthew David VanVliet: Yes, thanks for taking the second question here. I wanted to drill in a bit more on the raise of the revenue guide for 2026. I presume it now includes For The Record. What was the contribution there, and were there any other puts and takes in terms of raising the guidance?

Brian K. Miller: For The Record is the biggest contributor to the revenue gain and added in the neighborhood of $30 million in total revenues. In addition, we continue to see a little bit higher volume around our transaction-based business—some of that was reflected this quarter in the actual results. To the extent our expectations have changed at least modestly around that, we have factored that into the guide for the year. But the vast majority of the raise is the result of the FTR acquisition.

Operator: Thank you, Matt. At this point, that concludes our Q&A session. I will now turn the call back over to H. Lynn Moore for closing remarks.

H. Lynn Moore: Thanks, John, and thanks, everybody, for joining our call today. If you have any further questions, please feel free to contact Brian K. Miller or myself. We look forward to welcoming many of you to our June Investor Day, in person or on the webcast. Thanks again, and have a great day.

Operator: Ladies and gentlemen, this concludes today's conference call, and we would like to thank you for your participation. You may now disconnect your lines.