Financial Analysis

ACQUISITIONS 2025 Edulink On December 2, 2025, we acquired Edu.Link, Inc. (Edulink). Edulink is a SaaS company focused on educator evaluation, performance management, professional development, and compliance tracking geared specifically to the unique needs of K-12 schools. The total cash purchase price, net of cash acquired of $716,000, was approximately $37.3 million, subject to certain post-closing adjustments, including holdbacks of $2.5 million. We have performed a preliminary valuation analysis of the fair market value of Edulinks assets and liabilities. In connection with this transaction, we acquired total tangible assets of $2.5 million and assumed liabilities of approximately $6.6 million. We recorded goodwill of approximately $24.7 million, which is deductible for tax purposes, and other identifiable intangible assets of approximately $17.4 million. CloudGavel On November 19, 2025, we acquired CloudGavel, LLC (CG). CG is a SaaS company specializing in cloud electronic warrant solutions that allows for real time interaction for judges and law enforcement personnel. The total cash purchase price, net of cash acquired of $147,000, was approximately $16.6 million, subject to certain post-closing adjustments, including holdbacks of $2.9 million. We have performed a preliminary valuation analysis of the fair market value of CGs assets and liabilities. In connection with this transaction, we acquired total tangible assets of $0.9 million and assumed liabilities of approxim …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Litigation During the first quarter of 2022, we received a notice of termination for convenience under a contractual arrangement with a state government client. Upon receipt of the termination notice, we ceased performing services under the contractual arrangement and sought payment of contractually owed fees in connection with the termination for convenience. The client was unresponsive to our outreach for several months, and on August 23, 2022, we filed a lawsuit to enforce our rights and remedies under the applicable contractual arrangement. The client subsequently asked us to negotiate directly with the client to attempt to resolve the dispute. The negotiations were not successful, and on March 20, 2024, we reinitiated our lawsuit. A December 2025 mediation did not result in a resolution of the dispute. Although we believe our products and services were delivered in accordance with the terms of our contract and that we are entitled to payment in connection with the termination for convenience, at this time the matter remains unresolved. Amounts reserved related to this matter are included in our allowance for losses and sales adjustments as of December 31, 2025. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contract. Purchase Commitments We have contractual obligations for third-party technology used in our solutions and for other services that we purchase as part of our no …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The following table summarizes our total outstanding borrowings: Rate Maturity Date December 31, 2025 December 31, 2024 2024 Credit Agreement - Revolving credit facility S + 1.125% September 2029 $ $ Convertible Senior Notes due 2026 0.25% March 2026 600,000 600,000 Total borrowings 600,000 600,000 Less: unamortized debt discount and debt issuance costs (337) (2,066) Total borrowings, net 599,663 597,934 Current portion of convertible senior notes due 2026, net 599,663 Long Term - convertible senior notes due 2026, net 597,934 Total Debt $ 599,663 $ 597,934 2024 Credit Agreement On September 25, 2024, the Company entered into a $700.0 million credit agreement with the various lender parties thereto and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender, and Issuing Lender (the 2024 Credit Agreement). The 2024 Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of up to $700.0 million, including sub-facilities for standby letters of credit and swingline loans. The 2024 Credit Agreement matures on September 25, 2029, and loans may be prepaid at any time, without premium or penalty, subject to certain minimum amounts and payment of any SOFR breakage costs. The 2024 Credit Agreement replaced Tylers previous $500.0 million unsecured credit facility under the credit agreement dated April 21, 2021, among the Company and various lenders party thereto (the 2021 Credit Agreement), which was scheduled …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2025 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenue: Subscriptions: SaaS $ 691,288 $ 86,481 $ $ 777,769 Transaction-based fees 318,143 490,291 808,434 Maintenance 422,886 22,728 445,614 Total recurring revenues 1,432,317 599,500 2,031,817 Professional services 213,749 28,951 242,700 Software licenses and royalties 13,049 (233) 12,816 Hardware and other 35,306 336 9,365 45,007 Total non-recurring revenues 262,104 29,054 9,365 300,523 Total revenues $ 1,694,421 $ 628,554 $ 9,365 $ 2,332,340 For the year ended December 31, 2024 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenue: Subscriptions: SaaS $ 559,842 $ 84,937 $ $ 644,779 Transaction-based fees 234,633 463,519 698,152 Maintenance 438,455 24,677 463,132 Total recurring revenues 1,232,930 573,133 1,806,063 Professional services 219,933 44,058 263,991 Software licenses and royalties 25,292 1,065 26,357 Hardware and other 33,447 992 6,953 41,392 Total non-recurring revenues 278,672 46,115 6,953 331,740 Total revenues $ 1,511,602 $ 619,248 $ 6,953 $ 2,137,803 For the year ended December 31, 2023 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenue: Subscriptions: SaaS $ 459,544 $ 68,433 $ $ 527,977 Transaction-based fees 174,718 456,817 631,535 Maintenance 442,781 23,880 466,661 Total recurring revenues 1,077,043 549,130 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION Share-Based Compensation Plan In May 2024, stockholders approved the Tyler Technologies, Inc. amended and restated 2018 Stock Incentive Plan (the Amended and Restated 2018 Plan) which amended and restated the existing Tyler Technologies, Inc. 2018 Stock Option Plan (the 2018 Plan). Upon stockholder approval of the Amended and Restated 2018 Stock Incentive Plan, the remaining shares available for grant under the 2018 Plan were added to the shares authorized for grant under the Amended and Restated 2018 Stock Incentive Plan. Additionally, any awards previously granted under the 2018 Plan that expire unexercised or are forfeited are added to the shares authorized for grant under the Amended and Restated 2018 Stock Incentive Plan. We grant stock awards under the Amended and Restated 2018 Stock Incentive Plan in the form of stock options, restricted stock units and performance share units. Stock options generally vest after three to five years of continuous service from the date of grant and have a contractual term of 10 years. Once options become exercisable, the employee can purchase shares of our common stock at the market price on the date we granted the option. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicabl …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows: Level 1Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data. Level 3Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. The classification of a financial asset or liability within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value. The following table presents fair values of our financial and debt ins …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the two years ended December 31, 2025 are as follows: Enterprise Software Platform Technologies Total Balance as of 12/31/2023 $ 837,002 $ 1,695,107 $ 2,532,109 Purchase price adjustments related to the purchase of prior year acquisitions (235) (221) (456) Balance as of 12/31/2024 836,767 1,694,886 2,531,653 Goodwill acquired related to the purchase of MyGov 10,368 10,368 Goodwill acquired related to the purchase of EN 12,611 12,611 Goodwill acquired related to the purchase of CG 10,639 10,639 Goodwill acquired related to the purchase of Edulink 24,742 24,742 Balance as of 12/31/2025 $ 895,127 $ 1,694,886 $ 2,590,013 Other intangible assets and related accumulated amortization consists of the following at December 31: 2025 2024 Gross carrying amount of other intangibles: Client related intangibles $ 987,423 $ 958,924 Acquired software 296,710 284,900 Trade names 3,520 5,320 Leases acquired 2,394 4,585 1,290,047 1,253,729 Accumulated amortization (509,633) (421,763) Total other intangibles, net $ 780,414 $ 831,966 Amortization expense for acquired software is recorded to cost of revenues. Amortization expense for client related intangibles, trade names and leases acquired is recorded to amortization of other intangibles. Total amortization expense for other intangible assets was $94.2 million in 2025, $96.9 million in 2024, and $111.0 million in 2023. The amortization periods of other intan …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAX We adopted ASU 2023-09 ""Income Taxes (Topic 740): Improvements to Income Tax Disclosures"" on a prospective basis beginning with the year ended December 31, 2025. Income before provision for income taxes was as follows: Years Ended December 31, 2025 2024 2023 United States $ 387,841 $ 306,402 $ 196,538 Foreign 2,477 1,765 1,698 Income before income taxes $ 390,318 $ 308,167 $ 198,236 Income tax provision on income from operations consists of the following: Years Ended December 31, 2025 2024 2023 Current: Federal $ 10,053 $ 60,612 $ 85,715 State 20,004 14,807 19,803 Foreign 807 385 503 Total current provision for taxes 30,864 75,804 106,021 Deferred Federal 41,996 (27,089) (63,649) State 1,855 (3,574) (10,055) Total deferred provision for (benefit from) taxes 43,851 (30,663) (73,704) Income tax provision $ 74,715 $ 45,141 $ 32,317 A reconciliation of the provision for income taxes to the amount computed by applying the 21% U.S. statutory income tax rate to our effective income tax expense rate for operations after the adoption of ASU 2023-09 is as follows: Years Ended December 31, 2025 % U.S. federal statutory tax rate $ 81,967 21.0 % State and local income taxes. net of federal income tax effect 1 17,658 4.5 Foreign tax effects 287 0.1 Effect of cross-border tax laws (121) Tax credits (18,398) (4.7) Nontaxable or nondeductible items Excess tax benefits of share-based compensation (15,047) (3.9) Executive compensation 4,009 1.0 Other 2,222 0.6 Changes in uncertain …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES We lease office facilities, transportation and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to 10 years. Some of these leases include options to extend for up to six years. We have no finance leases as of December 31, 2025. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. We incurred no lease restructuring costs during 2025 and 2024, and $6.4 million in 2023, respectively. The components of operating lease expense were as follows: Lease Costs Years ended December 31, 2025 2024 2023 Operating lease cost $ 10,958 $ 9,166 $ 19,468 Short-term lease cost 2,046 2,124 2,121 Variable lease cost 952 768 1,009 Net lease cost $ 13,956 $ 12,058 $ 22,598 Supplemental information related to leases is as follows: Other Information Years ended December 31, 2025 2024 2023 Cash flows : Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 12,368 $ 12,578 $ 12,555 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 13,318 $ 4,404 $ 3,383 Lease term and discount rate: Weighted average remaining lease term (years) 6 6 7 Weighted average discount rate 3.60 % 3.22 % 1.59 % As of December 31, 2025, maturities of lease liabilities were as follows: Year ending December 31, Amount 2026 $ 10,602 2027 10,278 2028 6,719 2029 5,602 2030 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENT ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS In July 2025, the FASB issued ASU 2025-05 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This guidance provides a practical expedient available to all entities to simplify the estimation of the expected credit losses for current accounts receivables and current contract assets arising from revenue contracts under ASC 606. It is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. As of December 31, 2025, we adopted this standard. Due to most of our clients being domestic governmental entities, we rarely incur a credit loss resulting from the inability of a client to make required payment; as such, this standard did not have a material impact on the Companys financial statements. In November 2024, the FASB issued ASU 2024-04 - Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This guidance clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. It is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. As of January 1, 2025, we early adopted this standard, which did not …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows. Recurring Revenues The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscription revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of one to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues. Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2025 Enterprise Software Platform Technologies Corporate Unallocate …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT AND RELATED INFORMATION Reportable operating segments are determined based on the Companys management approach. The management approach, as defined by FASB ASC 280 Segment Reporting, is based on the way that the Chief Operating Decision Maker (CODM) organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our CODM, for purposes of FASB ASC 280, is our chief executive officer. We report our results in two reportable segments. Our reportable segments are organized on the basis of a combination of the products and services they deliver to clients and the function that the public sector client performs. Operating segments that have met the aggregation criteria have been combined into our two reportable segments. The Enterprise Software (ES) reportable segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical back-office functions such as: public administration solutions, courts and public safety solutions, education solutions, and property and recording solutions. The Platform Technologies (PT) reportable segment provides public sector entities with platform and transformative solutions including digital solutions, payment processing, streamlined data processing, and improved operations and workflows. The CODM uses segment operating income or loss to assess performance and to allocate resources (including …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS We provide integrated software systems and related services for the public sector. We develop and market a broad line of software solutions and services to address the information technology (IT) needs primarily of cities, counties, states, schools, federal agencies, and other government entities. We provide subscription-based services includes software as a service (SaaS), transaction-based digital government services and online payment processing, and electronic document filing solutions. In addition, we provide professional IT services, including software and hardware installation, data conversion, training, and for certain clients, product modifications, along with continuing maintenance and support for clients using our solutions. We also provide property appraisal outsourcing services for taxing jurisdictions. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our parent company and 66 subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). During the twelve months ended December 31, 2025, 2024 and 2023, we had approximately $146,000, $169,000 …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY The following table details activity in our common stock: Years Ended December 31, 2025 2024 2023 Shares Amount Shares Amount Shares Amount Treasury stock purchases (303) $ (174,650) $ $ Exercise of stock options and vesting of restricted stock units 505 49,373 739 97,474 514 44,697 Issuance of shares pursuant to employee stock purchase plan 39 18,848 43 17,631 52 16,196 Employee taxes paid for withheld shares upon equity award settlement (84) (46,229) (78) (40,261) (74) (27,737) Issuance of shares for acquisitions 15 5,675 Reimbursement of shares from escrow (30) (10,425) During 2025, we repurchased approximately 303,067 shares of our common stock for an aggregate purchase price of $174.7 million. As of February 18, 2026, we have remaining authorization from our Board of Directors to repurchase up to $885.0 million of our common stock under the new repurchase plan. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On February 2, 2026, we signed a definitive agreement to acquire the remaining equity interest of privately held company in which we currently hold a minority interest. The transaction, which has a cash purchase price of approximately $212.5 million, is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions and regulatory approvals.

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Acquisitions On April 14, 2026, we acquired the remaining equity of BFTR, LLC (For the Record or FTR), a provider of cloud- connected software that captures, stores, and manages courtroom audio and video with secure chain of custody, as defined in the Equity Purchase Agreement dated February 2, 2026. Incorporating FTRs solutions into our portfolio will allow for the creation of the definitive and complete court record, unifying previously fragmented data for the benefit of our clients. The total cash purchase price of the previously unowned equity of FTR, net of cash acquired of $10.6 million, was approximately $212.7 million. The purchase price allocation is preliminary as of June 30, 2026, and is subject to change as we finalize the valuation of the assets and liabilities assumed. Prior to the acquisition, the Company held an 18% interest in FTR as an equity investment under the cost method with a carrying value of $10.0 million. The acquisition date fair value of the previous equity interest was $35.0 million and is included in the measurement of the consideration. We remeasured our previously held equity investment to its fair value, as of the date of acquisition, based on the fair value of total consideration transferred and a discount for lack of control. Estimates and assumptions used in the remeasurement represent a Level 3 measurement because they are supported by little or no market data and reflect our own assumptions in measuring the fair value. The Company recogn …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Litigation We are subject to various legal proceedings arising both in and outside of the ordinary course of our business. We are not presently a party to any legal proceedings that it believes, if determined adversely to the Company would have a material adverse effect on the Company. Purchase Commitments We have contractual obligations for third-party technology used in our solutions and for other services that we purchase as part of our normal operations. In certain cases, these arrangements require a minimum annual purchase commitment by us. As of June 30, 2026, the remaining aggregate minimum purchase commitment under these arrangements was approximately $537.4 million through 2031.

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Debt The following table summarizes our total outstanding borrowings: Rate Maturity Date June 30, 2026 December 31, 2025 Convertible Senior Notes due 2031 0.50% July 2031 $ 1,437,500 $ Convertible Senior Notes due 2026 0.25% March 2026 600,000 Credit Agreement - Revolving credit facility S + 1.125% May 2031 Total borrowings 1,437,500 600,000 Less: unamortized debt discount and debt issuance costs (28,809) (337) Total borrowings, net 1,408,691 599,663 Current portion of convertible senior notes due 2026, net 599,663 Long Term - convertible senior notes due 2031, net 1,408,691 Total Debt $ 1,408,691 $ 599,663 Convertible Senior Notes due 2031 On May 14, 2026, we issued 0.50% Convertible Senior Notes due in 2031 for the aggregate principal amount of $1.44 billion (the 2031 Notes). The 2031 Notes were issued pursuant to, and are governed by, an indenture (the Indenture), dated as of May 14, 2026, between the Company and U.S. Bank Trust Company, National Association, as trustee. The net proceeds from the issuance of the 2031 Notes were $1.41 billion, net of initial purchasers discounts of $25.2 million and debt issuance costs of $4.4 million. On May 14, 2026, we used approximately $320.7 million of the net proceeds of the offering to repurchase 1,026,900 shares of our common stock. Including this repurchase, we repurchased approximately 2.4 million shares under our share repurchase program for the six months ended June 30, 2026. The 2031 Notes are senior, unsecured obligations and …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Recurring revenues and non-recurring revenues recognized during the period are as follows: For the three months ended June 30, 2026 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenues Subscriptions: SaaS $ 207,658 $ 22,983 $ $ 230,641 Transaction-based fees 100,296 122,787 223,083 Maintenance 100,348 5,462 105,810 Total recurring revenues 408,302 151,232 559,534 Professional services 54,737 8,429 63,166 Other 13,293 1,196 7,907 22,396 Total non-recurring revenues 68,030 9,625 7,907 85,562 Total revenues $ 476,332 $ 160,857 $ 7,907 $ 645,096 For the three months ended June 30, 2025 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenues Subscriptions: SaaS $ 168,232 $ 21,339 $ $ 189,571 Transaction-based fees 89,246 126,258 215,504 Maintenance 106,779 5,344 112,123 Total recurring revenues 364,257 152,941 517,198 Professional services 56,862 1,750 58,612 Other 12,796 (55) 7,566 20,307 Total non-recurring revenues 69,658 1,695 7,566 78,919 Total revenues $ 433,915 $ 154,636 $ 7,566 $ 596,117 For the six months ended June 30, 2026 Enterprise Software Platform Technologies Corporate Unallocated Totals Revenues Subscriptions: SaaS $ 407,790 $ 45,207 $ $ 452,997 Transaction-based fees 195,335 235,137 430,472 Maintenance 203,675 11,009 214,684 Total recurring revenues 806,800 291,353 1,098,153 Professional services 107,995 15,978 123,973 Other 26,290 1,589 8,594 36,473 Total non-recurring revenues 134,285 17,567 8,594 160,446 Total …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Share-Based Compensation The following table summarizes share-based compensation expense related to share-based awards, which is recorded in the condensed consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenues $ 9,504 $ 8,891 $ 18,978 $ 17,605 Operating expenses 34,158 29,411 61,843 58,357 Total share-based compensation expense $ 43,662 $ 38,302 $ 80,821 $ 75,962

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Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows: Level 1Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data. Level 3Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment. The classification of a financial asset or liability within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value. The following table presents fair values of our financial and debt instruments cate …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Tax Provision We had an effective income tax rate of 22.5% and 23.1% for the three and six months ended June 30, 2026, compared to 17.4% and 16.2% for the three and six months ended June 30, 2025. The increase in the effective tax rate for the three and six months ended June 30, 2026, as compared to the prior period, is primarily due to decreases in excess tax benefits related to share-based compensation, partially offset by a nontaxable gain on remeasurement of equity investment. The effective income tax rates for the periods presented are different from the statutory United States federal income tax rate of 21% primarily due to state income taxes, liabilities for uncertain tax positions, and non-deductible business expenses, partially offset by excess tax benefits related to share-based compensation, research tax credits, and a nontaxable gain on remeasurement of equity investment. We made income tax payments, net of refunds, of $16.5 million and $46.3 million in the six months ended June 30, 2026, and 2025, respectively.

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Leases We lease office facilities, transportation, and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to nine years. Some of these leases include options to extend for up to six years. We have no finance leases as of June 30, 2026. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the condensed consolidated balance sheets. The components of operating lease expense were as follows: Lease Costs Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating lease cost $ 3,540 $ 2,502 $ 6,364 $ 4,846 Short-term lease cost 359 506 865 1,070 Variable lease cost 426 159 853 407 Net lease cost $ 4,325 $ 3,167 $ 8,082 $ 6,323 Supplemental information related to leases is as follows: Other Information Six Months Ended June 30, 2026 2025 Cash flows : Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 5,841 $ 6,295 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 7,204 $ 7,737 Lease term and discount rate: Weighted average remaining lease term (years) 5.5 5.8 Weighted average discount rate 3.81 % 3.37 % Rental income from third parties We own office buildings in Falmouth, Yarmouth and Orono, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; Moraine, Ohio; and Kingston Springs, Tennessee. We lease space in some of the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENTLY PRONOUNCED ACCOUNTING STANDARDS In December 2025, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2025-11 - Interim Reporting (Topic 270): Narrow-scope Improvement. This ASU clarifies and reorganizes existing interim reporting guidance in ASC 270 to improve readability and consistency, without adding new disclosure requirements. It also introduces a clear disclosure principle for material events and changes occurring since the last annual period, aligning GAAP more closely with prior SEC practice. It is effective for annual reporting periods beginning after December 15, 2028, and interim periods within those annual reporting periods, with early adoption permitted. This guidance is not expected to have a material impact on the Companys financial statements. In September 2025, the FASB issued ASU 2025-06 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update removes the prescriptive software development project stages and requires capitalization of software costs once (1) management authorizes and commits funding and (2) completion and use are probable. Entities must evaluate significant development uncertainty related to technological innovations or performance requirements. The amendments also require Subtopic 360-10 disclosures for all capitalized internal-use software costs and clarify that intangible asset disclosures u …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Disaggregation of Revenue The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows. Recurring Revenues The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscriptions revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of one to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues. Recurring revenues and non-recurring revenues recognized during the period are as follows: For the three months ended June 30, 2026 Enterprise Software Platform Technologies Corporate Unall …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Related Information Reportable segments are determined based on the Companys management approach. The management approach, as defined by FASB ASC 280 Segment Reporting, is based on the way that the Chief Operating Decision Maker (CODM) organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our CODM, for purposes of FASB ASC 280, is our chief executive officer. We report our results in two reportable segments. Our reportable segments are organized on the basis of a combination of the products and services they deliver to clients and the function that the public sector client performs. Operating segments that have met the aggregation criteria have been combined into our two reportable segments. The Enterprise Software (ES) reportable segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical back-office functions such as: public administration solutions, courts and public safety solutions, education solutions, and property and recording solutions. The Platform Technologies (PT) reportable segment provides public sector entities with platform and transformative solutions including digital solutions, payment processing, streamlined data processing, and improved operations and workflows. The CODM uses segment operating income or loss to assess performance and to allocate resources (including employees, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Standards and Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026, that have had a material impact on our condensed consolidated financial statements and related notes. See Recently Pronounced Accounting Standards below. REVENUE RECOGNITION Nature of Products and Services We account for revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. Revenue is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps: Identification of the contract, or contracts, with a client Identification of the performance obligations in the contract Determination of the transaction price Allocation of the transaction price to the performance obligations in the contract Recognition of revenue when, or as, we satisfy a performance obligation We earn the majority of our revenues from subscription-based services and post-contract client support (PCS or maintenance). Subscription-based services consist primarily of revenues derived from SaaS arrangements and transaction-based fees. Other sources of revenue are professional services and oth …

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Shareholders Equity The following table details activity in our common stock: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Shares Amount Shares Amount Shares Amount Shares Amount Purchase of treasury shares, including excise taxes (1,623) $ (511,169) (3) $ (1,605) (2,423) $ (761,232) (3) $ (1,605) Exercise of stock options and vesting of restricted stock units 117 3,241 163 13,327 286 5,857 328 29,771 Issuance of shares pursuant to employee stock purchase plan 19 5,377 11 5,352 29 9,178 19 9,322 Employee taxes paid for withheld shares upon equity award settlement (29) (9,010) (32) (18,008) (82) (27,991) (56) (32,926) Purchase of Capped Call transactions, net of tax (140,501) (140,501) On February 3, 2026, our Board of Directors authorized the repurchase of $1.0 billion, excluding excise taxes, of our common stock, which replaced and superseded all previous share repurchase authorizations. On July 24, 2026, the Board of Directors authorized an additional $1.5 billion share repurchase plan. The plan allows us to repurchase shares at our discretion, and there is no expiration date. The plan replaces and supersedes any previous authorizations, except that the Companys Chief Executive Officer and Chief Financial Officer may continue to cause the Company to repurchase any amounts not yet repurchased under previous authorizations. As of July 29, 2026, we have remaining authorization from our Board of Directors to repurchase up to approximately $1.745 bil …

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Subsequent Events On July 24, 2026, the Board of Directors authorized an additional $1.5 billion share repurchase plan. The plan allows us to repurchase shares at our discretion, and there is no expiration date. The plan replaces and supersedes any previous authorizations, except that the Companys Chief Executive Officer and Chief Financial Officer may continue to cause the Company to repurchase any amounts not yet repurchased under previous authorizations. As of July 29, 2026, we have remaining authorization from our Board of Directors to repurchase up to approximately $1.745 billion of our common stock. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing