Tyler Technologies (TYL) risk factors, FY2024 10-K

Tyler Technologies's FY2024 10-K, filed Feb 19, 2025, lists 34 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
341 groups
Section length
8k wordsItem 1A

Tyler Technologies's biggest risks in the FY2024 10-K

  • Tyler Technologies faces primary risks from public sector sales concentration, cloud hosting dependencies, and software security vulnerabilities.
  • The business is heavily exposed to government budget constraints, open bidding uncertainty, and IT infrastructure disruptions.
  • Intellectual property protection and skilled labor retention are also critical operational concerns.

The risks most specific to Tyler Technologies

  • Cyber-attacks and security vulnerabilities can disrupt our business and harm our competitive position

    Cyber-attacks and security vulnerabilities from state-sponsored or hacker groups can disrupt Tyler's IT systems and harm its competitive position.

  • Disclosure of personally identifiable information and/or other sensitive client data could result in liability and harm our reputation

    Storing and processing large amounts of client personally identifiable information exposes Tyler to data breaches, liability, and reputation harm.

  • We rely on third-party providers—including Amazon Web Services—for hosting services and other technology-related services needed to deliver certain of our cloud solutions. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability

    Tyler relies on third-party providers like Amazon Web Services to host cloud solutions, and any data center disruption could cause liability.

  • Clients may elect to terminate our recurring contracts and manage operations internally

    Public sector clients may terminate recurring SaaS or maintenance contracts to manage software operations internally using perpetual license rights.

  • Selling products and services into the public sector poses unique challenges

    Tyler derives substantially all of its revenues from software and services sold to state, county, and city governments and public agencies.

  • The open bidding process creates uncertainty in predicting future contract awards

    Governmental agencies purchase products through an open bidding process, creating uncertainty in predicting future contract awards.

  • Fixed-price contracts may affect our profits

    Fixed-price contracts can lead to lower profits if Tyler fails to accurately estimate project resources, time, or manage client expectations.

  • Changes in the insurance markets may affect our business

    Property appraisal services clients require Tyler to secure performance bonds and sometimes letters of credit, exposing it to insurance market changes.

  • Risks Related to Our Indebtedness

    Increases in labor costs, including wages, and an overall tightening of the labor market, could adversely affect our business, results of operations or financial condition

    Tightening labor markets and rising wages can increase labor costs and adversely affect Tyler's operating results.

  • Risks Related to Our Indebtedness

    Evolving legal and regulatory landscape over artificial intelligence technologies creates uncertainties

    Evolving legal and regulatory landscapes regarding artificial intelligence create uncertainties and risks of regulatory investigations, fines, or liability.

All 34 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Cyber-attacks and security vulnerabilities can disrupt our business and harm our competitive position
  2. 02Disclosure of personally identifiable information and/or other sensitive client data could result in liability and harm our reputation
  3. 03We depend on third parties with whom we engage or collaborate for certain projects, deliverables, and/or financial transaction processes. If these parties fail to satisfy their obligations to us or we are unable to maintain these relationships, our operating results and business prospects could be adversely affected
  4. 04We rely on third-party providers—including Amazon Web Services—for hosting services and other technology-related services needed to deliver certain of our cloud solutions. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability
  5. 05Material portions of our business require the Internet infrastructure to be reliable
  6. 06Certain of our solutions utilize open source software, and any failure to comply with the terms of one or more of these open source licenses could adversely affect our business
  7. 07We run the risk of errors or defects with new products or enhancements to existing products
  8. 08We must timely respond to technological changes to be competitive
  9. 09We may be unable to protect our proprietary rights
  10. 10Clients may elect to terminate our recurring contracts and manage operations internally
  11. 11Selling products and services into the public sector poses unique challenges
  12. 12Global health crises, such as a pandemic, may adversely affect our business and results of operations
  13. 13A prolonged economic slowdown could harm our operations
  14. 14The open bidding process creates uncertainty in predicting future contract awards
  15. 15We believe we are a leading provider of integrated software solutions for the public sector
  16. 16Fixed-price contracts may affect our profits
  17. 17Changes in the insurance markets may affect our business

Risks Related to Our Indebtedness

  1. 18Covenant restrictions under our indebtedness may limit our ability to operate our business and may adversely affect our financial condition, results of operations, and earnings per share
  2. 19Variable rate indebtedness subjects the Company to interest rate risk, which could cause our debt service obligations to increase significantly
  3. 20The conditional conversion feature of the Convertible Senior Notes, if triggered, may adversely affect our financial condition and results of operations
  4. 21Transactions relating to our Convertible Senior Notes may affect the value of our common stock
  5. 22Fluctuation in inflation and interest rate could adversely affect our financial condition and results of operations
  6. 23Fluctuations in quarterly revenues could adversely impact our operating results and stock price
  7. 24Increases in our investment in research and development could decrease overall margins
  8. 25Our stock price may be volatile
  9. 26Our financial outlook may not be realized
  10. 27We may experience difficulties in executing our acquisition strategy
  11. 28Our failure to properly manage growth could adversely affect our business
  12. 29Increases in labor costs, including wages, and an overall tightening of the labor market, could adversely affect our business, results of operations or financial condition
  13. 30We may be unable to hire, integrate, and retain qualified personnel
  14. 31Compliance with changing regulation of corporate governance may result in additional expenses
  15. 32Evolving legal and regulatory landscape over artificial intelligence technologies creates uncertainties
  16. 33We do not foresee paying dividends on our common stock
  17. 34Provisions in our certificate of incorporation, bylaws, and Delaware law could deter takeover attempts

Other Tyler Technologies 10-Ks

  • FY2025 10-K risk factors
    31 risks1 new4 dropped6 reworded

    Tyler Technologies streamlined its risk disclosures by removing convertible note and AWS hosting risks while updating AI and macroeconomic factors.

    Filed Feb 18, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.