Tyler Technologies' stock plummeted 7.13% in pre-market trading, extending losses after the company's disappointing fourth-quarter 2025 financial results.

The sell-off was triggered by Tyler Technologies reporting quarterly earnings and revenue that fell short of analyst expectations. The company also issued downbeat guidance for full-year 2026, forecasting slower subscription revenue growth due to concerns about government entities reducing software budgets amid economic uncertainty.

As a provider heavily reliant on public sector clients, Tyler Technologies faces pressure from tighter government budgets and extended procurement processes, which are slowing cloud migration projects and overall software spending.