Financial Data and Key Metrics Changes - Roper Technologies has historically compounded total shareholder return (TSR) in the high teens and aims to achieve mid-teens cash flow growth going forward [2][9] - The company has shifted its focus to increasing organic growth, currently in the 7% to 7.5% range, with aspirations to reach high single digits over time [15][56] Business Line Data and Key Metrics Changes - Roper owns approximately 28 businesses that are leaders in their respective vertical markets, with a focus on organic growth and cash efficiency [3][4] - The company has implemented new leadership across its businesses to drive higher organic growth expectations and performance incentives [10][11] Market Data and Key Metrics Changes - The market for Central Reach, a recent acquisition, shows a significant demand-supply gap in autism spectrum disorder services, with 900 million hours of demand versus 300 million hours of supply [27] - The company is focusing on acquiring businesses earlier in their life cycle to capture growth and margin expansion opportunities [16][20] Company Strategy and Development Direction - Roper is transitioning towards a more strategic approach in its acquisition strategy, focusing on bolt-on acquisitions to enhance organic growth rather than opportunistic deals [33][35] - The company is leveraging AI and technology to enhance operational efficiencies and expand total addressable markets (TAM) [63][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to harness AI to improve business models and customer workflows, viewing it as an opportunity rather than a threat [62][64] - The company is committed to optimizing free cash flow compounding and believes that increasing organic growth will lead to stock price appreciation [56][59] Other Important Information - Roper has divested from energy and industrial businesses to reduce cyclicality in its portfolio, focusing on vertical market technology businesses with recurring revenue [46][49] - The company has established a continuous improvement function to support its businesses in identifying growth vectors and enhancing processes [13][14] Q&A Session Summary Question: How is Roper increasing its organic growth profile? - Roper has set higher expectations for its leaders and implemented new leadership to drive growth, with a focus on aligning incentives with performance [10][11] Question: What is the strategy behind the acquisition of Central Reach? - Central Reach was identified as a leader in the autism spectrum disorder market, providing mission-critical software solutions that enhance efficiency and revenue for clinics [25][26] Question: How does Roper view AI in relation to its business? - Management believes that AI presents opportunities for growth and efficiency, and they are actively integrating AI solutions across their businesses [62][64] Question: What is the approach to bolt-on acquisitions? - Roper prefers bolt-on acquisitions for their lower risk and synergy opportunities, moving away from opportunistic deals to a more strategic focus [33][35] Question: How does Roper evaluate potential acquisition targets? - The evaluation process includes assessing the target's approach to AI and its potential for workflow enhancement, ensuring alignment with Roper's strategic goals [73][74]

A month has gone by since the last earnings report for Roper Technologies (ROP) . Shares have added about 3.2% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Roper Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since ...

SARASOTA, Fla., May 22, 2025 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) announced that it is presenting at the TD Cowen 53rd Annual Technology, Media & Telecom Conference on Thursday, May 29, 2025 at 9:05 AM (Eastern Time) in New York, NY. A link to the webcast presentation will be available in the “Investors” section of the Company’s website at www.ropertech.com. About Roper Technologies Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Roper has a proven, lo ...

Roper Technologies, Inc. (ROP) is benefiting from strength across its segments. Solid momentum across the Deltek, Vertafore, PowerPlan and Aderant businesses bodes well for the Application Software segment. The growing adoption of SaaS solutions and continued GenAI innovation are key catalysts to Aderant’s growth and solid demand for SaaS solutions in the GovCon and private sectors and cloud offerings bode well for the Deltek business. The Vertafore business is gaining from excellent enterprise delivery cap ...

The Top 100 Logistics IT Providers list is published in all the April Inbound Logistics magazine editions and apps. "We are incredibly honored to once again be recognized as a Top 100 Logistics & Supply Chain Technology Provider by Inbound Logistics," said Chad Raube, President and CEO of IntelliTrans. "This achievement reflects our ongoing mission to empower our customers with innovative software that makes supply chains more visible, efficient, and resilient. Our solutions are purpose-built to tackle the ...

Core Insights - Roper Technologies is assessing the impact of the new Trump administration on M&A activity, hoping for a more favorable economic environment [1] Company Analysis - Roper Technologies aims to identify the best businesses globally to create a long-term portfolio that can outperform the market [1]

Financial Performance - Net revenues for Q1 2025 were $1,882.8 million, a 12.0% increase from $1,680.7 million in Q1 2024[66] - Application Software segment revenue grew 19.3% to $1,068.2 million, driven by acquisitions and a 5.9% organic growth[66] - Network Software segment revenue increased 1.4% to $375.9 million, with a 0.7% organic growth[67] - Technology Enabled Products segment revenue rose 5.8% to $438.7 million, supported by a 6.0% organic growth[68] - Gross margin for total revenues decreased to 68.7% in Q1 2025 from 70.3% in Q1 2024[64] - Backlog increased 3.5% to $3,033.8 million as of March 31, 2025, compared to $2,932.4 million in 2024[73] Cash Flow and Investments - Cash provided by operating activities decreased by 1% to $528.7 million in Q1 2025 from $531.5 million in Q1 2024[75] - Cash used in investing activities in Q1 2025 was $146.8 million, primarily for the acquisition of Muni-Link[76] - Capital expenditures for the three months ended March 31, 2025, were $9.5 million, slightly up from $9.3 million for the same period in 2024[81] Debt and Financial Position - Interest expense, net, increased to $62.9 million in Q1 2025 from $53.2 million in Q1 2024[70] - Corporate expenses rose to $71.3 million, or 3.8% of net revenues, in Q1 2025 compared to $61.5 million, or 3.7% of net revenues, in Q1 2024[69] - Total debt, net of deferred financing costs, was $7,456.4 million as of March 31, 2025, down from $7,623.0 million at December 31, 2024, reflecting a decrease of approximately 2.2%[81] - Net working capital was negative $1,356.8 million at March 31, 2025, an improvement from negative $1,434.6 million at December 31, 2024[81] - The net debt to total net capital ratio improved to 26.9% as of March 31, 2025, compared to 28.3% at December 31, 2024[81] - The company had no borrowings outstanding under its unsecured revolving credit facility as of March 31, 2025, with $6.8 million in outstanding letters of credit[78] Future Outlook and Strategic Plans - The company expects to generate positive cash flows from operating activities, which will support the reduction of outstanding debt[84] - Future acquisitions will depend on various factors, and financing may come from existing credit agreements or future cash flows[83] - The company plans to repatriate substantially all historical and future earnings from foreign subsidiaries[79] - Current geopolitical and economic uncertainties may adversely affect the company's business prospects[82]

Roper Technologies, Inc ROP reported better-than-expected earnings for its first quarter and raised its forecast on Monday. The company posted first-quarter adjusted earnings per share of $4.78, beating the street view of $4.74. Quarterly sales of $1.88 billion outpaced the analyst consensus estimate of $1.82 billion. "Roper had a strong start to 2025 and our enterprise continues to execute at a high level," said Neil Hunn, Roper's President and CEO. "Our total revenue growth of 12% was driven by an 8% acqu ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 grew by 12% to $1,900,000,000, with organic revenue increasing by 5% [6][17] - EBITDA reached $740,000,000, up over 9% year-over-year, with a reported EBITDA margin of 39.3%, down 90 basis points from the prior year [18][19] - Diluted EPS was $4.78, exceeding guidance of $4.70 to $4.75 [20] - Free cash flow for Q1 was $507,000,000, down 1% year-over-year, impacted by a legal settlement [20][21] Business Line Data and Key Metrics Changes - Application Software segment revenue grew by 19% in total and 6% organically, with EBITDA margins at 41.4% [23] - Network Software segment organic revenue grew by 1%, with EBITDA margins remaining strong at 55.3% [28] - TEP segment revenue grew by 6% on both total and organic bases, with EBITDA margins at 36.2% [31] Market Data and Key Metrics Changes - Over 85% of revenues are generated in the U.S., with over 85% of software revenues recurring [8] - Central Reach, acquired for $1,650,000,000, is expected to deliver approximately $175,000,000 in revenue and $75,000,000 in EBITDA for the TTM period ending June 2026 [11][12] Company Strategy and Development Direction - The company is raising its full-year total revenue guidance from 10% to approximately 12% due to a solid start to the year and the completion of the Central Reach acquisition [7][38] - The company emphasizes its durable business model, with a focus on capital deployment and maintaining over $5,000,000,000 of available capital for acquisitions [6][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that while there is uncertainty, the pipeline remains robust [49] - The company expects organic growth rates to remain in the mid-single digits for the year, despite some challenges in specific segments like Deltek [66] Other Important Information - The acquisition of Central Reach is seen as a strategic move to enhance the company's offerings in the autism care market, with expected growth drivers including a shortage of ABA therapists [12][15] - The company is actively pursuing additional acquisition opportunities, with a strong pipeline of potential deals [22][42] Q&A Session Summary Question: What is the perspective on private equity behavior? - Management noted a slowdown in deal activity due to macro uncertainty but highlighted a robust pipeline and ongoing conversations with sponsors [48] Question: What is the exposure of Deltek to government contracting? - Deltek's business is 60% focused on federal government contractors, with current uncertainties affecting growth rates [51][52] Question: Will free cash flow return to growth in June? - Management indicated that free cash flow is expected to be back-end weighted, with stronger performance anticipated in the second half of the year [56][58] Question: How does Central Reach's AI revenue look? - Central Reach's AI products are new and not yet a material revenue source, but they are expected to be significant growth drivers moving forward [81] Question: What is the outlook for core EBITDA margins? - Core EBITDA margins are expected to improve slightly throughout the year, with acquisition margins anticipated to increase as well [85]