Core Insights - Roper Technologies, Inc. is a diversified technology company focused on software and engineered products across various industries, positioning itself as a leader in the tech sector [1] Financial Performance - Roper Technologies reported a 14% year-over-year increase in revenues, reaching $2.02 billion, driven by an 8% contribution from acquisitions and a 6% rise in organic revenue [3] - Adjusted earnings per share rose by 11% to $5.14 in the third quarter, surpassing the Zacks Consensus Estimate of $5.11 [2][6] - The Application Software segment generated $1.16 billion, accounting for 57.4% of total revenue, highlighting the company's strategic focus on software [3] Market Position and Analyst Ratings - Oppenheimer upgraded Roper Technologies to "Outperform" with a revised price target of $570, reflecting confidence in the company's growth potential despite lowering the previous target from $640 [2][6] - The company's market capitalization stands at approximately $51.65 billion, with a current stock price of $479.96, reflecting a decrease of 5.70% or $28.99 [5] Shareholder Returns and Financial Health - Roper announced a substantial $3 billion share repurchase program, indicating strong financial health and confidence in future prospects [4] - Operating cash flow increased by 15% to $870 million, and free cash flow rose by 17% to $842 million, underscoring robust cash generation capabilities [4]

Core Insights - Roper Technologies reported third-quarter 2025 adjusted earnings of $5.14 per share, exceeding the Zacks Consensus Estimate of $5.11, marking an 11% year-over-year increase [1][9] - The company's net revenues reached $2.02 billion, matching the consensus estimate and reflecting a 14% year-over-year growth, with organic revenues growing by 6% and acquisitions contributing an 8% increase [1][9] Segment Performance - The Application Software segment generated revenues of $1.16 billion, accounting for 57.4% of total revenues, with an 18% year-over-year increase driven by organic growth of 6% and acquisitions boosting sales by 12% [3] - Network Software & Systems reported revenues of $413.4 million, representing 20.5% of total revenues, with a 13% year-over-year growth, organic revenues increasing by 6%, and acquisitions contributing 7% [4] - The Technology Enabled Products segment generated revenues of $443.1 million, making up 22.1% of total revenues, with a 7% year-over-year increase, organic revenues growing by 6% [5] Financial Metrics - Roper's cost of sales rose by 13.2% year over year to $614.5 million, while gross profit increased by 14.8% to approximately $1.40 billion, resulting in a gross margin of 69.5% [6] - Selling, general and administrative expenses increased by 14.5% year over year to $830.0 million, with adjusted EBITDA at $810 million, reflecting a 13% year-over-year growth [6] - The company had cash and cash equivalents of $320 million at the end of Q3 2025, up from $188.2 million at the end of December 2024, while long-term debt increased to $9.15 billion [7] Cash Flow and Shareholder Returns - Roper generated net cash of $1.80 billion from operating activities in the first nine months of 2025, a 7.9% increase from the previous year, with capital expenditures totaling $37.6 million [8] - The company rewarded shareholders with a dividend payment of $266 million, reflecting a 10.3% year-over-year increase [8] Share Repurchase Program - Roper's board authorized a new share repurchase program valued at $3 billion, which is open-ended and will be executed opportunistically based on market conditions [10] Outlook - For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.90-$19.95, with total revenues anticipated to increase by 13% and organic revenues expected to grow approximately 6% [11]

Core Insights - Roper Technologies reported quarterly earnings of $5.14 per share, exceeding the Zacks Consensus Estimate of $5.11 per share, and showing an increase from $4.62 per share a year ago, resulting in an earnings surprise of +0.59% [1] - The company posted revenues of $2.02 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $1.76 billion year-over-year [2] - Roper Technologies has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.24, with expected revenues of $2.09 billion, and for the current fiscal year, the EPS estimate is $20.32 on revenues of $7.93 billion [7] - The trend of estimate revisions for Roper Technologies was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Market Performance - Roper Technologies shares have declined approximately 2.1% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [3] - The performance of Roper Technologies is influenced by the overall outlook for the Computers - IT Services industry, which is currently in the top 20% of Zacks industries [8]

Roper (NasdaqGS:ROP) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Company ParticipantsBrad Reback - Managing DirectorJoshua Tilton - SVP of Equity ResearchJason Conley - EVP and CFOZach Moxcey - VP of Investor RelationsTerry Tillman - Managing DirectorJulian Mitchell - Managing DirectorFaith Brunner - Equity Research Senior AssociateJoe Giordano - Managing DirectorNeil Hunn - President and CEODeane Dray - Managing DirectorConference Call ParticipantsGeorge Kurosawa - Equity Research AnalystBrent Thill ...

Roper (NasdaqGS:ROP) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Company ParticipantsTerry Tillman - Managing DirectorBrad Reback - Managing DirectorFaith Brunner - Equity Research Senior AssociateZach Moxcey - Vice President of Investor RelationsNeil Hunn - President and CEOJoshua Tilton - SVP of Equity ResearchJoe Giordano - Managing DirectorJason Conley - EVP and CFOJulian Mitchell - Managing DirectorDeane Dray - Managing DirectorConference Call ParticipantsBrent Thill - Research AnalystKen Wong - ...

Roper (NasdaqGS:ROP) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Speaker1Good morning. The Roper Technologies conference call will now begin. Today's call is being recorded. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero on your touch-tone telephone. I would now like to turn the call over to Zach Moxcey, Vice President of Investor Relations. Please go ahead.Speaker4Good morning, and thank you ...

Financial Data and Key Metrics Changes - Total revenue grew by 14% year-over-year, surpassing $2 billion, with acquisitions contributing 8% to this growth [12][6] - Organic revenue growth was reported at 6%, consistent across all three segments [12][6] - EBITDA increased by 13% to $810 million, with an EBITDA margin of 40.2% [13][12] - Free cash flow grew by 17% to $842 million, representing 32% of revenue on a trailing twelve-month basis [13][12] Business Line Data and Key Metrics Changes - Application Software segment revenue grew by 18% in total, with organic growth at 6% [21] - Network segment revenue increased by 13%, with organic growth also at 6% [28] - TEP segment revenue grew by 7%, with organic growth at 6% [37] Market Data and Key Metrics Changes - Deltek's government contracting business experienced softness due to a government shutdown, impacting overall performance [22][51] - The freight market showed headwinds, particularly affecting the Network segment, but overall performance remained strong [52][72] Company Strategy and Development Direction - The company is focused on AI enablement across its product stacks, which is seen as a long-term growth driver [7][18] - A $3 billion share repurchase program was announced, marking the first of its kind for the company, reflecting confidence in its strategy [7][15] - The company continues to pursue M&A opportunities, with over $5 billion in capital deployment capacity available in the next twelve months [8][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong cash flow and AI progress as key growth drivers [9][42] - Concerns were raised about market conditions, particularly in government contracting and trade markets, which may affect future performance [9][51] - The company expects organic revenue growth to normalize in 2026, particularly in the Deltek segment following government spending increases [51][52] Other Important Information - The company highlighted the successful integration of AI features across its software offerings, with significant adoption rates reported [20][56] - The acquisition of SubSplash is performing well, contributing positively to the Network segment [31] Q&A Session Summary Question: Organic growth outlook and reacceleration confidence - Management acknowledged short-term dynamics affecting organic growth but expressed confidence in a rebound due to improving market conditions in 2026 [49][50] Question: AI strategy and product innovation pace - Management reported a strong pace of AI innovation, with numerous new features being rolled out across various software products [55][56] Question: Buyback strategy versus M&A focus - The $3 billion buyback is seen as a complement to the ongoing M&A strategy, reflecting confidence in the company's direction and execution capabilities [62][63] Question: Addressing setbacks in the portfolio - Management noted that while the portfolio is designed to mitigate cyclicality, recent setbacks were due to unique market conditions rather than systemic issues [68][69] Question: Software bookings performance - The decline in software bookings was primarily attributed to Deltek, with expectations for improvement in the coming quarters [72][73] Question: Timing delays at Neptune - Management clarified that delays at Neptune are due to tariff-related issues, with no loss of orders expected, just a push to the right in timing [113][114]

Software company Roper Technologies cut its annual profit forecast on Thursday, as it expects higher costs related to acquisitions in the third quarter. ...

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Q3 2025 Financial results October 23, 2025 Safe harbor statement The information provided in this presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be in ...