Financial Data and Key Metrics Changes - Total revenue grew by 14% year-over-year, surpassing $2 billion, with acquisitions contributing 8% and organic growth at 6% [9][30] - EBITDA increased by 13% to $810 million, with an EBITDA margin of 40.2% [10][30] - Free cash flow rose by 17% to $842 million, representing 32% of revenue on a trailing twelve-month basis [10][30] - Adjusted diluted earnings per share (DEPS) was $5.14, an 11% increase year-over-year, exceeding guidance by $0.02 [10][30] Business Line Data and Key Metrics Changes - Application software segment revenue grew by 18% in total and 6% organically, with EBITDA margins at 43.4% [16][30] - Network segment revenue increased by 13% with organic growth of 6%, maintaining strong EBITDA margins at 53.7% [21][30] - TEP segment revenue grew by 7% with organic growth of 6%, and EBITDA margins were at 35.2% [26][30] Market Data and Key Metrics Changes - Deltek experienced softness in government contracting due to a government shutdown, impacting commercial activity [17][30] - The freight market showed headwinds, but DAT continued to execute well on its core strategy [21][30] - The overall market environment remains uncertain, particularly in government contracting and trade markets [7][30] Company Strategy and Development Direction - The company is focused on AI as a significant growth driver, expanding its total addressable market (TAM) by automating labor-intensive tasks [14][30] - A $3 billion share repurchase program was announced, reflecting confidence in the company's strategy and commitment to shareholder value [6][12] - The M&A strategy continues to be a priority, with over $5 billion in capital deployment capacity available over the next 12 months [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential driven by AI and the execution of M&A strategies [7][30] - There are expectations for improvement in government contracting markets in 2026, particularly following the passage of the One Big Beautiful Bill [37][30] - The company anticipates organic revenue growth in the mid-single digits for the upcoming quarter, with potential variability due to market conditions [20][30] Other Important Information - The company completed several tuck-in acquisitions, including Orchard, enhancing its clinical laboratory capabilities [18][30] - AI initiatives are being integrated across various business units, with significant progress reported in product development and market traction [15][30] Q&A Session Summary Question: Organic growth outlook and re-acceleration confidence - Management acknowledged short-term dynamics affecting organic growth but expressed confidence in a re-acceleration in 2026, particularly in application software and government contracting [36][37] Question: AI strategy and product innovation pace - Management reported strong progress in AI initiatives, with 40 new AI features released, and emphasized the importance of commercialization in 2026 and beyond [40][41] 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 execution and market position [46][47] Question: Addressing setbacks in guidance - Management noted that bespoke situations have caused recent setbacks, but the diversified portfolio is designed to mitigate cyclicality [48][49] Question: Software bookings and Deltek's performance - The decline in software bookings was primarily attributed to Deltek, with expectations for improvement as government activities normalize [55][56] Question: Organic growth contributions from acquisitions - Management indicated that ProCare's contribution to organic growth was less than initially expected but still positive [64][65] Question: DAT's pricing and packaging strategy - The strategy at DAT focuses on enhancing value for both brokers and carriers, with significant potential for automation and cost savings [88][90]

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 - ...

Financial Data and Key Metrics Changes - Total revenue grew by 14% year-over-year, surpassing $2 billion, with acquisitions contributing 8% and organic growth at 6% [8][30] - EBITDA increased by 13% to $810 million, with an EBITDA margin of 40.2% [9][30] - Free cash flow rose by 17% to $842 million, representing 32% of revenue on a trailing twelve-month basis [9][30] - Diluted earnings per share (DEPS) was $5.14, an 11% increase year-over-year, exceeding guidance by $0.02 despite $0.05 dilution from acquisitions [9][30] Business Line Data and Key Metrics Changes - Application software segment revenue grew by 18% in total and 6% organically, with EBITDA margins at 43.4% [15] - Network segment revenue increased by 13% with organic growth of 6%, maintaining strong EBITDA margins at 53.7% [19] - TEP segment revenue grew by 7% with organic growth of 6%, and EBITDA margins were at 35.2% [25] Market Data and Key Metrics Changes - Deltek experienced softness in government contracting due to a government shutdown, impacting commercial activity [16] - The freight market showed headwinds, but DAT continued to execute well on its core strategy [19][24] - The healthcare market, particularly through Strata and Clinisys, showed strong performance with significant bookings [52] Company Strategy and Development Direction - The company is focused on AI as a long-term growth driver, expanding its total addressable market (TAM) by automating labor-intensive tasks [12][30] - A $3 billion share repurchase program was announced, reflecting confidence in the company's strategy and commitment to shareholder value [11][30] - The M&A strategy remains a priority, with over $5 billion in capital deployment capacity available for the next 12 months [10][30] 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 [6][30] - Concerns were raised about the government contracting and trade markets, with expectations for improvement in 2026 [38] - The company anticipates organic revenue growth in the mid-single digits for the upcoming quarter, influenced by government contracting and Neptune's order patterns [28][30] Other Important Information - The company completed several tuck-in acquisitions, including Orchard, enhancing its clinical laboratory capabilities [17] - AI initiatives are being integrated across the portfolio, with significant advancements in product offerings and customer engagement [12][30] Q&A Session Summary Question: Organic growth outlook and re-acceleration confidence - Management acknowledged short-term dynamics affecting growth but expressed confidence in re-acceleration due to improving market conditions and government spending [36][37] Question: AI strategy and product innovation pace - Management reported strong progress in AI features across products, with expectations for commercialization to ramp up in 2026 and beyond [40][41] Question: Buyback strategy versus M&A focus - The $3 billion buyback is seen as a complement to the M&A strategy, reflecting confidence in the company's execution and talent [46][47] Question: Software bookings deceleration - The deceleration was primarily attributed to Deltek, with strong performance in other areas, particularly healthcare [52] Question: Organic growth drivers and de-risking guidance - Management outlined expectations for mid-single-digit growth, with specific challenges identified in Deltek and Neptune [64][65]

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 ...

Third quarter 2025 highlights "Roper delivered another strong quarter and once again demonstrated the durability of our business model, with 14% revenue growth, 13% EBITDA growth, and 17% free cash flow growth," said Neil Hunn, Roper Technologies' President and CEO. "During the quarter, we continued to execute our strategy of acquiring businesses that enhance shareholder value creation, deploying $1.3 billion toward Subsplash and several bolt-on acquisitions. Importantly, all of our businesses continue to a ...

Core Insights - Roper Technologies reported strong financial performance for Q3 2025, with 14% revenue growth, 13% EBITDA growth, and 17% free cash flow growth, demonstrating the resilience of its business model [3][8] - The company is actively pursuing acquisitions to enhance shareholder value, deploying $1.3 billion towards Subsplash and other bolt-on acquisitions, while also focusing on AI innovation across its business segments [3][4] - Roper has adjusted its full-year 2025 DEPS guidance to a range of $19.90 - $19.95, reflecting underlying trends and dilution from recent acquisitions [4][5] Financial Performance - Revenue increased by 14% to $2.02 billion, with acquisition contributions accounting for 8% and organic revenue growth at 6% [8][11] - GAAP net earnings rose by 8% to $398 million, while adjusted net earnings increased by 12% to $557 million [8][12] - Adjusted EBITDA grew by 13% to $810 million, with operating cash flow increasing by 15% to $870 million and free cash flow rising by 17% to $842 million [8][15] Guidance and Future Outlook - For Q4 2025, the company expects adjusted DEPS of $5.11 - $5.16, which includes a $(0.05) impact from third-quarter acquisitions [5][16] - Roper anticipates total revenue growth of approximately 13% and organic revenue growth of about 6% for the full year [4][5] Share Repurchase Program - Roper's Board of Directors has authorized a share repurchase program of up to $3 billion, allowing for open-market purchases or privately negotiated transactions [6][21] Segment Performance - The Application Software segment generated $1.16 billion in revenue, while Network Software and Technology Enabled Products contributed $413.4 million and $443.1 million, respectively [27][28] - Gross profit margins for Application Software, Network Software, and Technology Enabled Products were 69.0%, 83.9%, and 57.6%, respectively [28]

Core Viewpoint - Roper Technologies, Inc. is set to release its third-quarter 2025 results on October 23, with expectations of continued revenue and earnings growth based on strong performance across various segments [1][2]. Revenue and Earnings Estimates - The consensus estimate for Roper's revenues is $2.02 billion, reflecting a growth of 14.3% year-over-year [2]. - The adjusted earnings estimate is $5.11 per share, indicating a growth of 10.6% from the previous year [2]. Segment Performance Expectations - The Application Software segment is expected to see revenue growth of 18.3% year-over-year to $1.16 billion, driven by strong performance in Aderant, Deltek, Vertafore, and PowerPlan businesses, aided by SaaS adoption and GenAI innovations [3][4]. - The Technology Enabled Products segment is projected to grow by 12.2% to $463.5 million, supported by demand for ultrasonic meters and cloud-based solutions [5]. - The Network Software segment is estimated to generate $390 million in revenue, a 6.3% increase year-over-year, benefiting from strong demand in construction and freight match markets [6]. Impact of Acquisitions - Recent acquisitions, including CentralReach and Trucker Tools LLC, are expected to enhance Roper's performance through synergistic gains and improved service offerings [7]. Cost and Margin Considerations - Operating costs are anticipated to rise, with selling, general, and administrative expenses expected to reach $827.2 million, a 14.1% increase year-over-year, which may impact margin performance [8].