Roper(US:ROP)2025-05-02 21:17Financial 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]