Roper Technologies announces second quarter financial results and acquisition of Subsplash; Increasing full year guidance

Core Insights - Roper Technologies reported a strong second quarter with total revenue growth of 13%, organic revenue growth of 7%, and free cash flow growth of 10 [3][9] - The company is increasing its full-year guidance based on robust second quarter results and a resilient demand for its solutions [6][7] - Roper announced the acquisition of Subsplash for $800 million, which is expected to enhance its AI capabilities and drive engagement for its customers [4][5] Financial Performance - Total revenue for Q2 2025 was $1.94 billion, up from $1.72 billion in Q2 2024, reflecting a 13% increase [9][12] - GAAP net earnings increased by 12% to $378 million, while adjusted net earnings rose by 9% to $528 million [9][12] - Adjusted EBITDA for the quarter was $775 million, a 12% increase compared to the previous year [9][12] Guidance and Outlook - The company now expects adjusted diluted earnings per share (DEPS) for 2025 to be in the range of $19.90 to $20.05, up from the previous range of $19.80 to $20.05 [6][15] - Roper anticipates total revenue growth for the full year to be approximately 13%, an increase from the previous outlook of around 12% [6][15] - For Q3 2025, adjusted DEPS is expected to be between $5.08 and $5.12 [6][15] Acquisition Strategy - The acquisition of Subsplash is expected to close later this month and is included in the company's updated guidance [7][6] - Subsplash is noted for its high-teens organic growth profile and potential for margin expansion under Roper's ownership [5][4] Segment Performance - Application Software segment revenue was $1.09 billion, Network Software revenue was $385 million, and Technology Enabled Products revenue was $463 million for Q2 2025 [27][28] - Gross profit margins for Application Software, Network Software, and Technology Enabled Products were 68.8%, 83.2%, and 58.6% respectively [28]