Roper(US:ROP) ZACKS·2025-10-23 16:25Core 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]