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 Viewpoint - Roper Technologies reported strong financial results for the quarter ended June 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1][3]. Financial Performance - Revenue for the quarter was $1.94 billion, reflecting a year-over-year increase of 13.2% [1]. - Earnings per share (EPS) for the quarter was $4.87, compared to $4.48 a year ago, marking an increase [1]. - The reported revenue surpassed the Zacks Consensus Estimate of $1.93 billion by 0.9% [1]. - The EPS also exceeded the consensus estimate of $4.82, delivering a surprise of 1.04% [1]. Segment Performance - Revenue from Application Software was $1.09 billion, matching the average estimate and showing a year-over-year change of 17.5% [4]. - Revenue from Technology Enabled Products was $463.3 million, slightly above the average estimate of $453.67 million, with a year-over-year increase of 10.1% [4]. - Revenue from Network Software reached $385.4 million, exceeding the average estimate of $381.2 million [4]. - Operating profit for Application Software was $294.6 million, surpassing the average estimate of $282.52 million [4]. - Operating profit for Technology Enabled Products was $164.1 million, above the estimated $155.13 million [4]. - Operating profit for Network Software was $169.3 million, slightly below the average estimate of $171.2 million [4]. Stock Performance - Roper Technologies' shares have returned -3.1% over the past month, contrasting with the Zacks S&P 500 composite's +5.4% change [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3].

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]

Core Viewpoint - Roper Technologies reported strong financial performance in Q1 2025, with adjusted earnings per share of $4.78, exceeding estimates and reflecting an 8% year-over-year increase. Net revenues reached $1.883 billion, surpassing expectations and showing a 12% increase from the previous year [1]. Financial Performance - Adjusted earnings per share for Q1 2025 were $4.78, beating the Zacks Consensus Estimate of $4.73, and increased by 8% year-over-year [1] - Net revenues totaled $1.883 billion, exceeding the consensus estimate of $1.878 billion, with a year-over-year growth of 12% [1] - Organic revenue growth was 5%, driven by the Application Software segment, while acquisitions contributed an 8% increase in sales [1] Segmental Performance - **Application Software**: Generated revenues of $1.07 billion, accounting for 56.7% of total revenues, with a 19% year-over-year increase and 6% organic growth [2] - **Network Software & Systems**: Revenues were $375.9 million, representing 20% of total revenues, with a 1% year-over-year growth and 1% organic growth [3] - **Technology Enabled Products**: Revenues reached $438.7 million, making up 23.3% of total revenues, with a 6% year-over-year increase and 6% organic growth [4] Margin Profile - Cost of sales increased by 17.9% year-over-year to $589.1 million, while gross profit rose by 9.5% to approximately $1.3 billion, resulting in a gross margin decrease to 68.7% from 70.3% [5] - Selling, general and administrative expenses increased by 9.8% year-over-year to $767.9 million, with adjusted EBITDA growing by 9% to $740 million, leading to a margin decrease of 90 basis points to 39.3% [5] - Interest expenses rose by 18.2% year-over-year to $62.9 million [5] Balance Sheet & Cash Flow - At the end of Q1 2025, cash and cash equivalents were $372.8 million, up from $188.2 million at the end of December 2024, while long-term debt decreased to $6.46 billion from $6.58 billion [6] - Net cash generated from operating activities was $528.7 million, reflecting a 0.5% decrease year-over-year, with capital expenditures totaling $9.5 million [7] - The company paid $88.6 million in dividends to shareholders, marking a 10.1% increase year-over-year [7] Outlook - Roper has raised its 2025 outlook, expecting adjusted earnings per share from continuing operations to be in the range of $19.80-$20.05, up from the previous estimate of $19.75-$20.00 [8] - Total revenues are anticipated to increase by 12%, compared to earlier expectations of over 10%, with organic revenues projected to grow by 6-7% [8] - For Q2 2025, adjusted earnings are expected to be between $4.80 and $4.84 per share [9]