filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
Roper Technologies, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
(in millions, except per share data)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net revenues | $ | 1,943.6 | $ | 1,716.8 | $ | 3,826.4 | $ | 3,397.5 | |||||||||||||||
| Cost of sales | 598.2 | 523.5 | 1,187.3 | 1,023.2 | |||||||||||||||||||
| Gross profit | 1,345.4 | 1,193.3 | 2,639.1 | 2,374.3 | |||||||||||||||||||
| Selling, general and administrative expenses | 797.1 | 699.1 | 1,565.0 | 1,398.8 | |||||||||||||||||||
| Income from operations | 548.3 | 494.2 | 1,074.1 | 975.5 | |||||||||||||||||||
| Interest expense, net | 79.1 | 67.5 | 142.0 | 120.7 | |||||||||||||||||||
| Equity investments (gain) loss, net | (16.6) | 0.8 | 27.8 | (56.2) | |||||||||||||||||||
| Other expense, net | 0.5 | 0.6 | 1.0 | 1.8 | |||||||||||||||||||
| Earnings before income taxes | 485.3 | 425.3 | 903.3 | 909.2 | |||||||||||||||||||
| Income taxes | 107.0 | 88.2 | 193.9 | 190.1 | |||||||||||||||||||
| Net earnings | $ | 378.3 | $ | 337.1 | $ | 709.4 | $ | 719.1 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 3.52 | $ | 3.15 | $ | 6.60 | $ | 6.72 | |||||||||||||||
| Diluted | $ | 3.49 | $ | 3.12 | $ | 6.55 | $ | 6.66 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 107.6 | 107.1 | 107.5 | 107.0 | |||||||||||||||||||
| Diluted | 108.4 | 107.9 | 108.3 | 107.9 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(in millions)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net earnings | $ | 378.3 | $ | 337.1 | $ | 709.4 | $ | 719.1 | |||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Foreign currency translation adjustments | 42.7 | (0.9) | 62.4 | (20.0) | |||||||||||||||||||
| Total other comprehensive income (loss), net of tax | 42.7 | (0.9) | 62.4 | (20.0) | |||||||||||||||||||
| Comprehensive income | $ | 421.0 | $ | 336.2 | $ | 771.8 | $ | 699.1 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in millions)
| June 30, 2025 | December 31, 2024 | ||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 242.4 | $ | 188.2 | |||||||
| Accounts receivable, net | 868.8 | 885.1 | |||||||||
| Inventories, net | 132.2 | 120.8 | |||||||||
| Income taxes receivable | 50.0 | 25.6 | |||||||||
| Unbilled receivables | 140.0 | 127.3 | |||||||||
| Prepaid expenses and other current assets | 220.9 | 195.7 | |||||||||
| Total current assets | 1,654.3 | 1,542.7 | |||||||||
| Property, plant and equipment, net | 156.5 | 149.7 | |||||||||
| Goodwill | 20,507.6 | 19,312.9 | |||||||||
| Other intangible assets, net | 9,627.4 | 9,059.6 | |||||||||
| Deferred taxes | 54.6 | 54.1 | |||||||||
| Equity investment | 739.7 | 772.3 | |||||||||
| Other assets | 480.3 | 443.4 | |||||||||
| Total assets | $ | 33,220.4 | $ | 31,334.7 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
| Accounts payable | $ | 159.4 | $ | 148.1 | |||||||
| Accrued compensation | 213.8 | 289.0 | |||||||||
| Deferred revenue | 1,618.1 | 1,737.4 | |||||||||
| Other accrued liabilities | 520.3 | 546.2 | |||||||||
| Income taxes payable | 53.1 | 68.4 | |||||||||
| Current portion of long-term debt, net | 999.8 | 1,043.1 | |||||||||
| Total current liabilities | 3,564.5 | 3,832.2 | |||||||||
| Long-term debt, net of current portion | 7,859.2 | 6,579.9 | |||||||||
| Deferred taxes | 1,706.0 | 1,630.6 | |||||||||
| Other liabilities | 456.8 | 424.4 | |||||||||
| Total liabilities | 13,586.5 | 12,467.1 | |||||||||
| Commitments and contingencies (Note 9) | |||||||||||
| Common stock | 1.1 | 1.1 | |||||||||
| Additional paid-in capital | 3,187.1 | 3,014.6 | |||||||||
| Retained earnings | 16,565.9 | 16,034.9 | |||||||||
| Accumulated other comprehensive loss | (104.1) | (166.5) | |||||||||
| Treasury stock | (16.1) | (16.5) | |||||||||
| Total stockholders’ equity | 19,633.9 | 18,867.6 | |||||||||
| Total liabilities and stockholders’ equity | $ | 33,220.4 | $ | 31,334.7 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(in millions)
| Six months ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | 709.4 | $ | 719.1 | |||||||
| Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||||||
| Depreciation and amortization of property, plant and equipment | 19.6 | 18.5 | |||||||||
| Amortization of intangible assets | 417.2 | 377.2 | |||||||||
| Amortization of deferred financing costs | 5.5 | 4.5 | |||||||||
| Non-cash stock compensation | 82.7 | 73.3 | |||||||||
| Equity investments (gain) loss, net | 27.8 | (56.2) | |||||||||
| Income tax provision | 193.9 | 190.1 | |||||||||
| Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
| Accounts receivable | 37.4 | 96.7 | |||||||||
| Unbilled receivables | (9.7) | (17.7) | |||||||||
| Inventories | (9.6) | (11.0) | |||||||||
| Prepaid expenses and other current assets | (22.9) | (30.7) | |||||||||
| Accounts payable | 7.0 | 4.5 | |||||||||
| Other accrued liabilities | (115.4) | (47.3) | |||||||||
| Deferred revenue | (132.7) | (122.6) | |||||||||
| Cash taxes paid for gain on disposal of equity investment | (30.2) | — | |||||||||
| Cash income taxes paid, excluding tax associated with gain on disposal of equity investment | (233.7) | (284.3) | |||||||||
| Other, net | (13.5) | 1.5 | |||||||||
| Cash provided by operating activities | 932.8 | 915.6 | |||||||||
| Cash flows from (used in) investing activities: | |||||||||||
| Acquisitions of businesses, net of cash acquired | (2,005.2) | (1,858.3) | |||||||||
| Capital expenditures | (26.0) | (15.9) | |||||||||
| Capitalized software expenditures | (26.8) | (20.5) | |||||||||
| Distributions from equity investment | 5.1 | 8.4 | |||||||||
| Other | 1.6 | (1.1) | |||||||||
| Cash used in investing activities | (2,051.3) | (1,887.4) | |||||||||
| Cash flows from (used in) financing activities: | |||||||||||
| Borrowings under revolving line of credit, net | 1,275.0 | 1,090.0 | |||||||||
| Cash dividends to stockholders | (177.2) | (160.6) | |||||||||
| Proceeds from stock-based compensation, net | 73.8 | 75.9 | |||||||||
| Treasury stock sales | 12.5 | 10.3 | |||||||||
| Other, net | (43.9) | (0.2) | |||||||||
| Cash provided by financing activities | 1,140.2 | 1,015.4 | |||||||||
| Effect of exchange rate changes on cash | 32.5 | (6.4) | |||||||||
| Net increase in cash and cash equivalents | 54.2 | 37.2 | |||||||||
| Cash and cash equivalents, beginning of period | 188.2 | 214.3 | |||||||||
| Cash and cash equivalents, end of period | $ | 242.4 | $ | 251.5 | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Equity consideration for business acquisition | $ | 7.3 | $ | — | |||||||
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
(in millions, except per share data)
| Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total stockholders’ equity | ||||||||||||||||||||||||||||||
| Balances at March 31, 2025 | $ | 1.1 | $ | 3,108.7 | $ | 16,276.9 | $ | (146.8) | $ | (16.3) | $ | 19,223.6 | |||||||||||||||||||||||
| Net earnings | — | — | 378.3 | — | — | 378.3 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 24.0 | — | — | — | 24.0 | |||||||||||||||||||||||||||||
| Treasury stock sold | — | 5.2 | — | — | 0.1 | 5.3 | |||||||||||||||||||||||||||||
| Equity consideration for business acquisition | — | 7.2 | — | — | 0.1 | 7.3 | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | 42.7 | — | 42.7 | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 43.1 | — | — | — | 43.1 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (1.1) | — | — | — | (1.1) | |||||||||||||||||||||||||||||
| Dividends declared ($0.825 per share) | — | — | (89.3) | — | — | (89.3) | |||||||||||||||||||||||||||||
| Balances at June 30, 2025 | $ | 1.1 | $ | 3,187.1 | $ | 16,565.9 | $ | (104.1) | $ | (16.1) | $ | 19,633.9 | |||||||||||||||||||||||
| Balances at December 31, 2024 | $ | 1.1 | $ | 3,014.6 | $ | 16,034.9 | $ | (166.5) | $ | (16.5) | $ | 18,867.6 | |||||||||||||||||||||||
| Net earnings | — | — | 709.4 | — | — | 709.4 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 91.4 | — | — | — | 91.4 | |||||||||||||||||||||||||||||
| Treasury stock sold | — | 12.2 | — | — | 0.3 | 12.5 | |||||||||||||||||||||||||||||
| Equity consideration for business acquisition | — | 7.2 | — | — | 0.1 | 7.3 | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | 62.4 | — | 62.4 | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 81.2 | — | — | — | 81.2 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (19.5) | — | — | — | (19.5) | |||||||||||||||||||||||||||||
| Dividends declared ($1.65 per share) | — | — | (178.4) | — | — | (178.4) | |||||||||||||||||||||||||||||
| Balances at June 30, 2025 | $ | 1.1 | $ | 3,187.1 | $ | 16,565.9 | $ | (104.1) | $ | (16.1) | $ | 19,633.9 | |||||||||||||||||||||||
| Balances at March 31, 2024 | $ | 1.1 | $ | 2,837.1 | $ | 15,118.0 | $ | (141.9) | $ | (16.7) | $ | 17,797.6 | |||||||||||||||||||||||
| Net earnings | — | — | 337.1 | — | — | 337.1 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 42.6 | — | — | — | 42.6 | |||||||||||||||||||||||||||||
| Treasury stock sold | — | 4.4 | — | — | 0.1 | 4.5 | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | (0.9) | — | (0.9) | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 39.4 | — | — | — | 39.4 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (0.5) | — | — | — | (0.5) | |||||||||||||||||||||||||||||
| Dividends declared ($0.75 per share) | — | — | (80.8) | — | — | (80.8) | |||||||||||||||||||||||||||||
| Balances at June 30, 2024 | $ | 1.1 | $ | 2,923.0 | $ | 15,374.3 | $ | (142.8) | $ | (16.6) | $ | 18,139.0 | |||||||||||||||||||||||
| Balances at December 31, 2023 | $ | 1.1 | $ | 2,767.0 | $ | 14,816.3 | $ | (122.8) | $ | (16.8) | $ | 17,444.8 | |||||||||||||||||||||||
| Net earnings | — | — | 719.1 | — | — | 719.1 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 90.0 | — | — | — | 90.0 | |||||||||||||||||||||||||||||
| Treasury stock sold | — | 10.1 | — | — | 0.2 | 10.3 | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | (20.0) | — | (20.0) | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 74.0 | — | — | — | 74.0 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (18.1) | — | — | — | (18.1) | |||||||||||||||||||||||||||||
| Dividends declared ($1.50 per share) | — | — | (161.1) | — | — | (161.1) | |||||||||||||||||||||||||||||
| Balances at June 30, 2024 | $ | 1.1 | $ | 2,923.0 | $ | 15,374.3 | $ | (142.8) | $ | (16.6) | $ | 18,139.0 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
(Dollar and share amounts are in millions, except per share data)
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2025 and 2024 are unaudited. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position, results of operations, comprehensive income, and cash flows of Roper Technologies, Inc. and its subsidiaries (“Roper,” the “Company,” “we,” “our,” or “us”) for all periods presented. The December 31, 2024 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2024 Annual Report on Form 10-K (“Annual Report”) filed on February 24, 2025 with the U.S. Securities and Exchange Commission (“SEC”) but does not include all annual disclosures required by U.S. generally accepted accounting principles (“GAAP”).
Roper’s management has made estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Condensed Consolidated Financial Statements in conformity with GAAP. Actual results could differ from those estimates.
The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year. You should read these unaudited Condensed Consolidated Financial Statements in conjunction with Roper’s audited Consolidated Financial Statements and the notes thereto included in its Annual Report. Certain prior period amounts have been reclassified to conform to current period presentation.
2. Recent Accounting Pronouncements
The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and either determined to be not applicable or are expected to have an immaterial impact on the Company’s Consolidated Financial Statements.
In November 2023, the FASB issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this update beginning with the year ended December 31, 2024.
In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (ASU 2023-09), which expands income tax disclosure requirements, including disaggregation of rate reconciliation table categories, disaggregation of earnings before income taxes and income tax expense information, and disaggregation of income taxes paid information, among other changes. This guidance is effective for annual periods beginning after December 15, 2024. The impact of adopting this ASU will include expanded disclosures for income taxes paid and effective tax rate in the Company’s annual Notes to Consolidated Financial Statements.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03), which requires the disclosure of additional information about specific categories of costs and expenses in the notes to consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This ASU will likely result in additional disclosures. We are currently evaluating the provisions of this ASU.
3. Weighted Average Shares Outstanding
Basic earnings per share was calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share was calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and restricted stock awards based upon the average trading price of Roper’s common stock. The effects of potential common stock were determined using the treasury stock method.
Weighted average shares outstanding are presented below:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Basic shares outstanding | 107.6 | 107.1 | 107.5 | 107.0 | |||||||||||||||||||
| Effect of potential common stock: | |||||||||||||||||||||||
| Common stock awards | 0.8 | 0.8 | 0.8 | 0.9 | |||||||||||||||||||
| Diluted shares outstanding | 108.4 | 107.9 | 108.3 | 107.9 |
For the three and six months ended June 30, 2025, there were 0.705 and 0.758 stock-based awards outstanding, respectively, that were not included in the determination of diluted earnings per share because to do so would have been antidilutive, as compared to 0.387 and 0.384 stock-based awards outstanding that would have been antidilutive in the respective comparable periods of 2024.
4. Business Acquisitions
On April 23, 2025, Roper acquired CentralReach Holdings, LLC (“CentralReach”) for a purchase price of $1,850, net of cash acquired and certain liabilities assumed. The purchase price contemplates a net present value tax benefit of approximately $200 which is expected to be utilized over the subsequent 15 years. CentralReach is a leading provider of cloud-based software and artificial intelligence-enabled solutions enabling the workflow and administration of applied behavior analysis (ABA) therapy for autism spectrum disorder (ASD) and related disabilities care. The transaction was funded using borrowings under Roper’s unsecured revolving credit facility. The results of CentralReach are reported in the Application Software reportable segment.
The Company recorded $1,049.0 in goodwill, $48.0 assigned to trade names that are not subject to amortization, and $842.0 of other identifiable intangibles in connection with the CentralReach acquisition. The amortizable intangible assets include customer relationships of $776.0 (19 year useful life) and technology of $66.0 (6 year useful life). Net assets acquired also include approximately $89 of net deferred tax liabilities, primarily attributable to acquired intangible assets, partially offset by federal tax attributes. Approximately $590 of goodwill is expected to be deductible for income tax purposes.
During the six months ended June 30, 2025, Roper completed two bolt-on acquisitions (Muni-Link and Outgo) for purchase prices totaling $157.4, net of cash acquired and certain liabilities assumed.
On February 19, 2025, Roper acquired substantially all of the assets of Muni-Link for a purchase price of $118.0, which contemplates a net present value tax benefit of approximately $20. Muni-Link is a leading provider of cloud-based utility management, billing, and customer communication software solutions for municipalities and other local governments. This acquisition has been integrated into our Neptune business and its results are reported in the Technology Enabled Products reportable segment.
On May 15, 2025, Roper acquired Outgo Inc. (“Outgo”) for a purchase price of $39.4, net of cash acquired and certain liabilities assumed. The purchase price includes $7.3 of equity consideration in the form of common shares transferred from Roper’s treasury stock, measured at fair value. Outgo is a provider of cloud-based freight payment software and artificial intelligence-enabled factoring solutions that automate invoicing, underwriting, payments, and collections for commercial trucking. This acquisition has been integrated into our DAT business and its results are reported in the Network Software reportable segment.
The Company recorded $92.6 in goodwill and $56.5 of other identifiable intangibles in connection with these two bolt-on acquisitions. The amortizable intangible assets include customer relationships of $51.8 (17.0 year weighted average useful life) and technology of $4.7 (5.0 year weighted average useful life). Approximately $74 of goodwill is expected to be deductible for income tax purposes.
The results of operations of the acquired businesses are included in Roper’s Condensed Consolidated Financial Statements from the date of each acquisition. Pro forma results of operations and the revenues and net earnings subsequent to each acquisition date have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to our financial results.
On July 25, 2025, Roper acquired Subsplash TopCo, LLC (“Subsplash”) for a purchase price of approximately $800. Subsplash is a leading provider of artificial-intelligence enabled, cloud-based software providing digital engagement, church management, and integrated giving solutions for faith-based organizations. The results of Subsplash will be reported in the Network Software reportable segment beginning in the third quarter of 2025.
On July 28, 2025, Roper acquired Brickyard Topco, Inc. (“Orchard Software”) for a purchase price of approximately $175. Orchard Software is a provider of laboratory information management systems for hospitals, reference labs, physician groups, and public health entities. This acquisition is being integrated into our Clinisys business and its results will be reported in the Application Software reportable segment beginning in the third quarter of 2025.
On July 30, 2025, Roper acquired Flexport Freight Tech LLC (“Convoy”) for a purchase price of approximately $250, which contemplates a net present value tax benefit of approximately $41. Convoy is a leading provider of automated load management and digital freight-matching technology, matching trusted brokers and carriers for commercial trucking. This acquisition is integrating into our DAT business and its results will be reported in the Network Software reportable segment beginning in the third quarter of 2025.
5. Stock-Based Compensation
The Roper Technologies, Inc. 2021 Incentive Plan is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock and restricted stock units (collectively “restricted stock awards”), stock appreciation rights, or equivalent instruments to Roper’s employees, officers, directors, and consultants.
Information regarding the Company’s stock-based compensation expense, included as a component of “Selling, general and administrative expenses” (“SG&A expenses”), is provided in the following table:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Stock-based compensation | $ | 43.9 | $ | 39.7 | $ | 82.7 | $ | 73.3 | |||||||||||||||
| Tax benefit recognized in net earnings | $ | 6.8 | $ | 6.7 | $ | 13.1 | $ | 12.6 |
The Company accounts for forfeitures of stock-based awards as they occur, with previously recognized compensation reversed in the period in which the awards are forfeited.
Stock Options – During the six months ended June 30, 2025, 0.271 options were granted with a weighted-average fair value of $181.63 per option. During the comparable period in 2024, 0.263 options were granted with a weighted-average fair value of $173.72 per option. All options were granted with an exercise price equal to the closing price of Roper’s common stock on the date of grant, as required by the Company’s stock-based compensation plan.
Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option valuation model. Historical data is used to estimate the expected price volatility, the expected dividend yield, and the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the option.
The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year periods using the Black-Scholes option valuation model:
| Six months ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Risk-free interest rate (%) | 4.10 | 4.17 | |||||||||
| Expected option life (years) | 5.74 | 5.73 | |||||||||
| Expected volatility (%) | 25.10 | 25.57 | |||||||||
| Expected dividend yield (%) | 0.52 | 0.51 |
Cash received from option exercises for the six months ended June 30, 2025 and 2024 was $91.0 and $88.1, respectively.
Restricted Stock Awards – During the six months ended June 30, 2025, the Company granted 0.403 shares of restricted stock awards with a weighted-average grant date fair value of $601.02 per share. During the comparable period in 2024, the Company granted 0.368 shares of restricted stock awards with a weighted-average grant date fair value of $555.12 per share. These awards were granted at the fair market value of the shares on the date of grant.
Restricted stock awards include 0.074 and 0.072 performance-based restricted stock awards granted to certain members of the Roper senior leadership team during the six months ended June 30, 2025 and 2024, respectively, with a weighted-average grant date fair value of $663.42 and $563.03 per share, respectively. Such awards include the ability to earn up to 200% of the number of restricted stock awards originally granted contingent upon Roper’s performance over a three-year period, subject to a market modifier based on the Company’s ranking of total shareholder return relative to the other companies within the Standard & Poor’s 500 Stock Index.
During the six months ended June 30, 2025, 0.102 restricted stock award shares vested with a weighted-average grant date fair value of $479.88 per share and a weighted-average vest date fair value of $579.12 per share. During the comparable period in 2024, 0.105 restricted stock award shares vested with a weighted-average grant date fair value of $438.44 per share and a weighted-average vest date fair value of $555.71 per share.
Employee Stock Purchase Plan – Roper’s employee stock purchase plan (“ESPP”) allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing price on the first and last day of each quarterly offering period. Common stock sold to employees pursuant to the ESPP may be either treasury stock, stock purchased on the open market, or newly issued shares.
During the six months ended June 30, 2025 and 2024, participants of the ESPP purchased 0.026 and 0.021 shares, respectively, of Roper’s common stock for total consideration of $12.5 and $10.3, respectively. All of these shares were purchased from Roper’s treasury shares.
6. Inventories
The components of inventories were as follows:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Raw materials and supplies | $ | 71.5 | $ | 65.5 | |||||||
| Work in process | 28.5 | 32.1 | |||||||||
| Finished products | 44.0 | 34.4 | |||||||||
| Inventory reserves | (11.8) | (11.2) | |||||||||
| Inventories, net | $ | 132.2 | $ | 120.8 |
7. Goodwill and Other Intangible Assets
The carrying value of goodwill by segment was as follows:
| Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||
| Balances at December 31, 2024 | $ | 14,677.6 | $ | 3,706.4 | $ | 928.9 | $ | 19,312.9 | |||||||||||||||||||||
| Goodwill acquired | 1,049.0 | 19.1 | 73.5 | 1,141.6 | |||||||||||||||||||||||||
| Other | 6.3 | 0.4 | 0.4 | 7.1 | |||||||||||||||||||||||||
| Currency translation adjustments | 28.5 | 16.5 | 1.0 | 46.0 | |||||||||||||||||||||||||
| Balances at June 30, 2025 | $ | 15,761.4 | $ | 3,742.4 | $ | 1,003.8 | $ | 20,507.6 |
Other relates to purchase accounting adjustments for completed acquisitions.
Other intangible assets were comprised of:
| Cost | Accumulated amortization | Net book value | |||||||||||||||
| Assets subject to amortization: | |||||||||||||||||
| Customer related intangibles | $ | 11,303.7 | $ | (3,457.0) | $ | 7,846.7 | |||||||||||
| Unpatented technology | 851.7 | (454.7) | 397.0 | ||||||||||||||
| Patents and other protective rights | 9.2 | (1.9) | 7.3 | ||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | 808.6 | — | 808.6 | ||||||||||||||
| Balances at December 31, 2024 | $ | 12,973.2 | $ | (3,913.6) | $ | 9,059.6 | |||||||||||
| Assets subject to amortization: | |||||||||||||||||
| Customer related intangibles | $ | 12,157.7 | $ | (3,802.0) | $ | 8,355.7 | |||||||||||
| Unpatented technology | 860.7 | (457.2) | 403.5 | ||||||||||||||
| Patents and other protective rights | 9.1 | (2.0) | 7.1 | ||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | 861.1 | — | 861.1 | ||||||||||||||
| Balances at June 30, 2025 | $ | 13,888.6 | $ | (4,261.2) | $ | 9,627.4 |
Amortization expense of other intangible assets was $203.0 and $184.9 during the three months ended June 30, 2025 and 2024, respectively, and $397.5 and $363.3 during the six months ended June 30, 2025 and 2024, respectively.
An evaluation of the carrying value of goodwill and other indefinite-lived intangibles is required to be performed on an annual basis, and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. There have been no events or changes in circumstances which indicate an interim impairment review is required in 2025. The Company will perform the annual analysis during the fourth quarter of 2025.
8. Fair Value
Financial assets and liabilities are valued using market prices on active markets (Level 1), less active markets (Level 2), and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Debt – As of June 30, 2025 and December 31, 2024, the total estimated fair value of Roper’s fixed-rate senior notes was $7,189.6 and $7,005.2, respectively. The fair values of the senior notes are based on the trading prices of each series of notes, which the Company has determined to be Level 2 in the FASB fair value hierarchy.
At June 30, 2025 and December 31, 2024, there were $1,400.0 and $125.0 of borrowings outstanding under our unsecured revolving credit facility, respectively. The carrying value of these borrowings approximates their estimated fair value.
Indicor Investment – As of June 30, 2025 and December 31, 2024, the Company held a 44.7% and 45.5% equity interest in Indicor Equity, LLC (“Indicor”), respectively. We elected to apply the fair value option as we believe this is the most reasonable method to value this equity investment. The fair value of Roper’s equity investment in Indicor is estimated on a quarterly basis and the change in fair value is reported as a component of “Equity investments (gain) loss, net” in our Condensed Consolidated Statements of Earnings.
Although we believe our assumptions are considered reasonable and are consistent with the plans and estimates included in our Annual Report, there is significant judgment applied to determine fair value. Changes in estimates or the application of alternative assumptions could produce significantly different results. Our valuation methodology utilizes the market multiple approach consisting of comparable guideline public companies revenue and earnings multiples to estimate the fair value of this equity investment. The fair value of the investment reflects management’s estimate of assumptions that market participants would use in pricing the equity interest, which the Company has determined to be Level 3 in the FASB fair value hierarchy.
The following table provides a reconciliation of the fair value for our equity investment in Indicor measured using Level 3 inputs:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Beginning balance | $ | 728.2 | $ | 740.3 | $ | 772.3 | $ | 675.9 | |||||||||||||||
| Change in fair value | 11.5 | (9.3) | (32.6) | 55.1 | |||||||||||||||||||
| Ending balance | $ | 739.7 | $ | 731.0 | $ | 739.7 | $ | 731.0 |
The Company received dividend distributions from Indicor of $5.1 during the three and six months ended June 30, 2025 and $8.4 during the three and six months ended June 30, 2024, which are reported within “Equity investments (gain) loss, net” in our Condensed Consolidated Statements of Earnings. These dividend distributions were intended to offset certain cash taxes payable associated with Roper’s ownership stake and were contemplated in the determination of the fair value for the equity investment in Indicor.
9. Contingencies
Roper, in the ordinary course of business, is party to various pending or threatened legal actions, including product liability, intellectual property, antitrust, data privacy, and employment practices that, in general, are of a nature consistent with those over the past several years. After analyzing the Company’s contingent liabilities on a gross basis and, based upon past experience with resolution of such legal claims and the availability and limits of the primary, excess, and umbrella liability insurance coverages with respect to pending claims, management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper’s consolidated financial position, results of operations, or cash flows. However, no assurances can be given in this regard.
Roper’s subsidiary, PowerPlan, Inc. (“PowerPlan”), was a defendant in an action that was pending in the U.S. District Court for the Northern District of Georgia (Lucasys Inc. v. PowerPlan, Inc., Case 1:20-cv-02987-AT) in which the plaintiff, a firm started by former PowerPlan employees, alleged PowerPlan had engaged in, among other things, anticompetitive practices in violation of federal antitrust law which impacted the plaintiff’s ability to commercialize its software and services offerings. In January 2025, PowerPlan and the plaintiff agreed to settle the matter and such was fully concluded and cash settled in January 2025 for $24.0 on a pretax basis ($17.7 after taxes).
10. Reportable Segments
The following table presents selected financial information by reportable segment:
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Application Software | Network Software | Technology Enabled Products | Segments Total | Application Software | Network Software | Technology Enabled Products | Segments Total | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,094.9 | $ | 385.4 | $ | 463.3 | $ | 1,943.6 | $ | 931.8 | $ | 364.2 | $ | 420.8 | $ | 1,716.8 | ||||||||||||||||||||||||||||||||||
| Cost of sales | 341.6 | 64.6 | 192.0 | 598.2 | 290.7 | 56.4 | 176.4 | 523.5 | ||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | 458.7 | 151.5 | 107.2 | 717.4 | 390.0 | 148.7 | 97.7 | 636.4 | ||||||||||||||||||||||||||||||||||||||||||
| Operating profit* | $ | 294.6 | $ | 169.3 | $ | 164.1 | $ | 628.0 | $ | 251.1 | $ | 159.1 | $ | 146.7 | $ | 556.9 | ||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | $ | 175.7 | $ | 41.3 | $ | 5.9 | $ | 222.9 | $ | 155.2 | $ | 40.3 | $ | 5.6 | $ | 201.1 | ||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 9.6 | $ | 2.0 | $ | 3.6 | $ | 15.2 | $ | 3.3 | $ | 1.0 | $ | 2.1 | $ | 6.4 | ||||||||||||||||||||||||||||||||||
| Capitalized software expenditures | $ | 14.4 | $ | — | $ | — | $ | 14.4 | $ | 10.5 | $ | 0.4 | $ | — | $ | 10.9 | ||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Application Software | Network Software | Technology Enabled Products | Segments Total | Application Software | Network Software | Technology Enabled Products | Segments Total | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,163.1 | $ | 761.3 | $ | 902.0 | $ | 3,826.4 | $ | 1,827.0 | $ | 735.0 | $ | 835.5 | $ | 3,397.5 | ||||||||||||||||||||||||||||||||||
| Cost of sales | 689.0 | 124.9 | 373.4 | 1,187.3 | 560.2 | 110.9 | 352.1 | 1,023.2 | ||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | 902.7 | 300.4 | 210.9 | 1,414.0 | 776.1 | 298.0 | 200.5 | 1,274.6 | ||||||||||||||||||||||||||||||||||||||||||
| Operating profit* | $ | 571.4 | $ | 336.0 | $ | 317.7 | $ | 1,225.1 | $ | 490.7 | $ | 326.1 | $ | 282.9 | $ | 1,099.7 | ||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | $ | 341.3 | $ | 82.6 | $ | 11.3 | $ | 435.2 | $ | 302.9 | $ | 80.6 | $ | 11.6 | $ | 395.1 | ||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 13.9 | $ | 4.6 | $ | 6.0 | $ | 24.5 | $ | 8.0 | $ | 2.3 | $ | 4.8 | $ | 15.1 | ||||||||||||||||||||||||||||||||||
| Capitalized software expenditures | $ | 26.8 | $ | — | $ | — | $ | 26.8 | $ | 20.0 | $ | 0.5 | $ | — | $ | 20.5 | ||||||||||||||||||||||||||||||||||
- Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $79.7 and $62.7 for the three months ended June 30, 2025 and 2024, respectively, and $151.0 and $124.2 for the six months ended June 30, 2025 and 2024, respectively, and are included within consolidated SG&A expenses to arrive at “Income from operations” in our Condensed Consolidated Statements of Earnings. Items below “Income from operations” are not allocated to reportable segments.
The following table presents selected asset information by reportable segment:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Total assets: | |||||||||||
| Application Software | $ | 25,348.3 | $ | 23,600.9 | |||||||
| Network Software | 5,356.4 | 5,348.0 | |||||||||
| Technology Enabled Products | 1,723.4 | 1,498.1 | |||||||||
| Segments Total | $ | 32,428.1 | $ | 30,447.0 |
11. Revenues from Contracts
Disaggregated Revenue – We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of Software-as-a-Service (“SaaS”), annual term licenses, and software maintenance; (ii) reoccurring revenue comprised of transactional and volume-based fees facilitated through our software; (iii) non-recurring revenue comprised of multi-year term and perpetual software licenses, professional services associated with software products and hardware sold with our software licenses; and (iv) product revenue. See details in the table below:
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue stream | Application Software | Network Software | Technology Enabled Products | Total | Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||||||||||||||||||
| Software related | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | 806.0 | $ | 279.6 | $ | 11.7 | $ | 1,097.3 | $ | 700.2 | $ | 263.1 | $ | 6.2 | $ | 969.5 | ||||||||||||||||||||||||||||||||||
| Reoccurring | 116.8 | 70.6 | — | 187.4 | 80.5 | 66.6 | — | 147.1 | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring | 172.1 | 35.2 | — | 207.3 | 151.1 | 34.5 | — | 185.6 | ||||||||||||||||||||||||||||||||||||||||||
| Total Software Revenue | 1,094.9 | 385.4 | 11.7 | 1,492.0 | 931.8 | 364.2 | 6.2 | 1,302.2 | ||||||||||||||||||||||||||||||||||||||||||
| Product Revenue | — | — | 451.6 | 451.6 | — | — | 414.6 | 414.6 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 1,094.9 | $ | 385.4 | $ | 463.3 | $ | 1,943.6 | $ | 931.8 | $ | 364.2 | $ | 420.8 | $ | 1,716.8 | ||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue stream | Application Software | Network Software | Technology Enabled Products | Total | Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||||||||||||||||||
| Software related | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | 1,575.4 | $ | 554.9 | $ | 20.6 | $ | 2,150.9 | $ | 1,393.8 | $ | 530.9 | $ | 11.8 | $ | 1,936.5 | ||||||||||||||||||||||||||||||||||
| Reoccurring | 250.7 | 138.3 | — | 389.0 | 134.1 | 135.2 | — | 269.3 | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring | 337.0 | 68.1 | — | 405.1 | 299.1 | 68.9 | — | 368.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Software Revenue | 2,163.1 | 761.3 | 20.6 | 2,945.0 | 1,827.0 | 735.0 | 11.8 | 2,573.8 | ||||||||||||||||||||||||||||||||||||||||||
| Product Revenue | — | — | 881.4 | 881.4 | — | — | 823.7 | 823.7 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 2,163.1 | $ | 761.3 | $ | 902.0 | $ | 3,826.4 | $ | 1,827.0 | $ | 735.0 | $ | 835.5 | $ | 3,397.5 | ||||||||||||||||||||||||||||||||||
Remaining Performance Obligations – Remaining performance obligations represent the transaction price of firm orders for which work has not been performed, excluding unexercised contract options. As of June 30, 2025, total remaining performance obligations were $4,581.0. We expect to recognize revenues of $2,961.3, or approximately 65% of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder of the revenue to be recognized thereafter.
Contract balances
| Balance sheet account | June 30, 2025 | December 31, 2024 | Change | ||||||||||||||
| Unbilled receivables | $ | 140.0 | $ | 127.3 | $ | 12.7 | |||||||||||
| Deferred revenue – current | (1,618.1) | (1,737.4) | 119.3 | ||||||||||||||
| Deferred revenue – non-current (1) | (169.6) | (154.7) | (14.9) | ||||||||||||||
| Net contract assets/(liabilities) | $ | (1,647.7) | $ | (1,764.8) | $ | 117.1 |
(1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets.
The change in our net contract assets/(liabilities) from December 31, 2024 to June 30, 2025 was primarily due to the timing of payments and invoicing related to SaaS and post-contract support (“PCS”) renewals, driven predominantly by the SaaS renewal cycle of our Frontline business which primarily occurs in the third quarter.
The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized that was included in the deferred revenue balance on December 31, 2024 and 2023 was $531.6 and $464.2 for the three months ended June 30, 2025 and 2024, respectively, and $1,306.0 and $1,158.1 for the six months ended June 30, 2025 and 2024, respectively. In order to determine revenues recognized in the period from contract liabilities, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance.
The current and non-current portions of deferred commissions are included in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At June 30, 2025 and December 31, 2024, we had $97.2 and $90.5 of total deferred commissions, respectively.
12. Subsequent Events
On July 4, 2025, the U.S. government enacted H.R. 1, the One Big Beautiful Bill Act (the “OBBBA”), which introduced tax reform provisions that amend, eliminate, or extend certain tax rules under the Inflation Reduction Act and the Tax Cuts and Jobs Act. Legislative changes include the repeal of the requirement to capitalize and amortize domestic research and development (“R&D”) expenditures, providing the Company with a cash tax benefit. The Company continues to assess the broader impacts of the OBBBA.
Refer to Note 4 for information regarding business acquisitions.
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