filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
Roper Technologies, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in millions, except per share data)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenues | $ | 2,108.9 | $ | 1,943.6 | $ | 4,204.2 | $ | 3,826.4 | |||||||||||||||
| Cost of sales | 638.7 | 598.2 | 1,280.2 | 1,187.3 | |||||||||||||||||||
| Gross profit | 1,470.2 | 1,345.4 | 2,924.0 | 2,639.1 | |||||||||||||||||||
| Selling, general and administrative expenses | 885.5 | 797.1 | 1,769.7 | 1,565.0 | |||||||||||||||||||
| Income from operations | 584.7 | 548.3 | 1,154.3 | 1,074.1 | |||||||||||||||||||
| Interest expense, net | 111.4 | 79.1 | 210.7 | 142.0 | |||||||||||||||||||
| Equity investment (gain) loss, net | (835.2) | (16.6) | (1,002.5) | 27.8 | |||||||||||||||||||
| Other expense, net | 0.5 | 0.5 | 3.1 | 1.0 | |||||||||||||||||||
| Earnings before income taxes | 1,308.0 | 485.3 | 1,943.0 | 903.3 | |||||||||||||||||||
| Income taxes | 139.5 | 107.0 | 265.6 | 193.9 | |||||||||||||||||||
| Net earnings | $ | 1,168.5 | $ | 378.3 | $ | 1,677.4 | $ | 709.4 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 11.64 | $ | 3.52 | $ | 16.40 | $ | 6.60 | |||||||||||||||
| Diluted | $ | 11.62 | $ | 3.49 | $ | 16.35 | $ | 6.55 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 100.4 | 107.6 | 102.3 | 107.5 | |||||||||||||||||||
| Diluted | 100.6 | 108.4 | 102.6 | 108.3 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(Amounts in millions)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net earnings | $ | 1,168.5 | $ | 378.3 | $ | 1,677.4 | $ | 709.4 | |||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Foreign currency translation adjustments | (21.8) | 42.7 | (34.1) | 62.4 | |||||||||||||||||||
| Total other comprehensive income (loss), net of tax | (21.8) | 42.7 | (34.1) | 62.4 | |||||||||||||||||||
| Comprehensive income | $ | 1,146.7 | $ | 421.0 | $ | 1,643.3 | $ | 771.8 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in millions)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 364.9 | $ | 297.4 | |||||||
| Accounts receivable, net | 927.2 | 1,001.0 | |||||||||
| Inventories, net | 145.4 | 141.7 | |||||||||
| Income taxes receivable | 73.3 | 128.2 | |||||||||
| Unbilled receivables | 153.8 | 124.0 | |||||||||
| Prepaid expenses and other current assets | 253.9 | 235.8 | |||||||||
| Total current assets | 1,918.5 | 1,928.1 | |||||||||
| Property, plant and equipment, net | 158.7 | 156.9 | |||||||||
| Goodwill | 21,330.7 | 21,341.2 | |||||||||
| Other intangible assets, net | 9,347.3 | 9,764.2 | |||||||||
| Deferred taxes | 67.8 | 73.3 | |||||||||
| Equity investment | 1,792.2 | 796.3 | |||||||||
| Other assets | 554.3 | 517.0 | |||||||||
| Total assets | $ | 35,169.5 | $ | 34,577.0 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
| Accounts payable | $ | 174.1 | $ | 150.3 | |||||||
| Accrued compensation | 232.0 | 293.0 | |||||||||
| Deferred revenue | 1,707.8 | 1,906.8 | |||||||||
| Other accrued liabilities | 588.9 | 642.3 | |||||||||
| Income taxes payable | 49.4 | 28.0 | |||||||||
| Current portion of long-term debt, net | 718.3 | 705.2 | |||||||||
| Total current liabilities | 3,470.5 | 3,725.6 | |||||||||
| Long-term debt, net of current portion | 10,601.1 | 8,595.8 | |||||||||
| Deferred taxes | 1,897.4 | 1,883.1 | |||||||||
| Other liabilities | 500.2 | 491.0 | |||||||||
| Total liabilities | 16,469.2 | 14,695.5 | |||||||||
| Commitments and contingencies (Note 11) | |||||||||||
| Common stock, 350.0 shares authorized; 109.4 shares issued and 98.9 outstanding at June 30, 2026 and 109.3 shares issued and 106.6 outstanding at December 31, 2025 | 1.1 | 1.1 | |||||||||
| Additional paid-in capital | 3,391.9 | 3,292.2 | |||||||||
| Retained earnings | 18,697.6 | 17,205.7 | |||||||||
| Accumulated other comprehensive loss | (135.5) | (101.4) | |||||||||
| Treasury stock, 10.5 shares at June 30, 2026 and 2.7 shares at December 31, 2025 | (3,254.8) | (516.1) | |||||||||
| Total stockholders’ equity | 18,700.3 | 19,881.5 | |||||||||
| Total liabilities and stockholders’ equity | $ | 35,169.5 | $ | 34,577.0 |
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in millions)
| Six months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | 1,677.4 | $ | 709.4 | |||||||
| Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||||||
| Depreciation and amortization of property, plant and equipment | 20.1 | 19.6 | |||||||||
| Amortization of intangible assets | 440.9 | 417.2 | |||||||||
| Amortization of deferred financing costs | 6.3 | 5.5 | |||||||||
| Non-cash stock compensation | 108.2 | 82.7 | |||||||||
| Equity investment (gain) loss, net | (1,002.5) | 27.8 | |||||||||
| Income tax provision | 265.6 | 193.9 | |||||||||
| Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
| Accounts receivable | 71.0 | 37.4 | |||||||||
| Unbilled receivables | (30.8) | (9.7) | |||||||||
| Inventories | (4.9) | (9.6) | |||||||||
| Prepaid expenses and other current assets | (23.3) | (22.9) | |||||||||
| Accounts payable | 24.4 | 7.0 | |||||||||
| Other accrued liabilities | (93.9) | (115.4) | |||||||||
| Deferred revenue | (193.6) | (132.7) | |||||||||
| 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 | (190.2) | (233.7) | |||||||||
| Other, net | (13.1) | (13.5) | |||||||||
| Cash provided by operating activities | 1,061.6 | 932.8 | |||||||||
| Cash flows from (used in) investing activities: | |||||||||||
| Acquisitions of businesses, net of cash acquired | (27.5) | (2,005.2) | |||||||||
| Capital expenditures | (25.3) | (26.0) | |||||||||
| Capitalized software expenditures | (30.9) | (26.8) | |||||||||
| Distributions from equity investment | 6.7 | 5.1 | |||||||||
| Cash receipts on beneficial interest in sold receivables | 4.5 | — | |||||||||
| Other, net | 0.2 | 1.6 | |||||||||
| Cash used in investing activities | (72.3) | (2,051.3) | |||||||||
| Cash flows from (used in) financing activities: | |||||||||||
| Borrowings under revolving credit facility, net | 2,000.0 | 1,275.0 | |||||||||
| Debt issuance costs | (3.9) | — | |||||||||
| Cash dividends to stockholders | (191.4) | (177.2) | |||||||||
| Repurchases of common stock | (2,726.7) | — | |||||||||
| Proceeds from (tax withholding payments for) stock-based compensation, net | (8.6) | 73.8 | |||||||||
| Treasury stock sales under employee stock purchase plan (“ESPP”) | 12.7 | 12.5 | |||||||||
| Other, net | 12.8 | (43.9) | |||||||||
| Cash provided by (used in) financing activities | (905.1) | 1,140.2 | |||||||||
| Effect of exchange rate changes on cash | (16.7) | 32.5 | |||||||||
| Net increase in cash and cash equivalents | 67.5 | 54.2 | |||||||||
| Cash and cash equivalents, beginning of period | 297.4 | 188.2 | |||||||||
| Cash and cash equivalents, end of period | $ | 364.9 | $ | 242.4 | |||||||
| 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)
(Amounts 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, 2026 | $ | 1.1 | $ | 3,334.4 | $ | 17,620.2 | $ | (113.7) | $ | (2,024.0) | $ | 18,818.0 | |||||||||||||||||||||||
| Net earnings | — | — | 1,168.5 | — | — | 1,168.5 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 4.1 | — | — | — | 4.1 | |||||||||||||||||||||||||||||
| Treasury stock sold under ESPP | — | — | — | — | 5.3 | 5.3 | |||||||||||||||||||||||||||||
| Common stock repurchased (1) | — | — | — | — | (1,236.1) | (1,236.1) | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | (21.8) | — | (21.8) | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 54.5 | — | — | — | 54.5 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (1.1) | — | — | — | (1.1) | |||||||||||||||||||||||||||||
| Dividends declared ($0.91 per share) | — | — | (91.1) | — | — | (91.1) | |||||||||||||||||||||||||||||
| Balances at June 30, 2026 | $ | 1.1 | $ | 3,391.9 | $ | 18,697.6 | $ | (135.5) | $ | (3,254.8) | $ | 18,700.3 | |||||||||||||||||||||||
| Balances at December 31, 2025 | $ | 1.1 | $ | 3,292.2 | $ | 17,205.7 | $ | (101.4) | $ | (516.1) | $ | 19,881.5 | |||||||||||||||||||||||
| Net earnings | — | — | 1,677.4 | — | — | 1,677.4 | |||||||||||||||||||||||||||||
| Stock option exercises | — | 12.4 | — | — | — | 12.4 | |||||||||||||||||||||||||||||
| Treasury stock sold under ESPP | — | 0.6 | — | — | 12.1 | 12.7 | |||||||||||||||||||||||||||||
| Common stock repurchased (1) | — | — | — | — | (2,750.8) | (2,750.8) | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | (34.1) | — | (34.1) | |||||||||||||||||||||||||||||
| Stock-based compensation | — | 107.0 | — | — | — | 107.0 | |||||||||||||||||||||||||||||
| Restricted stock activity | — | (20.3) | — | — | — | (20.3) | |||||||||||||||||||||||||||||
| Dividends declared ($1.82 per share) | — | — | (185.5) | — | — | (185.5) | |||||||||||||||||||||||||||||
| Balances at June 30, 2026 | $ | 1.1 | $ | 3,391.9 | $ | 18,697.6 | $ | (135.5) | $ | (3,254.8) | $ | 18,700.3 | |||||||||||||||||||||||
| 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 under ESPP | — | 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 under ESPP | — | 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 |
(1)Amounts include excise tax imposed by the Inflation Reduction Act of 2022, as amended, and broker commissions.
See accompanying notes to Condensed Consolidated Financial Statements.
Roper Technologies, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
(Amounts are in millions, except per share data or as otherwise specified)
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and 2025 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, 2025 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2025 Annual Report on Form 10-K (“Annual Report”) filed on February 24, 2026 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, 2026 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 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.
In September 2025, the FASB issued Accounting Standards Update No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (ASU 2025-06), which updates the threshold for cost capitalization of internal-use software development costs by removing all references to project development stages and adding considerations for evaluating the probable-to-complete recognition threshold. This guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Early adoption is permitted. 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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Basic shares outstanding | 100.4 | 107.6 | 102.3 | 107.5 | |||||||||||||||||||
| Effect of potential common stock: | |||||||||||||||||||||||
| Common stock awards | 0.2 | 0.8 | 0.3 | 0.8 | |||||||||||||||||||
| Diluted shares outstanding | 100.6 | 108.4 | 102.6 | 108.3 |
For the three and six months ended June 30, 2026, there were 2.533 and 2.360 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 0.705 and 0.758 stock-based awards outstanding that would have been antidilutive in the respective comparable periods of 2025.
4. Business Acquisitions
During the six months ended June 30, 2026, Roper completed one business acquisition for a purchase price of $25.0. This acquisition has been integrated into a business within, and its results are reported in, the Network Software reportable segment.
The results of operations of the acquired business are included in Roper’s Condensed Consolidated Financial Statements from the date of acquisition. Pro forma results of operations and the revenues and net earnings subsequent to the acquisition date have not been presented because the effects of the acquisition were not material to our financial results.
5. Stock-Based Compensation
The Roper Technologies, Inc. 2021 Incentive Plan, as amended (the “Amended 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. The amendment to the 2021 Incentive Plan, which was approved by shareholders at the Annual Meeting of Shareholders on May 19, 2026 (the “Annual Meeting”), increased the number of shares available to grant under the Amended Incentive Plan.
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Stock-based compensation | $ | 55.6 | $ | 43.9 | $ | 108.2 | $ | 82.7 | |||||||||||||||
| Tax benefit recognized in net earnings | $ | 8.3 | $ | 6.8 | $ | 16.3 | $ | 13.1 |
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, 2026, 0.544 options were granted with a weighted-average fair value of $91.94 per option. During the comparable period in 2025, 0.271 options were granted with a weighted-average fair value of $181.63 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 award.
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, | |||||||||||
| 2026 | 2025 | ||||||||||
| Risk-free interest rate (%) | 3.81 | 4.10 | |||||||||
| Expected option life (years) | 5.77 | 5.74 | |||||||||
| Expected volatility (%) | 21.82 | 25.10 | |||||||||
| Expected dividend yield (%) | 0.96 | 0.52 |
Cash received from option exercises during the six months ended June 30, 2026 and 2025 was $11.7 and $91.0, respectively.
Restricted Stock Awards – During the six months ended June 30, 2026, the Company granted 0.845 shares of restricted stock awards in total, with a weighted-average grant date fair value of $352.88 per share. During the comparable period in 2025, the Company granted 0.403 shares of restricted stock awards in total, with a weighted-average grant date fair value of $601.02 per share. These awards were granted at the fair market value of the shares on the date of grant.
Restricted stock awards include 0.157 and 0.074 performance-based restricted stock awards granted to certain members of the Roper senior leadership team during the six months ended June 30, 2026 and 2025, respectively, with weighted-average grant date fair values of $353.87 and $663.42 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.
During the six months ended June 30, 2026, 0.156 shares of restricted stock awards vested with a weighted-average grant date fair value of $488.23 per share and a weighted-average vest date fair value of $356.65 per share. During the comparable period in 2025, 0.102 shares of restricted stock awards 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.
Employee Stock Purchase Plan – Through June 30, 2026, Roper’s ESPP allowed eligible employees in the U.S. and Canada to contribute up to 10% of their eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing share price on the first or the last day of each quarterly offering period.
During the six months ended June 30, 2026 and 2025, participants of the ESPP purchased 0.041 and 0.026 shares, respectively, of Roper’s common stock for total consideration of $12.7 and $12.5, respectively. All of these shares were purchased from Roper’s treasury shares.
The Roper Technologies, Inc. Employee Stock Purchase Plan was amended and restated (the “Amended ESPP”) and became effective on July 1, 2026, following shareholder approval at the Annual Meeting.
Under the Amended ESPP, eligible employees in the U.S. and Canada will be able to contribute up to 15% of their eligible earnings to purchase Roper’s common stock at a 15% discount on the lower of the closing share price on the first or the last day of each offering period. The Company may change the length of offering periods as well as their start and end dates. Shares sold under the Amended ESPP may originate from treasury stock, shares purchased on the open market, or newly issued shares.
6. Stockholders’ Equity
In October 2025, the Company’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $3,000.0 of the Company’s common stock, and in April 2026 approved an additional $3,000.0 of repurchase authorization under the program. Shares of common stock may be repurchased from time to time through open market purchases or privately negotiated transactions, including under repurchase plans complying with Rule 10b5-1 under the Exchange Act, and subject to market conditions, applicable legal requirements, and other relevant factors. The repurchase program does not have a fixed expiration date, does not obligate the Company to acquire any specific number of shares, and may be suspended at any time at the Company’s discretion. The timing, manner, price, and amount of any repurchases made will be determined by the Company in its discretion and will depend on a variety of factors, including price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.
During the six months ended June 30, 2026, the Company repurchased 7.865 shares of its common stock for an aggregate purchase price of $2,724.1 and an average price paid per share of $346.34. The aggregate purchase price and average price paid per share exclude excise tax imposed by the Inflation Reduction Act of 2022, as amended, and broker commissions. All repurchases were made in open market transactions and there are no current plans to retire repurchased shares. As of June 30, 2026, $2,775.9 of the total amount authorized under the share repurchase program remained available for future repurchases.
7. Inventories
The components of inventories were as follows:
| June 30, 2026 | December 31, 2025 | ||||||||||
| Raw materials and supplies | $ | 73.0 | $ | 71.8 | |||||||
| Work in process | 33.3 | 29.3 | |||||||||
| Finished products | 51.3 | 51.9 | |||||||||
| Inventory reserves | (12.2) | (11.3) | |||||||||
| Inventories, net | $ | 145.4 | $ | 141.7 |
8. 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, 2025 | $ | 15,917.2 | $ | 4,420.1 | $ | 1,003.9 | $ | 21,341.2 | |||||||||||||||||||||
| Goodwill acquired | — | 17.6 | — | 17.6 | |||||||||||||||||||||||||
| Other | (6.7) | (1.9) | — | (8.6) | |||||||||||||||||||||||||
| Currency translation adjustments | (12.3) | (6.3) | (0.9) | (19.5) | |||||||||||||||||||||||||
| Balances at June 30, 2026 | $ | 15,898.2 | $ | 4,429.5 | $ | 1,003.0 | $ | 21,330.7 |
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 | $ | 12,301.5 | $ | (3,894.6) | $ | 8,406.9 | |||||||||||
| Unpatented technology | 880.3 | (425.6) | 454.7 | ||||||||||||||
| Patents and other protective rights | 9.1 | (2.3) | 6.8 | ||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | 895.8 | — | 895.8 | ||||||||||||||
| Balances at December 31, 2025 | $ | 14,086.7 | $ | (4,322.5) | $ | 9,764.2 | |||||||||||
| Assets subject to amortization: | |||||||||||||||||
| Customer related intangibles | $ | 12,287.0 | $ | (4,234.9) | $ | 8,052.1 | |||||||||||
| Unpatented technology | 848.0 | (453.2) | 394.8 | ||||||||||||||
| Patents and other protective rights | 9.1 | (2.5) | 6.6 | ||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | 893.8 | — | 893.8 | ||||||||||||||
| Balances at June 30, 2026 | $ | 14,037.9 | $ | (4,690.6) | $ | 9,347.3 |
Amortization expense of other intangible assets was $207.7 and $203.0 during the three months ended June 30, 2026 and 2025, respectively, and $415.8 and $397.5 during the six months ended June 30, 2026 and 2025, 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 2026. The Company will perform the annual analysis during the fourth quarter of 2026.
9. Long-Term Debt
On March 30, 2026, the Company entered into a new five-year unsecured credit facility (the “Credit Agreement”) among Roper, the financial institutions from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A. and Wells Fargo Bank, National Association, as syndication agents, and PNC Bank, National Association, Truist Bank, U.S. Bank National Association, The Huntington National Bank, Royal Bank of Canada, The Toronto-Dominion Bank, New York Branch, and MUFG Bank, Ltd., as documentation agents, which replaced the previous $3,500.0 unsecured credit facility, dated as of July 21, 2022. The Credit Agreement comprises a five-year $3,500.0 unsecured revolving credit facility, which includes availability of up to $150.0 for letters of credit. Loans under the unsecured credit facility are available in dollars, and letters of credit will be available in dollars and other currencies to be agreed. The Company may also, subject to compliance with specified conditions, request additional term loans or revolving credit commitments in an aggregate amount not to exceed $1,000.0.
The Company has the right to add foreign subsidiaries as borrowers under the Credit Agreement, subject to the satisfaction of specified conditions. The Company will guarantee the payment and performance by foreign subsidiary borrowers for any of their obligations under the Credit Agreement. The Company’s obligations under the Credit Agreement are not guaranteed by any of its subsidiaries. However, the Company has the right, subject to the satisfaction of certain conditions set forth in the Credit Agreement, to cause any of its wholly-owned domestic subsidiaries to become guarantors.
Loans under the Credit Agreement can be borrowed as term Secured Overnight Financing Rate (“SOFR”) loans or Alternate Base Rate (“ABR”) loans, at the Company’s option. Each term SOFR loan will bear interest at a rate per annum equal to the applicable term SOFR rate plus a spread ranging from 0.795% to 1.300%, as determined by the Company’s senior unsecured long-term debt rating at such time. Based on the Company’s current credit rating, the spread for SOFR loans would be 0.920%. Each ABR loan will bear interest at a rate per annum equal to the Alternate Base Rate plus a spread ranging from 0.000% to 0.300%, as determined by the Company’s senior unsecured long-term debt rating at such time. Based on the Company’s current credit rating, the spread for ABR loans would be 0.000%.
Outstanding letters of credit issued under the Credit Agreement are charged a quarterly fee depending on the Company’s senior unsecured long-term debt rating. Based on the Company’s current credit rating, the quarterly fee would be payable at a rate of 0.920% per annum, plus a fronting fee of 0.125% per annum on the undrawn and unexpired amount of all letters of credit.
Additionally, the Company will pay a quarterly facility fee on the used and unused portions of the unsecured revolving credit facility depending on the Company’s senior unsecured long-term debt rating. Based on the Company’s current credit rating, the quarterly facility fee would accrue at a rate of 0.080% per annum.
Amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of customary events of default. The Credit Agreement requires the Company to maintain a Total Debt to Total Capital Ratio of 0.65 to 1.00, or less. Borrowings under the Credit Agreement are prepayable at the Company’s option at any time in whole or in part without premium or penalty.
10. 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, 2026 and December 31, 2025, the total estimated fair value of Roper’s fixed-rate senior notes was $8,154.1 and $8,287.4, 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, 2026 and December 31, 2025, there were $2,850.0 and $850.0 of borrowings outstanding under our unsecured revolving credit facility, respectively. The carrying value of these borrowings approximates their estimated fair value.
Indicor Equity Investment – As of June 30, 2026 and December 31, 2025, the Company held a 43.4% and 43.8% 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 changes in fair value are reported as a component of “Equity investment (gain) loss, net” in our Condensed Consolidated Statements of Earnings.
On May 5, 2026, Indicor entered into a definitive agreement to divest its portfolio of instrumentation businesses (“Indicor Instrumentation”) to AMETEK, Inc. for an enterprise value of approximately $5.0 billion. The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close in the second half of 2026. Following closing of the Indicor Instrumentation transaction, Roper expects to receive pre-tax cash proceeds of approximately $1.3 billion, including current estimates for purchase price adjustments and transaction costs which are subject to finalization. In addition, as a result of the planned divestiture, Roper’s requirement to make quarterly payments to Clayton Dubilier & Rice, LLC, either (i) in cash or (ii) in-kind through the transfer of Roper’s equity interests in Indicor, was suspended indefinitely, as reflected in the valuation.
We estimate the fair value of our equity investment using the market multiple approach, based on revenue and earnings multiples of comparable guideline public companies. In light of the anticipated Indicor Instrumentation transaction, we updated certain valuation assumptions, including the selection of multiples which considered the enterprise value implied by this planned transaction.
The fair value of our equity investment, consisting of our equity interests in Indicor’s instrumentation and flow controls businesses, reflects management’s estimate of assumptions that market participants would use in pricing the equity interests, which the Company has determined to be Level 3 in the FASB fair value hierarchy. Although we believe our assumptions are reasonable, there is significant judgment in determining fair value. Changes in estimates or the application of alternative assumptions could produce significantly different results.
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Beginning balance | $ | 963.6 | $ | 728.2 | $ | 796.3 | $ | 772.3 | |||||||||||||||
| Changes in fair value | 828.6 | 11.5 | 995.9 | (32.6) | |||||||||||||||||||
| Ending balance | $ | 1,792.2 | $ | 739.7 | $ | 1,792.2 | $ | 739.7 |
The Company received $6.7 of dividend distributions from Indicor during the three and six months ended June 30, 2026, and received $5.1 of dividend distributions from Indicor during the three and six months ended June 30, 2025, which are reported within “Equity investment (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.
Receivables Purchase Agreement – Outgo Inc. (“Outgo”), a freight payment software and factoring solutions subsidiary integrated into our DAT business, entered into a receivables purchase agreement (“RPA”) under which certain Outgo factored receivables are sold to a third-party financial institution on a non-recourse basis and derecognized upon sale. Sales of Outgo factored receivables did not result in a material gain or loss. As a part of the RPA, Outgo continues to perform certain collection and administrative functions for receivables sold to the purchaser. Under the agreement, Outgo retains a beneficial interest representing the deferred purchase price, which is paid to Outgo following collection of the underlying receivables. The fair value of this beneficial interest was $10.1 at June 30, 2026. Cash inflows received on the beneficial interest totaled $4.5 for the six months ended June 30, 2026 and are reported within investing activities in our Condensed Consolidated Statement of Cash Flows.
11. 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.
12. Reportable Segments
The following table presents selected financial information by reportable segment:
| Three months ended June 30, 2026 | Three months ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Application Software | Network Software | Technology Enabled Products | Segments Total | Application Software | Network Software | Technology Enabled Products | Segments Total | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 1,180.8 | $ | 430.9 | $ | 497.2 | $ | 2,108.9 | $ | 1,094.9 | $ | 385.4 | $ | 463.3 | $ | 1,943.6 | ||||||||||||||||||||||||||||||||||
| Cost of sales | 357.1 | 67.5 | 214.1 | 638.7 | 341.6 | 64.6 | 192.0 | 598.2 | ||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | 499.7 | 186.8 | 117.4 | 803.9 | 458.7 | 151.5 | 107.2 | 717.4 | ||||||||||||||||||||||||||||||||||||||||||
| Operating profit* | $ | 324.0 | $ | 176.6 | $ | 165.7 | $ | 666.3 | $ | 294.6 | $ | 169.3 | $ | 164.1 | $ | 628.0 | ||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | $ | 181.1 | $ | 42.8 | $ | 6.0 | $ | 229.9 | $ | 175.7 | $ | 41.3 | $ | 5.9 | $ | 222.9 | ||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 3.8 | $ | 2.7 | $ | 3.9 | $ | 10.4 | $ | 9.6 | $ | 2.0 | $ | 3.6 | $ | 15.2 | ||||||||||||||||||||||||||||||||||
| Capitalized software expenditures | $ | 15.3 | $ | — | $ | 0.2 | $ | 15.5 | $ | 14.4 | $ | — | $ | — | $ | 14.4 | ||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2026 | Six months ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Application Software | Network Software | Technology Enabled Products | Segments Total | Application Software | Network Software | Technology Enabled Products | Segments Total | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | 2,372.3 | $ | 858.5 | $ | 973.4 | $ | 4,204.2 | $ | 2,163.1 | $ | 761.3 | $ | 902.0 | $ | 3,826.4 | ||||||||||||||||||||||||||||||||||
| Cost of sales | 726.0 | 134.7 | 419.5 | 1,280.2 | 689.0 | 124.9 | 373.4 | 1,187.3 | ||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | 1,003.1 | 373.4 | 233.8 | 1,610.3 | 902.7 | 300.4 | 210.9 | 1,414.0 | ||||||||||||||||||||||||||||||||||||||||||
| Operating profit* | $ | 643.2 | $ | 350.4 | $ | 320.1 | $ | 1,313.7 | $ | 571.4 | $ | 336.0 | $ | 317.7 | $ | 1,225.1 | ||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | $ | 362.1 | $ | 85.6 | $ | 11.7 | $ | 459.4 | $ | 341.3 | $ | 82.6 | $ | 11.3 | $ | 435.2 | ||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 9.9 | $ | 4.2 | $ | 9.1 | $ | 23.2 | $ | 13.9 | $ | 4.6 | $ | 6.0 | $ | 24.5 | ||||||||||||||||||||||||||||||||||
| Capitalized software expenditures | $ | 30.5 | $ | — | $ | 0.4 | $ | 30.9 | $ | 26.8 | $ | — | $ | — | $ | 26.8 | ||||||||||||||||||||||||||||||||||
*Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $81.6 and $79.7 for the three months ended June 30, 2026 and 2025, respectively, and $159.4 and $151.0 for the six months ended June 30, 2026 and 2025, 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, 2026 | December 31, 2025 | ||||||||||
| Segments total assets: | |||||||||||
| Application Software | $ | 25,038.3 | $ | 25,372.6 | |||||||
| Network Software | 6,383.3 | 6,458.7 | |||||||||
| Technology Enabled Products | 1,764.6 | 1,666.0 | |||||||||
| Segments Total | $ | 33,186.2 | $ | 33,497.3 |
13. 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 post-contract support (“PCS”); (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, 2026 | Three months ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue stream | Application Software | Network Software | Technology Enabled Products | Total | Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||||||||||||||||||
| Software related | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | 887.8 | $ | 314.2 | $ | 14.4 | $ | 1,216.4 | $ | 806.0 | $ | 279.6 | $ | 11.7 | $ | 1,097.3 | ||||||||||||||||||||||||||||||||||
| Reoccurring | 117.6 | 84.6 | — | 202.2 | 116.8 | 70.6 | — | 187.4 | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring | 175.4 | 32.1 | — | 207.5 | 172.1 | 35.2 | — | 207.3 | ||||||||||||||||||||||||||||||||||||||||||
| Total Software Revenue | 1,180.8 | 430.9 | 14.4 | 1,626.1 | 1,094.9 | 385.4 | 11.7 | 1,492.0 | ||||||||||||||||||||||||||||||||||||||||||
| Product Revenue | — | — | 482.8 | 482.8 | — | — | 451.6 | 451.6 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 1,180.8 | $ | 430.9 | $ | 497.2 | $ | 2,108.9 | $ | 1,094.9 | $ | 385.4 | $ | 463.3 | $ | 1,943.6 | ||||||||||||||||||||||||||||||||||
| Six months ended June 30, 2026 | Six months ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue stream | Application Software | Network Software | Technology Enabled Products | Total | Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||||||||||||||||||
| Software related | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | 1,768.0 | $ | 625.0 | $ | 27.9 | $ | 2,420.9 | $ | 1,575.4 | $ | 554.9 | $ | 20.6 | $ | 2,150.9 | ||||||||||||||||||||||||||||||||||
| Reoccurring | 257.0 | 169.1 | — | 426.1 | 250.7 | 138.3 | — | 389.0 | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring | 347.3 | 64.4 | — | 411.7 | 337.0 | 68.1 | — | 405.1 | ||||||||||||||||||||||||||||||||||||||||||
| Total Software Revenue | 2,372.3 | 858.5 | 27.9 | 3,258.7 | 2,163.1 | 761.3 | 20.6 | 2,945.0 | ||||||||||||||||||||||||||||||||||||||||||
| Product Revenue | — | — | 945.5 | 945.5 | — | — | 881.4 | 881.4 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | 2,372.3 | $ | 858.5 | $ | 973.4 | $ | 4,204.2 | $ | 2,163.1 | $ | 761.3 | $ | 902.0 | $ | 3,826.4 | ||||||||||||||||||||||||||||||||||
Remaining Performance Obligations – Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed, excluding unexercised contract options. As of June 30, 2026, total remaining performance obligations were $5,222.6. We expect to recognize revenues on approximately 63%, or $3,286.0, 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, 2026 | December 31, 2025 | Change | ||||||||||||||
| Unbilled receivables | $ | 153.8 | $ | 124.0 | $ | 29.8 | |||||||||||
| Deferred revenue – current | (1,707.8) | (1,906.8) | 199.0 | ||||||||||||||
| Deferred revenue – non-current (1) | (170.4) | (170.8) | 0.4 | ||||||||||||||
| Net contract assets/(liabilities) | $ | (1,724.4) | $ | (1,953.6) | $ | 229.2 |
(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, 2025 to June 30, 2026 was primarily due to the timing of payments and invoicing related to SaaS and 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, 2025 and 2024 was $573.5 and $531.6 for the three months ended June 30, 2026 and 2025, respectively, and $1,422.8 and $1,306.0 for the six months ended June 30, 2026 and 2025, 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, 2026 and December 31, 2025, we had $118.9 and $113.6 of total deferred commissions, respectively.
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