A Analysis of Roper Technologies Inc.'s (ROP) Third Quarter (Q3) 2025 Financial Results
$ROP (Roper Technologies Inc) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company beat expectations with revenue of $2.02 billion (+14% YoY, organic +6%, acquisition +8%; vs. estimated ~$1.98 billion, +2%) and adjusted EPS of $5.14 (vs. estimated $5.11, +0.6%, +17% YoY). GAAP EPS was $3.68 (+10% YoY). Adjusted EBITDA was $810 million (+13% YoY), with free cash flow of $842 million (+17% YoY). ROP shares rose ~3.2% in after-market trading on the revenue and EPS beat, and the new $3 billion share repurchase authorization, highlighting confidence in the business model.
Below is a detailed structured analysis. Data comes from the official press release, earnings call transcript, and post-earnings analysis.
1. Key Consolidated Results
$ROP (Roper Technologies Inc) demonstrated strength in its software model and technology-enabled products, with solid organic growth driven by SaaS and AI, and contributions from acquisitions. The focus on margins and cash flow highlights operational discipline, with EBITDA margin expansion.
Crecimiento: Ingresos +14%, con YTD ~13%. El CEO Neil Hunn destacó: “Roper delivered another strong quarter... with 14% revenue growth, 13% EBITDA growth, and 17% free cash flow growth”.
2. Segment Analysis
$ROP (Roper Technologies Inc) generated balanced growth across segments, with Application Software leading the way in AI and SaaS, while Network and Technology Enabled showed resilience in recurring revenue. Acquisitions such as Subsplash and Orchard contributed.
Observations: Application strong in Deltek and Adarat (AI tools); Network in DAT and Foundry (ARR up); TEP impacted by tariffs in Neptune, but Verathon steady. YTD: Organic consistent ~6%. The CFO commented: “Margin expansion and robust cash flow reflect operational discipline.”
3. Cash Flow, Balance Sheet and Other Indicators
$ROP (Roper Technologies Inc) maintains solid balance sheet with liquidity for M&A ($3B firepower) and repurchases, emphasis on free cash flow conversion >100% of adjusted net income.
Free Cash Flow YTD: Strong, supports $3B repurchase program.
Capex Q3: Low, focus on efficiency.
Q3 Acquisitions: Bolt-ons like Subsplash and Orchard; Robust Pipeline.
Balance Sheet: Cash ~$1.2 billion; net debt/EBITDA ~2.1x; low leverage. Solid interest coverage. Dividend yield ~0.5% (quarterly $0.75/share).
El CEO Hunn señaló: “We remain well positioned to execute our disciplined acquisition approach”.
4. Full Year 2025 Guide and Outlook
$ROP (Roper Technologies Inc) slightly adjusted its FY guidance due to dilution from acquisitions, but reaffirmed organic growth and total revenue. Focus on AI integration and M&A for Q4.
Outlook 2026: Organic +6-8% por AI y SaaS; upside en acquisitions y margin expansion; riesgos: government shutdown impacts, tariffs, FX.
5. Conclusion and Implications
$ROP (Roper Technologies Inc)'s Q3 2025 results highlight its durability in enterprise software, with revenue and EPS beats, solid organic growth, and record FCF, offsetting dilution with strong execution. Tight guidance and a $3B repurchase position ROP for value creation via M&A and AI. Long-term, a diversified portfolio and high margins support the upside. Recommendation: Buy for growth investors (adjusted P/E ~35x, yield ~0.5%); catalysts include Q4 bookings and 2026 acquisitions.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.
$ROP (Roper Technologies Inc) reported its financial results for the third quarter of 2025 (ended September 30, 2025) on October 23, 2025, before the market opened. The company beat expectations with revenue of $2.02 billion (+14% YoY, organic +6%, acquisition +8%; vs. estimated ~$1.98 billion, +2%) and adjusted EPS of $5.14 (vs. estimated $5.11, +0.6%, +17% YoY). GAAP EPS was $3.68 (+10% YoY). Adjusted EBITDA was $810 million (+13% YoY), with free cash flow of $842 million (+17% YoY). ROP shares rose ~3.2% in after-market trading on the revenue and EPS beat, and the new $3 billion share repurchase authorization, highlighting confidence in the business model.
Below is a detailed structured analysis. Data comes from the official press release, earnings call transcript, and post-earnings analysis.
1. Key Consolidated Results$ROP (Roper Technologies Inc) demonstrated strength in its software model and technology-enabled products, with solid organic growth driven by SaaS and AI, and contributions from acquisitions. The focus on margins and cash flow highlights operational discipline, with EBITDA margin expansion.
| Financial Metrics | Q3 2025 (GAAP/Adjusted) | YoY Growth | vs. Estimates | Notes |
| Total Income | $2.02 billion | +14% (org +6%, acq +8%) | Overcome (+2%) | Recurring revenue fuerte; SaaS growth. |
| Adjusted EBITDA | $810 million | +13% | N/A | Margin ~40%; core improvements. |
| GAAP Net Income | $398 million | +8% | N/A | Impact of acquisitions and FX. |
| Adjusted EPS | $5.14 per share | +17% | $5.11 (exceeded +0.6%) | Dilution $0.05 per bolt-on; tax rate ~23%. |
| GAAP EPS (Diluted) | $3.68 | +10% | N/A | Net earnings $398M. |
| Operating Cash Flow | $870 million | N/A | N/A | Strong conversion; robust YTD. |
| Free Cash Flow | $842 million | +17% | N/A | Supports M&A and repurchases. |
| Share Buyback | New authorization $3 billion | N/A | N/A | Trust in value creation. |
Crecimiento: Ingresos +14%, con YTD ~13%. El CEO Neil Hunn destacó: “Roper delivered another strong quarter... with 14% revenue growth, 13% EBITDA growth, and 17% free cash flow growth”.
2. Segment Analysis$ROP (Roper Technologies Inc) generated balanced growth across segments, with Application Software leading the way in AI and SaaS, while Network and Technology Enabled showed resilience in recurring revenue. Acquisitions such as Subsplash and Orchard contributed.
| Segment | Q3 Revenue | Total Growth YoY | Organic Growth YoY | Margin EBITDA |
| Application Software | $1.161 billion | +18% | +6% | 43.4% (+40 bps) |
| Network Software | $413 million | +13% | +6% | 53.7% (+60 bps) |
| Technology Enabled Products | $443 million | +7% | +6% | 35.2% |
| Total Portfolio | $2.02 billion | +14% | +6% | ~40% |
Observations: Application strong in Deltek and Adarat (AI tools); Network in DAT and Foundry (ARR up); TEP impacted by tariffs in Neptune, but Verathon steady. YTD: Organic consistent ~6%. The CFO commented: “Margin expansion and robust cash flow reflect operational discipline.”
3. Cash Flow, Balance Sheet and Other Indicators$ROP (Roper Technologies Inc) maintains solid balance sheet with liquidity for M&A ($3B firepower) and repurchases, emphasis on free cash flow conversion >100% of adjusted net income.
Free Cash Flow YTD: Strong, supports $3B repurchase program.
Capex Q3: Low, focus on efficiency.
Q3 Acquisitions: Bolt-ons like Subsplash and Orchard; Robust Pipeline.
Balance Sheet: Cash ~$1.2 billion; net debt/EBITDA ~2.1x; low leverage. Solid interest coverage. Dividend yield ~0.5% (quarterly $0.75/share).
El CEO Hunn señaló: “We remain well positioned to execute our disciplined acquisition approach”.
4. Full Year 2025 Guide and Outlook$ROP (Roper Technologies Inc) slightly adjusted its FY guidance due to dilution from acquisitions, but reaffirmed organic growth and total revenue. Focus on AI integration and M&A for Q4.
| Metric | MY 2025 | Notes |
| Total Revenue Growth | ~13% | Reaffirmed. |
| Organic Growth | ~6% | Updated; recurring strong. |
| Adjusted EPS | $19.90 - $19.95 | Adjusted for $0.10 acqs dilution. |
| Q4 Adjusted EPS | $5.11 - $5.16 | Includes dilution $0.05. |
| M&A Pipeline | Robust | $3B firepower. |
| Share Repurchase | $3 billion | New authorization. |
Outlook 2026: Organic +6-8% por AI y SaaS; upside en acquisitions y margin expansion; riesgos: government shutdown impacts, tariffs, FX.
5. Conclusion and Implications$ROP (Roper Technologies Inc)'s Q3 2025 results highlight its durability in enterprise software, with revenue and EPS beats, solid organic growth, and record FCF, offsetting dilution with strong execution. Tight guidance and a $3B repurchase position ROP for value creation via M&A and AI. Long-term, a diversified portfolio and high margins support the upside. Recommendation: Buy for growth investors (adjusted P/E ~35x, yield ~0.5%); catalysts include Q4 bookings and 2026 acquisitions.
This analysis is based on public data and is not financial advice. It is for informational purposes only and does not constitute an investment recommendation.