Roper Technologies, Inc. (ROP): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that acts more like a private equity firm than a typical software vendor, and honestly, that's the key to understanding Roper Technologies, Inc. (ROP). This firm is a capital deployment machine, compounding cash flow through disciplined M&A across niche software markets, and the numbers for 2025 tell the story: they pulled in $842 million in free cash flow in Q3 2025 while still keeping over $5 billion in M&A firepower ready to go. This whole operation is built on an asset-light model where capital expenditure is only 1.0% to 1.5% of net revenue, which helps drive that high-margin, recurring revenue supporting their full-year adjusted DEPS guidance of $19.90 - $19.95. This isn't just software; it's financial engineering through acquisition. So, let's peel back the layers of the Business Model Canvas to see exactly how Roper Technologies, Inc. (ROP) sustains this unique, resilient structure.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Key Partnerships

You're looking at the structure that powers Roper Technologies, Inc.'s consistent compounding, and the partnerships are where the capital deployment engine really gets its fuel. It's all about disciplined capital allocation, so let's look at the key relationships enabling that strategy as of late 2025.

Pipeline of high-quality acquisition targets

Roper Technologies, Inc. maintains a disciplined approach to acquiring vertical market software businesses, keeping a significant M&A capacity ready. The company entered late 2025 with over $5 billion in available M&A capacity to deploy against attractive opportunities. This pipeline focus is evident in the recent activity, which saw two major software acquisitions completed in 2025 alone.

The execution of this strategy involves deploying substantial capital into niche, high-margin software platforms. For instance, the company deployed $1.3 billion in the third quarter of 2025. This included the $800 million acquisition of Subsplash in July 2025. Earlier in the year, the acquisition of CentralReach closed for $1.65 billion in March 2025.

Here's a snapshot of the recent capital deployment:

Roper Technologies, Inc. has completed 37 acquisitions to date. The company's 2024 deployment toward vertical software acquisitions totaled $3.6 billion.

Private equity firms selling vertical market software (VMS) assets

A key partnership dynamic for Roper Technologies, Inc. involves sourcing deals from private equity (PE) firms looking to exit their investments in specialized software companies. The CentralReach acquisition is a prime example of this partnership structure. Roper Technologies bought CentralReach from the global software investor Insight Partners.

This relationship is critical because PE-backed VMS assets often come with established market leadership and high recurring revenue mixes, which align perfectly with Roper's strategy. The CentralReach deal, for example, was expected to contribute about $175 million in revenue and $75 million in EBITDA for the twelve months ending June 30, 2026.

The nature of these partnerships includes:

• Acquiring businesses with high ROI solutions.
• Securing platforms with high recurring revenue mixes.
• Maintaining existing leadership post-close for CentralReach.
• Targeting maturing leaders in their respective markets.

Technology vendors for AI/ML feature integration across platforms

Roper Technologies, Inc. is actively integrating Artificial Intelligence (AI) and Machine Learning (ML) across its portfolio, which necessitates partnerships with internal and external technology expertise. The company appointed Shane Luke as Senior Vice President of AI and Edward Raffaele as Vice President of AI Engineering in November 2025. Both executives came from Workday.

The internal focus is translating into tangible product enhancements:

• 25 AI-enabled products were either in market or under development as of Q2 2025.
• Deltek has 40 AI features deployed.
• 75% of CentralReach bookings are attributed to AI-enabled products.
• Some business units reported a 30% R&D productivity increase due to AI adoption.

This AI push is intended to strengthen the value delivered to customers and drive long-term growth.

Financial institutions supporting the $3 billion share repurchase program

Roper Technologies, Inc.'s commitment to shareholder return is formalized through significant capital allocation levers. The Board authorized a new share repurchase program for up to $3 billion of common stock on October 23, 2025.

This authorization signals confidence in the company's financial health and cash generation capabilities, which were strong in Q3 2025:

• Operating cash flow increased 15% to $870 million in Q3 2025.
• Free cash flow increased 17% to $842 million in Q3 2025.
• TTM free cash flow represented 32% of revenue.

The execution of this program, whether through open-market purchases or privately negotiated transactions, relies on the backing and facilities provided by major financial institutions, though specific bank partners for this program aren't detailed.

Specialized distributors for Technology Enabled Products like Neptune

Roper Technologies, Inc.'s Technology Enabled Products segment relies on specialized distribution channels to move products like those from Neptune Technology Group. While the company is focused on software, the mention of Neptune highlights the importance of these physical product distribution partnerships.

The operational reliance on this segment is clear from recent guidance adjustments. Management noted that timing delays at Neptune impacted the full-year 2025 organic revenue growth outlook, causing it to be tightened to the 6% area. Separately, there is a potential divestiture of Neptune Technology Group being considered, valued at an estimated $4 billion.

The performance of this segment directly influences overall guidance:

• The Q3 2025 organic revenue growth was 6%, with the guidance adjustment reflecting delays at Neptune.
• The potential sale price for Neptune is estimated at $4 billion.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Key Activities

Disciplined capital deployment for strategic M&A

Roper Technologies, Inc. acts as a capital deployment machine, focusing on acquiring high-quality, asset-light software businesses in niche vertical markets. The company entered 2025 with $5 billion in available M&A capacity. In 2024, Roper deployed $3.6 billion towards acquisitions, including Procare and Transact Campus. The pace continued into 2025; Roper deployed $1.3 billion toward strategic acquisitions in the third quarter of 2025 alone, which included the purchase of Subsplash. The acquisition of CentralReach in April 2025 was valued at approximately $1.65 billion. This latest transaction is projected to add around $175 million in revenue and $75 million in EBITDA for the trailing twelve months ending June 2026. The company's full-year 2024 free cash flow reached $2.3 billion, marking a 16% increase with margins of 32%. For the third quarter of 2025, free cash flow jumped 17% to $842 million. Furthermore, Roper's Board authorized the repurchase of up to $3 billion of common stock in Q3 2025.

The deployment of capital is guided by a relentless focus on Cash Return on Investment (CROI).

Operating a decentralized portfolio of niche market leaders

Roper Technologies, Inc. operates a portfolio of 28 businesses, with each one operating and leading in its specific niche market. The structure emphasizes decentralized operations, allowing subsidiaries to run themselves while the parent company focuses on capital allocation. The portfolio is segmented into Application Software, Network Software & Systems, and Technology Enabled Products.

• Application Software Segment revenue growth in Q2 2025 was 17%.
• Network Software Segment revenue growth in Q2 2025 was 6%.
• The Foundry segment maintained a strong 54.6% EBITDA margin in Q2 2025.

Developing and integrating AI features across software platforms

The innovation pipeline heavily features Artificial Intelligence (AI) to enhance operational efficiency and expand Total Addressable Markets (TAMs). Roper is actively deploying AI-enabled solutions, with 25 products either on the market or under development as of mid-2025. The adoption of AI has unlocked significant productivity gains, cited as a 30% R&D productivity increase in some business units. The acquisition of Subsplash in July 2025 specifically aims to enhance engagement for over 20,000 faith-based customers through advanced AI and cloud solutions. CentralReach, acquired in April 2025, exemplifies this by using AI-driven automation for scheduling and claims processing in healthcare technology. Software bookings grew in the high teens, reflecting strong demand for these AI-enabled solutions.

Sustaining high recurring revenue through subscription management

The model is heavily reliant on high-margin, recurring revenue streams, which provide stability against market cycles. Entering 2025, the recurring revenue base stood at $4.6 billion. This base is expected to grow in the high single-digit range during 2025. Across its software businesses, over 85% of revenue is recurring. For comparison, in 2023, recurring revenue from SaaS, maintenance, and annual licenses accounted for 57% of total revenue. Full-year 2025 total revenue guidance is projected to exceed 10% growth.

Coaching business units to structurally improve organic growth

Roper Technologies targets a structural improvement in organic growth through management and incentive alignment. The company is targeting 6% to 7% organic revenue growth for the full year 2025. This follows a 7% organic growth rate in 2024. The company aims for high single-digit organic growth over the long term. To drive this, sixteen new leaders have been appointed over the past five years. Furthermore, incentives for business unit leaders are now tied more closely to long-term organic growth performance.

Organic growth figures by quarter for 2025 include:

• Q1 2025: 5% organic growth.
• Q2 2025: 7% organic growth.
• Q3 2025: 6% organic growth.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Key Resources

You're looking at the core assets that let Roper Technologies, Inc. (ROP) keep compounding cash flow and executing its strategy. These aren't just abstract concepts; they are hard numbers and proven processes that define the company's competitive moat.

Proprietary vertical market software (VMS) platforms

Roper Technologies, Inc. designs and develops vertical software and technology-enabled products for defensible niche markets, including healthcare, industrial, transportation, and niche enterprise end markets. As of late 2025, the company is a large-cap stock, valued at a market cap of approximately $48 billion. This portfolio of market-leading businesses is the engine for high-margin, recurring revenue streams.

Strong free cash flow generation, $842 million in Q3 2025

The durability of the business model is best seen in its cash generation. For the third quarter of 2025, Roper Technologies delivered outstanding free cash flow of $842 million, representing a 17% increase year-over-year. On a trailing twelve-month basis, this free cash flow represented 32% of revenue. This consistent, high-margin cash flow is the primary fuel for the company's capital deployment strategy.

Here's a quick look at the Q3 2025 financial performance that underpins this resource:

Intellectual property and data assets (e.g., DAT's freight data)

The data assets, particularly within the Network Software segment, are critical. Consider DAT Freight & Analytics, which is transforming into an AI-powered freight marketplace. Its data and analytics service, DAT iQ, provides industry-standard truckload pricing data informed by a database exceeding $1 trillion in freight market transactions since 2010. Furthermore, DAT relies on insights based on more than 400 million annual freight matches. This proprietary data, combined with recent acquisitions like the Convoy tech stack, forms a significant barrier to entry.

The intellectual property extends across the portfolio, with management noting that all businesses are accelerating AI innovation. For example, some units are realizing internal efficiencies and seeing early Average Recurring Revenue (ARR) impact from AI features.

• DAT iQ pricing models trained on $1 trillion in customer-submitted transactions since 2010.
• DAT leverages data from over 400 million annual freight matches.
• The Convoy Platform acquisition accelerates AI-enabled freight automation.
• The company operates market-leading businesses in defensible niche markets.

Proven, process-driven M&A playbook and management team

Roper Technologies utilizes a disciplined, analytical, and process-driven approach to capital redeployment. The management team has a long-term track record of compounding cash flow through this method. In Q3 2025 alone, the company deployed $1.3 billion toward acquisitions, including Subsplash and several bolt-on deals. To give you context on the recent M&A pace, the company deployed $3.6 billion toward high-quality vertical software acquisitions in the full year 2024. The management team remains focused on acquiring businesses that meet historical criteria, even while acknowledging that some recent buys, like the Convoy tech stack, are currently unprofitable but expected to yield attractive long-term returns.

Available M&A firepower of over $5 billion

The company's strong cash generation directly translates into significant capital available for its core strategy. As of late 2025, Roper Technologies states it has significant M&A firepower of over $5 billion available for the next 12 months. This capacity is supplemented by a new capital deployment lever announced in Q3 2025: a share repurchase authorization of up to $3 billion of the Company's common stock. This combination of M&A capacity and shareholder return optionality is a key resource.

Finance: draft 13-week cash view by Friday.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Roper Technologies, Inc. commands its market position as of late 2025. The value proposition centers on providing essential, non-discretionary software to highly specific, niche markets.

Mission-critical, high-ROI software solutions for niche markets

Roper Technologies focuses on software that customers simply must have to run their operations, which supports premium pricing and resilience. The Application Software segment, the largest part of the business, generated net revenues of $3,868.3 million for the full year ended December 31, 2024, making up 55.0% of total net revenues that year. By Q3 2025, total revenue hit $2.02 billion, showing continued growth driven by these mission-critical solutions. The company's focus on niche leadership means competition is often limited in those specific areas. For instance, in Q2 2025, the Application Software segment grew 17% in total revenue, with organic growth of 6%, demonstrating strong underlying demand for these specialized tools.

The high return on investment (ROI) is reflected in the company's profitability metrics. Adjusted EBITDA for Q2 2025 reached $775 million, carrying a margin of 39.9%. This level of margin suggests that the software solutions deliver significant value that far outweighs their cost to the customer.

• Application Software Net Revenues (FY 2024): $3,868.3 million
• Technology Enabled Products Net Revenues (FY 2024): $1,695.3 million
• Network Software Net Revenues (FY 2024): $1,475.6 million

High-margin, recurring revenue streams for stable operations

The business is structured to generate predictable, high-margin income. While the exact recurring revenue percentage for 2025 isn't explicitly stated in the latest reports, the emphasis on software, especially cloud-native offerings like the recently acquired CentralReach, points to a strong recurring base. In Q3 2024, management noted that recurring and reoccurring revenue growth in the Application Software segment was in the high single-digit area, even as non-recurring revenue (like new license sales) was down by low single-digit percentages. This mix provides stability. The company's ability to generate substantial cash flow supports this view; trailing-twelve-months free cash flow grew 12% to reach a 31% free cash flow margin as of Q1 2025.

Here's a look at the financial momentum supporting this high-margin structure:

Specialized application expertise and deep customer intimacy

Roper Technologies builds deep relationships by focusing on the specific needs of its vertical markets. This intimacy allows for product development that directly addresses customer pain points, which is key to maintaining high renewal rates. The company deployed $1.3 billion towards acquisitions, including Subsplash, in Q3 2025, continuing to buy businesses that are leaders in their niches. This strategy ensures that the expertise remains highly specialized within each operating unit.

AI-enabled features driving internal efficiencies (e.g., Deltek's 40 features)

Roper Technologies is actively embedding Artificial Intelligence across its portfolio to enhance customer value and internal efficiency. Specifically within the Deltek business, AI initiatives are clearly driving bookings. As of Q2 2025, AI-enabled solutions were driving high teens software bookings. The company has 25 AI-enabled products either in the market or under development. New Deltek capabilities announced in late 2025 include:

• Deltek Proposals: Aims to reduce proposal creation time by up to 70 percent.
• Deltek Agentic Financial Close: Designed to shorten financial close cycles by several days using AI-powered reconciliation.
• Deltek PPM Enterprise Risk: Provides AI-driven visibility into organization-wide risk exposure.

These features translate directly into efficiency gains for customers operating in complex, project-based environments like government contracting and engineering.

Durable, resilient business model through economic cycles

The model's durability is evident in its consistent performance despite macroeconomic uncertainty. In Q3 2025, management noted they were raising guidance based on resilient demand. Full-year 2025 total revenue growth guidance was raised to approximately 13%, up from an earlier outlook of 10%+. The organic growth rate has remained steady, projected to be 6-7% for the full year 2025, with Q3 2025 actual organic growth coming in at 6%. Furthermore, the company authorized a $3 billion share repurchase program in Q3 2025, signaling strong confidence in its long-term cash generation capabilities, which grew 17% in that quarter alone.

Finance: review the Q4 2025 cash flow forecast against the $2.3 billion FCF generated in 2024.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Customer Relationships

You're looking at how Roper Technologies, Inc. keeps its customers locked in, which is the engine for its consistent cash flow compounding. The relationship model is built on necessity, not just convenience.

High customer retention due to mission-critical solutions

The stickiness of the customer base is remarkable, especially within the Application Software segment. For the enterprise portion of the software recurring revenue, the gross retention rate hovers around ~95%. This high rate is typical for the targets Roper acquires, which often post gross retention rates greater than 95% due to their entrenched positions in niche markets. This suggests the solutions are deeply embedded in the customer's workflow.

Decentralized, direct relationships at the business unit level

Roper Technologies operates with a highly decentralized model. Customer engagement happens directly at the individual business unit level, which allows for deep domain expertise to drive the relationship. This structure helps ensure that the support and product development remain tightly aligned with the specific, often small, addressable market each unit serves. The company believes it is the market leader or a competitive alternative in most of these niche markets.

Long-term contracts and subscription-based pricing models

The financial structure heavily favors recurring revenue streams, which provides excellent visibility. Heading into 2025, the recurring revenue base across the portfolio stood at $4.6 billion. Within the vertical software businesses specifically, more than 85% of sales come from recurring and reoccurring revenue as of Q1 2025. This reliance on subscription-like models is a core strength, as evidenced by the large amounts of deferred revenue often seen in the acquired software companies.

Here's a quick look at the revenue durability metrics reported in early 2025:

Dedicated customer support and professional services for software

For the software offerings, dedicated support is a key component of maintaining those high retention rates. Roper's businesses realize growth through developing new products and delivering professional services. This is critical for complex, mission-critical software where implementation and ongoing optimization are necessary for the customer to extract full value.

Continuous product updates and cloud migration assistance

The push to the cloud is actively supported and reflected in the revenue growth. In Q4 2024, the Application Software segment saw its SaaS revenue grow in the double digits, which was explicitly driven by cloud migration efforts. The company continues to acquire cloud-native providers, such as the recent addition of Subsplash, a cloud-based software provider, which aligns with this strategy. You see this focus on modernizing the installed base as a direct driver of organic growth.

Finance: draft 13-week cash view by Friday.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Channels

You're looking at how Roper Technologies, Inc. gets its mission-critical software and technology-enabled products into the hands of customers, and the numbers show a clear pivot toward recurring software delivery. For the third quarter of 2025, total revenue hit $2.02 billion, with organic growth holding steady at 6%, which speaks volumes about the stickiness of their existing channel relationships. The company's full-year 2025 total revenue growth guidance was raised to the 13% range, with organic growth expected to land between 6% and 7%. This reliance on direct delivery and high-margin software channels is why the trailing-twelve-months (TTM) free cash flow margin stood strong at 32% as of Q3 2025.

The core of the channel strategy involves direct sales teams embedded within each subsidiary, pushing high-value Application Software, which was the largest revenue contributor. For the second quarter of 2025, this segment saw 17% growth overall. The Technology Enabled Products segment, which relies on more specialized product sales channels, delivered 10% revenue growth in Q2 2025, with 9% of that being organic. To give you a concrete look at the channel success across segments for Q3 2025, here's the breakdown:

The Network Software segment, which houses the digital freight marketplace, is a prime example of a specialized channel. DAT was noted as solid in Q3 2025 with strong RPOU (Revenue Per Outstanding Unit/User) improvements, despite the market being stable but bouncing along the bottom. Furthermore, Roper is actively transforming DAT into a digital freight marketplace, evidenced by the strategic integration of Load Link in Q2 2025. This segment's organic growth was 5% in Q2 2025.

Cloud-based software delivery platforms are the engine for the Application Software segment, where SaaS revenue grew in the double digits in the fourth quarter of 2024, fueled by cloud migration. The recent acquisition of Subsplash significantly bolsters the online portals and mobile apps channel, which targets faith-based organizations. You should note these figures:

• Subsplash serves over 20,000 faith-based organizations.
• The acquisition cost was $800 million.
• It is expected to contribute $115 million in revenue in the twelve months ending Q3 2026.
• The business carries a high-teens organic growth rate.

The company's recurring revenue base, which is largely driven by these software delivery channels, stood at $4.6 billion at the end of 2024 and was expected to grow in the high single-digit range for 2025. Finance: draft the Q4 2025 revenue forecast based on the updated 13% total growth guidance by next Tuesday.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Customer Segments

You're looking at how Roper Technologies, Inc. structures its customer base across highly specialized, defensible niche markets. The company's strategy is to acquire and manage market-leading vertical software and technology-enabled product businesses, which means their customer segments are extremely granular and professional-focused.

As of late 2025, Roper Technologies' customer base is heavily weighted toward software users, with 76% of total revenue derived from sticky software companies, and of that software revenue, approximately 80% is recurring, providing significant financial predictability.

The customer segments align closely with Roper Technologies' three operating segments: Application Software, Network Software, and Technology Enabled Products. For the trailing twelve months ending September 30, 2025, Roper Technologies reported total revenue of $7.72B.

Here is a look at the revenue contribution by segment based on the last full fiscal year data, which sets the stage for the 2025 performance:

The Application Software segment, the largest revenue contributor, serves customers in areas like government contracting through businesses such as Deltek, which saw strong growth in that sector. Legal customers are served by businesses like Aderant. For the second quarter of 2025, this segment's revenue was up 17.5% year-over-year to $1.09 billion.

The Network Software segment targets transportation and logistics brokers and carriers primarily through DAT, which contributed to 6% revenue growth in that segment during Q3 2025. The segment's GAAP revenue for Q2 2025 was $385.4 million.

Utility companies for water metering technology are served by Neptune, which resides in the Technology Enabled Products segment. Neptune showed continued strong growth in ultrasonic meter adoption and associated cloud-based software solutions in 2025. This segment posted $463.3 million in revenue for Q2 2025.

Roper Technologies, Inc. has strategically added specific vertical customer bases through acquisitions, solidifying its presence in key areas:

• Healthcare providers are targeted by businesses like CentralReach, which was acquired in March 2025 for $1.65 billion, and other healthcare-focused software providers like MHA, SHP, and SoftWriters.
• Faith-based organizations and churches represent a distinct segment added via the 2025 acquisition of Subsplash for $800 million.

The integration of new customers, like those from the Subsplash acquisition, is factored into forward guidance; for instance, the Subsplash acquisition was expected to be approximately $0.05 dilutive to the full-year 2025 Adjusted Diluted EPS.

You can see the direct impact of these targeted customer groups on recent performance:

• Q3 2025 revenue grew 14% year-over-year to $2.02 billion.
• The Application Software segment was driven by growth in government contracting and other professional services software users.
• Technology Enabled Products revenue increased 10.1% in Q2 2025, showing strong demand from utility and medical device customers.

Finance: draft 13-week cash view by Friday.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Roper Technologies, Inc.'s performance, which is heavily weighted toward acquisitions and high-margin software operations. Honestly, their cost structure is designed to be lean on internal capital needs but aggressive on external growth.

Asset-light model minimizes capital expenditure; cap-ex is only 1.0% to 1.5% of net revenue. This is a key feature of the model, meaning most of the cash flow goes to shareholders or buying new businesses, not building factories. For the third quarter ended September 30, 2025, Capital expenditures were $12 million, and Capitalized software expenditures were $16 million. With Q3 2025 net revenue at $2.02 billion, the combined capital spending represented approximately 1.38% of that quarter's revenue. That's defintely low capital intensity.

High cost of acquisitions is the primary deployment of capital. Roper Technologies deployed $1.3 billion towards acquisitions, including Subsplash and several bolt-on businesses, during Q3 2025. This aggressive M&A spending is central to their growth strategy.

Significant R&D and software development costs for AI integration are embedded within the operating expenses, though some development costs are capitalized. As of December 31, 2024, Roper Technologies had a $271.1 million deferred tax asset related to capitalizing and amortizing Research and Development (R&D) expenditures under IRC Section 174. The Q3 2025 spend on capitalized software was $16 million.

The structure relies on decentralized overhead and low corporate costs, letting portfolio companies run independently. This structure supports very high profitability metrics. For Q3 2025, Adjusted EBITDA reached $810 million, resulting in an Adjusted EBITDA margin of 40.2%.

Interest expense on debt used to fund M&A is a necessary cost given the financing strategy. For Q3 2025, Interest expense, net, was reported at $89.7 million. This follows a period where the company executed significant debt activity; for instance, a proposed $2.0B senior unsecured note plan in March 2025 would have lifted pro-forma net debt to approximately $9.48B.

Here's a look at some of the key cost and expense line items from recent periods:

The operational costs reflect the software focus:

• Over three-fourths of revenue comes from software products.
• Over two-thirds of revenue is from recurring and reoccurring sources.
• The company operates 30 distinct businesses as of late 2025.

Finance: draft 13-week cash view by Friday.

Roper Technologies, Inc. (ROP) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Roper Technologies, Inc. (ROP) revenue streams as of late 2025, and honestly, it's all about the sticky, predictable software dollars now. The company's model is heavily weighted toward recurring revenue, which is what gives it that defensive posture you're tracking.

The shift to a Software-as-a-Service (SaaS) like model means revenue visibility is excellent. To be fair, in Q1 2025, the recurring and reoccurring revenues clocked in at approximately 86.5% of total vertical SaaS revenues. That's a massive base of predictable cash flow right there.

Here are the key financial targets and segment performance indicators shaping the revenue outlook for the full year 2025:

• Total revenue growth for 2025 is expected to be approximately 13%.
• Organic revenue growth for 2025 is anticipated to be approximately 6%.
• The latest full-year 2025 adjusted DEPS (diluted earnings per share) guidance is set in the range of $19.90 - $19.95.

The revenue mix is dominated by the software segments, which consistently deliver those high margins we look for. For instance, in Q3 2025, the total Adjusted EBITDA margin hit 40.2%, showing operational leverage is still working well across the portfolio. Let's look at the segment breakdown from the most recent reported quarter, Q3 2025, and the gross profit margins from Q1 2025 to illustrate the high-margin nature of the software businesses.

The Application Software segment, the largest revenue contributor, showed exceptional momentum, growing 18% year-over-year in Q3 2025, driven by businesses like Deltek and Vertafore. That high gross margin of 69.9% in Q1 2025 for this segment definitely points to the high-margin nature you asked about. The Network Software segment's gross margin was even higher at 85.3% in Q1 2025.

It isn't all software subscriptions, though. Roper Technologies still generates revenue from its Technology Enabled Products, which includes things like meters and medical devices. This segment also contributes to the top line, showing impressive growth in Q2 2025 with 10% revenue growth, of which 9% was organic. So, you've got the stable software base plus growth from the specialized hardware side.

Finance: draft 13-week cash view by Friday.