What were the key takeaways from Roper Technologies’s earnings call?

What were the key takeaways from Roper Technologies's earnings call?

What is Roper Technologies's gross profit margin?

What guidance did Roper Technologies's management provide for the next earnings period?

What is Roper Technologies's latest dividend and current dividend yield?

What factors drove the changes in Roper Technologies's revenue and profit?

What is the revenue and EPS growth rate for Roper Technologies year over year?

What does Roper Technologies do and what are its main business segments?

- **Revenue Growth**: 14% total, 6% organic, driven by AI adoption and M&A. Free cash flow up 17% to $842M.
- **AI Momentum**: CentralReach (75% AI bookings), DAT's freight automation, and Subsplash's Pulpit AI show early success.
- **Strategic Moves**: $3B buyback and $1.3B M&A, including Subsplash and CentralReach. DAT's end-to-end automation could save $100-$200 per load.
- **Challenges**: Deltek GovCon delays, Neptune tariffs, and DAT's Convoy acquisition (currently unprofitable).

**【CEO Summary Section】**
- **Q3 2025 Highlights**: Total revenue grew 14% YoY, with 6% organic growth. Free cash flow rose 17% to $842 million, and AI-driven innovations across segments showed early momentum.
- **Strategic Moves**: Announced a $3 billion share buyback program and $1.3 billion in M&A, including Subsplash and CentralReach. Emphasized AI as a long-term growth driver, with examples like CentralReach's 75% AI-enabled bookings and DAT's freight automation.
- **Challenges**: Delays in Neptune due to tariffs and softness in Deltek's GovCon business due to the government shutdown.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $420 million, adjusted DEPS of $5.14 (11% YoY growth). Free cash flow margin at 32% TTM, with $2.4 billion in TTM cash flow.
- **Balance Sheet**: Net debt-to-EBITDA at 3.0x, with $5 billion+ M&A capacity over 12 months. Share buyback program to complement M&A, reflecting confidence in strategy.

**【Segment Performance】**
- **Application Software**: Deltek faced GovCon delays but strong private sector growth. Aderant and CentralReach led AI adoption, with CentralReach's AI tools automating 3.5M learner appointments.
- **Network Segment**: DAT's AI-driven freight matching platform saw ARPU improvements, with Convoy acquisition to accelerate automation. Subsplash's Pulpit AI drove product-led growth.
- **TEP Segment**: Neptune tariffs caused short-term delays, but Verathon and NDI performed well. Neptune's ultrasonic meter strategy and data solutions showed resilience.

**【Q&A Highlights】**
- **Organic Growth Outlook**: 6% organic growth for FY25, with risks from GovCon delays and Neptune tariffs. Expect mid-single-digit growth in Q4, driven by recurring revenue.
- **AI Strategy**: 25+ AI-enabled products across portfolio, with early commercial traction. DAT's end-to-end automation could unlock $100-$200 savings per load.
- **Buyback Decision**: Complements M&A, with no change to capital allocation strategy. Focus on compounding cash flow through acquisitions and internal growth.
- **Neptune Risks**: Tariffs caused surcharge implementation, delaying orders. Neptune's market share remained stable, with long-term growth in data and software solutions.
- **DAT Evolution**: Transitioning from freight matching to fully automated marketplace, with Convoy acquisition to accelerate innovation.

Roper Technologies, Inc. (ROP) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 13% total, 7% organic, driven by AI-enabled solutions and Subsplash acquisition.
- **AI Impact**: 25+ AI products in development, 30% R&D productivity gains, and high-teens bookings growth.
- **Subsplash Potential**: $115M/yr revenue, 15-20% growth, and margin expansion via cost levers.
- **Updated Guidance**: Full-year revenue 13%, debt $1.99-2.00B, with $5B+ M&A firepower.
- **Free Cash Flow**: TTM CAGR 14%, 31% margin, supported by Section 174 repeal savings.


**【CEO Opening Remarks】**
- **Q2 Highlights**: Total revenue grew 13% YoY ($1.94B), with 7% organic growth and 6% from acquisitions. Free cash flow margin (TTM) was 31%, and bookings in the high teens.
- **Subsplash Acquisition**: $800M purchase of faith-based software provider, expected to generate $115M revenue and $36M EBITDA in 12 months. Organic growth of 15-20% and EBITDA margin expansion over 3-5 years.
- **Updated Guidance**: Full-year total revenue guidance raised to 13%, organic growth 6-7%, and debt outlook increased to $1.99-2.00B.
- **Capital Deployment**: $5B+ M&A firepower for high-growth, mission-critical software businesses.

**【CFO Financial Commentary】**
- **Q2 Financials**: EBITDA of $775M (+12% YoY), core segment margin up 70bps YTD. Free cash flow up 10% YoY, TTM CAGR 14% (adjusted for Section 174 repeal).
- **Tax Impact**: $150M tax savings in 2025 from Section 174 repeal, with $120M benefit in 2026.
- **Balance Sheet**: Net debt/EBITDA 2.9x, $1.4B drawn on $3.5B revolver, enabling active M&A pipeline.

**【Segment Highlights】**
- **Application Software**: 17% revenue growth, driven by Aderant (record bookings), Deltek (AI product adoption), and CentralReach (70% new client win rate). AI-enabled solutions contributed to 70bps margin expansion.
- **Network Software**: 6% organic growth, led by DAT (ARPU improvement, Loadlink integration) and Foundry (Nuke Stage traction). Subsplash to be reported in this segment.
- **TEP**: 10% revenue growth, with Neptune and Verathon leading. NDI's precision measurement tech saw strong execution across health care OEMs.

**【Q&A Highlights】**
- **AI Adoption**: 25+ AI-enabled products in market/development, driving bookings and 30% R&D productivity gains. Subsplash's AI-native platform expected to accelerate growth.
- **Government Spending**: Big Beautiful Bill (BBB) expected to unlock GovCon market, with Deltek bookings pipeline improving. Timing uncertain but likely within quarters.
- **Subsplash Growth**: 15-20% organic growth target, with margin expansion via cost optimization and international expansion. 20,000+ faith-based customers, 50% U.S. TAM penetration.
- **Integration Strategy**: ProCare leadership overhaul driving 15%+ organic growth. Neptune's meter-to-cash strategy positions for long-term growth in small municipalities.


Roper Technologies, Inc. (ROP) Q2 2025 Earnings Call Transcript

- **12% Total Revenue Growth**: Driven by 5% organic growth and $175M from acquisitions. Free cash flow over 12 months up 12%.
- **CentralReach Acquisition**: $1.65B deal for ABA therapy software leader with 20%+ growth outlook. GenAI tools improve therapist efficiency, 95% gross retention.
- **EPS Expansion**: Full year EPS range raised to $1.980-$2.005, up $0.01 on both ends. Over $5B M&A firepower remains.
- **AI Momentum**: CentralReach leads with 20%+ AI-driven revenue. Other businesses integrating GenAI for fraud detection, legal workflows.
- **Deltek Risk**: 60% gov con exposure, but 85% recurring revenue provides stability. 2025 outlook assumes 1-2% growth rate reduction.


**【CEO Opening Remarks】**
- Q1 total revenue grew 12% to $1.9 billion, with 5% organic growth and $175 million from acquisitions (Transact, Procare). Free cash flow over 12 months increased 12%.
- CentralReach acquisition completed for $1.65 billion (net of $200M tax benefit), expected to generate $175M revenue and $75M EBITDA in TTM ending June 2026, with 20%+ organic growth outlook.
- Full year guidance updated: total revenue growth raised to 12% (from 10%), organic growth maintained at 6-7%, EPS range expanded to $1.980-$2.005 (up $0.01 on both ends). Over $5B M&A firepower remains.

**【CentralReach Acquisition Details】**
- Market leader in ABA therapy software with 200,000 professionals using platform daily. Serves undersupplied autism care market (900M annual demand vs 300M supplied hours).
- GenAI-powered tools improve therapist efficiency, with 95% gross retention and 115-120% net retention. Growth drivers include product expansion, cross-selling AI solutions, and international expansion.
- Expected to deliver 20%+ revenue/EBITDA growth once organic, with margin expansion as scale benefits kick in.

**【CFO Financial Highlights】**
- Q1 EBITDA $740M (+9%), core EBITDA margin expanded 50bps to 4.8%. Diluted EPS $4.78 vs guidance $4.70-$4.74, driven by margin performance.
- Free cash flow $507M (-1% YoY) due to exceptional Q4 2024 working capital and $24M legal settlement. Structural FCF margin expected to remain ~31-32%.
- Net debt/EBITDA 2.4x post-CentralReach, pro forma leverage ~3x. $5B+ M&A capacity maintained.

**【Segment Performance】**
- **Application Software (+19%):** Deltek (+mid-single), Aderant (record bookings), PowerPlan (SaaS migration), Procare (market share gains). Transact seasonally strong in Q3.
- **Network Software (+1% organic):** DAT (+price actions), Foundry (green shoots post-strike), ConstructConnect (strong bookings), MHA (difficult comp). TEP segment (+6%) driven by Verathon (bronchoscope leadership), Neptune (utility software acquisition), NDI (medical device growth).
- **TEP Segment (+6%):** Verathon and Neptune order momentum improving. CIVCO down on tough comp. NDI winning in orthopedic, radiology, and cardiac ablation markets.

**【Key Risks & Opportunities】**
- Deltek exposed to federal budget uncertainty (60% gov con business), but 85% recurring revenue provides stability. 2025 outlook assumes 1-2% organic growth rate reduction.
- Tariffs impacting TEP segment, but 80%+ USMCA-compliant cross-border flows mitigate risk. Teams actively reworking supply chains.
- AI adoption accelerating across portfolio, with CentralReach leading at 20%+ AI-driven revenue. Other businesses (e.g., DAT fraud detection, Aderant legal workflows) integrating GenAI capabilities.


Roper (ROP)-28 Apr 25-2025 Q1 Earnings call transcript

- **Record Cash Flow**: 2024 free cash flow tops $2 billion (16% growth), highest in company history
- **2025 Outlook**: 10%+ total revenue growth, $19.75-$20 EPS, driven by 6-7% organic growth
- **Acquisition Power**: $5 billion+ M&A capacity to pursue high-growth software businesses
- **Recurring Revenue**: $4.6 billion recurring base growing at high single digits
- **Segment Strength**: All three segments (Software, Test & Measurement, Energy) exceed 6% organic growth

**【CEO Summary Section】**
- **Cash Flow Growth**: 2024 free cash flow grew 16% to over $2 billion, with margins at 32%. 
- **2025 Momentum**: Q4 enterprise bookings accelerated to high teens, supporting 6-7% organic revenue growth and $19.75-$20 EPS guidance.
- **Acquisition Capacity**: Over $5 billion in M&A firepower to pursue high-growth, high-return software businesses.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Revenue: $1.9 billion (16% YoY growth)
  - Organic Growth: 7% (software in line, TEP outperformed)
  - EBITDA: $744 million (13% YoY)
  - Free Cash Flow: $2.0 billion (16% YoY)
- **2024 Full Year**: 
  - Revenue: $7.3 billion (14% YoY)
  - Free Cash Flow: $2.0 billion (16% YoY)
  - Cash Flow Margin: 32%
- **Balance Sheet**: $5.3 billion in liquidity, no debt maturities until 2030.

**【Segment Highlights】**
- **Software Solutions**: 
  - Recurring revenue base: $4.6 billion (high single-digit growth)
  - Gross retention: >90%
  - Acquisitions (Procare, Transact Campus) driving inorganic growth
- **Test & Measurement**: 
  - 11% organic growth
  - Expansion into adjacent markets
- **Energy Systems**: 
  - 10% organic growth
  - Strong execution in power generation & transmission

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