Roper Technologies Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 27 January 2026: press release. Guidance figures: 7 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 10% in fourth quarter: Fourth-quarter revenue reached $2.06 billion, up 10%, with acquisitions adding 5 points and organic growth 4%. Full-year revenue was $7.90 billion, up 12%, including 7 points from acquisitions. Source
• Adjusted DEPS up 8%, GAAP down 7%: Fourth-quarter adjusted diluted EPS (DEPS) rose 8% to $5.21, while GAAP DEPS fell 7% to $3.97. For the year, adjusted DEPS rose 9% to $20.00 and GAAP DEPS fell 1% to $14.20. Source
• Adjusted EBITDA up 10% in quarter: Adjusted EBITDA rose 10% to $818 million in the quarter, with margin at 39.7%, up 10 basis points. For the year, adjusted EBITDA rose 11% to $3.14 billion and margin was 39.8%, down 40 basis points. Source
• Application Software revenue up 16% for year: Application Software revenue was $1,158.9 million in the quarter, up from $1,056.9 million, and $4,483.0 million for the year, up from $3,868.3 million. Quarterly operating margin was 26.6%, against 25.8%. Source
• Gross margin rose in fourth quarter: Gross profit was $1,429.9 million, a 69.5% margin, up from 68.3% a year earlier. For the full year gross margin was 69.2%, against 69.3%. Source
• Full-year operating cash flow up 6%: GAAP operating cash flow was $2.54 billion, up 6%; adjusted operating cash flow was $2.57 billion, up 7%, after $30 million of taxes paid on a divestiture. Adjusted free cash flow was $2.47 billion, up 8%. Source
• Full-year 2026 adjusted DEPS guided: Full-year 2026 guidance is adjusted DEPS of $21.30 to $21.55, total revenue growth of about 8%, and organic revenue growth of 5% to 6%. Source

“2025 was another clear demonstration of Roper’s durable long-term cash flow compounding model,”

Neil Hunn, Roper Technologies’ President and CEO

Guidance

What changed from last quarter

• New guidance: Full-year 2026 guidance initiated for adjusted DEPS, total revenue growth and organic revenue growth. Source
• New guidance: First-quarter 2026 adjusted DEPS guidance initiated. Source
• New: CentralReach is named among 2025 acquisitions, with $3.3 billion deployed on acquisitions in the year. Source

Fourth quarter and full-year results

• Revenue rose 10% in fourth quarter: Fourth-quarter revenue reached $2.06 billion, up 10%, with acquisitions adding 5 points and organic growth 4%. Full-year revenue was $7.90 billion, up 12%, including 7 points from acquisitions. Source
• Adjusted DEPS up 8%, GAAP down 7%: Fourth-quarter adjusted diluted EPS (DEPS) rose 8% to $5.21, while GAAP DEPS fell 7% to $3.97. For the year, adjusted DEPS rose 9% to $20.00 and GAAP DEPS fell 1% to $14.20. Source
• Net earnings gap reflects adjustments: GAAP net earnings fell 7% to $428 million in the quarter, while adjusted net earnings rose 8% to $561 million. Equity investments gain, net was $40.4 million, against $141.0 million a year earlier. Source
• Adjusted EBITDA up 10% in quarter: Adjusted EBITDA rose 10% to $818 million in the quarter, with margin at 39.7%, up 10 basis points. For the year, adjusted EBITDA rose 11% to $3.14 billion and margin was 39.8%, down 40 basis points. Source

Segment results

• Application Software revenue up 16% for year: Application Software revenue was $1,158.9 million in the quarter, up from $1,056.9 million, and $4,483.0 million for the year, up from $3,868.3 million. Quarterly operating margin was 26.6%, against 25.8%. Source
• Network Software margin fell in quarter: Network Software revenue was $426.1 million, up from $373.5 million. Operating margin was 42.6%, down from 46.7% a year earlier; full-year operating margin was 43.5%, against 45.2%. Source
• Technology Enabled Products revenue growth: Technology Enabled Products revenue was $473.6 million in the quarter, up from $446.7 million, and $1,818.7 million for the year, up from $1,695.3 million. Quarterly operating margin was 33.5%, against 33.6%. Source
• Segment operating margin slightly lower: Total segment operating profit was $649.2 million in the quarter, a 31.5% margin against 31.8%. For the year it was $2,525.6 million, a 32.0% margin against 32.2%, before corporate costs. Source

“Roper enters 2026 with a fundamentally stronger foundation, following meaningful enhancements last year to our leadership talent, AI technical capabilities, capital deployment discipline, and operating model.”

Neil Hunn, Roper Technologies’ President and CEO

Margins and cost lines

• Gross margin rose in fourth quarter: Gross profit was $1,429.9 million, a 69.5% margin, up from 68.3% a year earlier. For the full year gross margin was 69.2%, against 69.3%. Source
• SG&A expense up about 11%: SG&A expenses were $841.6 million in the quarter, up from $757.6 million, and $3,236.6 million for the year, up from $2,881.5 million. Cost of sales was $628.7 million, up from $594.8 million. Source
• Corporate costs lower in quarter: Unallocated corporate costs were $60.9 million in the quarter, down from $72.9 million. For the year they were $290.2 million, up from $267.4 million. Source
• Interest expense rose year over year: Interest expense, net was $93.3 million in the quarter, up from $70.8 million, and $325.0 million for the year, up from $259.2 million. Source

Cash flow and capital

• Full-year operating cash flow up 6%: GAAP operating cash flow was $2.54 billion, up 6%; adjusted operating cash flow was $2.57 billion, up 7%, after $30 million of taxes paid on a divestiture. Adjusted free cash flow was $2.47 billion, up 8%. Source
• Fourth-quarter free cash flow up 4%: Fourth-quarter operating cash flow was $738 million, up 2%, and adjusted free cash flow was $714 million, up 4%. Capital expenditures were $10 million and capitalized software $14 million. Source
• Repurchased $500 million of shares: The company repurchased 1.12 million shares for $500 million in the fourth quarter, under the program it recently initiated. Repurchases of common stock were $500.0 million for the year. Source
• Acquisition cash spend of $3.29 billion: Acquisitions of businesses, net of cash acquired, were $3,290.0 million for the year, down from $3,612.9 million. Capital expenditures were $47.4 million, down from $66.0 million. Source
• Dividends paid rose: Cash dividends to stockholders were $355.0 million for the year, up from $321.9 million. Source
• Long-term debt higher at year-end: Long-term debt, net of current portion, was $8,595.8 million at year-end, against $6,579.9 million a year earlier; the current portion was $705.2 million. Year-end cash was $297.4 million. Source

Strategy, AI and leadership

• AI innovation remains a stated focus: Management said it remains focused on accelerating innovation and commercialization of AI across each business. Source
• Leadership and capital discipline enhanced: Management said 2025 brought enhancements to leadership talent, AI technical capabilities, capital deployment discipline and the operating model, which it described as a stronger foundation for 2026. Source

2026 guidance and Indicor stake

• Full-year 2026 adjusted DEPS guided: Full-year 2026 guidance is adjusted DEPS of $21.30 to $21.55, total revenue growth of about 8%, and organic revenue growth of 5% to 6%. Source
• First-quarter 2026 adjusted DEPS guided: First-quarter 2026 adjusted DEPS is guided to $4.95 to $5.00, with GAAP DEPS forecast at $3.42 to $3.47. Source
• Guidance excludes unannounced deals and buybacks: Guidance excludes the impact of unannounced future acquisitions or divestitures, as well as potential share repurchases. Source
• Amortization guided higher for 2026: Estimated 2026 amortization of acquisition-related intangibles is $833 million pretax and $6.10 per share, against $815 million pretax in 2025. Source
• Indicor stake marked to fair value: After the CD&R sale of a majority stake in its industrial businesses, Roper holds a minority interest in Indicor. Its fair value is updated quarterly and reported as equity investments gain, net. Source

Coming up, as management said on 27 January 2026

• Acquisition pipeline and buyback flexibility: Management said the company has significant M&A capacity, a large acquisition pipeline and flexibility to use its repurchase program. Source

Risks management discussed

• Financial: Forecasts exclude Indicor minority-investment impacts, which management said cannot be reasonably predicted, so those impacts remain TBD. Source

Earlier plans management reported on

• Not stated: Management said Indicor-related impacts will be excluded from all non-GAAP results in future periods. Source
• Not stated: Repurchases of 1.12 million shares for $500 million were made under the recently initiated program. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.