ROP

Technology

Roper Technologies

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Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.1B	$2.3B	$2.0B	$2.4B	$2.8B	$3.0B	$3.2B	$3.5B	$3.6B	$3.8B	$4.6B	$5.2B	$5.4B	$5.5B	$5.8B	$5.4B	$6.2B	$7.0B	$7.9B	+12.3%
Gross Profit	$1.1B	$1.2B	$1.0B	$1.3B	$1.5B	$1.7B	$1.9B	$2.1B	$2.2B	$2.3B	$2.9B	$3.3B	$3.4B	$3.5B	$3.9B	$3.8B	$4.3B	$4.9B	$5.5B	+12.2%
Gross Margin	50.4%	51.5%	50.9%	53.4%	54.2%	55.8%	58.1%	59.2%	60.4%	61.5%	62.2%	63.2%	63.9%	64.1%	67.8%	69.9%	69.7%	69.3%	69.2%	-0.1pp
Operating Income	$438.4M	$486.2M	$395.4M	$514.3M	$660.5M	$757.6M	$842.4M	$999.5M	$1.0B	$1.1B	$1.2B	$1.4B	$1.5B	$1.4B	$1.5B	$1.5B	$1.7B	$2.0B	$2.2B	+11.9%
Operating Margin	20.9%	21.1%	19.3%	21.6%	23.6%	25.3%	26.0%	28.2%	28.7%	27.8%	26.3%	26.9%	27.9%	25.9%	25.6%	28.4%	28.2%	28.4%	28.3%	-0.1pp
Net Income	$245.7M	$281.9M	$239.5M	$322.6M	$427.2M	$483.4M	$538.3M	$646.0M	$696.1M	$658.6M	$971.8M	$944.4M	$1.8B	$949.7M	$1.2B	$4.5B	$1.4B	$1.5B	$1.5B	-0.8%
Net Margin	11.7%	12.2%	11.7%	13.5%	15.3%	16.1%	16.6%	18.2%	19.4%	17.4%	21.1%	18.2%	32.9%	17.2%	19.9%	84.6%	22.4%	22.0%	19.4%	-2.6pp
Free Cash Flow	$313.7M	$404.4M	$341.6M	$470.9M	$560.9M	$639.4M	$760.0M	$802.8M	—	$926.5M	$1.2B	$1.4B	$1.4B	$1.5B	$2.0B	$694.5M	$2.0B	$2.3B	$2.5B	+7.1%
FCF Margin	14.9%	17.5%	16.7%	19.7%	20.1%	21.4%	23.5%	22.6%	—	24.4%	25.7%	26.6%	26.3%	27.0%	34.3%	12.9%	31.8%	33.1%	31.5%	-1.5pp
EPS (Diluted)	$2.64	$3.01	$2.58	$3.34	$4.34	$4.86	$5.37	$6.40	$6.85	$6.43	$9.39	$9.05	$16.82	$8.98	$10.82	$42.55	$12.89	$14.35	$14.20	-1.0%

Total Debt$9.3B

Cash & Equiv.$297.4M

Net Debt$9.0B

3 min read

1. THE BIG PICTURE

Roper Technologies is essentially a software-focused compounding machine that uses a "private equity-like" approach to dominate niche markets. By prioritizing "customer intimacy" and "defensible niches," Roper Technologies maintains high margins while using a decentralized operating structure to rapidly integrate $3.3 billion in annual acquisitions (10-K Item 1, 8-K).

2. WHERE THE RISKS HIT HARDEST

Roper Technologies’s "market leadership" in niche markets is threatened by its $9,355.9 million debt load because high leverage restricts the financial flexibility needed to defend these positions or fund the next acquisition cycle (10-K Item 1A, 8-K). Furthermore, the "proprietary data" advantage Roper Technologies cites is directly threatened by its reliance on third-party cloud providers like AWS and Azure; a major security breach could compromise the very data that drives its AI-enabled product differentiation (10-K Item 1A). Finally, the acquisition-led growth strategy is inherently tied to a $21.3 billion goodwill balance—representing 62% of total assets—meaning any failure to hit anticipated cash flow levels from new units like CentralReach or Subsplash could trigger a material non-cash impairment charge (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

While revenue grew 10% in the fourth quarter of 2025, GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow net earnings actually fell 7% to $428 million (8-K). This divergence suggests that while the top-line acquisition engine is performing, the costs of integration or debt service may be weighing on the bottom line. Revenue growth of 12.3% (TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter) is currently outpacing the 2026 organic growth guidance of 5%–6%, indicating that Roper Technologies' expansion remains heavily dependent on external deal-making rather than internal product cycles (8-K, XBRL). Despite this reliance on deals, market sentiment remains stable; short interest is low at 2.8% of the float (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At 15.1x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~3.0% long-term growth (CAPM analysis). This represents a modest discount compared to the peer median of 18.1x (XBRL). Given a TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth rate of 12.3% and a high FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin of 31.9%, the 3% market-implied rate seems conservative and well-supported by current fundamentals. However, the valuation sensitivity is tight: if long-term growth slows to a GDP-pace of 2.5%, the justified multiple falls to 14.1x, suggesting roughly 7% downside (CAPM analysis). The primary factor that could force investors to pay less is the $9.1 billion in net debt, which stands at approximately 3.7x annual free cash flow (XBRL).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if organic revenue growth falls below the guided 5%–6% range, suggesting that Roper Technologies's "defensible niches" are losing their competitive moats (8-K).
Cautious if Roper Technologies reports a material non-cash charge to operating income, signaling that the $21.3 billion in goodwill from previous acquisitions is overvalued (10-K Item 1A).
Constructive if the $120 million cash tax benefit from R&DR&DResearch & Development — spending on creating new products or technologies reform in 2026 is used for aggressive debt reduction rather than further acquisitions (10-Q).

6. BOTTOM LINE

Structural Advantage: High switching costs and proprietary data within niche vertical software markets, managed through a decentralized "private equity-like" model.

Bottom Line: Roper Technologies is a high-performance cash-flow compounder trading at a reasonable price, provided it can navigate its significant debt and goodwill risks.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Acquisition Strategy: Roper Technologies depends on its ability to identify and integrate new businesses to grow. Failure to do so, or the inability to achieve anticipated revenue and cash flow levels from these acquisitions, could materially harm Roper Technologies’s financial condition.
Cybersecurity and IT Infrastructure: Roper Technologies relies on global IT networks and third-party cloud platforms (such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle Cloud). System failures, credential theft, or sophisticated cyberattacks could disrupt operations and lead to remediation costs, litigation, and regulatory fines.
Indebtedness: As of December 31, 2025, Roper Technologies held $9,355.9 million in consolidated debt. This leverage limits Roper Technologies’s ability to borrow further, pay dividends, or make capital expenditures, and increases vulnerability to adverse economic conditions.
Goodwill Impairment: Goodwill totaled $21,341.2 million at December 31, 2025, representing approximately 62% of total assets. If business unit performance falls below expectations or valuations decline, Roper Technologies could incur a material non-cash charge to operating income.
Intellectual Property Protection: Roper Technologies’s success relies on proprietary technology. Unauthorized use or misappropriation of this technology by competitors or third parties could force Roper Technologies to incur substantial costs to enforce its rights, potentially diverting resources from other business concerns.

2. Company-Specific Risks

Minority Interest in Indicor: Roper Technologies retains a minority stake in Indicor following the 2022 divestiture of its industrial businesses. Because it does not control Indicor’s management or policies, Roper Technologies faces risks related to the performance of that entity, which could result in non-cash charges to non-operating income if the fair value of the investment decreases.
AI Integration Challenges: Roper Technologies is increasingly incorporating AI into its offerings. If competitors develop superior AI products more quickly, or if Roper Technologies’ AI models are found to be biased or inaccurate, Roper Technologies faces potential reputational harm, competitive disadvantage, and legal liability.
Customer Concentration: Certain business units derive a significant portion of their revenue from large customers. The loss of these contracts, or the unilateral termination of government contracts, could reduce net revenues and cash flows.
Executive Leadership Transitions: Roper Technologies has experienced significant changes to its executive leadership team in the past and may do so in the future, which could cause uncertainty or disruption to business operations.

3. Regulatory/Legal Risks

Data Privacy Regulation: Roper Technologies must navigate a patchwork of global privacy laws, including the GDPR in Europe and various state-level regulations in the U.S. Non-compliance can result in significant fines, such as up to 4% of global annual revenue under the GDPR, and increased compliance costs.
AI Regulation: The EU AI Act and emerging U.S. state regulations regarding transparency and bias may force Roper Technologies to modify product designs, limit the use of certain data, or cease offering specific AI-enabled features.
Product Liability: Roper Technologies faces risks related to design or manufacturing defects. Successful claims or product recalls could lead to significant costs, lost sales, and negative publicity that may not be fully covered by existing insurance policies.

4. Financial Impact Map

Acquisition Strategy → Net Revenues, Profitability, and Cash Flows → Operations may not achieve anticipated levels following integration. Cybersecurity and IT Infrastructure → Operating Results → Potential for remediation costs, payment of ransom, litigation, and regulatory fines. Indebtedness → Operating Flexibility → Limits ability to borrow, pay dividends, or make capital expenditures; potential for immediate repayment if covenants are breached. Goodwill Impairment → Operating Income → Potential for a non-cash charge if business unit performance falls below expectations. Minority Interest in Indicor → Non-Operating Income → Potential for a non-cash charge if the fair value of the equity investment decreases.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Jan 2026	—
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—