Roper Technologies (NASDAQ: ROP) Q1 2026 revenue climbs 11%
Filing Impact
Filing Sentiment
Form Type
10-Q
Roper Technologies, Inc. reported strong results for the quarter ended March 31, 2026, with net revenues rising to $2,095.3M from $1,882.8M, an 11.3% increase.
Net earnings grew to $508.9M from $331.1M, and diluted EPS increased to $4.87 from $3.06, helped by higher margins and a $167.3M equity investment gain. Organic revenue growth was 5.6%, and backlog rose 11.8% to $3,392.1M, supporting future revenue visibility.
Operating cash flow improved to $592.1M. The company repurchased 4.274M shares for $1,500.0M and increased borrowings under its unsecured revolving credit facility to $2,000.0M, bringing net debt to $10,081.1M, or 34.9% of total net capital.
Positive
- Strong top-line growth: Net revenues increased 11.3% year over year to $2,095.3M, with organic revenue growth of 5.6% across segments.
- Substantial earnings improvement: Net earnings rose to $508.9M from $331.1M, and diluted EPS increased to $4.87 from $3.06, supported by higher margins and equity investment gains.
- Robust cash generation: Cash provided by operating activities grew to $592.1M from $528.7M, providing capacity for acquisitions, debt service, and capital returns.
- Healthy contracted pipeline: Backlog, defined as remaining performance obligations expected to be recognized within 12 months, increased 11.8% to $3,392.1M, primarily in software segments.
Negative
- None.
Insights
Roper delivered double‑digit revenue growth, sharply higher earnings, strong cash flow, and sizable buybacks alongside higher leverage.
Roper Technologies grew net revenues 11.3% to $2,095.3M, with organic revenue up 5.6%. All three segments contributed, and total gross margin improved to 69.4%. Net earnings jumped to $508.9M, aided by higher operating profit and a $167.3M gain from the Indicor equity investment.
Operating cash flow increased to $592.1M, supporting capital deployment. The company spent $1,500.0M repurchasing 4.274M shares and paid dividends, while also investing $27.5M in an acquisition and $29.7M in capital and software projects. Backlog grew 11.8% to $3,392.1M, mostly in software, indicating contracted revenue to be recognized within 12 months.
To fund buybacks and broader needs, total debt rose to $10,464.0M and net debt to $10,081.1M, lifting net debt/total net capital to 34.9%. A new $3,500.0M five‑year unsecured revolving credit facility enhances funding flexibility but increases exposure to interest expense, which grew to $99.3M. Future performance will reflect how effectively cash generation and backlog convert into earnings while managing this higher leverage.
Key Figures
Net revenues: $2,095.3M
Net earnings: $508.9M
Diluted EPS: $4.87 per share
+5 more
8 metrics
Net revenues
$2,095.3M
Three months ended March 31, 2026 vs. $1,882.8M in 2025
Net earnings
$508.9M
Three months ended March 31, 2026 vs. $331.1M in 2025
Diluted EPS
$4.87 per share
Three months ended March 31, 2026 vs. $3.06 in 2025
Operating cash flow
$592.1M
Cash provided by operating activities, Q1 2026
Organic revenue growth
5.6%
Roper total organic revenue growth, Q1 2026
Backlog (12‑month RPO)
$3,392.1M
Remaining performance obligations expected within 12 months as of March 31, 2026
Equity investment gain
$167.3M
Equity investment (gain) loss, net from Indicor, Q1 2026
Net debt / total net capital
34.9%
Leverage ratio as of March 31, 2026
Key Terms
Software-as-a-Service, remaining performance obligations, Net debt / Total net capital, Rule 10b5-1 trading plan, +2 more
6 terms
Software-as-a-Service financial
"recurring revenue comprised of Software-as-a-Service (“SaaS”), annual term licenses"
Software-as-a-service is software that users access online through a web browser or app while the provider hosts and maintains the program and data, typically for a recurring fee. Investors care because it creates steady, predictable revenue and often high customer retention — like renting a utility rather than buying a machine — which helps forecast cash flow and values a company more consistently over time.
remaining performance obligations financial
"Remaining performance obligations represent the transaction price of firm orders"
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
Net debt / Total net capital financial
"Net debt / Total net capital | 34.9 % | 31.2 %"
Rule 10b5-1 trading plan regulatory
"adopted a 10b5-1 trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c)"
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
Equity investment (gain) loss, net financial
"Equity investment (gain) loss, net | ( 167.3 ) | 44.4"
unsecured revolving credit facility financial
"comprises a five-year $3,500.0 unsecured revolving credit facility"
A revolving credit facility is a line of borrowing that a company can draw from, repay, and draw again up to a set limit; “unsecured” means the loans are not backed by specific assets as collateral. Investors care because it acts like a corporate credit card—giving short‑term cash flexibility to cover operations or unexpected needs—while signaling lenders’ confidence and affecting interest costs, default risk, and the company’s financial stability.
Earnings Snapshot
Net revenues: $2,095.3M
Q1 2026
Net revenues
$2,095.3M
+11.3% YoY
Net earnings
$508.9M
up from $331.1M YoY
Diluted EPS
$4.87
up from $3.06 YoY
Organic revenue growth
5.6%
company-wide organic growth rate
Operating cash flow
$592.1M
up from $528.7M YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 31, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission File Number: 1-12273
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(941 ) 556-2601
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | ☐ | Accelerated filer | |||||||||
| ☐ | Non-accelerated filer | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
The number of shares outstanding of the registrant’s common stock as of April 30, 2026 was 100,917,359 .
1
ROPER TECHNOLOGIES, INC.
REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026
TABLE OF CONTENTS
| Page | ||||||||
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (unaudited): | |||||||
Condensed Consolidated Statements of Earnings | 3 | |||||||
Condensed Consolidated Statements of Comprehensive Income | 4 | |||||||
Condensed Consolidated Balance Sheets | 5 | |||||||
Condensed Consolidated Statements of Cash Flows | 6 | |||||||
Condensed Consolidated Statements of Changes in Stockholders’ Equity | 7 | |||||||
Notes to Condensed Consolidated Financial Statements | 8 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 23 | ||||||
Item 4. | Controls and Procedures | 23 | ||||||
PART II. | OTHER INFORMATION | |||||||
Item 1. | Legal Proceedings | 24 | ||||||
Item 1A. | Risk Factors | 24 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 24 | ||||||
Item 5. | Other Information | 24 | ||||||
Item 6. | Exhibits | 25 | ||||||
Signatures | 26 | |||||||
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Roper Technologies, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
(Amounts in millions, except per share data)
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net revenues | $ | $ | |||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Income from operations | |||||||||||||||||||||||
| Interest expense, net | |||||||||||||||||||||||
| Equity investment (gain) loss, net | ( | ||||||||||||||||||||||
| Other expense, net | |||||||||||||||||||||||
| Earnings before income taxes | |||||||||||||||||||||||
| Income taxes | |||||||||||||||||||||||
| Net earnings | $ | $ | |||||||||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | $ | |||||||||||||||||||||
| Diluted | $ | $ | |||||||||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements.
3
Roper Technologies, Inc.
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(Amounts in millions)
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net earnings | $ | $ | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ||||||||||||||||||||||
| Total other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||
| Comprehensive income | $ | $ | |||||||||||||||||||||
See accompanying notes to Condensed Consolidated Financial Statements.
4
Roper Technologies, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Amounts in millions)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts receivable, net | |||||||||||
| Inventories, net | |||||||||||
| Income taxes receivable | |||||||||||
| Unbilled receivables | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Goodwill | |||||||||||
| Other intangible assets, net | |||||||||||
| Deferred taxes | |||||||||||
| Equity investment | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued compensation | |||||||||||
| Deferred revenue | |||||||||||
| Other accrued liabilities | |||||||||||
| Income taxes payable | |||||||||||
| Current portion of long-term debt, net | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt, net of current portion | |||||||||||
| Deferred taxes | |||||||||||
| Other liabilities | |||||||||||
| Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Common stock, | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
See accompanying notes to Condensed Consolidated Financial Statements.
5
Roper Technologies, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(Amounts in millions)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | $ | |||||||||
| Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||||||
| Depreciation and amortization of property, plant and equipment | |||||||||||
| Amortization of intangible assets | |||||||||||
| Amortization of deferred financing costs | |||||||||||
| Non-cash stock compensation | |||||||||||
| Equity investment (gain) loss, net | ( | ||||||||||
| Income tax provision | |||||||||||
| Changes in operating assets and liabilities, net of acquired businesses: | |||||||||||
| Accounts receivable | |||||||||||
| Unbilled receivables | ( | ( | |||||||||
| Inventories | ( | ( | |||||||||
| Prepaid expenses and other current assets | ( | ( | |||||||||
| Accounts payable | |||||||||||
| Other accrued liabilities | ( | ( | |||||||||
| Deferred revenue | ( | ( | |||||||||
| Cash income taxes paid | ( | ( | |||||||||
| Other, net | ( | ( | |||||||||
| Cash provided by operating activities | |||||||||||
| Cash flows from (used in) investing activities: | |||||||||||
| Acquisitions of businesses, net of cash acquired | ( | ( | |||||||||
| Capital expenditures | ( | ( | |||||||||
| Capitalized software expenditures | ( | ( | |||||||||
| Other, net | |||||||||||
| Cash used in investing activities | ( | ( | |||||||||
| Cash flows from (used in) financing activities: | |||||||||||
| Borrowings (payments) under revolving credit facility, net | ( | ||||||||||
| Debt issuance costs | ( | ||||||||||
| Cash dividends to stockholders | ( | ( | |||||||||
| Repurchases of common stock | ( | ||||||||||
| Proceeds from (tax withholding payments for) stock-based compensation, net | ( | ||||||||||
| Treasury stock sales under employee stock purchase plan | |||||||||||
| Other, net | ( | ||||||||||
| Cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on cash | ( | ||||||||||
| Net increase in cash and cash equivalents | |||||||||||
| Cash and cash equivalents, beginning of period | |||||||||||
| Cash and cash equivalents, end of period | $ | $ | |||||||||
See accompanying notes to Condensed Consolidated Financial Statements.
6
Roper Technologies, Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
(Amounts in millions, except per share data)
| Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total stockholders’ equity | ||||||||||||||||||||||||||||||
| Balances at December 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
| Stock option exercises | — | — | — | — | |||||||||||||||||||||||||||||||
| Treasury stock sold under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Common stock repurchased (1) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Restricted stock activity | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Balances at March 31, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
| Balances at December 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||
| Stock option exercises | — | — | — | — | |||||||||||||||||||||||||||||||
| Treasury stock sold under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
| Currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Restricted stock activity | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
| Balances at March 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
(1)Balance includes excise tax imposed by the Inflation Reduction Act of 2022, as amended, and broker commissions.
See accompanying notes to Condensed Consolidated Financial Statements.
7
Roper Technologies, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
(Amounts are in millions, except per share data)
1. Basis of Presentation
The accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2026 and 2025 are unaudited. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the financial position, results of operations, comprehensive income, and cash flows of Roper Technologies, Inc. and its subsidiaries (“Roper,” the “Company,” “we,” “our,” or “us”) for all periods presented. The December 31, 2025 financial position data included herein was derived from the audited consolidated financial statements included in the Company’s 2025 Annual Report on Form 10-K (“Annual Report”) filed on February 24, 2026 with the U.S. Securities and Exchange Commission (“SEC”) but does not include all annual disclosures required by U.S. generally accepted accounting principles (“GAAP”).
Roper’s management has made estimates and assumptions related to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these Condensed Consolidated Financial Statements in conformity with GAAP. Actual results could differ from those estimates.
The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the full year. You should read these unaudited Condensed Consolidated Financial Statements in conjunction with Roper’s audited Consolidated Financial Statements and the notes thereto included in its Annual Report. Certain prior period amounts have been reclassified to conform to current period presentation.
2. Recent Accounting Pronouncements
The Financial Accounting Standards Board (“FASB”) establishes changes to accounting principles under GAAP in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. Any recent ASUs not listed below were assessed and either determined to be not applicable or are expected to have an immaterial impact on the Company’s Consolidated Financial Statements.
In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03), which requires the disclosure of additional information about specific categories of costs and expenses in the notes to consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. This ASU will likely result in additional disclosures. We are currently evaluating the provisions of this ASU.
In September 2025, the FASB issued Accounting Standards Update No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (ASU 2025-06), which updates the threshold for cost capitalization of internal-use software development costs by removing all references to project development stages and adding considerations for evaluating the probable-to-complete recognition threshold. This guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the provisions of this ASU.
3. Weighted Average Shares Outstanding
Basic earnings per share was calculated using net earnings and the weighted average number of shares of common stock outstanding during the respective period. Diluted earnings per share was calculated using net earnings and the weighted average number of shares of common stock and potential common stock outstanding during the respective period. Potentially dilutive common stock consisted of stock options and restricted stock awards based upon the average trading price of Roper’s common stock. The effects of potential common stock were determined using the treasury stock method.
8
Weighted average shares outstanding are presented below:
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Basic shares outstanding | |||||||||||||||||||||||
| Effect of potential common stock: | |||||||||||||||||||||||
| Common stock awards | |||||||||||||||||||||||
| Diluted shares outstanding | |||||||||||||||||||||||
For the three months ended March 31, 2026, there were 2.342 stock-based awards outstanding that were not included in the determination of diluted earnings per share because to do so would have been antidilutive, as compared to 0.844 stock-based awards outstanding that would have been antidilutive in the comparable period of 2025.
4. Business Acquisitions
During the three months ended March 31, 2026, Roper completed one business acquisition for a purchase price of $25.0 . This acquisition has been integrated into a business within, and its results are reported in, the Network Software reportable segment.
The results of operations of the acquired business are included in Roper’s Condensed Consolidated Financial Statements from the date of acquisition. Pro forma results of operations and the revenues and net earnings subsequent to the acquisition date have not been presented because the effects of the acquisition were not material to our financial results.
5. Stock-Based Compensation
The Roper Technologies, Inc. 2021 Incentive Plan is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock and restricted stock units (collectively “restricted stock awards”), stock appreciation rights, or equivalent instruments to Roper’s employees, officers, directors, and consultants.
Information regarding the Company’s stock-based compensation expense, included as a component of “Selling, general and administrative expenses” (“SG&A expenses”), is provided in the following table:
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Stock-based compensation | $ | $ | |||||||||||||||||||||
| Tax benefit recognized in net earnings | $ | $ | |||||||||||||||||||||
The Company accounts for forfeitures of stock-based awards as they occur, with previously recognized compensation reversed in the period in which the awards are forfeited.
Stock Options – During the three months ended March 31, 2026, 0.528 options were granted with a weighted-average fair value of $91.86 per option. During the comparable period in 2025, 0.242 options were granted with a weighted-average fair value of $182.89 per option. All options were granted with an exercise price equal to the closing price of Roper’s common stock on the date of grant, as required by the Company’s stock-based compensation plan.
Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option valuation model. Historical data is used to estimate the expected price volatility, the expected dividend yield, and the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the award.
9
The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year periods using the Black-Scholes option valuation model:
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Risk-free interest rate (%) | |||||||||||
| Expected option life (years) | |||||||||||
| Expected volatility (%) | |||||||||||
| Expected dividend yield (%) | |||||||||||
Cash received from option exercises during the three months ended March 31, 2026 and 2025 was $8.3 and $61.1 , respectively.
Restricted Stock Awards – During the three months ended March 31, 2026, the Company granted 0.803 shares of restricted stock awards in total, with a weighted-average grant date fair value of $353.92 per share. During the comparable period in 2025, the Company granted 0.342 shares of restricted stock awards in total, with a weighted-average grant date fair value of $608.04 per share. These awards were granted at the fair market value of the shares on the date of grant.
Restricted stock awards include 0.157 and 0.074 performance-based restricted stock awards granted to certain members of the Roper senior leadership team during the three months ended March 31, 2026 and 2025, respectively, with a weighted-average grant date fair value of $353.87 and $663.42 per share, respectively. Such awards include the ability to earn up to 200 % of the number of restricted stock awards originally granted contingent upon Roper’s performance over a three-year period.
During the three months ended March 31, 2026, 0.144 restricted stock award shares vested with a weighted-average grant date fair value of $485.37 per share and a weighted-average vest date fair value of $356.15 per share. During the comparable period in 2025, 0.093 restricted stock award shares vested with a weighted-average grant date fair value of $479.18 per share and a weighted-average vest date fair value of $582.56 per share.
Employee Stock Purchase Plan – Roper’s employee stock purchase plan (“ESPP”) allows employees in the U.S. and Canada to designate up to 10 % of eligible earnings to purchase Roper’s common stock at a 10 % discount on the lower of the closing price on the first and last day of each quarterly offering period. Common stock sold to employees pursuant to the ESPP may be either treasury stock, stock purchased on the open market, or newly issued shares.
During the three months ended March 31, 2026 and 2025, participants of the ESPP purchased 0.023 and 0.016 shares, respectively, of Roper’s common stock for total consideration of $7.4 and $7.2 , respectively. All of these shares were purchased from Roper’s treasury shares.
6. Stockholders’ Equity
In October 2025, the Company’s Board of Directors approved a share repurchase program for the repurchase of up to $3,000.0 of the Company’s common stock. Shares of common stock may be repurchased from time to time through open market purchases or privately negotiated transactions, including under repurchase plans complying with Rule 10b5-1 under the Exchange Act, and subject to market conditions, applicable legal requirements, and other relevant factors. The repurchase program does not have a fixed expiration date, does not obligate the Company to acquire any specific number of shares, and may be suspended at any time at the Company’s discretion. The timing, manner, price, and amount of any repurchases made will be determined by the Company in its discretion and will depend on a variety of factors, including price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.
During the three months ended March 31, 2026, the Company repurchased 4.274 shares of its common stock for an aggregate purchase price of $1,500.0 and an average price paid per share of $350.99 . The aggregate purchase price and average price paid per share exclude the 1% excise tax imposed by the Inflation Reduction Act of 2022, as amended, and broker commissions. All repurchases were made in open market transactions and there are no current plans to retire repurchased shares. As of March 31, 2026, $1,000.0 of the originally authorized amount remained available for future repurchases under the share repurchase program.
From April 1, 2026 through April 30, 2026, the Company repurchased 1.498 shares of its common stock for an aggregate purchase price of $528.4 and an average price paid per share of $352.87 , excluding excise tax and broker commissions.
10
In April 2026, the Company’s Board of Directors approved an additional $3,000.0 in share repurchase authorization under the program. As of April 30, 2026, total share repurchase authorization of $3,471.6 remained available for future repurchases under the program.
7. Inventories
The components of inventories were as follows:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Raw materials and supplies | $ | $ | |||||||||
| Work in process | |||||||||||
| Finished products | |||||||||||
| Inventory reserves | ( | ( | |||||||||
| Inventories, net | $ | $ | |||||||||
8. Goodwill and Other Intangible Assets
The carrying value of goodwill by segment was as follows:
| Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||
| Balances at December 31, 2025 | $ | $ | $ | $ | |||||||||||||||||||||||||
| Goodwill acquired | |||||||||||||||||||||||||||||
| Other | ( | ( | |||||||||||||||||||||||||||
| Currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||
| Balances at March 31, 2026 | $ | $ | $ | $ | |||||||||||||||||||||||||
Other relates to purchase accounting adjustments for completed acquisitions.
Other intangible assets were comprised of:
| Cost | Accumulated amortization | Net book value | |||||||||||||||
| Assets subject to amortization: | |||||||||||||||||
| Customer related intangibles | $ | $ | ( | $ | |||||||||||||
| Unpatented technology | ( | ||||||||||||||||
| Patents and other protective rights | ( | ||||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | — | ||||||||||||||||
| Balances at December 31, 2025 | $ | $ | ( | $ | |||||||||||||
| Assets subject to amortization: | |||||||||||||||||
| Customer related intangibles | $ | $ | ( | $ | |||||||||||||
| Unpatented technology | ( | ||||||||||||||||
| Patents and other protective rights | ( | ||||||||||||||||
| Assets not subject to amortization: | |||||||||||||||||
| Trade names | — | ||||||||||||||||
| Balances at March 31, 2026 | $ | $ | ( | $ | |||||||||||||
Amortization expense of other intangible assets was $208.1 and $194.5 during the three months ended March 31, 2026 and 2025, respectively.
11
An evaluation of the carrying value of goodwill and other indefinite-lived intangibles is required to be performed on an annual basis, and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. There have been no events or changes in circumstances which indicate an interim impairment review is required in 2026. The Company will perform the annual analysis during the fourth quarter of 2026.
9. Long-Term Debt
On March 30, 2026, we entered into a new five-year unsecured credit facility (the “Credit Agreement”) among Roper, the financial institutions from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A. and Wells Fargo Bank, National Association, as syndication agents, and PNC Bank, National Association, Truist Bank, U.S. Bank National Association, The Huntington National Bank, Royal Bank of Canada, The Toronto-Dominion Bank, New York Branch, and MUFG Bank, Ltd., as documentation agents, which replaced the previous $3,500.0 unsecured credit facility, dated as of July 21, 2022. The Credit Agreement comprises a five-year $3,500.0 unsecured revolving credit facility, which includes availability of up to $150.0 for letters of credit, of which $60.0 is committed. Loans under the unsecured credit facility are available in dollars, and letters of credit will be available in dollars and other currencies to be agreed. The Company may also, subject to compliance with specified conditions, request additional term loans or revolving credit commitments in an aggregate amount not to exceed $1,000.0 .
The Company has the right to add foreign subsidiaries as borrowers under the Credit Agreement, subject to the satisfaction of specified conditions. The Company will guarantee the payment and performance by foreign subsidiary borrowers for any of their obligations under the Credit Agreement. The Company’s obligations under the Credit Agreement are not guaranteed by any of its subsidiaries. However, the Company has the right, subject to the satisfaction of certain conditions set forth in the Credit Agreement, to cause any of its wholly-owned domestic subsidiaries to become guarantors.
Loans under the Credit Agreement can be borrowed as term Secured Overnight Financing Rate (“SOFR”) loans or Alternate Base Rate (“ABR”) loans, at the Company’s option. Each term SOFR loan will bear interest at a rate per annum equal to the applicable term SOFR rate plus a spread ranging from 0.795 % to 1.300 %, as determined by the Company’s senior unsecured long-term debt rating at such time. Based on the Company’s current credit rating, the spread for SOFR loans would be 0.920 %. Each ABR loan will bear interest at a rate per annum equal to the Alternate Base Rate plus a spread ranging from 0.000 % to 0.300 %, as determined by the Company’s senior unsecured long-term debt rating at such time. Based on the Company’s current credit rating, the spread for ABR loans would be 0.000 %.
Outstanding letters of credit issued under the Credit Agreement are charged a quarterly fee depending on the Company’s senior unsecured long-term debt rating. Based on the Company’s current credit rating, the quarterly fee would be payable at a rate of 0.920 % per annum, plus a fronting fee of 0.125 % per annum on the undrawn and unexpired amount of all letters of credit.
Additionally, the Company will pay a quarterly facility fee on the used and unused portions of the unsecured revolving credit facility depending on the Company’s senior unsecured long-term debt rating. Based on the Company’s current credit rating, the quarterly facility fee would accrue at a rate of 0.080 % per annum.
Amounts outstanding under the Credit Agreement may be accelerated upon the occurrence of customary events of default. The Credit Agreement requires the Company to maintain a Total Debt to Total Capital Ratio of 0.65 to 1.00, or less. Borrowings under the Credit Agreement are prepayable at the Company’s option at any time in whole or in part without premium or penalty.
10. Fair Value
Financial assets and liabilities are valued using market prices on active markets (Level 1), less active markets (Level 2), and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Debt – As of March 31, 2026 and December 31, 2025, the total estimated fair value of Roper’s fixed-rate senior notes was $8,141.6 and $8,287.4 , respectively. The fair values of the senior notes are based on the trading prices of each series of notes, which the Company has determined to be Level 2 in the FASB fair value hierarchy.
12
At March 31, 2026 and December 31, 2025, there were $2,000.0 and $850.0 of borrowings outstanding under our unsecured revolving credit facility, respectively. The carrying value of these borrowings approximates their estimated fair value.
Indicor Equity Investment – As of March 31, 2026 and December 31, 2025, the Company held a 43.4 % and 43.8 % equity interest in Indicor Equity, LLC (“Indicor”), respectively. We elected to apply the fair value option as we believe this is the most reasonable method to value this equity investment. The fair value of Roper’s equity investment in Indicor is estimated on a quarterly basis and the change in fair value is reported as a component of “Equity investment (gain) loss, net” in our Condensed Consolidated Statements of Earnings.
Although we believe our assumptions are considered reasonable and are consistent with the plans and estimates included in our Annual Report, there is significant judgment applied in determining fair value. Changes in estimates or the application of alternative assumptions could produce significantly different results. Our valuation methodology utilizes the market multiple approach consisting of comparable guideline public companies revenue and earnings multiples to estimate the fair value of this equity investment. The fair value of the investment reflects management’s estimate of assumptions that market participants would use in pricing the equity interest, which the Company has determined to be Level 3 in the FASB fair value hierarchy.
The following table provides a reconciliation of the fair value for our equity investment in Indicor measured using Level 3 inputs:
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Beginning balance | $ | $ | |||||||||||||||||||||
| Change in fair value | ( | ||||||||||||||||||||||
| Ending balance | $ | $ | |||||||||||||||||||||
Receivables Purchase Agreement – Outgo Inc. (“Outgo”), a freight payment software and factoring solutions subsidiary integrated into our DAT business, entered into a receivables purchase agreement (“RPA”) under which certain Outgo factored receivables are sold to a third-party financial institution on a non-recourse basis and derecognized upon sale. Sales of Outgo factored receivables did not result in a material gain or loss. As a part of the RPA, Outgo continues to perform certain collection and administrative functions for receivables sold to the purchaser. Under the agreement, Outgo retains a beneficial interest representing the deferred purchase price, which is repaid following collection of the underlying receivables. The fair value of this beneficial interest was $4.1 at March 31, 2026. Cash inflows received from the beneficial interest totaled $0.9 for the three months ended March 31, 2026 and are reported within other investing activities in the Condensed Consolidated Statement of Cash Flows.
11. Contingencies
Roper, in the ordinary course of business, is party to various pending or threatened legal actions, including product liability, intellectual property, antitrust, data privacy, and employment practices that, in general, are of a nature consistent with those over the past several years. After analyzing the Company’s contingent liabilities on a gross basis and, based upon past experience with resolution of such legal claims and the availability and limits of the primary, excess, and umbrella liability insurance coverages with respect to pending claims, management believes that adequate provision has been made to cover any potential liability not covered by insurance, and that the ultimate liability, if any, arising from these actions should not have a material adverse effect on Roper’s consolidated financial position, results of operations, or cash flows. However, no assurances can be given in this regard.
13
12. Reportable Segments
The following table presents selected financial information by reportable segment :
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Application Software | Network Software | Technology Enabled Products | Segments Total | Application Software | Network Software | Technology Enabled Products | Segments Total | |||||||||||||||||||||||||||||||||||||||||||
| Net revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||||||||||||||||||||||
| SG&A expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating profit* | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and other amortization | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Capitalized software expenditures | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
* Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $77.8 and $71.3 for the three months ended March 31, 2026 and 2025, respectively, and are included within consolidated SG&A expenses to arrive at “Income from operations” in our Condensed Consolidated Statements of Earnings. Items below “Income from operations” are not allocated to reportable segments.
The following table presents selected asset information by reportable segment:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Total assets: | |||||||||||
| Application Software | $ | $ | |||||||||
| Network Software | |||||||||||
| Technology Enabled Products | |||||||||||
| Segments Total | $ | $ | |||||||||
14
13. Revenues from Contracts
Disaggregated Revenue – We disaggregate our revenues by reportable segment into four categories: (i) recurring revenue comprised of Software-as-a-Service (“SaaS”), annual term licenses, and software post-contract support (“PCS”); (ii) reoccurring revenue comprised of transactional and volume-based fees facilitated through our software; (iii) non-recurring revenue comprised of multi-year term and perpetual software licenses, professional services associated with software products and hardware sold with our software licenses; and (iv) product revenue. See details in the table below:
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue stream | Application Software | Network Software | Technology Enabled Products | Total | Application Software | Network Software | Technology Enabled Products | Total | ||||||||||||||||||||||||||||||||||||||||||
| Software related | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Recurring | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Reoccurring | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-recurring | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Software Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenue | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Remaining Performance Obligations – Remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed, excluding unexercised contract options. As of March 31, 2026, total remaining performance obligations were $5,284.5 . We expect to recognize revenues on approximately 64 %, or $3,392.1 , of our remaining performance obligations over the next 12 months (“Backlog”), with the remainder of the revenue to be recognized thereafter.
Contract balances
| Balance sheet account | March 31, 2026 | December 31, 2025 | Change | ||||||||||||||
| Unbilled receivables | $ | $ | $ | ||||||||||||||
Deferred revenue – current | ( | ( | |||||||||||||||
Deferred revenue – non-current (1) | ( | ( | |||||||||||||||
| Net contract assets/(liabilities) | $ | ( | $ | ( | $ | ||||||||||||
(1) The non-current portion of deferred revenue is included in “Other liabilities” in our Condensed Consolidated Balance Sheets.
The change in our net contract assets/(liabilities) from December 31, 2025 to March 31, 2026 was primarily due to the timing of payments and invoicing related to SaaS and PCS renewals, driven predominantly by the SaaS renewal cycle of our Frontline business which primarily occurs in the third quarter.
The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance relating primarily to SaaS and PCS renewals. Revenue recognized that was included in the deferred revenue balance on December 31, 2025 and 2024 was $849.3 and $774.4 for the three months ended March 31, 2026 and 2025, respectively. In order to determine revenues recognized in the period from contract liabilities, we allocate revenue to the individual deferred revenue balance outstanding at the beginning of the year until the revenue exceeds that balance.
The current and non-current portions of deferred commissions are included in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Condensed Consolidated Balance Sheets. At March 31, 2026 and December 31, 2025, we had $114.7 and $113.6 of total deferred commissions, respectively.
15
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“Annual Report”) as filed on February 24, 2026 with the U.S. Securities and Exchange Commission (“SEC”) and the Notes to Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”).
Information About Forward-Looking Statements
This report includes “forward-looking statements” within the meaning of the federal securities laws. In addition, we, or our executive officers on our behalf, may from time to time make forward-looking statements in reports and other documents we file with the SEC or in connection with oral statements made to the press, potential investors, or others. All statements that are not historical facts are “forward-looking statements.” Forward-looking statements may be indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “believes,” “intends,” and similar words and phrases. These statements reflect management’s current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in any forward-looking statement.
Examples of forward-looking statements in this report include but are not limited to statements regarding operating results, the success of our operating plans, our expectations regarding our ability to generate cash and reduce debt and associated interest expense, profit and cash flow expectations, the prospects for newly acquired businesses to be integrated and contribute to future growth, and our expectations regarding growth through acquisitions. Important assumptions relating to the forward-looking statements include, among others, demand for our products, the cost, timing, and success of product upgrades and new product introductions, raw materials costs, expected pricing levels, expected outcomes of pending litigation, competitive conditions, and general economic conditions. These assumptions could prove inaccurate. Although we believe that the estimates and projections reflected in the forward-looking statements are reasonable, our expectations may prove to be incorrect. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include but are not limited to:
•general economic conditions;
•difficulty making acquisitions, including receiving the necessary regulatory approvals (including clearance under the Hart-Scott-Rodino Act in the United States (“U.S.”) and similar antitrust regulations in foreign countries), and successfully integrating acquired businesses;
•any unforeseen liabilities associated with future acquisitions;
•information technology (IT) system failures, data security breaches, network disruptions, and cybersecurity events, including any litigation arising therefrom;
•failure to comply with new data privacy laws and regulations, including any litigation arising therefrom;
•risks and costs associated with our international sales and operations;
•volatile interest rates;
•limitations on our business imposed by our indebtedness;
•product liability, litigation, and insurance risks;
•future competition;
•reduction of business with large customers;
•risks associated with government contracts;
•changes in the supply of, or price for, labor, energy, raw materials, parts, and components, including as a result of inflation or potential supply chain constraints;
•potential write-offs of our goodwill and other intangible assets;
•our ability to successfully develop new products;
•risks associated with the use of artificial intelligence (“AI”), including our ability to develop, deploy, and use AI in our platforms and offerings;
•failure to protect our intellectual property;
•unfavorable changes in foreign exchange rates;
•risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs (including repeal or non-renewal of the United States-Mexico-Canada Agreement);
•increased warranty exposure;
•environmental compliance costs and liabilities;
•the effect of, or change in, government regulations (including tax);
•the impacts of any U.S. government shutdowns;
16
•economic disruption caused by armed conflicts (such as the conflicts in Ukraine and the Middle East), terrorist attacks, health crises, or other unforeseen geopolitical events; and
•the factors discussed in other reports we file with the SEC from time to time.
You should not place undue reliance on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update any of these statements in light of new information or future events.
Overview
Roper is a diversified technology company. Roper has a proven, long-term, successful track record of compounding cash flow and increasing shareholder value. We operate market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets.
We pursue consistent and sustainable growth in revenue, earnings, and cash flow by enabling continuous improvement in the operating performance of our businesses and by acquiring other businesses that offer high value-added software, services, technology-enabled products, and solutions that we believe are capable of realizing growth while maintaining high margins.
Critical Accounting Policies
There were no material changes during the three months ended March 31, 2026 to the items that we disclosed as our critical accounting policies and estimates in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.
Recently Issued Accounting Standards
Information regarding new accounting pronouncements can be found in Note 2 of the Notes to Condensed Consolidated Financial Statements.
17
Results of Operations
All currency amounts are in millions, percentages are of net revenues
Percentages may not sum due to rounding.
The following table sets forth selected information for the periods indicated:
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Application Software | $ | 1,191.5 | $ | 1,068.2 | |||||||||||||||||||
| Network Software | 427.6 | 375.9 | |||||||||||||||||||||
| Technology Enabled Products | 476.2 | 438.7 | |||||||||||||||||||||
| Total | $ | 2,095.3 | $ | 1,882.8 | |||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||
| Application Software | 69.0 | % | 67.5 | % | |||||||||||||||||||
| Network Software | 84.3 | % | 84.0 | % | |||||||||||||||||||
| Technology Enabled Products | 56.9 | % | 58.7 | % | |||||||||||||||||||
| Total | 69.4 | % | 68.7 | % | |||||||||||||||||||
| Selling, general and administrative expenses: | |||||||||||||||||||||||
| Application Software | (42.2) | % | (41.6) | % | |||||||||||||||||||
| Network Software | (43.6) | % | (39.6) | % | |||||||||||||||||||
| Technology Enabled Products | (24.4) | % | (23.6) | % | |||||||||||||||||||
| Total | (38.5) | % | (37.0) | % | |||||||||||||||||||
| Segment operating margin: | |||||||||||||||||||||||
| Application Software | 26.8 | % | 25.9 | % | |||||||||||||||||||
| Network Software | 40.6 | % | 44.3 | % | |||||||||||||||||||
| Technology Enabled Products | 32.4 | % | 35.0 | % | |||||||||||||||||||
| Total | 30.9 | % | 31.7 | % | |||||||||||||||||||
Corporate administrative expenses * | (3.7) | % | (3.8) | % | |||||||||||||||||||
| Income from operations | 27.2 | % | 27.9 | % | |||||||||||||||||||
| Interest expense, net | (4.7) | % | (3.3) | % | |||||||||||||||||||
| Equity investment gain (loss), net | 8.0 | % | (2.4) | % | |||||||||||||||||||
| Other expense, net | (0.1) | % | — | % | |||||||||||||||||||
| Earnings before income taxes | 30.3 | % | 22.2 | % | |||||||||||||||||||
| Income taxes | (6.0) | % | (4.6) | % | |||||||||||||||||||
| Net earnings | 24.3 | % | 17.6 | % | |||||||||||||||||||
* Includes unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation.
18
Three Months Ended March 31, 2026 compared to the Three Months Ended March 31, 2025
Net revenues for the three months ended March 31, 2026 were $2,095.3 as compared to $1,882.8 for the three months ended March 31, 2025, an increase of 11.3%. The components of revenue growth for the three months ended March 31, 2026 were as follows:
| Application Software | Network Software | Technology Enabled Products | Roper | ||||||||||||||||||||||||||
| Total Revenue Growth | 11.5 | % | 13.8 | % | 8.5 | % | 11.3 | % | |||||||||||||||||||||
| Less: Impacts of: | |||||||||||||||||||||||||||||
| Acquisitions | 5.6 | 8.1 | 0.6 | 4.9 | |||||||||||||||||||||||||
| Foreign Exchange | 0.7 | 0.5 | 0.8 | 0.8 | |||||||||||||||||||||||||
| Organic Revenue Growth | 5.2 | % | 5.2 | % | 7.1 | % | 5.6 | % | |||||||||||||||||||||
In our Application Software segment, net revenues in the first quarter of 2026 grew 11.5% to $1,191.5 as compared to $1,068.2 in the first quarter of 2025, led by contributions from 2025 acquisitions, most notably CentralReach. The growth of 5.2% in organic revenues was broad-based across the segment, led by our application software businesses serving the legal, project-based private sector, higher education, and property and casualty insurance markets. Gross margin increased to 69.0% in the first quarter of 2026 as compared to 67.5% in the first quarter of 2025 due primarily to improved leverage on higher organic revenues as well as revenue mix. SG&A expenses as a percentage of net revenues increased to 42.2% in the first quarter of 2026 as compared to 41.6% in the first quarter of 2025 due primarily to higher amortization of acquired intangibles from the 2025 acquisition of CentralReach, partially offset by operating leverage on higher organic revenues. As a result, operating margin was 26.8% in the first quarter of 2026 as compared to 25.9% in the first quarter of 2025.
In our Network Software segment, net revenues in the first quarter of 2026 grew 13.8% to $427.6 as compared to $375.9 in the first quarter of 2025, led by contributions from 2025 acquisitions, most notably Subsplash. The growth of 5.2% in organic revenues was broad-based across the segment, led by our network software businesses serving the freight match, construction, and alternate site healthcare markets. Gross margin increased to 84.3% in the first quarter of 2026 as compared to 84.0% in the first quarter of 2025 due primarily to lower amortization associated with fully amortized acquired intangibles and improved leverage on higher organic revenues, partially offset by margin profiles associated with our 2025 acquisitions, most notably payments revenue mix from Subsplash and the Convoy platform within our freight match software business. SG&A expenses as a percentage of net revenues increased to 43.6% in the first quarter of 2026 as compared to 39.6% in the first quarter of 2025 due primarily to SG&A profiles associated with our 2025 acquisitions, including higher amortization of acquired intangibles. As a result, operating margin was 40.6% in the first quarter of 2026 as compared to 44.3% in the first quarter of 2025.
In our Technology Enabled Products segment, net revenues in the first quarter of 2026 grew 8.5% to $476.2 as compared to $438.7 in the first quarter of 2025. The growth of 7.1% in organic revenues was led by our medical products businesses, highlighted by our precision measurement and airway management businesses. These increases were partially offset by a decline in our water meter technology business. Gross margin decreased to 56.9% in the first quarter of 2026 as compared to 58.7% in the first quarter of 2025 due primarily to revenue mix within our medical products businesses weighted more towards consumables and input cost pressures at our water meter technology business. SG&A expenses as a percentage of net revenues increased to 24.4% in the first quarter of 2026 as compared to 23.6% in the first quarter of 2025 due primarily to reduced operating leverage associated with our water meter technology business. The resulting operating margin was 32.4% in the first quarter of 2026 as compared to 35.0% in the first quarter of 2025.
Corporate expenses increased to $77.8 in the first quarter of 2026 as compared to $71.3 in the first quarter of 2025. The dollar increase was due primarily to higher stock-based compensation expense, partially offset by a reduction in fees for professional services. As a percentage of net revenues, corporate expenses decreased to 3.7% of net revenues in the first quarter of 2026 as compared to 3.8% of net revenues in the first quarter of 2025.
Interest expense, net, increased to $99.3 for the first quarter of 2026 as compared to $62.9 for the first quarter of 2025 due primarily to higher average debt balances and a higher weighted-average interest rate on our senior notes.
19
Equity investment activity, net, was a gain of $167.3 in the first quarter of 2026 due to an increase in the fair value of our equity investment in Indicor. Equity investment activity, net, was a loss of $44.4 in the first quarter of 2025 due primarily to a decrease in the fair value of our equity investment in Indicor. Changes in the fair value of our Indicor equity investment are primarily due to Indicor’s financial performance as well as fluctuations in the equity values of comparable guideline public companies.
Income taxes as a percentage of pretax earnings decreased to 19.9% for the first quarter of 2026 as compared to 20.8% for the first quarter of 2025, due primarily to favorable rate impact from the recognition of a net tax benefit associated with legal entity restructuring, partially offset by a reduction in stock-based compensation tax benefits.
Backlog is equal to our remaining performance obligations expected to be recognized as revenue within the next 12 months as discussed in Note 13 of the Notes to Condensed Consolidated Financial Statements. Backlog increased 11.8% to $3,392.1 at March 31, 2026 as compared to $3,033.8 at March 31, 2025 due primarily to acquisitions and organic growth in our software segments.
Backlog as of March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Application Software | $ | 2,448.1 | $ | 2,174.1 | |||||||
| Network Software | 620.6 | 548.5 | |||||||||
| Technology Enabled Products | 323.4 | 311.2 | |||||||||
| Total | $ | 3,392.1 | $ | 3,033.8 | |||||||
Financial Condition, Liquidity, and Capital Resources
All currency amounts are in millions, except per share data
Selected cash flows for the three months ended March 31, 2026 and 2025 were as follows:
| Three months ended March 31, | |||||||||||
| Cash provided by (used in): | 2026 | 2025 | |||||||||
| Operating activities | $ | 592.1 | $ | 528.7 | |||||||
| Investing activities | $ | (56.1) | $ | (146.8) | |||||||
| Financing activities | $ | (444.7) | $ | (207.8) | |||||||
Operating activities
Net cash provided by operating activities increased by 12% to $592.1 in the three months ended March 31, 2026 as compared to $528.7 in the three months ended March 31, 2025 due primarily to higher net earnings before non-cash expenses, and more cash provided by net working capital primarily related to changes in the balances of accounts receivable, accrued compensation, and accounts payable, partially offset by changes in the balances of deferred revenue and accrued interest.
Investing activities
Cash used in investing activities during the three months ended March 31, 2026 was primarily for a business acquisition, capitalized software expenditures, and capital expenditures. Cash used in investing activities during the three months ended March 31, 2025 was primarily for the acquisition of Muni-Link.
Financing activities
Cash used in financing activities during the three months ended March 31, 2026 primarily consisted of repurchases of our common stock as well as dividend payments, partially offset by net borrowings under our unsecured revolving credit facility. Cash used in financing activities during the three months ended March 31, 2025 was primarily for net repayments on our unsecured revolving credit facility and dividend payments.
20
Net working capital
Net working capital (total current assets, excluding cash, less total current liabilities, excluding debt) was negative $1,332.8 at March 31, 2026 as compared to negative $1,389.7 at December 31, 2025. The change in net working capital was primarily driven by a decrease in deferred revenue predominantly due to the timing of SaaS renewals associated with our Frontline business, the timing of payments associated with incentive compensation and interest payments on our senior notes, partially offset by a decrease in accounts receivable and changes in tax-related balances.
Debt
Total debt consisted of the following:
| As of March 31, 2026 | |||||
| Fixed-rate senior notes | $ | 8,500.0 | |||
| Unsecured revolving credit facility | 2,000.0 | ||||
| Other debt | 16.1 | ||||
| Less: Deferred financing costs | (52.1) | ||||
| Total debt, net of deferred financing costs | 10,464.0 | ||||
| Less: Current portion, net of deferred financing costs | (715.6) | ||||
| Long-term debt, net of deferred financing costs | $ | 9,748.4 | |||
On March 30, 2026, we entered into the Credit Agreement, which replaced the previous $3,500.0 unsecured credit facility, dated as of July 21, 2022. The Credit Agreement comprises a five-year $3,500.0 unsecured revolving credit facility, which includes availability of up to $150.0 for letters of credit. Loans under the unsecured credit facility are available in dollars, and letters of credit will be available in dollars and other currencies to be agreed. We may also, subject to compliance with specified conditions, request additional term loans or revolving credit commitments in an aggregate amount not to exceed $1,000.0.
The interest rate on borrowings under the new $3,500.0 unsecured revolving credit facility is calculated based upon various recognized indices plus a margin as defined in the Credit Agreement. At March 31, 2026, we had $7.1 of outstanding letters of credit.
We expect existing cash balances, together with cash generated by our operations and amounts available under our credit facility, will be sufficient to fund our operating requirements for the foreseeable future.
We were in compliance with all debt covenants related to our new and previous unsecured credit facilities throughout their respective periods of effectiveness during the three months ended March 31, 2026.
Total debt, net of deferred financing costs was $10,464.0 at March 31, 2026 as compared to $9,301.0 at December 31, 2025. Our total debt increased at March 31, 2026 as compared to December 31, 2025 due primarily to net borrowings of $1,150.0 on our unsecured revolving credit facility. Our leverage is presented in the following table:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Total debt, net of deferred financing costs | $ | 10,464.0 | $ | 9,301.0 | |||||||
| Less: Cash and cash equivalents | (382.9) | (297.4) | |||||||||
| Net debt | 10,081.1 | 9,003.6 | |||||||||
| Stockholders’ equity | 18,818.0 | 19,881.5 | |||||||||
| Total net capital | $ | 28,899.1 | $ | 28,885.1 | |||||||
| Net debt / Total net capital | 34.9 | % | 31.2 | % | |||||||
Foreign cash, and cash equivalents
In relation to our total cash and cash equivalents, amounts held at our foreign subsidiaries represented 51.9% or $198.8 at March 31, 2026 as compared to 57.6% or $171.2 at December 31, 2025. The increase in foreign cash and cash equivalents was primarily due to cash generated at our foreign subsidiaries during the three months ended March 31, 2026, partially offset by
21
cash repatriation of $40.0. We intend to repatriate substantially all historical and future foreign earnings that can be repatriated without incremental U.S. federal tax cost.
Capitalized expenditures
Capital expenditures were $14.3 for the three months ended March 31, 2026 as compared to $9.5 for the three months ended March 31, 2025. Capitalized software expenditures were $15.4 for the three months ended March 31, 2026 as compared to $12.4 for the three months ended March 31, 2025. We expect the aggregate of capital expenditures and capitalized software expenditures for 2026 to be comparable to prior years as a percentage of net revenues.
Tax legislation
On July 4, 2025, the U.S. government enacted H.R. 1, the One Big Beautiful Bill Act (the “OBBBA”), which introduced tax reform provisions that amend, eliminate, or extend certain tax rules under the Inflation Reduction Act and the Tax Cuts and Jobs Act. Legislative changes include the repeal of the requirement to capitalize and amortize domestic research and development expenditures under Internal Revenue Code Section 174. The legislation includes multiple effective dates and, as enacted, did not have a material impact on our effective tax rate in the first quarter of 2026 and is not expected to have a significant impact on our annual effective tax rate in full year 2026 or thereafter. We continue to assess the broader impacts of the OBBBA.
Share repurchase program
During the three months ended March 31, 2026, we repurchased 4.274 shares of our common stock for an aggregate purchase price of $1,500.0 and an average price paid per share of $350.99, excluding excise tax and broker commissions. As of March 31, 2026, $1,000.0 of the originally authorized amount remained available for future repurchases under the share repurchase program.
From April 1, 2026 through April 30, 2026, we repurchased 1.498 shares of our common stock for an aggregate purchase price of $528.4 and an average price paid per share of $352.87, excluding excise tax and broker commissions.
In April 2026, our Board approved an additional $3,000.0 in share repurchase authorization under the program. As of April 30, 2026, total share repurchase authorization of $3,471.6 remained available for future repurchases under the program.
Outlook
Current geopolitical and economic uncertainties, including inflation, tariffs and changes in trade policy, supply chain disruptions, and labor shortages, could adversely affect our business prospects. An armed conflict (such as the ongoing conflicts in Ukraine and the Middle East), significant terrorist attack, other global conflict, widespread cybersecurity event or information technology system failure, or public health crisis could cause changes in world economies that would adversely affect us. It is impossible to isolate each of these potential factor’s future effects on current economic conditions or any of our businesses. It is also impossible to predict with any reasonable degree of certainty what or when any additional events may occur that also would similarly disrupt the economy and have an adverse impact on our businesses.
We believe that internally generated cash flows and the remaining availability under our unsecured credit facility will be adequate to finance our normal operating requirements. We maintain an active acquisition program; however, future acquisitions will be dependent on numerous factors and it is not feasible to reasonably estimate if or when any such acquisitions will occur and what the impact will be on our business, financial condition, and results of operations. Such acquisitions may be financed by the use of existing credit agreements, future cash flows from operations, future divestitures, the proceeds from the issuance of new debt or equity securities, or any combination of these methods, the terms and availability of which will be subject to market and economic conditions generally.
We anticipate that our businesses will generate positive cash flows from operating activities, and that these cash flows will permit the reduction of currently outstanding debt in accordance with the repayment schedule. However, the rate at which we can reduce our debt (and reduce the associated interest expense) will be affected by, among other things, the financing and operating requirements of any new acquisitions, the financial performance of our existing companies, any allocation of capital toward share repurchases, the impact of the aforementioned geopolitical and economic uncertainties, and the financial markets generally. None of these factors can be predicted with certainty.
22
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See “Item 7A. Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report. There were no material changes during the three months ended March 31, 2026.
ITEM 4. CONTROLS AND PROCEDURES
As required by SEC rules, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report (“Evaluation Date”). This evaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer. Based on this evaluation as of the Evaluation Date, these officers have concluded that the design and operation of our disclosure controls and procedures are effective.
Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
There were no changes in our internal control over financial reporting during the period covered by this Quarterly Report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
23
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Information pertaining to legal proceedings can be found in Note 11 of the Notes to Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report and is incorporated by reference herein.
ITEM 1A. RISK FACTORS
Information regarding risk factors can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Information About Forward-Looking Statements,” in Part I, Item 2 of this Quarterly Report and in Part I, Item 1A of our 2025 Annual Report on Form 10-K. There have been no material changes during the three months ended March 31, 2026 to the risk factors reported in our 2025 Annual Report on Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
In October 2025, our Board of Directors approved a share repurchase program for the repurchase of up to $3,000.0 of our common stock. The repurchase program, announced on October 23, 2025, does not have a fixed expiration date, does not obligate the Company to acquire any specific number of shares, and may be suspended at any time at the Company’s discretion. Under the program, shares may be repurchased through open market purchases or privately negotiated transactions, including under repurchase plans complying with Rule 10b5-1 under the Exchange Act.
Share repurchases for the three months ended March 31, 2026 were as follows (amounts are in millions, except for average price paid per share):
| Period | Total Number of Shares Purchased | Average Price Paid Per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | ||||||||||||||||||||||
| January 1, 2026 - January 31, 2026 | 0.749 | $ | 362.06 | 0.749 | $ | 2,228.9 | ||||||||||||||||||||
| February 1, 2026 - February 28, 2026 | 3.431 | $ | 348.32 | 3.431 | $ | 1,033.7 | ||||||||||||||||||||
| March 1, 2026 - March 31, 2026 | 0.094 | $ | 360.46 | 0.094 | $ | 1,000.0 | ||||||||||||||||||||
| Total | 4.274 | 4.274 | ||||||||||||||||||||||||
(1)Average price paid per share excludes excise tax imposed by the Inflation Reduction Act of 2022, as amended, and broker commissions.
All share repurchases during the three months ended March 31, 2026 were made in open market transactions.
In April 2026, our Board of Directors approved an additional $3,000.0 in share repurchase authorization under the repurchase program. Refer to Note 6 of the Notes to Condensed Consolidated Financial Statements within this Quarterly Report for additional information regarding our share repurchase program.
ITEM 5. OTHER INFORMATION
On February 3, 2026 , L. Neil Hunn , our President and Chief Executive Officer and a member of our Board of Directors , adopted a 10b5-1 trading plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the exercise and sale of up to 40,000 stock options, subject to certain price limitations set forth in the plan. The 10b5-1 trading plan was adopted during an open insider trading window, and no sales will commence under the plan until completion of the required cooling-off period. The 10b5-1 trading plan terminates on January 19, 2027, unless terminated
24
ITEM 6. EXHIBITS
| 10.1 | Credit Agreement dated as of March 30, 2026, among Roper Technologies, Inc., the foreign subsidiary borrowers from time to time party thereto, the financial institutions from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A. and Wells Fargo Bank, National Association, as syndication agents, and PNC Bank, National Association, Truist Bank, U.S. Bank National Association, The Huntington National Bank, Royal Bank of Canada, The Toronto-Dominion Bank, New York Branch, and MUFG Bank, Ltd., as documentation agents, incorporated herein by reference to Exhibit 10.1 to the Roper Technologies, Inc. Current Report on Form 8-K filed April 1, 2026. | |||||||
| 10.2 | Form of Executive Officer Performance Share Unit Award Agreement, for use commencing in 2026 under the 2021 Incentive Plan, filed herewith. † | |||||||
| 10.3 | Form of Senior Management Performance Share Unit Award Agreement, for use commencing in 2026 under the 2021 Incentive Plan, filed herewith. † | |||||||
| 31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer, filed herewith. | |||||||
| 31.2 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer, filed herewith. | |||||||
| 32.1 | Section 1350 Certification of the Chief Executive and Chief Financial Officers, furnished herewith. | |||||||
| 101.INS | Inline XBRL Instance Document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
| † | Management contract or compensatory plan or arrangement. | |||||||
25
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Roper Technologies, Inc.
| /s/ L. Neil Hunn | President and Chief Executive Officer | May 1, 2026 | |||||||||
| L. Neil Hunn | (Principal Executive Officer) | ||||||||||
| /s/ Jason P. Conley | Executive Vice President and Chief Financial Officer | May 1, 2026 | |||||||||
| Jason P. Conley | (Principal Financial Officer) | ||||||||||
| /s/ Brandon Cross | Vice President and Chief Accounting Officer | May 1, 2026 | |||||||||
| Brandon Cross | (Principal Accounting Officer) | ||||||||||
26
FAQ
How did Roper Technologies (ROP) perform financially in Q1 2026?
Roper Technologies delivered higher revenue and earnings in Q1 2026. Net revenues rose to $2,095.3M, up 11.3%, while net earnings increased to $508.9M from $331.1M. Diluted EPS advanced to $4.87, reflecting stronger operations and investment gains.
What was Roper Technologies (ROP) organic revenue growth in Q1 2026?
Organic revenue growth reached 5.6% in Q1 2026. Application Software and Network Software each delivered 5.2% organic growth, while Technology Enabled Products achieved 7.1%, supported by strength in medical products businesses and broad-based growth across key software markets.
How strong was Roper Technologies (ROP) cash flow in Q1 2026?
Roper generated solid cash flow in Q1 2026. Cash provided by operating activities increased to $592.1M from $528.7M. This improvement was driven by higher net earnings and more favorable working capital movements in accounts receivable, accrued compensation, and accounts payable.
What is Roper Technologies (ROP) backlog and remaining performance obligations?
As of March 31, 2026, Roper reported total remaining performance obligations of $5,284.5M. About 64%, or $3,392.1M, is expected to be recognized as revenue over the next 12 months, with most backlog concentrated in the Application and Network Software segments.
How much debt does Roper Technologies (ROP) have and what is its leverage?
At March 31, 2026, Roper had total debt of $10,464.0M net of deferred financing costs and cash of $382.9M, resulting in net debt of $10,081.1M. Net debt represented 34.9% of total net capital, up from 31.2% at year-end 2025.
What share repurchases did Roper Technologies (ROP) complete in early 2026?
During the three months ended March 31, 2026, Roper repurchased 4.274M shares of common stock for an aggregate $1,500.0M at an average price of $350.99 per share. In April 2026, the Board approved an additional $3,000.0M in repurchase authorization.
How did Roper Technologies’ (ROP) Indicor equity investment impact Q1 2026 results?
Roper’s Indicor equity investment significantly boosted Q1 2026 earnings. The fair value increase produced an equity investment gain of $167.3M, compared with a $44.4M loss in Q1 2025. This gain is recorded in “Equity investment (gain) loss, net.”