Roper Technologies (ROP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 12% year-over-year to $1.88B–$1.9B, with 8% from acquisitions and 5% organic growth, led by strong Application Software and Technology Enabled Products segments.

• Adjusted EBITDA rose 9% to $740M, with a margin of 39.3%; adjusted DEPS grew 8% to $4.78.

• Free cash flow for the trailing twelve months increased 12% to $2.3B–$2.39B, with a 31% margin.

• Net earnings were $331M, down from $382M in Q1 2024, due to a $44M decrease in Indicor equity value and a $24M litigation settlement.

• Completed the $1.65B–$1.85B acquisition of CentralReach, a high-growth, cloud-native ABA therapy software provider.

Financial highlights

• Q1 revenue: $1.88B–$1.9B (+12% YoY); gross margin 68.7% (down from 70.3%); adjusted EBITDA $740M (39.3% margin).

• Adjusted DEPS: $4.78 (+8% YoY); GAAP DEPS: $3.06 (down 14%).

• Free cash flow: $507M for Q1; trailing-twelve-month $2.3B–$2.39B.

• Net earnings: $331M (GAAP), $517M (adjusted); interest expense $62.9M.

• Backlog grew 3.5% to $3.03B, reflecting strong demand.

Outlook and guidance

• Full-year 2025 revenue growth outlook raised to ~12% (from 10%+); organic growth guidance at 6–7%.

• Full-year adjusted DEPS guidance increased to $19.80–$20.05, including CentralReach impact.

• Q2 2025 adjusted DEPS expected at $4.80–$4.84.

• Guidance includes CentralReach; excludes unannounced M&A.

• Management expects stronger free cash flow and EBITDA in the second half, with Q3 as the seasonal high point.