Roper Technologies (ROP) Q2 2025 earnings summary

Executive summary

• Achieved 13% total revenue growth year-over-year in Q2 2025, with 7% organic and 6% acquisition-driven growth, and strong software bookings.

• Announced acquisition of Subsplash, a cloud-native, AI-enabled software provider for faith-based organizations, for $800 million, expected to deliver $115 million revenue and $36 million EBITDA for the 12 months ending Q3 2026.

• Raised full-year total revenue and DEPS guidance, reflecting strong first-half performance and anticipated Subsplash closing.

• Maintains over $5 billion in available capital for M&A over the next 12 months, supporting ongoing disciplined capital deployment.

• Continued expansion of recurring revenue base and strong demand for mission-critical solutions.

Financial highlights

• Q2 revenue reached $1.94 billion, up 13% year-over-year, with 7% organic growth and 6% from acquisitions.

• EBITDA was $775 million, up 12% year-over-year, with a 39.9% EBITDA margin.

• Diluted EPS was $4.87, exceeding guidance, and free cash flow was $403 million, up 10% year-over-year.

• Gross margin was 69.2%, with a core margin increase of 40 bps.

• TTM free cash flow exceeded $2.3 billion; three-year TTM free cash flow CAGR would be 14% excluding Section 174 impact.

Outlook and guidance

• Increased full-year total revenue growth guidance to 13%, with organic growth expected at 6–7%.

• Raised full-year DEPS outlook to $19.90–$20.05, including about $0.05 of Subsplash dilution.

• Q3 adjusted DEPS expected between $5.08–$5.12, absorbing $0.03 of Subsplash dilution.

• Full-year effective tax rate expected in the 21–22% range.

• Guidance includes Subsplash acquisition but excludes unannounced deals.