Roper Technologies (ROP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 14% year-over-year to $2.02 billion, with 8% from acquisitions and 6% organic growth, and strong AI-driven momentum across all business segments.

• Net earnings for Q3 2025 were $398.5 million, up from $367.9 million in Q3 2024; adjusted net earnings increased 12% to $557 million.

• Adjusted EBITDA climbed 13% to $810 million, with a margin of 40.2%; free cash flow increased 17% to $842 million.

• Board authorized a $3 billion share repurchase program, the first in company history.

• $1.3 billion deployed for acquisitions, including Subsplash, Convoy, Orchard Software, and several tuck-ins.

Financial highlights

• Q3 revenue reached $2,017.5 million, up 14% year-over-year; M&A contributed 8%, organic growth 6%.

• Adjusted DEPS increased 11% to $5.14, including a $(0.05) impact from recent acquisitions; GAAP DEPS rose 8% to $3.68.

• Gross margin for Q3 2025 was 69.5%, up 70 bps year-over-year; operating margin was 28.4%.

• Free cash flow margin was 32% TTM; operating cash flow for the nine months ended September 30, 2025 was $1,802.3 million, up 8% year-over-year.

• Net debt-to-EBITDA at 3.0x; cash and cash equivalents at quarter-end were $320 million.

Outlook and guidance

• Full-year 2025 revenue expected to grow ~13%, with organic revenue guided to 6%; adjusted DEPS guidance updated to $19.90–$19.95, reflecting $0.10 dilution from recent acquisitions.

• Q4 2025 adjusted DEPS expected at $5.11–$5.16, including a $(0.05) impact from Q3 bolt-on acquisitions.

• Backlog increased 4.9% year-over-year to $3,174.0 million, with 66% expected to be recognized as revenue in the next 12 months.

• Guidance excludes unannounced future acquisitions, divestitures, and share repurchases.

• Management anticipates continued positive cash flows and plans to reduce debt in line with the repayment schedule.