Roper Technologies (ROP) Q4 2024 earnings summary

Executive summary

• Achieved 14% revenue growth in 2024, with 8–9% from M&A and 6–7% organic; free cash flow up 16% to $2.3B, representing a 32% margin.

• Deployed $3.6B toward vertical software acquisitions, including Procare Solutions and Transact Campus; expanded recurring revenue base and upgraded talent.

• Entered 2025 with strong momentum, accelerating demand, and over $5B in available M&A firepower.

• Free cash flow surpassed $2B for the first time, reaching $2.3B, a 16% increase.

• GAAP net earnings increased 22% in Q4 and 13% for the year; adjusted net earnings up 10% for both periods.

Financial highlights

• Q4 2024 revenue rose 16% year-over-year to $1.88B; organic revenue up 7%; adjusted EBITDA up 13% to $744M.

• Full-year 2024 revenue reached $7.04B (+14%); adjusted EBITDA $2.83B (+13%); DEPS $18.31 (+10%).

• Free cash flow for 2024 was $2.3B (+16%), with a 32% margin.

• Gross margin for 2024 was 69.3%; adjusted EBITDA margin 40.2% (core margin flat year-over-year).

• Q4 GAAP DEPS increased 22% to $4.28; adjusted DEPS up 10% to $4.81.

Outlook and guidance

• 2025 total revenue expected to grow north of 10%, with organic growth in the 6–7% range.

• Adjusted DEPS guidance for 2025: $19.75–$20.00; Q1 2025 DEPS: $4.70–$4.74.

• Free cash flow margins expected to remain at 30% or higher.

• Guidance excludes unannounced acquisitions or divestitures.

• Core margins anticipated to rise slightly in 2025, with headline margin flat due to acquisition mix.