Roper Technologies (ROP) Q4 2025 earnings summary

Executive summary

• Achieved 12% revenue growth to $7.9 billion and 11% EBITDA growth in 2025, with 8% free cash flow growth, driven by both organic expansion and $3.3 billion in acquisitions.

• Repurchased 1.12 million shares for $500 million in Q4, enhancing capital deployment.

• Continued investment in long-term growth, upskilling talent, and accelerating AI product development across the portfolio.

• Entering 2026 with over $6 billion in capital deployment capacity for M&A and buybacks.

• Adjusted net earnings rose 9% to $2.16 billion, while GAAP net earnings decreased 1% to $1.54 billion.

Financial highlights

• 2025 revenue reached $7.9 billion, up 12% year-over-year, with 7% from M&A and 5% organic growth.

• 2025 EBITDA grew 11% to $3.14 billion (39.8% margin); adjusted DEPS increased 9% to $20.00.

• Free cash flow rose 8% to $2.47 billion, representing a 31% margin.

• Q4 2025 revenue was $2.06 billion, up 10% year-over-year; Q4 EBITDA up 10% to $818 million.

• Q4 adjusted net earnings increased 8% to $561 million; GAAP net earnings down 7% to $428 million.

Outlook and guidance

• 2026 guidance: revenue growth of ~8%, organic growth 5–6%, and adjusted DEPS of $21.30–$21.55.

• Q1 2026 adjusted DEPS expected at $4.95–$5.05.

• Guidance assumes no improvement at Deltek's GovCon or DAT's freight market, and modest top-line weakness at Neptune.

• Guidance excludes impacts from unannounced acquisitions, divestitures, and share repurchases.

• AI commercialization not included in revenue guidance, viewed as potential upside.