Roper Technologies announces second quarter financial results and acquisition of Subsplash; Increasing full year guidance
SARASOTA, Fla., July 21, 2025 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (NASDAQ:ROP) reported financial results for the second quarter ended June 30, 2025.
Second quarter 2025 highlights
Revenue increased 13% to $1.94 billion; organic revenue was +7% and acquisition contribution was +6%
GAAP net earnings increased 12% to $378 million; adjusted net earnings increased 9% to $528 million
Adjusted EBITDA increased 12% to $775 million
GAAP operating cash flow increased 5% to $404 million; adjusted operating cash flow increased 13% to $434 million
GAAP DEPS increased 12% to $3.49; adjusted DEPS increased 9% to $4.87
"We delivered another strong quarter, highlighted by 13% total revenue growth, 7% organic revenue growth, and 10% free cash flow growth," said Neil Hunn, Roper Technologies' President and CEO. "Our businesses continued to execute at a high level, while further innovating and investing to drive durable, long-term growth. We are particularly excited about how AI capabilities are enhancing our solutions and creating new opportunities, broadly, across our portfolio. Our second quarter growth was balanced across all three segments, as expected, and positions us well for a strong second half."
"We are once again increasing our full year outlook, supported by our strong second quarter results, the continued expansion of our recurring revenue base, and resilient demand for our businesses' mission critical solutions. With significant M&A capacity and our proven acquisition model, we remain well positioned to execute our disciplined capital deployment strategy against a large pipeline of attractive opportunities. The combination of our durable business portfolio and proven M&A capability continues to fuel compelling long-term cash flow compounding for our shareholders."
Subsplash acquisition
Last week, Roper signed a definitive agreement to acquire Subsplash, a leading provider of AI-enabled, cloud-based software and fintech solutions that serve over 20,000 faith-based organizations and churches, for a purchase price of $800 million.
"Subsplash is a terrific business that meets each of our long-standing acquisition criteria while enhancing shareholder value creation with its high-teens organic growth profile and the ability to expand margins under Roper's long-term ownership. We are excited to welcome the Subsplash team to the Roper family and look forward to partnering with them to execute their long-term growth strategy. We see significant potential for Subsplash to further advance their AI capabilities and deliver powerful solutions that will drive increased engagement for their customers," concluded Mr. Hunn.
Increasing 2025 guidance
Roper now expects full year 2025 adjusted DEPS of $19.90 - $20.05, compared to previous guidance of $19.80 - $20.05. The Company increased its full year total revenue growth outlook to ~13%, compared to a previous outlook of ~12%, and continues to expect organic revenue growth of +6, 7%.
For the third quarter of 2025, the Company expects adjusted DEPS of $5.08 - $5.12.
Roper's guidance includes the impact of the Subsplash acquisition, which is expected to close later this month. The Company's guidance excludes the impact of unannounced future acquisitions or divestitures.
Conference call to be held at 8:00 AM (ET) today
A conference call to discuss these results has been scheduled for 8:00 AM ET on Monday, July 21, 2025. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 87418. Webcast information and conference call materials will be made available in the Investors section of Roper's website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 646-517-4150 with access code 87418#.
Use of non-GAAP financial information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Minority interest
Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper's equity investment in Indicor is updated on a quarterly basis and reported as "equity investments (gain) loss, net." Roper makes non-GAAP adjustments for the impacts associated with this investment.
Table 1: Revenue and adjusted EBITDA reconciliation ($M)
Q2 2024
Q2 2025
V %
GAAP revenue
$
1,717
$
1,944
13
%
Components of revenue growth
Organic
7
%
Acquisitions
6
%
Foreign exchange
—
%
Revenue growth
13
%
Adjusted EBITDA reconciliation
GAAP net earnings
$
337
$
378
Taxes
88
107
Interest expense
68
79
Depreciation
9
10
Amortization
192
213
EBITDA
$
694
$
788
14
%
Transaction-related expenses for completed acquisitions
—
4
Financial impacts associated with the minority investments in Indicor & Certinia
1
(17
)
A
Adjusted EBITDA
$
695
$
775
12
%
Adjusted EBITDA margin
40.5
%
39.9
%
(60 bps
)
Table 2: Adjusted net earnings reconciliation ($M)
Q2 2024
Q2 2025
V %
GAAP net earnings
$
337
$
378
12
%
Transaction-related expenses for completed acquisitions
—
3
Financial impacts associated with the minority investments in Indicor & Certinia
—
(13
)
A
Amortization of acquisition-related intangible assets
146
160
B
Adjusted net earnings C
$
483
$
528
9
%
Table 3: Adjusted DEPS reconciliation
Q2 2024
Q2 2025
V %
GAAP DEPS
$
3.12
$
3.49
12
%
Transaction-related expenses for completed acquisitions
—
0.03
Financial impacts associated with the minority investments in Indicor & Certinia
—
(0.12
)
A
Amortization of acquisition-related intangible assets
1.35
1.48
B
Adjusted DEPS C
$
4.48
$
4.87
9
%
Table 4: Adjusted cash flow reconciliation ($M)
Q2 2024
Q2 2025
V %
Operating cash flow
$
384
$
404
5
%
Taxes paid in period related to divestiture
—
30
D
Adjusted operating cash flow
$
384
$
434
13
%
Capital expenditures
(7
)
(16
)
Capitalized software expenditures
(11
)
(14
)
Adjusted free cash flow
$
367
$
403
10
%
Table 5: Forecasted adjusted DEPS reconciliation
Q3 2025
FY 2025
Low end
High end
Low end
High end
GAAP DEPS E
$
3.61
$
3.65
$
13.89
$
14.04
YTD transaction-related expenses for completed acquisitions
—
—
0.03
0.03
YTD financial impacts associated with the minority investment in Indicor A
—
—
0.17
0.17
Amortization of acquisition-related intangible assets B
1.47
1.47
5.81
5.81
Adjusted DEPS C
$
5.08
$
5.12
$
19.90
$
20.05
Footnotes:
A.
Adjustments related to the financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). Forecasted results do not include any potential impacts associated with our minority investment in Indicor, as these potential impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods.
Q2 2025A
Q3 2025E
FY 2025E
YTD 2025A
Pretax
$
(17
)
TBD
TBD
$
28
After-tax
$
(13
)
TBD
TBD
$
18
Per share
$
(0.12
)
TBD
TBD
$
0.17
B.
Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). Forecasted results do not include amortization of intangible assets associated with the announced acquisition of Subsplash, as the valuation of acquisition-related intangible assets is incomplete. This item will be excluded from all non-GAAP results in future periods.
Q2 2025A
Q3 2025E
FY 2025E
Pretax
$
203
$
202
$
798
After-tax
