01—Abstract
Summary
Summary of the 10-Q filed May 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. reported net revenues of $1,882.8 milliona for the three months ended March 31, 2025, up from $1,680.7 million a year earlier, an increase of 12.0% per the filing, with organic revenue growth of 4.8%.
Net earnings fell to $331.1 millionb from $382.0 million, largely because of a $44.4 million loss on equity investments, driven by a $44.1 million decrease in the fair value of its Indicor investment, compared with a $57.0 million gain in the prior-year quarter. Income from operations rose to $525.8 million from $481.3 million. Diluted EPS was $3.06 versus $3.54.
Cash provided by operating activities was $528.7 millionc, roughly flat versus $531.5 million, reflecting a $24.0 million litigation settlement payment, incentive compensation payments, and higher cash taxes paid. Cash used in investing activities was $146.8 million, mainly for the Muni-Link acquisition at a purchase price of $118.0 million. Total debt, net of deferred financing costs, decreased to $7,456.4 million from $7,623.0 million, and the company repaid its $125.0 million revolver balance.
Backlog increased 3.5% to $3,033.8 milliond. Subsequent to quarter end, Roper acquired CentralReach for approximately $1,850 million on April 23, 2025, funded with borrowings under its unsecured revolving credit facility. The filing states that CentralReach results will be reported in the Application Software segment beginning in the second quarter of 2025, and that existing cash, operating cash flows and credit facility availability are expected to fund operations for the foreseeable future.
02—Key points
Key Highlights
- Net revenues rose 12.0% to $1,882.8 million, with organic revenue growth of 4.8% and acquisitions contributing 7.6 percentage points.
- Net earnings declined to $331.1 million from $382.0 million, primarily due to a $44.4 million equity investments loss tied to the Indicor investment, versus a $57.0 million gain a year earlier.
- Income from operations increased to $525.8 million from $481.3 million, and diluted EPS was $3.06 compared with $3.54.
- Application Software revenue grew 19.3% to $1,068.2 million, with organic growth of 5.9%; Technology Enabled Products grew 5.8% and Network Software grew 1.4%.
- Operating cash flow was $528.7 million, and total debt, net of deferred financing costs, decreased to $7,456.4 million from $7,623.0 million.
- Backlog increased 3.5% to $3,033.8 million at March 31, 2025.
- On April 23, 2025, Roper acquired CentralReach for approximately $1,850 million, funded through its revolving credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Roper Technologies kept $0.18.
- Revenue$1.88B100.0%
- Cost of revenue−$589.1M31.3%
- Gross profit$1.29B68.7%
- Operating costs−$767.9M40.8%
- Operating income$525.8M27.9%
- Interest, other & tax−$194.7M10.3%
- Net income$331.1M17.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 2, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.88B$1.68B | +12.0% |
| Cost of Revenue | $589.10M$499.70M | +17.9% |
| Gross Profit | $1.29B$1.18B | +9.5% |
| SG&A Expenses | $767.90M$699.70M | +9.7% |
| Operating Income | $525.80M$481.30M | +9.2% |
| Net Income | $331.10M$382.00M | −13.3% |
| EPS (Basic) | $3.08$3.57 | −13.7% |
| EPS (Diluted) | $3.06$3.54 | −13.6% |
| Shares Outstanding (Basic) | 107.40M107.00M | +0.4% |
| Shares Outstanding (Diluted) | 108.20M107.90M | +0.3% |
05—Questions
Frequently Asked Questions
Why did net earnings decline despite higher revenue and operating income?
The decline was due primarily to a $44.4 million loss on equity investments in the first quarter of 2025, driven by a $44.1 million decrease in the fair value of the Indicor investment. The prior-year quarter included a $57.0 million gain. Interest expense, net also rose to $62.9 million from $53.2 million.
How did the acquisitions affect the quarter's results?
Acquisitions contributed 7.6 percentage points of the 12.0% total revenue growth, with the largest contribution in Application Software, led by Transact and Procare. Muni-Link, acquired February 19, 2025 for $118.0 million, was integrated into the Neptune business within Technology Enabled Products.
What is the company's liquidity and debt position?
Cash and cash equivalents were $372.8 million at March 31, 2025, up from $188.2 million at December 31, 2024. The revolver had no outstanding borrowings at quarter end, versus $125.0 million at year end, and the company was in compliance with its debt covenants. Net debt was $7,083.6 million, with net debt to total net capital at 26.9%.
What major transaction occurred after the quarter ended?
On April 23, 2025, Roper acquired CentralReach Holdings, LLC for a purchase price of approximately $1,850 million, which the filing says contemplates a net present value tax benefit of approximately $200 million. The acquisition was funded using borrowings under the unsecured revolving credit facility, and its results will be reported in the Application Software segment beginning in the second quarter of 2025.
What is the outlook for future acquisitions and debt reduction?
The company maintains an active acquisition program but says it is not feasible to estimate if or when acquisitions will occur. It anticipates that operating cash flows will allow debt reduction in line with its repayment schedule, though the pace will depend on acquisition financing needs, the performance of existing businesses, and economic and financial market conditions.
06—Continue