01—Abstract
Summary
Summary of the 8-K filed April 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. filed this Form 8-K on April 28, 2025 to furnish its press release (Exhibit 99.1) reporting results for the first quarter ended March 31, 2025.
Revenue increased 12% to $1.88 billiona, comprising an 8% acquisition contribution and 5% organic growth. GAAP net earnings decreased 13% to $331 million, while adjusted net earnings increased 9% to $517 million. GAAP diluted EPS decreased 14% to $3.06, and adjusted DEPS increased 8% to $4.78.
Adjusted EBITDA rose 9% to $740 millionb, and trailing-twelve-months adjusted free cash flow grew 12%, to $2.28 billion in the reconciliation table. Management raised its full-year 2025 adjusted DEPS guidance to $19.80 to $20.05, from $19.75 to $20.00, and increased its total revenue growth outlook to approximately 12% from 10%+. Organic revenue growth expectations were maintained at 6% to 7%.
For Q2 2025, the company guided to adjusted DEPS of $4.80 to $4.84c. The guidance includes the CentralReach acquisition, which closed on April 23, 2025, and excludes unannounced future acquisitions or divestitures. The quarter's GAAP results were affected by a $44 million pretax charge from the company's minority equity investment in Indicor, reported within equity investments (gain) loss, net.
Roper excludes these impacts from its non-GAAP measures. Cash and cash equivalents rose to $372.8 milliond at March 31, 2025, and the company remains positioned for continued acquisitions.
02—Key points
Key Highlights
- Revenue rose 12% to $1.88 billion in Q1 2025, with 8% from acquisitions and 5% organic growth.
- GAAP net earnings fell 13% to $331 million, while adjusted net earnings grew 9% to $517 million.
- GAAP diluted EPS declined 14% to $3.06; adjusted DEPS increased 8% to $4.78.
- Adjusted EBITDA increased 9% to $740 million, with adjusted EBITDA margin of 39.3% versus 40.2% a year earlier.
- Full-year 2025 adjusted DEPS guidance raised to $19.80–$20.05 from $19.75–$20.00; revenue growth outlook raised to ~12% from 10%+.
- Q2 2025 adjusted DEPS guidance of $4.80–$4.84; organic revenue growth outlook of 6%–7% unchanged.
- Acquisition of CentralReach closed April 23, 2025 and is included in guidance; a $44 million pretax Indicor investment loss affected GAAP results.
03—Questions
Frequently Asked Questions
Why did GAAP earnings decline while adjusted earnings grew?
GAAP net earnings were reduced by a $44.4 million pretax charge from equity investments (gain) loss, net, tied to Roper's minority stake in Indicor. Roper excludes these financial impacts, along with amortization of acquisition-related intangibles, from its adjusted measures. Excluding the Indicor impact and amortization, adjusted net earnings rose 9% to $517 million.
How much of the revenue growth came from acquisitions versus the core business?
Of the 12% revenue growth, acquisitions contributed 8% and organic growth contributed 5%. Foreign exchange had no impact in the quarter.
What is the updated 2025 outlook?
Roper raised its full-year 2025 adjusted DEPS guidance to $19.80–$20.05 from $19.75–$20.00 and increased its total revenue growth outlook to about 12% from 10%+. Organic revenue growth expectations of 6%–7% were maintained. Guidance includes CentralReach and excludes unannounced acquisitions or divestitures.
What does the company say about cash flow and capital deployment?
Trailing-twelve-months adjusted operating cash flow increased 12% to $2.39 billion, and trailing-twelve-months adjusted free cash flow increased 12% to $2.28 billion. Management stated it has significant M&A capacity and a large acquisition pipeline to support its disciplined capital deployment strategy.
04—Continue