On this page of StockholderLetter.com we present the latest annual shareholder letter from ROPER TECHNOLOGIES INC — ticker symbol ROP. Reading current and past ROP letters to shareholders can bring important insights into the investment thesis.
2025 annual repor t Simple ideas. Powerful results.
2025 highlights Revenue +12% EBITDA +11% to $7.9 billion to $3.1 billion Free cash flow Capital deployed 31% margin toward acquisitions +8% Share repurchase $500M 1.12M shares $3.3B Annual dividend +10% 33rd consecutive annual increase
Neil Hunn President and Chief Executive Officer Dear fellow shareholders, Over the past several years, these letters have outlined our deliberate transformation at Roper: reshaping the por tfolio, strengthening our leadership bench, refining our operating model, and enhancing capital deployment . This transformation is now largely complete. Today, Roper is approximately 75% vertical market software and 25% technology-enabled product businesses, has virtually no cyclical exposure, generates substantial and growing free cash flow, and is led by the strongest leadership team in our history. The question we spend most of our time on, now, is not what Roper is, but how to unlock more of our potential. That is the focus of this year s letter: what 2025 reinforced about the strength of our model, where we fell short, and why we believe Roper s best years of compounding still lie ahead. The specifics have evolved, but the underlying logic has not. We own durable, market-leading businesses with highly recurring revenue and strong cash flow characteristics. We operate them in a decentralized model that keeps our businesses close to customers. We pair this with disciplined, centrally led capital deployment designed to maximize cash flow per share over time. Over the past five years, revenue has compounded 14%, EBITDA 15%, and free cash flow 14% annually. We highlight these results because 2025 put the model to the test. It proved durable, but it also made clear where we need to be better. 2025: Results and Context In 2025, total revenue grew 12% to $7.9 billion, EBITDA grew 11% to $3.1 billion, free cash flow grew 8% to $2.5 billion, and adjusted DEPS grew 9% to $20.00. We deployed $3.3 billion toward high-quality vertical market software acquisitions, highlighted by CentralReach, Subsplash, and several strategic bolt-ons, and we repurchased 1.12 million shares for $500 million through our share repurchase program, which we continue to execute early in 2026. We also increased our annual dividend for the 33rd consecutive year. This was a good year for Roper, though our performance did not fully meet our standards. Roper Te chnol ogi e s 1
Our businesses generated substantial and growing cash flow, our capital deployment engine remained productive, and we added meaningful new businesses to the portfolio. At the same time, 2025 organic growth of 5% was below our initial outlook and below where we believe this portfolio should perform on a long-term and sustained basis. A small number of business-specific headwinds drove organic growth below the 6% to 7% range we expected at the start of the year. At Deltek, prolonged uncertainty around government spending, including shutdowns, continuing resolutions, and delayed contract awards, slowed commercial activity in its U.S. Federal government contracting customer base. At Neptune, tariff surcharge negotiations created order delays late in the year. At Procare, we were too slow to make needed leadership changes in the face of operational adversity. We should have moved sooner, and we have acted on that lesson. Across the rest of the portfolio, execution remained strong and organic revenue growth was healthy. The factors that weighed on 2025 organic growth were real, but they were concentrated rather than systemic, and they are being addressed. Our Strategic Priorities 2025 reinforced three things. First, the portfolio is resilient. Even with organic growth below our expectations, revenue, EBITDA, and free cash flow all increased. Second, our leadership teams showed competitiveness and adaptability, focusing on what they could control: customer intimacy, product innovation, and execution. Third, when a business faces operational adversity, we must respond with urgency. Those lessons sharpen our focus on the two priorities that matter most to increasing Roper s long-term compounding algorithm and cash flow per share. The rst is improved and sustained organic revenue growth. This is the most powerful lever in our model because organic growth is highly incremental, carries strong margins, and converts to free cash flow at attractive rates. Moving our organic growth 2 2025 annual repor t profile from the 5% range to 7%+ on a sustained basis will have a meaningful impact on long-term cash flow compounding. This starts with leadership. Great businesses improve when they are led by highly competitive people who understand their markets deeply, stay close to customers, and execute with discipline and speed. Over the past several years, we have materially strengthened leadership across the portfolio. To translate that into stronger organic growth, each business must also have a clear, data-driven long-term strategy focused on the segments where it has the highest right to win, while continuing to improve new product velocity, go-to-market execution, customer intimacy, and competitive position in the workflows it serves. AI is an increasingly important part of this effort, and we will address it separately below. The second priority is improving returns on our capital deployment. We deploy billions of dollars annually, and we want each of those dollars working harder. Our approach remains disciplined, objective, and centered on long-term value creation per share. Two aspects of our capital deployment strategy are especially important. First, we are allocating more capital to strategic bolt-on acquisitions that strengthen existing Roper platforms and improve their organic growth trajectories. Well-executed bolt-ons add products, capabilities, customers, and adjacencies in ways that enhance both strategic position and growth. Second, we are increasingly acquiring earlier-life-cycle category leaders, while remaining anchored to the same attributes we have always valued: leading positions in smaller markets, strong product-market fit, high recurring revenue, and high gross retention. The difference is timing. These businesses are earlier in their evolution, which often means faster growth and greater margin expansion potential under Roper ownership. CentralReach, Procare, and Subsplash fit this model well and offer meaningful opportunity for further improvement over time.
These priorities reinforce each other. Better businesses drive stronger organic growth. Stronger organic growth generates more free cash flow. And more free cash flow expands our capacity to deploy capital into acquisitions, bolt-ons, and share repurchases. Taken together, our compounding per share will improve further. AI and the Next Phase of Growth We believe Roper s businesses are exceptionally well positioned to create value in an AI-driven world for the same reasons they have created value in their underlying markets for many years: deep domain knowledge, rich workflow context, and trusted customer relationships. In enterprise software, we believe durable AI value will come not from frontier models alone, but from embedding AI into real customer workflows in ways that improve outcomes and earn trust. That requires proprietary data, domain-specific expertise, and trusted distribution into the daily operations of customers. Without that foundation, AI is difficult to commercialize. With it, AI becomes a product customers will adopt and pay for. That plays directly to the strengths of our portfolio. Our businesses are not broad horizontal platforms pursuing generic use cases. They are deeply embedded, mission-critical systems serving specific verticals with specific needs. Our decentralized operating model is an advantage in this environment because our businesses and their leaders stay close to customers and their workflows, helping them identify where AI can create real value and bring impactful products to market on a highly efficient and speedy timetable. This is why we view AI not as a feature enhancement, but as a structural expansion of the opportunity set for our businesses. Historically, our businesses have excelled at capturing, organizing, and managing structured data and workflows. But many of the highest-value tasks in our customers operations, including interpreting unstructured information, making complex judgment calls, and matching supply to demand under ambiguous conditions, have remained manual because they could not be reliably productized. AI is changing that. For example, CentralReach is using AI to improve autism therapy scheduling, documentation, and reimbursement workflows, addressing parts of the care delivery process that its software never touched before. DAT is applying AI to automate highly trusted matches between broker demand and carrier supply. In these cases, AI is being embedded in trusted systems of record and workflow, not bolted on as a separate layer. As a result, the addressable markets for these businesses expand because the range of problems their software can solve is also expanding. There is also an important compounding dynamic here. As our businesses deploy AI agents inside customer workflows, every action generates new operational data that can make those agents more accurate over time. Better agents get used more. More usage generates more data. And that further deepens the competitive advantage. At the same time, one lesson became clear in 2025: we have accelerated our pace of innovation, but not enough. Experimentation, prototyping, and iteration are necessary, but given the pace of change and the size of the opportunity, learning alone is not sufficient. We need to move from experimentation to productization and commercialization with greater velocity. That recognition led to one of the most important decisions we made in 2025: creating a centralized AI enablement team at Roper. Its role is to help our businesses move faster by providing technical expertise, development capacity, and reusable capabilities. Broadly, the early results are encouraging. In pockets of the portfolio, we see AI-enabled products gaining traction in the market, automating important customer workflows, and beginning to generate revenue. We remain measured in our guidance and do not assume a material revenue uplift from AI in Roper R Rop o p er Te chnol ogi op og i e s 3
 • shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 ROP Stockholder Letter
 • stockholder letter icon 4/26/2024 ROP Stockholder Letter
 • stockholder letter icon 4/25/2025 ROP Stockholder Letter
 • stockholder letter icon More "Application Software" Category Stockholder Letters
 • Benford's Law Stocks icon ROP Benford's Law Stock Score = 95


ROP Shareholder/Stockholder Letter Transcript:

2025 annual repor t
Simple ideas.
Powerful results.

2025 highlights
Revenue
+12%
EBITDA
+11%
to $7.9 billion
to $3.1 billion
Free cash flow
Capital deployed
31% margin
toward acquisitions
+8%
Share repurchase
$500M
1.12M shares
$3.3B
Annual dividend
+10%
33rd consecutive
annual increase

Neil Hunn
President and Chief Executive Officer
Dear fellow shareholders,
Over the past several years, these letters have
outlined our deliberate transformation at Roper:
reshaping the por tfolio, strengthening our
leadership bench, refining our operating model,
and enhancing capital deployment . This
transformation is now largely complete. Today,
Roper is approximately 75% vertical market software
and 25% technology-enabled product businesses,
has virtually no cyclical exposure, generates
substantial and growing free cash flow, and is led
by the strongest leadership team in our history.
The question we spend most of our time on, now,
is not what Roper is, but how to unlock more of
our potential.
That is the focus of this year   s letter: what 2025
reinforced about the strength of our model, where
we fell short, and why we believe Roper   s best
years of compounding still lie ahead. The specifics
have evolved, but the underlying logic has not.
We own durable, market-leading businesses with
highly recurring revenue and strong cash flow
characteristics. We operate them in a decentralized
model that keeps our businesses close to customers.
We pair this with disciplined, centrally led capital
deployment designed to maximize cash flow per
share over time.
Over the past five years, revenue has compounded
14%, EBITDA 15%, and free cash flow 14% annually.
We highlight these results because 2025 put the
model to the test. It proved durable, but it also
made clear where we need to be better.
2025: Results and Context
In 2025, total revenue grew 12% to $7.9 billion,
EBITDA grew 11% to $3.1 billion, free cash flow grew
8% to $2.5 billion, and adjusted DEPS grew 9% to
$20.00. We deployed $3.3 billion toward high-quality
vertical market software acquisitions, highlighted
by CentralReach, Subsplash, and several strategic
bolt-ons, and we repurchased 1.12 million shares
for $500 million through our share repurchase
program, which we continue to execute early in
2026. We also increased our annual dividend for the
33rd consecutive year.
This was a good year for Roper, though our
performance did not fully meet our standards.
Roper Te chnol ogi e s
1

Our businesses generated substantial and growing
cash flow, our capital deployment engine remained
productive, and we added meaningful new
businesses to the portfolio. At the same time, 2025
organic growth of 5% was below our initial outlook
and below where we believe this portfolio should
perform on a long-term and sustained basis.
A small number of business-specific headwinds
drove organic growth below the 6% to 7% range
we expected at the start of the year. At Deltek,
prolonged uncertainty around government
spending, including shutdowns, continuing
resolutions, and delayed contract awards, slowed
commercial activity in its U.S. Federal government
contracting customer base. At Neptune, tariff
surcharge negotiations created order delays
late in the year. At Procare, we were too slow
to make needed leadership changes in the face of
operational adversity. We should have moved
sooner, and we have acted on that lesson.
Across the rest of the portfolio, execution remained
strong and organic revenue growth was healthy.
The factors that weighed on 2025 organic growth
were real, but they were concentrated rather than
systemic, and they are being addressed.
Our Strategic Priorities
2025 reinforced three things. First, the portfolio
is resilient. Even with organic growth below our
expectations, revenue, EBITDA, and free cash flow
all increased. Second, our leadership teams showed
competitiveness and adaptability, focusing on what
they could control: customer intimacy, product
innovation, and execution. Third, when a business
faces operational adversity, we must respond with
urgency.
Those lessons sharpen our focus on the two priorities
that matter most to increasing Roper   s long-term
compounding algorithm and cash flow per share.
The    rst is improved and sustained organic revenue
growth. This is the most powerful lever in our model
because organic growth is highly incremental,
carries strong margins, and converts to free cash
flow at attractive rates. Moving our organic growth
2
2025 annual repor t
profile from the 5% range to 7%+ on a sustained
basis will have a meaningful impact on long-term
cash flow compounding.
This starts with leadership. Great businesses
improve when they are led by highly competitive
people who understand their markets deeply, stay
close to customers, and execute with discipline
and speed. Over the past several years, we have
materially strengthened leadership across the
portfolio. To translate that into stronger organic
growth, each business must also have a clear,
data-driven long-term strategy focused on the
segments where it has the highest right to win,
while continuing to improve new product velocity,
go-to-market execution, customer intimacy, and
competitive position in the workflows it serves. AI is
an increasingly important part of this effort, and we
will address it separately below.
The second priority is improving returns on our
capital deployment. We deploy billions of dollars
annually, and we want each of those dollars
working harder. Our approach remains disciplined,
objective, and centered on long-term value creation
per share.
Two aspects of our capital deployment strategy
are especially important. First, we are allocating
more capital to strategic bolt-on acquisitions that
strengthen existing Roper platforms and improve
their organic growth trajectories. Well-executed
bolt-ons add products, capabilities, customers, and
adjacencies in ways that enhance both strategic
position and growth. Second, we are increasingly
acquiring earlier-life-cycle category leaders, while
remaining anchored to the same attributes we
have always valued: leading positions in smaller
markets, strong product-market fit, high recurring
revenue, and high gross retention. The difference
is timing. These businesses are earlier in their
evolution, which often means faster growth and
greater margin expansion potential under Roper
ownership. CentralReach, Procare, and Subsplash
fit this model well and offer meaningful opportunity
for further improvement over time.

These priorities reinforce each other. Better
businesses drive stronger organic growth. Stronger
organic growth generates more free cash flow.
And more free cash flow expands our capacity to
deploy capital into acquisitions, bolt-ons, and share
repurchases. Taken together, our compounding
per share will improve further.
AI and the Next Phase of Growth
We believe Roper   s businesses are exceptionally
well positioned to create value in an AI-driven world
for the same reasons they have created value in
their underlying markets for many years: deep
domain knowledge, rich workflow context, and
trusted customer relationships.
In enterprise software, we believe durable AI value
will come not from frontier models alone, but
from embedding AI into real customer workflows
in ways that improve outcomes and earn trust.
That requires proprietary data, domain-specific
expertise, and trusted distribution into the daily
operations of customers. Without that foundation,
AI is difficult to commercialize. With it, AI becomes
a product customers will adopt and pay for.
That plays directly to the strengths of our
portfolio. Our businesses are not broad horizontal
platforms pursuing generic use cases. They are
deeply embedded, mission-critical systems
serving specific verticals with specific needs. Our
decentralized operating model is an advantage in
this environment because our businesses and their
leaders stay close to customers and their workflows,
helping them identify where AI can create real
value and bring impactful products to market on a
highly efficient and speedy timetable.
This is why we view AI not as a feature enhancement,
but as a structural expansion of the opportunity set
for our businesses. Historically, our businesses have
excelled at capturing, organizing, and managing
structured data and workflows. But many of the
highest-value tasks in our customers    operations,
including interpreting unstructured information,
making complex judgment calls, and matching
supply to demand under ambiguous conditions,
have remained manual because they could not be
reliably productized. AI is changing that.
For example, CentralReach is using AI to improve
autism therapy scheduling, documentation, and
reimbursement workflows, addressing parts of the
care delivery process that its software never touched
before. DAT is applying AI to automate highly trusted
matches between broker demand and carrier
supply. In these cases, AI is being embedded in
trusted systems of record and workflow, not bolted
on as a separate layer. As a result, the addressable
markets for these businesses expand because
the range of problems their software can solve is
also expanding.
There is also an important compounding dynamic
here. As our businesses deploy AI agents inside
customer workflows, every action generates new
operational data that can make those agents more
accurate over time. Better agents get used more.
More usage generates more data. And that further
deepens the competitive advantage.
At the same time, one lesson became clear in 2025:
we have accelerated our pace of innovation, but
not enough. Experimentation, prototyping, and
iteration are necessary, but given the pace of change
and the size of the opportunity, learning alone is not
sufficient. We need to move from experimentation
to productization and commercialization with
greater velocity.
That recognition led to one of the most important
decisions we made in 2025: creating a centralized
AI enablement team at Roper. Its role is to help
our businesses move faster by providing technical
expertise, development capacity, and reusable
capabilities.
Broadly, the early results are encouraging. In pockets
of the portfolio, we see AI-enabled products gaining
traction in the market, automating important
customer workflows, and beginning to generate
revenue. We remain measured in our guidance and
do not assume a material revenue uplift from AI in
Roper
R
Rop
o p er Te chnol ogi
op
og i e s
3


shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 

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