stockrowWhat it does
Roper Technologies is a diversified technology company that operates businesses making vertical software and technology-enabled products for niche markets. It was incorporated in Delaware in 1981, is headquartered in Sarasota, and L. Neil Hunn has been President and Chief Executive Officer since August 2018.
Its software businesses provide systems that customers use in specific operating workflows. For example, Aderant provides management software and AI-enabled tools for law and professional-services firms; CentralReach supports the administration and workflow of applied behavior analysis therapy; Frontline provides K-12 administration software; and Vertafore serves the property-and-casualty insurance industry. Other application software serves laboratories, hospitals, government contractors, transportation providers, utilities, early-childhood education centers, campuses, and financial institutions.
Its network software businesses operate data, marketplace, collaboration, and workflow platforms. DAT matches freight brokers and carriers, ConstructConnect serves construction contractors and building-product suppliers, iTradeNetwork connects participants in the perishable-food supply chain, and iPipeline serves life insurance, annuities, and financial services.
Its technology-enabled products include medical devices and equipment, precision fluid-control products, wireless sensor networks, water meters, precision measurement systems, and RFID credential readers. The company operates its businesses as individual units, with local managers making day-to-day operating decisions subject to executive oversight and company policies.
How it makes money
Roper earns revenue from three reportable segments: Application Software, Network Software, and Technology Enabled Products. Application Software generated $4.5 billion in FY2025, or 56.7% of revenue; Network Software generated $1.6 billion, or 20.3%; and Technology Enabled Products generated $1.8 billion, or 23.0%.
Application Software includes enterprise and cloud software, SaaS offerings, data tools, payment processing, and professional services. Network Software includes electronic marketplaces, subscription software, supply-chain and freight-matching platforms, analytics, and digital-engagement tools. Technology Enabled Products sells physical products and related software, including medical devices, water meters, sensors, measurement systems, and access-management equipment.
Recurring revenue was $4.5 billion in FY2025, representing 56.7% of revenue. The company also reported $833.1 million of reoccurring revenue and $813.9 million of non-recurring revenue. Its remaining performance obligations were $5,204.2 at December 31, 2025, while backlog—performance obligations expected to become revenue within the next 12 months—was $3,424.6.
Management said on the call that enterprise-software gross retention remains consistently in the mid-90s. It also said AI products are being monetized through several approaches: fixed recurring contracts with a defined amount of usage, straight consumption pricing where customers already transact by prescription or load, and higher-priced cloud add-ons. Management said Vertafore’s value-based credits are structured as recurring contracts, while Strata sells Financial Decision Intelligence as an add-on subscription.
FY2025 net revenue was $7,902.5; Q3 2026 revenue was $2.2 billion.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Recurring | $4.5 billion | 56.7% | 12.7% |
| Product Revenue | $1.8 billion | 22.4% | 6.19% |
| Reoccurring | $833.1 million | 10.5% | 33.5% |
| Non-recurring | $813.9 million | 10.3% | 5.76% |
Customers and how it sells
Roper serves a wide range of organizations rather than relying on one customer category. Its software customers include law and professional-services firms, healthcare providers, hospitals and laboratories, government contractors, K-12 schools, early-childhood education centers, utilities, insurance agencies and carriers, campuses, freight brokers and carriers, construction companies, pharmacies, food-sector supply-chain participants, churches, and financial-services businesses. Its technology-enabled products are sold to healthcare providers, water utilities, industrial and medical users, and organizations managing physical access.
No customer accounted for 10% or more of company revenue or segment revenue during 2025. Sales and distribution occur primarily through direct sales offices, manufacturers’ representatives, resellers, and distributors.
The United States accounted for $6.9 billion, or 87.0%, of FY2025 revenue. Europe contributed $541.4 million, or 6.85%; Canada contributed $291.7 million, or 3.69%; the rest of the world contributed $125.5 million, or 1.59%; and Asia contributed $71.1 million, or 0.90%. Total sales to customers outside the United States were $1,029.7 in 2025.
Management said on the call that Origo expands iPipeline’s presence in the United Kingdom wealth and retirement market by connecting pension providers, investment platforms, and financial advisers through secure data exchange.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $6.9 billion | 87.0% | 13.4% |
| Europe | $541.4 million | 6.85% | 9.35% |
| Canada | $291.7 million | 3.69% | 1.18% |
| Rest of the world | $125.5 million | 1.59% | 6.00% |
| Asia | $71.1 million | 0.90% | −4.05% |
Suppliers and costs
Most materials and supplies used by Roper are available from numerous suppliers around the world. Some components and sub-assemblies are available from only a limited number of suppliers, and the company investigates alternative sources where possible. This exposure is most relevant to its technology-enabled-products businesses, which manufacture and sell physical equipment such as water meters, medical devices, sensors, and measurement systems.
The company’s software operations are generally asset-light, while product businesses carry material, manufacturing, and distribution requirements. Roper reported negative net working capital of $1,389.7 at December 31, 2025, which it attributes to its focus on asset-light business models.
Management said on the call that Neptune’s greater mix of mechanical meters reduced revenue dollars and margins in Q3 2026. It also said projects for higher-value static meters had been delayed and that this mix effect was likely to continue into Q4. The company is subject to environmental, healthcare-device, export-control, anti-corruption, privacy, and data-security requirements, which can add compliance costs.
- Revenue$7.9B
- Cost of revenue−$2.4B
- Selling, general and administrative−$3.2B
- Operating income$2.2B
Competitive position
Roper says its products and solutions face significant competition, although certain niche markets have a limited number of competitors. It says no single company competes with it across a significant number of product lines. Competition varies by niche and can come from large or small companies. The company competes on product quality, performance, innovation, technology, price, applications expertise, flexibility, channel access, and customer service.
No individual competing companies are named in the available information. Its businesses instead compete within distinct markets, including law-firm software, autism-therapy workflow software, healthcare finance, insurance software, government-contractor software, freight matching, construction software, water metering, medical devices, and access management.
Roper owns or licenses patents, trademarks, trade dress, copyrights, software source code, trade secrets, and other know-how. It says no operating unit is substantially dependent on a single intellectual-property item. Management said on the call that the company’s vertical software businesses draw on domain expertise, embedded workflows, unique data assets, customer relationships, and distribution scale. It also said individual businesses develop products close to customers, while a central AI accelerator team supports development and sharing across the portfolio.
Our reading: Embedded workflows and long-standing customer relationships are meaningful moat sources because the software is used in operational processes and tailored to specialized markets.
Our reading: Proprietary data and domain knowledge are meaningful moat sources for the company’s AI offerings, particularly where customers require repeatable, traceable analyses.
Our reading: Intellectual property offers some protection, but the company does not identify any operating unit as dependent on one asset.
Growth opportunities
Roper pursues growth through operating improvement at its existing businesses, new products and applications, professional services, and acquisitions. Over the last three years, it deployed approximately $8,960 toward acquisitions. Its 2025 acquisitions included CentralReach and Subsplash, while previous acquisitions added Procare, Transact Campus, and Syntellis. The company also uses bolt-on acquisitions to add products, expertise, customer relationships, and distribution to established platforms.
Application Software revenue grew 15.9% in FY2025, Network Software revenue grew 8.48%, and Technology Enabled Products revenue grew 7.28%. Organic revenue growth in 2025 was 5.4% in Application Software, 4.1% in Network Software, and 6.5% in Technology Enabled Products.
Management said on the call that 17 of 21 software businesses have agentic solutions in the market. It said AI products are in early commercialization, with adoption expected to develop over time as customers integrate them into workflows. CentralReach reported that 75.0% of Q3 FY2026 bookings were AI-specific or AI-related, while Aderant reported 25.0%. Management also said PowerPlan’s Intelligent Unitization addresses more than $180 billion of capital investments awaiting detailed asset-class classification across U.S. electric utilities.
Management said Q3 2026 revenue grew 8%, with organic revenue growth of 7%, and it expects full-year revenue growth of more than 8% and organic revenue growth in the 6% area. It expects Application Software and Network Software organic growth in Q4 to be in the mid-single-digit-plus range, and Technology Enabled Products organic growth in the mid-single-digit range.
- $4.8BFY2021
- $5.4BFY2022
- $6.2BFY2023
- $7.0BFY2024
- $7.9BFY2025
Structural risks
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Acquisition and debt risk. The company’s growth strategy includes acquisitions, and debt servicing costs could increase vulnerability to adverse conditions, limit additional borrowing, constrain acquisitions and capital spending, or place it at a disadvantage relative to companies with lower debt obligations.
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Privacy, data security, and AI regulation. Privacy and data-security laws may reduce sales and increase compliance costs. The company also faces differing and potentially changing requirements related to AI, cybersecurity, and international data transfers.
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Healthcare and product regulation. Medical-device businesses are subject to FDA and foreign regulation covering design, testing, manufacturing, packaging, servicing, and marketing. Approvals can be withdrawn or suspended if standards are not maintained or problems arise after marketing.
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International and trade exposure. International operations face political and economic changes, tariffs, import and export requirements, sanctions, foreign-exchange exposure, labor rules, and differing intellectual-property protection.
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Supplier and input-cost exposure. Certain components and sub-assemblies are available from a limited number of suppliers. Management said on the call that delayed static-meter projects and a higher mechanical-meter mix reduced Neptune revenue and margins.
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Software-market and AI-adoption risk. Management said Deltek’s government-contracting market remains uncertain, while cloud migrations create a timing difference versus upfront perpetual-license revenue. It also said AI adoption can be affected by customer budget cycles, governance committees, and sales-process requirements.
Bottom line
Our reading
Our reading: Roper is a portfolio of vertical software, marketplace, and technology-enabled-product businesses, with Application Software providing the largest share of FY2025 revenue and recurring revenue accounting for 56.7% of revenue.
Our reading: Its operating model combines decentralized business units, specialized customer workflows, recurring software revenue, and acquisitions that extend existing platforms.
Our reading: The central execution issues are acquisition-funded leverage, regulation and data-security obligations, limited-source components in product businesses, and the pace at which customers adopt and pay for AI products.