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Roper Technologies (ROP) Down 5.5% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Roper Technologies (ROP - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Roper Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Roper Q2 Earnings Top Estimates, Application Software Sales Up Y/Y
Roper’s second-quarter 2025 adjusted earnings of $4.87 per share surpassed the Zacks Consensus Estimate of $4.82. The bottom line increased 9% on a year-over-year basis.
Roper’s net revenues of $1.94 billion beat the consensus estimate of $1.93 billion. The top line increased 13% year over year. Organic revenues grew 7%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 6%.
Roper’s Segmental Performance in Q2
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.09 billion, representing 56.3% of the quarter’s top line. The segment’s revenues increased 17% on a year-over-year basis. Organic revenues increased 6%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $385.4 million, accounting for 19.8% of the quarterly top line. Segmental revenues grew 6% year over year. Organic revenues increased 5%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (SHP & SoftWriters) augmented the results.
The Technology Enabled Products segment generated revenues of $463.3 million, accounting for 23.9% of the quarter’s top line. Sales were up 10% year over year. Organic revenues grew 9%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.
Margin Profile
Roper’s cost of sales increased 14.3% year over year to $598.2 million. Gross profit increased 12.7% to about $1.35 billion while the gross margin decreased to 69.2% from 69.5% in the year-ago quarter.
Selling, general and administrative expenses increased 14% year over year to $797.1 million. Adjusted EBITDA was $775 million, reflecting year-over-year growth of 12%. The margin decreased 60 basis points to 39.9%. Interest expenses (net) increased 17.2% year over year to $79.1 million.
Balance Sheet & Cash Flow of Roper
Exiting the second quarter of 2025, Roper had cash and cash equivalents of $242.4 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $7.86 billion compared with $6.58 million at the end of 2024.
Roper generated net cash of $932.8 million from operating activities in the first six months of 2025, reflecting an increase of 1.9% from the year-ago level. Capital expenditure totaled $26.0 million compared with $15.9 million in the year-ago period.
In the first six months of 2025, it rewarded its shareholders with a dividend payment of $177.2 million, up 10.3% year over year.
Roper’s Outlook
The company has increased its 2025 outlook. For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.90-$20.05 compared with $19.80-$20.05 anticipated earlier. Total revenues are expected to increase 13% compared with the12% rise anticipated earlier. Organic revenues are anticipated to increase 6-7% from the year-ago number.
For the third quarter of 2025, Roper anticipates adjusted earnings to be in the band of $5.08 - $5.12 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Roper Technologies has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Roper Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Roper Technologies (ROP) Down 5.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Roper Technologies (ROP - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Roper Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Roper Q2 Earnings Top Estimates, Application Software Sales Up Y/Y
Roper’s second-quarter 2025 adjusted earnings of $4.87 per share surpassed the Zacks Consensus Estimate of $4.82. The bottom line increased 9% on a year-over-year basis.
Roper’s net revenues of $1.94 billion beat the consensus estimate of $1.93 billion. The top line increased 13% year over year. Organic revenues grew 7%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 6%.
Roper’s Segmental Performance in Q2
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.09 billion, representing 56.3% of the quarter’s top line. The segment’s revenues increased 17% on a year-over-year basis. Organic revenues increased 6%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $385.4 million, accounting for 19.8% of the quarterly top line. Segmental revenues grew 6% year over year. Organic revenues increased 5%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (SHP & SoftWriters) augmented the results.
The Technology Enabled Products segment generated revenues of $463.3 million, accounting for 23.9% of the quarter’s top line. Sales were up 10% year over year. Organic revenues grew 9%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.
Margin Profile
Roper’s cost of sales increased 14.3% year over year to $598.2 million. Gross profit increased 12.7% to about $1.35 billion while the gross margin decreased to 69.2% from 69.5% in the year-ago quarter.
Selling, general and administrative expenses increased 14% year over year to $797.1 million. Adjusted EBITDA was $775 million, reflecting year-over-year growth of 12%. The margin decreased 60 basis points to 39.9%. Interest expenses (net) increased 17.2% year over year to $79.1 million.
Balance Sheet & Cash Flow of Roper
Exiting the second quarter of 2025, Roper had cash and cash equivalents of $242.4 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $7.86 billion compared with $6.58 million at the end of 2024.
Roper generated net cash of $932.8 million from operating activities in the first six months of 2025, reflecting an increase of 1.9% from the year-ago level. Capital expenditure totaled $26.0 million compared with $15.9 million in the year-ago period.
In the first six months of 2025, it rewarded its shareholders with a dividend payment of $177.2 million, up 10.3% year over year.
Roper’s Outlook
The company has increased its 2025 outlook. For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.90-$20.05 compared with $19.80-$20.05 anticipated earlier. Total revenues are expected to increase 13% compared with the12% rise anticipated earlier. Organic revenues are anticipated to increase 6-7% from the year-ago number.
For the third quarter of 2025, Roper anticipates adjusted earnings to be in the band of $5.08 - $5.12 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Roper Technologies has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Roper Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.