Slides
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Q3 2025 Financial results October 23, 2025
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The information provided in this presentation contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "intends" and similar words and phrases. These statements reflect management's current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, acquired businesses, including obtaining any required regulatory approvals with respect thereto. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, including risks related to labor shortages and rising interest rates, changes in foreign exchange rates, risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises (such as the COVID-19 pandemic) or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of inflation and potential supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. We refer to certain non-GAAP financial measures in this presentation. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found within this presentation. Safe harbor statement 2
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Q3 results adjusted for the following items: 1. Amortization of acquisition-related intangible assets 2. Transaction-related expenses associated with completed acquisitions 3. Financial impacts associated with minority investments See appendix for reconciliations. Today’s conference call will discuss results primarily on an adjusted (non-GAAP) and continuing operations basis. Reg. G Disclosure 3
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Agenda Q3 enterprise highlights & financial results Segment detail & outlook Q4 & FY 2025 enterprise guidance Q&A 4
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5 Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. Q3 overview Strong third quarter +14% revenue; +13% EBITDA; +17% free cash flow Well positioned for continued M&A deployment Accelerated AI innovation $3B share repurchase authorization Deployed $1.3B toward Subsplash & multiple bolt-on acquisitions
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Q3 financial highlights TTM free cash flow $1,530 $1,823 $2,195 $2,436 Q3'22 Q3'23 Q3'24 Q3'25 +17% 3-year CAGR 6 * Includes bolt-on acquisitions of Convoy (combined with DAT) and Orchard Software (combined with Clinisys). In $ millions, except DEPS. Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. Strong third quarter results Revenue EBITDA Total revenue +14%; M&A contribution +8%; organic revenue +6% EBITDA +13%; EBITDA margin 40.2%; core EBITDA margin +10 bps DEPS +11% to $5.14; includes $(0.05) impact from Q3 bolt-ons not reflected in previous guidance* Free cash flow +17% to $842M; TTM 32% free cash flow margin $1,350 $1,563 $1,765 $2,017 Q3'22 Q3'23 Q3'24 Q3'25 $555 $652 $717 $810 Q3'22 Q3'23 Q3'24 Q3'25 +14% 3-year CAGR +13% 3-year CAGR
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7 Strong financial position $5B+ annual capacity for capital deployment Well positioned for continued M&A deployment Large pipeline of attractive acquisition opportunities Board authorized share repurchase program $3 billion total authorization; open-ended timing Will be executed opportunistically based on market conditions Exited Q3’25 at 3.0x net debt-to-EBITDA $320M of cash; $710M drawn on $3.5B revolver
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8 AI is meaningfully TAM expanding & will fuel growth for ROP Roper is becoming AI-native in all we do (customer, product, internal ops, etc.) We have early, yet real, proof points in the market demonstrating all of the above Roper's businesses have a very high right to win in the AI world Roper’s AI opportunity Well positioned to be a long- term AI-based winner
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Segment detail & outlook
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Application Software Q3 highlights $644 $803 $984 $1,161 Q3'22 Q3'23 Q3'24 Q3'25 Revenue $281 $359 $429 $504 Q3'22 Q3'23 Q3'24 Q3'25 EBITDA Q4 outlook MSD organic growth; government uncertainty Margin 43.6% 44.6% 43.6% 43.4% 10 In $ millions. Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. Revenue +18%; M&A revenue contribution +12%; organic revenue +6% Deltek strong growth across private sector; political uncertainty impacting near-term GovCon demand Another great Aderant quarter; sustained SaaS momentum & AI innovation Continued ARR growth across Vertafore’s agency, MGA & carrier solutions; ongoing AI innovation PowerPlan ARR growth driven by strong new bookings & customer retention Completed Orchard Software bolt-on for Clinisys Strong execution from CentralReach, Procare & Transact/CBORD Core margin +40 bps
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Network Software $347 $364 $367 $413 Q3'22 Q3'23 Q3'24 Q3'25 $189 $205 $206 $222 Q3'22 Q3'23 Q3'24 Q3'25 Margin 54.5% 56.3% 56.2% 53.7% Revenue EBITDA 11 In $ millions. Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. MSD+ organic growth Core margin +60 bps Q3 highlights Q4 outlook Revenue +13%; M&A revenue contribution +7%; organic revenue +6% DAT continued growth from ARPU expansion; Convoy bolt-on & organic innovation further enhanced network value Another strong ConstructConnect quarter; continued ARR growth & AI innovation Foundry ARR sequential growth; market recovering Continued growth & solid execution from alternate site healthcare businesses (MHA, SHP & SoftWriters) Completed Subsplash acquisition & onboarding; off to a great start
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DAT: building a digital freight marketplace An end-to-end platform Rate Match Negotiate Vet Onboard Manage Pay Present New AI Automation Present End-to-end freight system Future Automated freight system at scale • Industry leading: ‐ Load board scale ‐ Data & analytics ‐ Visibility & tracking ‐ Payments platform ‐ Automation & compliance platform All the components to transform the freight ecosystem One-click automation • Intelligent end-to-end AI driven platform • Real time load optimization for autonomous trucking • Manual, labor intensive process • 1.2M load posts per day • 15M rate lookups per day to negotiate freight Post – Search – Call Past Load board + data Hours Minutes Seconds 12
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Technology Enabled Products $360 $396 $413 $443 Q3'22 Q3'23 Q3'24 Q3'25 $134 $144 $146 $156 Q3'22 Q3'23 Q3'24 Q3'25 Revenue +7%; organic revenue +6% Neptune growth driven by demand for ultrasonic meters & cloud-based software solutions; tariffs impacted timing Verathon growth from single-use BFlex & GlideScope offerings Great quarter for NDI; continued strong demand for cardiac, neurology & orthopedic solutions Continued strong execution & growth from CIVCO, FMI, Inovonics, IPA & rf IDEAS Margin 37.2% 36.5% 35.4% 35.2% Revenue EBITDA 13 In $ millions. Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. Q3 highlights LSD organic growth; Q4 tougher comp Q4 outlook
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2025 enterprise guidance
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Guidance update 15 * Includes bolt-on acquisitions of Convoy (combined with DAT) and Orchard Software (combined with Clinisys). Guidance presented on an adjusted (non-GAAP) and continuing operations basis; excludes impact of unannounced future acquisitions or divestitures, as well as potential share repurchases. See appendix for reconciliations. Updating FY 2025 guidance Total revenue: ~13% (unchanged) Organic: ~6% (previously 6 – 7%) Adjusted DEPS: $19.90 - $19.95 Previously $19.90 - $20.05 Includes $(0.10) impact from Q3 bolt-ons not reflected in previous guidance* Establishing Q4 2025 guidance Adjusted DEPS: $5.11 - $5.16 Includes $(0.05) impact from Q3 bolt-ons not reflected in previous guidance*
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16 Results are presented on an adjusted (non-GAAP) and continuing operations basis. See appendix for reconciliations. Summary Simple ideas. Powerful results. Strong third quarter +14% revenue; +13% EBITDA; +17% free cash flow Well positioned for continued M&A deployment Accelerated AI innovation $3B share repurchase authorization Deployed $1.3B toward Subsplash & multiple bolt-on acquisitions
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Market-leading businesses in defensible niches Decentralized operating environment Process-driven capital deployment 17
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Appendix
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Q3 income statement metrics In $ millions, except DEPS. Results are presented on an adjusted (non-GAAP) and continuing operations basis. See subsequent slides for reconciliations. 19 Q3’24 Q3’25 Revenue $1,765 $2,017 +14%; +8% M&A contribution; +6% organic Gross profit $1,222 $1,403 Gross margin 69.2% 69.5% Core +70 bps EBITDA $717 $810 +13% EBITDA margin 40.7% 40.2% Core +10 bps; segment core +30 bps Interest expense $68 $90 Tax rate 21.1% 20.3% Net earnings $499 $557 +12% DEPS $4.62 $5.14 +11%
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Disaggregated revenue - organic growth (from continuing operations) Q3 2025 Application Software Network Software Technology Enabled Products Roper Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Recurring 8% 6% 1% 6% 55% 36% 6% 6% Reoccurring - 8% - 9% - - - 9% Recurring + Reoccurring 7% 7% 1% 6% 55% 36% 5% 7% Non-recurring (2%) 2% (2%) 3% - - (3%) 2% Organic software growth 5% 6% 1% 6% 44% 36% 4% 6% Organic product growth - - - - 4% 6% 4% 6% Total organic growth 5% 6% 1% 6% 4% 6% 4% 6% Software related Disaggregated revenue reconciliation ($M) (from continuing operations) Q3 2025 Application Software Network Software Technology Enabled Products Roper Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Recurring 733$ 851$ 266$ 295$ 7$ 13$ 1,006$ 1,159$ Reoccurring 100 144 66 82 - - 167 226 Recurring + Reoccurring 833$ 995$ 333$ 377$ 7$ 13$ 1,172$ 1,385$ Non-recurring 151 166 34 36 - - 186 202 Total software revenue 984$ 1,161$ 367$ 413$ 7$ 13$ 1,358$ 1,587$ Total product revenue - - - - 406 430 406 430 Total revenue 984$ 1,161$ 367$ 413$ 413$ 443$ 1,765$ 2,017$ Software related Roper’s revenue composition Note: Numbers may not foot due to rounding. 20
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Adjusted cash flow reconciliation ($M) (from continuing operations) TTM 2022 TTM 2023 TTM 2024 TTM 2025 V% to '24 3-Year CAGR Q3 2024 Q3 2025 V% to '24 Operating cash flow 1,063$ 1,472$ 2,293$ 2,524$ 10% 33% 755$ 870$ 15% Taxes paid in period related to divestitures 535 435 16 30 - - Adjusted operating cash flow from continuing operations 1,598$ 1,908$ 2,309$ 2,555$ 11% 17% 755$ 870$ 15% Capital expenditures (39) (48) (69) (64) (23) (12) Capitalized software expenditures (29) (37) (45) (54) (13) (16) Adjusted free cash flow 1,530$ 1,823$ 2,195$ 2,436$ 11% 17% 719$ 842$ 17% Adjusted EBITDA reconciliation ($M) (from continuing operations) Q3 2022 Q3 2023 Q3 2024 Q3 2025 V% to '24 3-Year CAGR TTM 2025 GAAP revenue 1,350$ 1,563$ 1,765$ 2,017$ 14% 14% 7,721$ GAAP earnings before income taxes 355$ 443$ 467$ 498$ 1,992$ Interest expense 41 42 68 90 302 Depreciation 9 9 9 10 39 Amortization 147 182 197 221 840 EBITDA 553$ 676$ 741$ 819$ 11% 14% 3,174$ Purchase accounting adjustment to acquired commission expense (1) - - - - Restructuring-related expenses associated with the Transact acquisition - 9 9 - - Transaction-related expenses for completed acquisitions 3 5 5 4 10 Financial impacts associated with the minority investments in Indicor & Certinia - (34) (37) (13) A (126) Gain on sale of non-operating assets - (3) - - - Legal settlement charges - - - - 11 Adjusted EBITDA 555$ 652$ 717$ 810$ 13% 13% 3,069$ Adjusted EBITDA margin 41.1% 41.7% 40.7% 40.2% (50 bps) 39.7% Reconciliations I 21Note: Numbers may not foot due to rounding.
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Revenue growth reconciliation (from continuing operations) Q3 2025 Application Software Network Software Technology Enabled Products Roper Organic 6% 6% 6% 6% Acquisitions/divestitures 12% 7% 1% 8% Foreign exchange - - - - Total revenue growth 18% 13% 7% 14% Reconciliations II 22Note: Numbers may not foot due to rounding. Segment reconciliation ($M) (from continuing operations) Application Software Network Software Technology Enabled Products Q3'22 Q3'23 Q3'24 Q3'25 Q3'22 Q3'23 Q3'24 Q3'25 Q3'22 Q3'23 Q3'24 Q3'25 GAAP revenue 644$ 803$ 984$ 1,161$ 347$ 364$ 367$ 413$ 360$ 396$ 413$ 443$ GAAP operating profit 174$ 207$ 260$ 323$ 148$ 164$ 166$ 178$ 126$ 137$ 141$ 150$ Purchase accounting adjustment to acquired commission expense (1) - - - - - - - - - - - Restructuring-related expenses associated with the Syntellis ('23) & Transact ('24) acquisitions - 9 9 - - - - - - - - - Adjusted operating profit 173$ 216$ 269$ 323$ 148$ 164$ 166$ 178$ 126$ 137$ 141$ 150$ Amortization 103 138 155 175 39 39 39 42 6 5 3 4 Adjusted EBITA 275$ 354$ 424$ 498$ 187$ 203$ 205$ 220$ 132$ 142$ 144$ 154$ Depreciation 6 5 5 6 2 2 2 2 2 2 2 2 Adjusted EBITDA 281$ 359$ 429$ 504$ 189$ 205$ 206$ 222$ 134$ 144$ 146$ 156$ Adjusted EBITDA margin 43.6% 44.6% 43.6% 43.4% 54.5% 56.3% 56.2% 53.7% 37.2% 36.5% 35.4% 35.2%
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Gross magin reconciliation (from continuing operations) Roper Q3'24 gross margin 69.2% Core margin impact +70 bps Margin impact associated with businesses owned for less than 4 full quarters (40 bps) Q3'25 gross margin 69.5% Adjusted EBITDA margin reconciliation (from continuing operations) Application Network Software Software Roper Q3'24 adjusted EBITDA margin 43.6% 56.2% 40.7% Core margin impact +40 bps +60 bps +10 bps Margin impact associated with businesses owned for less than 4 full quarters (60 bps) (310 bps) (60 bps) Q3'25 adjusted EBITDA margin 43.4% 53.7% 40.2% Reconciliations III 23Note: Numbers may not foot due to rounding.
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Forecasted adjusted DEPS reconciliation (from continuing operations) Q4 2025 FY 2025 Low end High end Low end High end GAAP DEPS D 3.59$ 3.64$ 13.81$ 13.86$ YTD transaction-related expenses for completed acquisitions - - 0.06 0.06 YTD financial impacts associated with the minority investment in Indicor A - - 0.08 0.08 Amortization of acquisition-related intangible assets B 1.52 1.52 5.95 5.95 Adjusted DEPS C 5.11$ 5.16$ 19.90$ 19.95$ Adjusted DEPS reconciliation (from continuing operations) Q3 2024 Q3 2025 V % GAAP DEPS 3.40$ 3.68$ 8% Restructuring-related expenses associated with the Transact acquisition 0.07 - Transaction-related expenses for completed acquisitions 0.03 0.03 Financial impacts associated with the minority investments in Indicor & Certinia (0.27) (0.09) A Amortization of acquisition-related intangible assets 1.38 1.53 B Adjusted DEPS C 4.62$ 5.14$ 11% Adjusted net earnings reconciliation ($M) (from continuing operations) Q3 2024 Q3 2025 V % GAAP net earnings 368$ 398$ 8% Restructuring-related expenses associated with the Transact acquisition 7 - Transaction-related expenses for completed acquisitions 4 3 Financial impacts associated with the minority investments in Indicor & Certinia (29) (10) A Amortization of acquisition-related intangible assets 149 165 B Adjusted net earnings C 499$ 557$ 12% Reconciliations IV 24Note: Numbers may not foot due to rounding.
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A. Adjustments related to the financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). Forecasted results do not include any potential impacts associated with our minority investment in Indicor, as these potential impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods. Q3 2025A Q4 2025E FY 2025E YTD 2025 Pretax (13)$ TBD TBD 15$ After-tax (10)$ TBD TBD 8$ Per share (0.09)$ TBD TBD 0.08$ B. Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). Q3 2025A Q4 2025E FY 2025E Pretax 209$ 209$ 816$ After-tax 165$ 165$ 644$ Per share 1.53$ 1.52$ 5.95$ C. All actual and forecasted non-GAAP adjustments are taxed at 21% with the exception of the financial impacts associated with minority investments. D. Forecasted GAAP DEPS do not include any potential impacts associated with our minority investment in Indicor. These impacts will be excluded from all non-GAAP results in future periods. Footnotes Note: Numbers may not foot due to rounding. 25