AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 19/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Specialized compliance and integrated campus workflows, explicit high-switching-cost disclosures, renewal activity and sustained organic growth together support a strong current switching-cost mechanism. The mechanism remains partly management-described and is not uniform across the portfolio.
durability · 2/4 · Application Software organic growth across 2024, 2025 and first-half 2026 corroborates persistence. Long-term migration friction, customer cohorts and exclusive data rights are not quantified; management's proprietary-data assertions and possible AI disruption leave durability mixed.
customer dependency · 3/4 · Integrated identity, payments and administrative functions, complex financial compliance software and recurring SaaS/support renewals support strong workflow dependence indirectly. No retention percentage or measured replacement burden is inferred.
erosion resilience · 2/4 · Continued software organic growth supports current resilience, while uneven segment margins and realized input-cost pressure show limits. AI commoditization remains a prospective risk; management's claim that proprietary data protects incumbents does not demonstrate resilience through a completed AI disruption cycle.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The catalog does not isolate realized selling-price changes, discounting or renewal price outcomes. Organic growth and margin movements cannot separate price from volume, mix and costs. Possible competitive price adjustments and AI cost pass-through difficulties are risks, not observed pricing outcomes.
retention · 2/4 · SaaS/support renewal cycles, conversion of opening deferred revenue and sustained organic growth support repeat demand indirectly. They do not isolate customer renewal success from new sales, acquisitions or expansion, so demonstrated retention strength remains mixed.
margin resilience · 2/4 · First-half 2026 gross margin increased from 69.0% to 69.5%, while operating margin declined from 28.1% to 27.5%. Application Software improved, but Network Software and Technology Enabled Products weakened. Acquisition-related amortization, product mix and input costs explain part of the variation, supporting mixed resilience without attributing it entirely to pricing.
contractual freedom · 1/4 · Government entities can modify or terminate contracts without cause or penalty, demonstrating weak supplier control in that subset. This is a disclosed contractual constraint rather than proof of actual cancellations. Commercial repricing rights and portfolio-wide pricing discretion remain undisclosed.
Predictability84
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 9.04
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 7.97
Financial strength33
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 60.99
- netDebtEbitGrade
- 19.45
- interestCoverageGrade
- 53.44
- currentRatioGrade
- 0.00
- Debt / FCF (x)
- 3.73
- Net debt / operating income (x)
- 4.03
- Interest coverage (x)
- 6.88
- Current ratio (x)
- 0.52
Capital allocation80
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 7.93
- 3-year average dilution (%)
- 0.47
- 3-year average SBC / revenue (%)
- 2.06
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Substantial operating cash generation and realized integration synergies support discipline. However, first-half 2026 repurchase cash spending of $2.727 billion exceeded operating cash of $1.062 billion alongside $2.000 billion of net revolver borrowing and $108.2 million of stock compensation. Acquisition returns and repurchase value creation are not established, leaving a mixed assessment.
incentive alignment · 3/4 · Existing executive stock awards require performance criteria and three-year vesting, supported by anti-hedging, anti-pledging and restatement clawback provisions. These are strong disclosed alignment mechanisms, although ownership amounts and performance-hurdle rigor remain unclear. Shareholder approval of the 2026 plan amendment is confirmed by the later quarterly filing and is not treated as evidence that all authorized awards were granted or vested.
execution · 3/4 · Multi-period Application Software organic growth, substantial cash generation and realized Syntellis cost synergies demonstrate strong execution through operating evidence. Recent margin compression and tax contributions to cash growth limit the assessment. No exceptional AI monetization or acquisition-return record is inferred.
governance · 3/4 · Annual director terms, an independent chair, independent directors other than the CEO, independent committees and a disclosed clawback provide strong governance support. The $24 million PowerPlan settlement is a realized legal cost; the supplied allegations and settlement do not establish adjudicated misconduct or systemic governance failure.
Evidence
The Roper vertical market software businesses occupy a fundamentally different and highly defensible competitive position: they sit at the intersection of proprietary domain data, specialized regulatory and workflow expertise, and deep customer integration in markets where switching costs are high and generic solutions are inadequate.
Proxy statement / Board response to spin-off proposal / management description of switching costs · Filed 07/04/2026
Transact/CBORD – integrated campus technology and payment solutions, including secure access and campus identity software, commerce solutions, tuition management software and payment processing, as well as foodservice technologies, serving higher education, healthcare, K-12, and business campuses.
Business / Application Software / integrated campus workflows · Filed 24/02/2026
PowerPlan – financial and compliance management software and solutions to large complex companies in asset-intensive industries.
Business / Application Software / financial and compliance workflows · Filed 24/02/2026
The change in our net contract assets/(liabilities) from December 31, 2025 to June 30, 2026 was primarily due to the timing of payments and invoicing related to SaaS and PCS renewals, driven predominantly by the SaaS renewal cycle of our Frontline business which primarily occurs in the third quarter.
Revenue recognition / contract balances / SaaS and support renewal cycle · Filed 31/07/2026
Revenue recognized that was included in the deferred revenue balance on December 31, 2025 and 2024 was $573.5 and $531.6 for the three months ended June 30, 2026 and 2025, respectively, and $1,422.8 and $1,306.0 for the six months ended June 30, 2026 and 2025, respectively.
Revenue recognition / revenue converted from opening deferred revenue · Filed 31/07/2026
The growth of 5.6% in organic revenues was broad-based across the segment led by our businesses serving the project-based business/government contracting, acute healthcare, property and casualty insurance, and legal markets.
2024 results / Application Software / organic growth · Filed 24/02/2025
The components of revenue growth for the year ended December 31, 2025 were as follows: Application Software Network Software Technology Enabled Products Roper Total Revenue Growth 15.9 % 8.5 % 7.3 % 12.3 % Less Impact of: Acquisitions 10.2 4.4 0.8 6.7 Foreign Exchange 0.3 — — 0.2 Organic Revenue Growth 5.4 % 4.1 % 6.5 % 5.4 % In our Application Software segment, net revenues grew 15.9% to $4,483.0 for the year ended December 31, 2025 as compared to $3,868.3 for the year ended December 31, 2024, led by acquisition contribution from Transact and CentralReach.
2025 results / segment organic revenue growth · Filed 24/02/2026
The growth of 4.8% in organic revenues was broad-based across the segment, led by our application software businesses serving the legal, project-based private sector, higher education, and property and casualty insurance markets.
First-half 2026 results / Application Software / broad-based organic growth · Filed 31/07/2026
In many situations, government entities can unilaterally terminate or modify existing contracts without cause and without penalty to the government agency, and government contracts may be subject to specialized compliance obligations, audits, investigations, and bid processes that can delay awards and increase costs.
Risk factors / government contract modification and termination rights · Filed 24/02/2026
The rapid pace of AI advancement may make it difficult to maintain competitive advantages, and AI capabilities could become commoditized, reducing our ability to significantly differentiate our offerings.
Risk factors / potential AI commoditization · Filed 31/07/2026
New AI offerings may disrupt our offerings or transform workforce needs and may negatively impact demand for our offerings, or our competitors may be able to incorporate AI into their offerings more efficiently or successfully than we are able to.
Risk factors / potential AI disruption and competitive adoption · Filed 31/07/2026
District Court for the Northern District of Georgia (Lucasys Inc.
Contingencies / named PowerPlan litigation counterparty · Filed 24/02/2025
v. PowerPlan, Inc., Case 1:20-cv-02987-AT) in which the plaintiff, a firm started
62
by former PowerPlan employees, alleged PowerPlan had engaged in, among other things, anticompetitive practices in violation of federal antitrust law which impacted the plaintiff’s ability to commercialize its software and services offerings.
Contingencies / allegations concerning competing software commercialization · Filed 24/02/2025
The following table sets forth selected information for the periods indicated: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Net revenues: Application Software $ 1,180.8 $ 1,094.9 $ 2,372.3 $ 2,163.1 Network Software 430.9 385.4 858.5 761.3 Technology Enabled Products 497.2 463.3 973.4 902.0 Total $ 2,108.9 $ 1,943.6 $ 4,204.2 $ 3,826.4 Gross margin: Application Software 69.8 % 68.8 % 69.4 % 68.1 % Network Software 84.3 % 83.2 % 84.3 % 83.6 % Technology Enabled Products 56.9 % 58.6 % 56.9 % 58.6 % Total 69.7 % 69.2 % 69.5 % 69.0 % Selling, general and administrative expenses: Application Software (42.3) % (41.9) % (42.3) % (41.7) % Network Software (43.4) % (39.3) % (43.5) % (39.5) % Technology Enabled Products (23.6) % (23.1) % (24.0) % (23.4) % Total (38.1) % (36.9) % (38.3) % (37.0) % Segment operating margin: Application Software 27.4 % 26.9 % 27.1 % 26.4 % Network Software 41.0 % 43.9 % 40.8 % 44.1 % Technology Enabled Products 33.3 % 35.4 % 32.9 % 35.2 % Total 31.6 % 32.3 % 31.2 % 32.0 % Corporate administrative expenses * (3.9) % (4.1) % (3.8) % (3.9) % Income from operations 27.7 % 28.2 % 27.5 % 28.1 % Interest expense, net (5.3) % (4.1) % (5.0) % (3.7) % Equity investment gain (loss), net 39.6 % 0.9 % 23.8 % (0.7) % Other expense, net — % — % (0.1) % — % Earnings before income taxes 62.0 % 25.0 % 46.2 % 23.6 % Income taxes (6.6) % (5.5) % (6.3) % (5.1) % Net earnings 55.4 % 19.5 % 39.9 % 18.5 % * Includes unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation.
Results of operations / comparative consolidated and segment margins · Filed 31/07/2026
Gross margin decreased to 56.9% in the six months ended June 30, 2026 as compared to 58.6% in the six months ended June 30, 2025 due primarily to revenue mix within our medical products businesses weighted more towards consumables and input cost pressures at our water meter technology business.
First-half 2026 results / product mix and realized input-cost pressures · Filed 31/07/2026
SG&A expenses as a percentage of net revenues increased to 43.6% in the first quarter of 2026 as compared to 39.6% in the first quarter of 2025 due primarily to SG&A profiles associated with our 2025 acquisitions, including higher amortization of acquired intangibles.
First-quarter 2026 results / Network Software acquisition profiles and amortization · Filed 01/05/2026
Selected cash flows for the years ended December 31, 2025 and 2024 were as follows:
Cash provided by (used in):
Operating activities
2,540.3
2,393.2
Investing activities
(3,388.0)
(3,468.5)
Financing activities
923.6
1,069.5
Operating activities
Net cash provided by operating activities increased by 6% to $2,540.3 in 2025 as compared to $2,393.2 in 2024 due primarily to the change in net earnings before non-cash expenses, and a benefit to cash income taxes paid in connection with the repeal of the requirement to capitalize and amortize domestic R&D expenditures under Internal Revenue Code Section 174 (“Section 174”) associated with the enactment of the One Big Beautiful Bill Act (the “OBBBA”).
Liquidity / 2025 operating cash generation and tax effects · Filed 24/02/2026
5 Roper Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (Amounts in millions) Six months ended June 30, 2026 2025 Cash flows from operating activities: Net earnings $ 1,677.4 $ 709.4 Adjustments to reconcile net earnings to cash flows from operating activities: Depreciation and amortization of property, plant and equipment 20.1 19.6 Amortization of intangible assets 440.9 417.2 Amortization of deferred financing costs 6.3 5.5 Non-cash stock compensation 108.2 82.7 Equity investment (gain) loss, net (1,002.5) 27.8 Income tax provision 265.6 193.9 Changes in operating assets and liabilities, net of acquired businesses: Accounts receivable 71.0 37.4 Unbilled receivables (30.8) (9.7) Inventories (4.9) (9.6) Prepaid expenses and other current assets (23.3) (22.9) Accounts payable 24.4 7.0 Other accrued liabilities (93.9) (115.4) Deferred revenue (193.6) (132.7) Cash taxes paid for gain on disposal of equity investment — (30.2) Cash income taxes paid, excluding tax associated with gain on disposal of equity investment (190.2) (233.7) Other, net (13.1) (13.5) Cash provided by operating activities 1,061.6 932.8 Cash flows from (used in) investing activities: Acquisitions of businesses, net of cash acquired (27.5) (2,005.2) Capital expenditures (25.3) (26.0) Capitalized software expenditures (30.9) (26.8) Distributions from equity investment 6.7 5.1 Cash receipts on beneficial interest in sold receivables 4.5 — Other, net 0.2 1.6 Cash used in investing activities (72.3) (2,051.3) Cash flows from (used in) financing activities: Borrowings under revolving credit facility, net 2,000.0 1,275.0 Debt issuance costs (3.9) — Cash dividends to stockholders (191.4) (177.2) Repurchases of common stock (2,726.7) — Proceeds from (tax withholding payments for) stock-based compensation, net (8.6) 73.8 Treasury stock sales under employee stock purchase plan (“ESPP”) 12.7 12.5 Other, net 12.8 (43.9) Cash provided by (used in) financing activities (905.1) 1,140.2 Effect of exchange rate changes on cash (16.7) 32.5 Net increase in cash and cash equivalents 67.5 54.2 Cash and cash equivalents, beginning of period 297.4 188.2 Cash and cash equivalents, end of period $ 364.9 $ 242.4 Non-cash investing and financing activities: Equity consideration for business acquisition $ — $ 7.3 See accompanying notes to Condensed Consolidated Financial Statements.
Cash flow statement / first-half 2026 spending, repurchases, borrowing and compensation · Filed 31/07/2026
Selling, general and administrative (“SG&A”) expenses as a percentage of net revenues decreased to 42.0% in the year ended December 31, 2024 as compared to 43.1% in the year ended December 31, 2023, due primarily to lower SG&A profiles at Procare and Transact, which collectively reduced SG&A as a percentage of net revenues by 70 basis points, operating leverage on higher organic revenues, and cost synergies resulting from the integration of Syntellis.
2024 results / realized Syntellis integration cost synergies · Filed 24/02/2025
Performance-Based Equity: All restricted stock and restricted stock unit awards made to our executive officers are subject to satisfaction of performance criteria (no stock awards are solely time-based).
Compensation highlights / existing executive performance-based stock awards · Filed 07/04/2026
Three Year Vesting for Equity Awards: Equity awards made to all named executive officers may vest only at the end of a three-year period.
Compensation highlights / existing executive three-year vesting · Filed 07/04/2026
2026 Proxy Statement Table of Contents COMPENSATION DISCUSSION AND ANALYSIS (CONTINUED) Anti-Hedging and Anti-Pledging Policy We prohibit our named executive officers and directors from engaging in transactions involving derivative instruments with respect to Company securities, and other securities immediately convertible or exchangeable into Company securities, and from pledging shares of Company common stock.
Compensation policies / anti-hedging and anti-pledging · Filed 07/04/2026
The Clawback Policy provides for the prompt recovery (or clawback) of certain excess incentive-based compensation received during an applicable three-year recovery period by current or former executive officers in the event we are required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the securities laws.
Compensation policies / restatement clawback requirements · Filed 07/04/2026
One-Year Terms for Directors: All of our directors serve one-year terms.
Corporate governance / annual director terms · Filed 07/04/2026
ii Roper Technologies, Inc. 2026 Proxy Statement Table of Contents PROXY STATEMENT SUMMARY (CONTINUED) Independent Directors: All of our directors, except our CEO, are independent, as is each member of the Audit, Compensation, Executive, and Nominating and Governance Committees.
Corporate governance / director and committee independence · Filed 07/04/2026
Independent Chair of the Board: Our Chair of the Board is independent.
Corporate governance / independent Board chair · Filed 07/04/2026
In January 2025, PowerPlan and the plaintiff agreed to settle the matter and such was fully concluded and cash settled in January 2025 for $24.0 on a pretax basis ($17.7 after taxes).
Contingencies / concluded PowerPlan settlement · Filed 24/02/2025
As AI becomes more central to our offerings, our exposure to pricing changes from these providers increases, and we may not be able to pass such cost increases on to our customers.
Risk factors / potential inability to pass through AI supplier costs · Filed 31/07/2026
Moreover, competition may require us to adjust prices to stay competitive.
Risk factors / possible competitive price adjustments · Filed 24/02/2026
The Company’s businesses hold leadership positions in specialized end markets including education, government contracting, healthcare, legal technology, insurance technology, and water infrastructure, where the data required to train effective AI models is proprietary, fragmented, and not available to horizontal competitors.
Board response / issuer assertions about proprietary data and specialized markets · Filed 07/04/2026
The amendment to the 2021 Incentive Plan, which was approved by shareholders at the Annual Meeting of Shareholders on May 19, 2026 (the “Annual Meeting”), increased the number of shares available to grant under the Amended Incentive Plan.
Stock-based compensation / confirmation of May 19, 2026 shareholder approval · Filed 31/07/2026
