Roper Technologies, Inc.

Strong Q3 operating performance; DEPS beat and guidance raised - Revenue: $2.2B (+8% YoY) with 7% organic growth - EBITDA: $864M (+7% YoY); EBITDA margin 39.8% (core down ~30 bps) - DEPS: $5.89 (+15% YoY), above guidance ($5.75–$5.80) - Full-year adjusted DEPS guidance increased and narrowed to $22.35–$22.40 (midpoint +$0.15 vs prior; +$0.95 vs original). - Q4 adjusted DEPS guidance: $5.95–$6.00; tax rate expected ~20–21%.

AI momentum is real but still early—adoption/monetization ramp is the key swing factor - Management emphasized a portfolio-wide build of “agentic”/workflow AI solutions across vertical software businesses, with examples including: - Vertafore: multiple new automation agents; 12 workflow automation agents since YTD - Aderant: 7 AI agents in early access (billing/time/collections/appeals) - PowerPlan: AI product accelerating intelligent unitization (capital project accounting) reducing work from days/weeks to minutes - Strata (healthcare finance): FDI generally available Sept 1; positioned to be sold as an add-on subscription (early monetization opportunity) - Additional launches noted across Foundry, SubSplash, CentralReach, etc. - Surprising/positive: management highlighted multiple early adoptions converting to early adopters (not just “beta”), citing Strata and other examples. - Risk/uncertainty: AI commercialization is not “done”—they called out budget cycles, AI governance, data safeguards, and customer change management as gating factors. Adoption will develop over time because products change how customers do work.

Cash flow remained strong but down YoY due to timing; free cash flow supports heavy capital deployment - Free cash flow: $805M (~37% of revenue), down ~4% YoY due to interest coupon timing and a collection lag at Illumia during an ERP implementation. - Expect full-year FCF ~30%+ of revenue; with buybacks, FCF per share expected to grow in double digits (buybacks referenced but no dividend mentioned). - Capital allocation: Despite leverage management, deployed $436M on three bolt-on acquisitions (iPipeline, ProCare, Strata) and continued to emphasize disciplined M&A.