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November 4, 2025 • 3 min read
Roper Technologies (ROP), a diversified technology firm focusing on specialized software and technology-enabled products, recently released its financial results for the third quarter of 2025. Let's dive into their latest 10-Q filing to see how the company is performing and what the numbers tell us about its business health.
For the three months ending September 30, 2025, Roper reported total revenue of $2.018 billion, a significant 14.3% increase from the $1.765 billion generated in the same quarter last year. This growth translated to the bottom line, with net income climbing to $398.5 million, up from $367.9 million a year prior.
The following flow diagram provides a clear visual of how Roper's revenue for the quarter was transformed into profit, detailing the costs and expenses along the way.
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Roper's performance this quarter highlights the success of the company's software-focused strategy, with its three primary business segments all contributing to growth.
Application Software: This is Roper's largest division, bringing in $1.161 billion in revenue, a robust 17.9% increase year-over-year. This segment, which provides software for industries like healthcare, transportation, and construction, remains the company's primary growth engine and generated the highest operating profit at $323.0 million.
Network Software: This division, which includes businesses providing software and network solutions for freight matching and food service, saw revenue grow 12.6% to $413.4 million. While not the largest in absolute profit, it boasts the company's highest operating margin at an impressive 43.1%.
Technology Enabled Products: Representing the company's more traditional hardware and industrial product lines, this segment grew revenue by 7.3% to $443.1 million. While its growth is more modest, it still maintains a strong operating margin of 33.9%.
The company's report indicates that this impressive top-line growth was a healthy mix of strategic acquisitions, which contributed 8.0% to the increase, and solid organic growth of 6.0%.
Roper continues to demonstrate strong profitability. The company’s gross margin held steady at a healthy 69.5%, showing excellent control over its cost of sales. The overall operating margin was a solid 28.4%.
However, growth comes with costs. One notable item on the income statement is the increase in "Interest expense, net," which rose to $89.7 million from $67.7 million in the prior year's quarter. This increase is a direct reflection of the debt taken on to finance the acquisitions that are fueling a significant portion of its revenue growth, combined with a higher interest rate environment.
Roper Technologies delivered a strong Q3 performance, characterized by double-digit revenue growth and sustained high profitability. Its strategic emphasis on acquiring and growing asset-light, niche software businesses continues to pay off. The key challenge ahead will be to continue successfully integrating new acquisitions while managing the increased debt load in a shifting economic landscape. For now, the company's formula for growth appears to be working effectively.
Last updated: November 4, 2025