Revenue Growth, Strong Cash Flow, and a Focus on AI: Roper Strengthens Its Position in the Vertical Software Market

Roper Technologies (Nasdaq: ROP), a constituent of the S&P 500, released its financial results for the second quarter of 2025. The report reflects a particularly strong performance, with double-digit revenue growth, notable improvements in net income and cash flow, and an upward revision of the company’s full-year revenue and DEPS guidance.

Data-Driven Growth: Strong Revenue and Profitability Indicators

Roper reported Q2 revenue of $1.94 billion, marking a 13% increase year-over-year. Of this growth, 7% was organic while acquisitions contributed another 6%. GAAP net earnings rose 12% to $378 million, while adjusted net earnings reached $528 million, up 9%.

Cash flow trends were equally positive: adjusted operating cash flow grew to $434 million (up 13%), and adjusted free cash flow reached $403 million—an increase of 10% compared to the same quarter last year.

Another standout figure was the adjusted EBITDA, which totaled $775 million—a 12% rise—indicating operational strength across all three of the company’s business segments: Application Software, Network Software, and Technology-Enabled Products.

Strategic Investment: Acquisition of Subsplash

Alongside the earnings release, Roper announced that it had signed a definitive agreement to acquire Subsplash, a provider of cloud-based fintech and AI-driven software solutions serving more than 20,000 faith-based organizations. The purchase price stands at $800 million, with the deal expected to close later this month.

According to CEO Neil Hunn, “Subsplash meets all our long-standing acquisition criteria: high-teens organic growth, margin expansion potential under our stewardship, and strong AI capabilities. We’re excited to partner with the Subsplash team and support their long-term growth strategy.”

The acquisition aligns with Roper’s disciplined capital deployment model, which focuses on acquiring high-quality, profitable software businesses in niche markets—emphasizing recurring revenue and long-term value creation.

Updated Outlook: Higher Revenue and DEPS Forecast for 2025

Following the strong Q2 performance and anticipated impact of the Subsplash acquisition, Roper raised its full-year revenue growth outlook to approximately 13% (from a prior estimate of 12%), while maintaining its organic growth guidance of 6%–7%.

The company also revised its full-year adjusted DEPS forecast to a range of $19.90–$20.05, up from $19.80–$20.05 previously. For Q3 2025, Roper expects adjusted DEPS to range from $5.08 to $5.12.

Market Trends: AI, Recurring Revenue, and M&A Firepower

Roper continues to position itself as a global leader in vertical market software. Its product suite leverages advanced AI technology to deliver mission-critical solutions across sectors including healthcare, finance, and industrial operations.

With a growing base of recurring revenues and a consistent track record of successful acquisitions, Roper’s business model remains robust. According to management, the long-term potential is grounded in the company’s ability to innovate, operate efficiently, and execute strategic capital allocation.

Conclusion

A strong second quarter, combined with a strategic acquisition and raised full-year guidance, reinforces Roper Technologies’ momentum heading into the latter half of 2025. As the company deepens its investment in AI, expands recurring revenues, and maintains disciplined growth, it remains a leading player in the vertical software industry.