Roper deployed approximately $6B toward acquisitions, headlined by Vertafore (P&C insurance software) and EPSi (healthcare analytics). Total debt increased from $5.3B to $9.6B to fund these deals. The acquisitions contributed ~4% to revenue growth, offsetting a 1% organic decline during the pandemic. Management signaled the start of a strategic shift toward higher-quality, more recurring software revenue.

Roper signed agreements to divest TransCore, Zetec, and CIVCO Radiotherapy, beginning the formal portfolio reshaping. Acquisitions from 2020 (Vertafore, EPSi) contributed 9% to revenue growth. Total debt decreased by $1.65B to $8.0B as Roper prioritized deleveraging after the 2020 acquisition spree. The Sunquest-CliniSys merger was initiated with a $99.5M impairment charge on the Sunquest trade name.

Roper completed its multi-year divestiture program. TransCore was sold for $2.68B in March, Zetec for $350M, and a 51% majority stake in the industrial businesses was sold to CD&R for approximately $2.6B in upfront cash proceeds in November, forming Indicor. Roper retained a 49% minority equity interest in Indicor. The company deployed $4.3B toward acquisitions, led by Frontline Education ($3.7B). Reporting was realigned into three segments: Application Software, Network Software, and Technology Enabled Products. Total debt decreased from $8.0B to $6.7B using divestiture proceeds. Organic revenue grew 9% — the strongest rate in the period — as the new portfolio demonstrated its higher-growth profile.

Roper deployed $2.1B toward acquisitions in a challenging M&A market, highlighted by the Syntellis bolt-on (combined with Strata) and Replicon (bolt-on for Deltek). Total debt decreased to $6.4B. Revenue grew 15% (8% organic), demonstrating the compounding model. The Indicor minority stake contributed a $165.4M pre-tax gain. The portfolio's recurring revenue mix continued to increase.

Roper deployed $3.6B toward acquisitions, led by Procare Solutions ($1.75B) for early childhood education software and Transact Campus for higher education technology. Trucker Tools was acquired as a bolt-on for DAT. Total debt increased from $6.4B to $7.7B to fund acquisitions, with $2.0B in new senior notes issued. Roper also exited its minority stake in Certinia for $246M (2x invested capital). Revenue grew 14% (6% organic). The acquisitions met Roper's newer 'maturing leader' criteria — higher growth with margin expansion potential.

Roper deployed $3.3B toward acquisitions: CentralReach ($1.65B, ABA therapy software growing ~20%+), Subsplash ($800M, church management software growing high teens), and several bolt-ons including Convoy, Orchard, and Outdo for existing platforms. Total debt rose to $9.4B after $2.0B in new senior notes. Roper introduced its first-ever $3B share repurchase program in Q3 and repurchased $500M of stock in Q4 at an average price near $446. Revenue grew 12% (5.4% organic), with management noting organic growth came in below expectations, primarily due to headwinds at Deltek, Neptune, and Procare. The company enters 2026 with over $6B of capital deployment capacity.

Software recurring revenue grew mid-single digits despite the pandemic, aided by high retention rates and accelerating cloud adoption. Perpetual license revenue (about 10% of Application Software) declined mid-teens as new logo activity was delayed. Services revenue declined mid-single digits tied to fewer new implementations. The durability of recurring revenue was a key factor in Roper's ability to grow cash flow 16% during a year of 1% organic revenue decline.

Organic recurring revenue in Application Software grew 8% for the year, driven by strong retention, SaaS migration momentum, and cross-selling. Aderant saw meaningful shifts toward cloud offerings. Vertafore posted record Q4 bookings in its first full year under Roper. Management highlighted approximately $900M of on-premise maintenance that converts to SaaS at north of 2x ARR over time — a structural tailwind.

Software recurring revenue grew double digits organically. Vertafore accelerated growth led by enterprise customer strength. Aderant and Deltek continued SaaS migration momentum. PowerPlan launched its first SaaS solution for its flagship tax fixed assets product, crossing a meaningful milestone. The shift from perpetual to recurring continued to be a net growth driver as the maintenance-to-SaaS uplift offset the perpetual J-curve.

The recurring revenue base continued to expand with high retention and strong ARR growth across Deltek, Aderant, Vertafore, and Strata. Enterprise software bookings grew low single digits for the year, held back by slower large-customer activity in Application Software and muted freight market conditions for DAT. Q4 bookings showed improvement, particularly at Deltek, which grew low-double digits in the quarter.

The $4.6B recurring and reoccurring revenue base grew in the high-single-digit range organically. Enterprise software bookings accelerated through the year, ending in the high-teens growth area in Q4. Double-digit SaaS growth continued as customers migrated from on-premise to cloud. Aderant was Roper's leading net retention business. Vertafore delivered consistently strong ARR growth. PowerPlan posted its best ARR growth ever after launching its cloud-native product.

Recurring and reoccurring revenue grew 6-7% organically across the software segments. Enterprise software bookings grew low double digits for the full year, with Q4 up high single digits (held back by Deltek GovCon perpetual license weakness). Aderant continued growing mid-teens with record bookings fueled by AI-enabled solutions and cloud migration. Management guided 2026 organic growth of 5-6%, with upside potential if Deltek's GovCon market improves following the passage of the One Big Beautiful Bill appropriations.

Both businesses were strong. DAT's freight matching businesses grew double digits, benefiting from favorable market conditions, record carrier network adds, and higher ARPU from premium product offerings. Deltek's GovCon business grew nicely, though management noted some slower decision-making in the large GovCon enterprise segment in Q4. Network Software overall grew 13% organically — the strongest segment.

DAT and Loadlink grew despite a muted freight market that saw carrier counts start declining from peak levels. DAT managed costs to maintain EBITDA growth. Deltek delivered mid-single-digit organic growth with strength in private-sector end markets but tempered GovCon activity due to government spending uncertainty. Foundry (media/entertainment software) also faced headwinds from the Hollywood writers/actors strikes. Network Software organic growth was 5% — still positive but decelerating.

The freight recession persisted, with DAT's carrier subscriber base continuing to decline. DAT returned to revenue growth in Q4 through pricing actions and ARPU expansion but the full-year freight match revenue declined. Deltek's GovCon enterprise market saw subdued large-customer activity through most of the year, though bookings improved in the second half. Network Software grew only 3% organically — the weakest segment. Management guided 2025 Network Software to mid-singles, assuming no freight market recovery.

DAT grew through ARPU expansion despite continued muted freight market conditions, as the company executed pricing actions and integrated bolt-on acquisitions (Trucker Tools, Convoy, Outdo). Deltek was the primary headwind to Application Software organic growth, as DOGE disruption, budget uncertainty, and a Q4 government shutdown delayed perpetual license activity and large GovCon enterprise deals. Management estimated Deltek grew at the lower end of mid-single digits for the year versus its historical solid mid-single-digit-plus trajectory. Two large Q4 GovCon deals slipped into 2026. For 2026 guidance, management assumed no improvement at Deltek's GovCon business or in DAT's freight market, creating potential upside if either market recovers.

This was a mixed year. Verathon grew substantially as COVID accelerated adoption of video intubation (GlideScope), and the company launched its single-use bronchoscope (BFlex) product. Neptune declined low-double digits because lockdowns restricted access to indoor meters in the Northeast US and Canada. The segment's MAS predecessor grew 1% organically with EBITDA margins of 32.2%.

Neptune and medical product businesses led recovery with 8% organic growth for the MAS segment. Neptune saw improving demand as customers regained access to residential locations. Verathon's 2021 revenue was roughly 40% larger than 2019, though it faced a difficult 2020 COVID comp. Verathon's single-use bronchoscope captured the number-two US position in its first full year. Gross margin declined to 57.4% from 59.3% due to revenue mix and supply chain costs.

Under the new TEP segment reporting, organic revenue grew 10% led by Neptune's strong demand for ultrasonic meters and Verathon's momentum in video laryngoscopy and single-use bronchoscopes. Supply chain cost inflation pressured gross margins (56.9% vs 59.2% in 2021), but the segment maintained 33.2% operating margins. Backlog grew 82% to $609M as customer demand outpaced deliveries.

The segment delivered 15% organic revenue growth — the strongest of any segment — as supply chain constraints eased and Neptune and Verathon capitalized on strong demand. Neptune saw strong ultrasonic meter adoption and increasing software revenue. Verathon's reoccurring single-use products exceeded 55% of its revenue. Operating margins were 33.4%. Backlog began normalizing, declining 14% as lead times shortened toward pre-COVID levels.

Organic revenue grew 9%, led by Verathon (which achieved US market share leadership in single-use bronchoscopes) and Neptune (strong ultrasonic meter demand and meter data management adoption). NDI returned to growth in Q4 after a difficult 2023 comp. Operating margin expanded to 33.9% on improved gross margins from operating leverage and favorable mix. TEP backlog declined 40% as supply chain ordering patterns fully normalized.

Organic revenue grew 6.5%. NDI was the standout performer, driven by strong OEM demand in cardiac ablation and orthopedic surgery applications. Verathon continued solid growth across GlideScope and BFlex. Neptune grew modestly as backlog continued normalizing; a copper tariff surcharge implemented in Q3 temporarily disrupted order timing and slowed commercial activity. Operating margin improved to 34.5%. For 2026, management guided mid-single-digit growth and took a cautious approach on Neptune, underwriting a modest decline versus 2025.

Early-stage AI/ML work was underway at several businesses. DAT deployed ML-based fraud detection capabilities to protect its freight network. Foundry continued developing ML-based automation features for postproduction workflows. ConstructConnect began exploring AI-enabled construction takeoff solutions. Management framed these as innovation investments during a period of muted end-market conditions.

AI product development accelerated across the portfolio. Management highlighted GenAI product assistants at Deltek and Aderant, automated time entries at Aderant, real-time fraud detection at DAT, postproduction content creation automation at Foundry, automated construction takeoff at ConstructConnect, and insurance forms automation at Vertafore. Aderant's AI-enabled solutions drove a halo effect on bookings. Deltek embedded its AI assistant 'Della' into its cloud offerings, driving increased cloud conversion activity. Management stated the company had approximately 25 AI-enabled products either in market or in development.

AI moved from product development to early commercialization. CentralReach reported ~75% of bookings attributed to AI-enabled products. Aderant continued posting record bookings fueled by AI-enabled compliant time capture and billing. Deltek released 40+ AI features into its cloud product. DAT advanced AI-first capabilities for carrier onboarding, fraud detection, and freight matching automation. In early 2026, Roper hired Shane Luke and Eddie Raphael to lead a dedicated AI accelerator team to coach businesses, build a development strike team, and leverage reusable components across the portfolio. Management stated AI revenue contribution remains small (tens of millions in ARR) but expects compounding effects, with meaningful revenue impact more likely in 2027. The 2026 guidance does not assume meaningful revenue uplift from AI.

DAT's freight matching businesses grew double digits, driven by favorable market conditions, record carrier network additions, and higher ARPU from premium product offerings. DAT innovated aggressively on product and package design, delivering more value to both brokers and carriers.

Despite the emerging freight recession, DAT and Loadlink grew as the businesses focused on ARPU expansion and product innovation. Management highlighted Gen AI fraud detection as a key innovation. Cost structures were rationalized to align with reduced carrier activity, driving Network Software operating margins to 43.9% from 41.4%.

DAT navigated difficult freight market conditions with revenue declining modestly. New leader Jeff Clementz advanced the tech stack and market position. The network's fraud mitigation capabilities were meaningfully improved. In Q4, Roper acquired Trucker Tools (real-time visibility) as the first strategic bolt-on in the marketplace automation strategy. DAT also implemented pricing actions on half the network in Q4.

DAT executed three strategic bolt-on acquisitions: Trucker Tools (integrated in Q1-Q2), Outdo (load tracking), and Convoy (AI-native automated matching technology). Convoy was unusual for Roper — a technology acquisition that is currently unprofitable, reflecting its early-stage nature. DAT integrated Loadlink (Canada) with DAT for a unified North American network. ARPU continued to expand through pricing actions, product packaging, and cross-sell. The automated matching technology works — brokers can tender loads to DAT One and the platform automatically matches carriers — but scaling requires native TMS integrations with brokers and continued carrier network buildout. Management expects the financial returns from the automated marketplace to materialize over several years but sees extremely attractive long-term economics.

Free cash flow grew 16% to $1.67B despite the pandemic, representing 30% of revenue and 84% EBITDA conversion. The result demonstrated the durability of Roper's asset-light, recurring revenue model. Net working capital was -8% of annualized Q4 revenue. Cash flow was the primary metric management pointed to as evidence the business model works through cycles.

Free cash flow grew 19% to $1.8B, representing 31% of revenue and 82% of EBITDA. Strong software renewals and favorable working capital drove conversion. Net debt was reduced by $1.7B — exceeding deleveraging plans by $200M — as essentially all excess free cash flow went to debt reduction after dividends.

Free cash flow declined 7% to approximately $1.5B, pressured by the implementation of Section 174 R&D capitalization requirements (approximately $100M impact) and the non-recurrence of a $117M Vertafore tax benefit from 2021. Adjusting for both items, free cash flow grew approximately 8%. Total debt decreased from $8.0B to $6.7B using divestiture proceeds.

Free cash flow grew 32% to approximately $2.0B, representing 32% of revenue. The growth was driven by higher earnings, strong software renewals, favorable DSO improvements, and the full-year contribution from Frontline Education. Net working capital reached a record -19% of annualized Q4 revenue. On a 3-year basis, free cash flow compounded at 16%.

Free cash flow grew 16% to approximately $2.3B, surpassing $2B for the first time and representing 32% of revenue. Strong renewals, improved collections, and the timing of interest payments drove the result. Total debt increased from $6.4B to $7.7B to fund acquisitions.

Free cash flow grew 8% to approximately $2.5B, representing 31% of revenue. Growth was aided by a ~$150M cash tax benefit from the repeal of Section 174 R&D capitalization requirements. Higher coupon payments from $2.0B in new senior notes issued in Q3 2024 created a partial headwind. Total debt increased to $9.4B. Roper deployed $500M toward share repurchases in Q4, its first ever buyback activity.