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Start free trialRoper operates a portfolio of businesses that are leaders in various defensible niche markets. While the consolidated company is diversified, its individual businesses often hold leadership positions, suggesting they operate in oligopolistic market structures.
"We operate market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets."
For 2025, 96% of the CEO's and 91% of other NEOs' target compensation was at-risk and tied to performance. Annual cash incentives were based on adjusted EBITDA growth, while long-term incentives included stock options and performance-based RSUs vesting on a three-year adjusted net earnings CAGR, modified by relative TSR.
"In 2025, total direct compensation at target that was at risk and tied to stock price and performance objectives was 96% for our CEO, and 91% on average for our other named executive officers... The Committee uses a three-year adjusted net earnings compound annual growth rate (“CAGR”) and relative total shareholder return as performance metrics for its performance-based restricted stock units."
In 2025, Roper acquired CentralReach for approximately $1.85 billion and Subsplash for approximately $800 million. These represent significant capital deployments for the company.
"In 2025, this included approximately $1,850 for the acquisition of CentralReach, a leading provider of Software-as-a-Service (“SaaS”) and AI-enabled solutions for applied behavior analysis (“ABA”) therapy clinicians, and approximately $800 for the acquisition of Subsplash, a leading provider of AI-enabled SaaS, and integrated giving solutions, for faith-based organizations."
Roper's Network Software segment, which accounts for over 20% of revenue, includes several businesses with strong network effects. These include DAT, a freight marketplace, and ConstructConnect, a pre-construction data and collaboration platform.
"DAT – electronic marketplaces that automate broker and carrier freight capacity matching throughout the U.S. and Canada... ConstructConnect – cloud-based data, collaboration and estimating automation software and AI-enabled solutions focused on the pre-construction phase for a network of construction contractors and building product manufacturers/distributors."
For the year ended December 31, 2025, the company reported $4,482.9 million in recurring revenue, which represents 56.7% of its $7,902.5 million in total revenue. This recurring revenue is comprised of SaaS, annual term licenses, and post-contract support.
"Recurring $ 3,282.2 $ 1,154.6 $ 46.1 $ 4,482.9"
Roper's growth strategy is centered on acquiring market-leading, niche vertical software and technology businesses. The company has deployed approximately $9.0 billion toward acquisitions over the last three years.
"We pursue consistent and sustainable growth in revenue, earnings, and cash flow by enabling continuous improvement in the operating performance of our businesses and by acquiring businesses that offer high value-added software, services, technology-enabled products, and solutions that we believe are capable of realizing growth while maintaining high margins. In the last three years, we have deployed approximately $8,960 of capital toward acquisitions."
Roper's strategy is to acquire and operate vertical software businesses in niche markets. These markets are often characterized by the secular trend of increasing software adoption, and the company's overall organic growth was 5.4% in 2025.
"We operate market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets."
The company faces a shareholder proposal from Robert Elliot Friedman requesting a strategic review and a tax-free spin-off of its Application and Network Software segments. The proponent cites concerns over the company's financial performance, acquisition strategy, and potential disruption from AI.
"RESOLVED: Shareholder requests that the Board of Directors prepare a strategic review regarding a proposed tax-free spin-off of Roper’s (ROP) Application and Network Software segments into separate publicly traded companies, and retention of ROP’s Technology Enabled Products segment as a platform for existing and additional competitively-advantaged equipment, device, and component-making businesses."
Many of Roper's core application software businesses provide deeply embedded, mission-critical enterprise software for specific verticals. These systems, such as those for law firms (Aderant), project-based businesses (Deltek), and the insurance industry (Vertafore), have high switching costs due to the expense and disruption of implementation, data migration, and user retraining.
"Deltek – enterprise software, SaaS, and AI-enabled information solutions for government contractors, professional services firms, and other project-based businesses."