Earnings call transcript: Roper Technologies Q2 2025 earnings beat forecasts, stock rises

Roper Technologies Inc. reported a strong performance for the second quarter of 2025, surpassing Wall Street expectations. The company posted earnings per share (EPS) of $4.87, slightly above the forecast of $4.83. Revenue reached $1.94 billion, exceeding projections of $1.93 billion. Following the earnings announcement, Roper’s stock saw a pre-market increase of 1.19%, trading at $551.25. According to InvestingPro data, the company maintains strong profitability with a gross margin of nearly 69% over the last twelve months.

Want deeper insights? InvestingPro offers 12 additional investment tips for Roper Technologies, along with comprehensive financial analysis in their Pro Research Report.

Key Takeaways

• EPS of $4.87 exceeded forecasts by $0.04.
• Revenue growth of 13% year-over-year.
• Stock price rose by 1.19% in pre-market trading.
• Strong performance in software bookings and AI innovations.
• Full-year revenue growth guidance remains at 13%.

Company Performance

Roper Technologies demonstrated robust growth in the second quarter, with a 13% increase in total revenue compared to the previous year. The company’s focus on AI-enabled products and strategic acquisitions has bolstered its market position, particularly in vertical software markets. The integration of new acquisitions like Subsplash and Central Reach is expected to further enhance its competitive edge.

Financial Highlights

• Revenue: $1.94 billion, up 13% year-over-year.
• EPS: $4.87, slightly above guidance.
• EBITDA: $775 million, up 12%.
• Free Cash Flow: $430 million, up 10%.
• Organic Revenue Growth: 7%.

Earnings vs. Forecast

Roper Technologies reported an EPS of $4.87, surpassing the forecast of $4.83. The earnings surprise of $0.83 indicates a positive performance, aligning with the company’s historical trend of exceeding market expectations. Revenue also exceeded forecasts, with a surprise of 0.52%.

Market Reaction

The stock price of Roper Technologies increased by 1.19% in pre-market trading, reaching $551.25. This positive movement reflects investor confidence in the company’s ability to maintain growth and capitalize on its strategic initiatives. The stock’s performance remains strong compared to its 52-week range, with a high of $595.17 and a low of $499.47. InvestingPro analysis indicates that Roper is currently trading near its Fair Value, with analyst targets ranging from $460 to $714 per share. The company maintains a "GOOD" overall financial health score of 2.61 out of 4.

Outlook & Guidance

Roper Technologies maintains its full-year revenue growth guidance at 13%, with organic growth expected between 6% and 7%. The company projects a full-year EPS range of $19.90 to $20.05. With over $5 billion available for mergers and acquisitions, Roper is well-positioned to continue its expansion strategy.

Executive Commentary

CEO Neil Hun emphasized the company’s focus on AI-driven productivity gains, stating, "We are definitively getting the internal productivity gains that you’d expect any company to get 30% in one of our larger software businesses." He also highlighted the strategic application of AI to address customer-specific challenges.

Risks and Challenges

• Potential market saturation in key verticals.
• Macroeconomic pressures affecting customer spending.
• Integration challenges with recent acquisitions.
• Regulatory changes impacting the healthcare and government sectors.
• Dependence on continued innovation in AI technologies.

Q&A

During the earnings call, analysts inquired about the monetization strategies for AI innovations and the rationale behind the Subsplash acquisition. Executives addressed potential market uncertainties and clarified growth expectations for the company’s diverse portfolio.

Full transcript - Roper Technologies Inc (ROP) Q2 2025:

Conference Operator: Good morning. The Rupo Technologies conference call will now begin. Today’s call is being recorded. All participants will be in a listen only mode. I would now like to turn the call over to Zack Moxcey, Vice President of Investor Relations.

Please

Zack Moxey, Vice President of Investor Relations, Roper Technologies: Good morning, and thank you all for joining us as we discuss the second quarter twenty twenty five financial results for Roper Technology. Joining me on the call this morning are Neil Hun, President and Chief Executive Officer Jason Conley, Executive Vice President Chief Financial Officer Brandon Cross, Vice President and Principal Accounting Officer and Shannon O’Callaghan, Senior Vice President of Finance. Earlier this morning, we issued a press release announcing our financial results. The press release also includes replay information for today’s call. We have prepared slides to accompany today’s call, which are available through the webcast and are also available on our website.

And now if you’ll please turn to Page two. We begin with our Safe Harbor statement. During the course of today’s call, we will make forward looking statements, which are subject to risks and uncertainties as described on this page, in our press release and in our SEC filings. You should listen to today’s call in the context of that information. And now please turn to Page three.

Today, we will discuss our results primarily on an adjusted non GAAP and continuing operations basis. For the second quarter, the difference between our GAAP results and adjusted results consists of the following items amortization of acquisition related intangible assets, transaction related expenses associated with completed acquisitions and lastly, financial impact associated with minority investments, including cash taxes paid resulting from the sale of our minority interest in Certenia. Reconciliations can be found in our press release and in the appendix of this presentation on our website. And now if you please turn to Page four, I’ll hand the call over to Neil. After our prepared remarks, we’ll take questions from our telephone participants.

Neil?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Thank you, Zach, and thanks to everyone for joining us this morning. As we turn to Page four, you’ll see the topics we plan to cover today. We’ll start with our second quarter highlights, including reviewing the platform acquisition we announced earlier today, Subsplash. Then we’ll go through our segment results and our improved outlook for the full year and then get to your questions. So let’s go ahead and get started.

Next slide, please. As we turn to Page five, let me highlight the four key takeaways for today’s call. First, we posted another solid quarter of financial results. Total revenue grew 13%, organic revenue grew 7%, software bookings grew in the high teens area and we continue to deliver impressive cash flow with free cash flow margins coming in at 31% for the TTM period. Second, we announced earlier today the acquisition of another great vertical market software provider, Subsplash, which I’ll get to in a bit.

Then, given the strong first half performance and the anticipated completion of the Subsplash acquisition, we’re raising our full year total revenue guidance and our full year debt outlook. And finally, we continue to be very well positioned for capital deployment and continue to have more than $5,000,000,000 of available firepower over the course of the next twelve months. Please turn to Page six, where we’ll discuss Subsplash. Subsplash is a cloud native and AI enabled software provider serving faith based organizations. As a leading provider of digital engagement, church management and integrated giving solutions, their purpose built platform enables customers to serve congregations while engaging with members more effectively.

Subsplash partners with 20,000 faith based organizations to help them become digitally native by deepening member engagement, reducing manual administrative burden through automation, streamlining content distribution and integrating digital giving solutions, all supporting their customers’ core mission. Simply put, SubSplash enables these organizations to allocate more time and resources to what matters most, ministering to and engaging with their congregation in a digitally native way, whether it be online or on an in person basis. Importantly, this customer value proposition strengthens further as the company’s AI data capabilities are further deployed across its product stack. In terms of investment highlights, the purchase price is 800,000,000 We expect SubSplash to deliver $115,000,000 of revenue and $36,000,000 of EBITDA for the twelve months ending Q3 of twenty twenty six. This business meets all of our long standing acquisition criteria, leader in a niche, competes on the basis of customer intimacy, has strong gross margins and converts high levels of cash flow.

Subsplash reflects the maturing leader acquisition profile of being a higher organic growth business, in this case in the high teens area and competes in a $2,500,000,000 U. S. TAM with about half being currently served and potential to meaningfully expand internationally. In addition, Subsplash is well positioned to materially improve their gross and EBITDA margins over the next three to five years and we expect to deliver this by executing a handful of the available levers. As a result, we expect to see Subsplash’s organic revenue growth convert to high 20% EBITDA growth over the next three to five years.

We will finance this transaction with a revolver and report the results in our Network Software segment. SubSplash represents another powerhouse addition, delivering critical solutions to a customer base with deep ongoing needs for these capabilities. To the Subsplash team, we’re so excited for you to join Roper. Thank you for all of the super important work you do for your customer community and for trusting Roper to become your permanent partner. So with that, let me turn the call over to Jason to walk through our P and L and balance sheet.

Jason?

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: Thanks, Neil, and good morning, everyone. I’ll now take you through our Q2 financial highlights on Slide seven. The second quarter was another solid installment and what we believe will be a good year for Roper. Revenue of $1,940,000,000 was up 13% over prior year and well balanced with 7% organic growth and a 6% increase from acquisitions, with Central Reach results contributing since the April 23 close date. Organic growth was strong across the portfolio, demonstrating resilient demand for our mission critical solutions.

Importantly, and as expected, network software year over year growth notably improved from Q1 given more normal comps at MHA, increased freight match unit economics and recovery at foundry. EBITDA of seven seventy five million dollars was up 12% and generated EBITDA margin of 39.9%. Core enterprise operating margin was flat to the prior year with core segment margin up 40 basis points. This follows a similar pattern to Q1, bringing our year to date core segment margin expansion to 70 basis points. For diluted EPS, we delivered $4.87 versus our guidance range of $4.8 to 4.84 on strong revenue growth and excellent core operating leverage.

Finally, free cash flow of $4.00 $3,000,000 was up 10% versus prior year, which drives TTM free cash flow to over 2,300,000,000.0 The recent passage of the Big Beautiful Bill Act provided a permanent repeal of Section 174 capitalization of R and D expenditures. We are therefore reducing our cash tax payments for 2025 by around $150,000,000 to reflect the cumulative reversal of capitalization, of which about $60,000,000 benefited our second quarter. We will also see a benefit of $120,000,000 carry into next year due to deduction limitations in 2025. Adjusting out the Section 174 impact, our three year TTM free cash flow CAGR would be about 14%. So overall, good news in offsetting some near term deal dilution and fueling our growth equation.

Now let’s turn to Slide eight to discuss our strong financial position. We finished the quarter with a healthy balance sheet and substantial capacity for continued capital deployment. We exited at 2.9 times net debt to EBITDA and pro form a for SubSplash, this would be around 3.1 times. Additionally, our cash balance was $242,000,000 and our revolver had $1,400,000,000 drawn against our $3,500,000,000 credit facility. So even with Sub Slash closing this month, as Neil outlined, this gives us over $5,000,000,000 in M and A firepower.

This substantial capacity positions us very well to executing on our disciplined capital deployment strategy. To that end, while the sponsor to sponsor market is still somewhat muted, we are active on a number of both platform and bolt on transactions that reflect the characteristics of higher growth and increasing long term value capture with Subsplash being a case in point. With that, I’ll turn it back over to Neil for our segment highlights and guidance update. Neil?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Thanks, Jason. As we turn to page 10, let’s review our Application Software segment. Revenue for the quarter grew by 17% in total and organic revenue grew by 6%. EBITDA margins were 42.9% and core margins improved 70 basis points in the quarter. As we turn to the businesses, we’ll start with Deltek.

Deltek grew in the mid singles range in the quarter, both recurring and total revenues. As highlighted on the slide, Deltek continues to have strong migration to their cloud offerings, while the business continues to innovate at a rapid pace and has benefited by very strong gross and net retention. As it relates to the federal government contracting outlook, we believe the Big Beautiful Bill spending priorities and sheer volume will be a catalyst for market growth, which has been tepid for the last twenty four months or so. The timing of market reacceleration is still to be determined, but we believe it will occur over the course of the next few quarters. Importantly, during the quarter, Deltek made substantial progress in regard to their AI based product capability and recently announced their new flagship GovCon product CostPoint fully embeds their AI assistant Della to help deploy intelligent, task oriented agents to streamline repetitive processes and help users make faster, better informed decisions.

Exciting stuff here and lots more to come for sure. Aderant continues be incredibly strong and posted their best bookings quarter in the company’s history. The booking strength is broad based, fueled by their AI enabled solutions and is a combination of market share gains, cloud migration and SaaS growth. Congrats and thanks to Chris and the entire team at Aderant. Keep up the amazing work.

Vertifor continues once again to be steady and solid for us. We continue to see consistent ARR growth and strong customer retention here with strength across their agency, MGA and carrier solutions. This growth is enabled by their strong go to market capabilities and their long term commitment to product strength. We look forward to talking about this and their AI enabled solutions in subsequent calls. PowerPlan continues to be outstanding.

As we mentioned last quarter, the team has done a great job at making the revenue stream more recurring in nature. In addition, they continue to get amazing feedback with our innovative cloud offerings, which are driving strong SaaS migration activity. As a result, Power Plant just continues to win in the market with their new SaaS solution and near 100% gross retention. ProCare and TransAct CBOR continue to perform very well in their respective markets. We also saw very good results from the healthcare IT portion of this segment, Strata, Data Innovations and Klinesis.

Finally, Central Reach is awesome in the early days, has exceptional momentum, record expansion activity and a 70% enterprise new client win rate all in the quarter. As it relates to the outlook for the second half of the year, we continue to expect organic revenue growth to be in the mid single digit plus area. Please turn with us to Page 11. Total revenue in our Network segment grew 6% and organic revenue 5% in the quarter. EBITDA margins remained strong at 54.6% and core margins improved 20 basis points.

As we dig into the individual businesses, we’ll start with DAT. DAT was solid in the quarter and had strong ARPU improvements. The market continues to be stable, albeit bouncing along the bottom. Also in the quarter, we integrated LoadLink, our Canadian freight match business with DAT. We expect the integration to deliver over time a more unified and efficiently deployed North American freight match network.

DAT continues executing exceptionally well on their core strategy of driving enhanced network value for both brokers and carriers. This dual sided approach positions us to better monetize our entire network ecosystem. Supporting this strategy, DAT made significant progress integrating Trucker Tools, our Q4 bolt on acquisition and completing the acquisition of Alco, an AI native factoring technology solution. Combined with the DAT network foundation, these integrated products and assets now deliver substantially more value to both carriers and brokers. Looking forward, DAT will maintain their aggressive execution of this network value enhancement strategy positioning the business for continued growth and improved monetization across all.

ConstructConnect was solid for us in the quarter. The growth was fueled by strong customer bookings activity and improved customer retention. Of note, this business continues to make good progress with their emerging AI enabled takeoff and estimating solution. Foundry declined in the quarter as expected, but we continue to see market recovery signs as they grew their sequential ARR for the first time since the Actors and Riders strikes. Good to see recovery start here.

Also in the quarter, Foundry’s new product Nuke Stage started gaining traction in the market, specifically with a very large studio and several smaller customers. Nuke Stage enables the power of post production compositing to occur in the production phase of the pipeline, an exciting new capability that will help drive cost savings for the industry. Finally, our network healthcare businesses, MHA, SHP and Softwriters were very good in the quarter. As we turn to the outlook for the second half of the year, we expect to see revenue growth in the mid single digit plus range. Now please turn to Page 12 and let’s review our TEP segment’s quarterly results.

Revenue here grew 10% and organic revenue grew 9%. EBITDA margins came in at 36.7%. We’ll start with Neptune, which was once again just solid for us. Neptune continues to do a great job with our ultrasonic meter go to market execution and continue to see strength in their data and software offerings. Verathon continues to execute at a high level as well.

In particular, in the quarter, Verathon saw continued strength in their single use reoccurring solutions, both B Flex and GlideScope. NDI was really good in the quarter. As discussed in prior quarters, NDI delivers proprietary and world class precision measurement technologies to a wide variety of healthcare OEMs, which in turn enables the OEMs to deliver guidance enabled solutions across many healthcare markets such as orthopedic surgery, interventional radiology and cardiac ablation. Finally, there was strong execution which led to growth across CIVCO, FMI, Innovonics, IPA and RFIDs. Turning to the outlook for this segment, we expect to see high single digit organic growth for the second half of the year with a stronger third quarter and a more difficult fourth quarter comp.

Before turning to our guidance outlook, I’d like to reflect on our AI perspective, its transformational potential for customers and our enterprise and the steps we’re taking to build lasting advantage. Our strategy is focused and practical, applying AI to address high impact customer specific challenges. We’re confident that AI based innovation substantially expands our businesses TAMs, where we have a high right to win and will be a core catalyst for our next chapter of growth. The true unlock, the magic if you will, of AI emerges at the intersection of the specialized mission critical workflows our customers rely on daily and our deep vertical market expertise. Our AI initiatives span all our businesses and we’re seeing early traction from compliance solutions to AI enhanced products to AI assistance and intelligent agents that streamline tasks.

We’re building solutions that deliver tangible, high value outcomes. Today, we have approximately 25 AI enabled products either in market or in development. Importantly, our AI innovations create positive halo effect across many of our businesses, driving booking activity for our broader product stacks. This is an exceptionally fun moment to be at the forefront of innovation, redefining and automating workflows across our vertical markets, while unlocking new growth and building durable competitive advantages. Exciting stuff for sure.

So with that, please turn with us to Page 14. Let’s turn to our Q3 and increased full year 2025 guidance. Given our strong Q2 performance and anticipated closing of the Sub Splash acquisition, we’re increasing our total revenue growth guide to be in the 13% range. Our organic growth rate of 6% to 7% for the full year remains unchanged. Finally, we’re increasing our full year DEPS outlook to be $19.9 to $20.05 which includes about a $0 of sub splash dilution.

Our guide continues to assume a full year effective tax rate in the 21% to 22% area. For the third quarter, we expect adjusted DEPS to be between $5.08 and $5.12 while absorbing $03 of subsplash dilution in the quarter. Now please turn with the Page 15, and then we’ll open it up for your questions. We’ll conclude with the same key takeaways with which we started. First, our second quarter financial results were quite good.

Second, we announced the acquisition of another market leading vertical market software business, SubSplash. Third, given our solid start to the year, we’re raising our full year guidance. And finally, we remain well positioned for further capital deployment. Relative to our financial results, we grew total revenue 13% and organic revenue 7% in the quarter and delivered 31% free cash flow margins in the TTM period. We’re delighted with our acquisition of SubSplash.

As discussed, this vertical market leader is mission critical to the delivery of digital engagement, church management and payments to 20,000 faith based organizations and has several embedded growth drivers that will support its high teens revenue growth and expanding margin profile. Next, we’re raising our full year outlook. And finally, we continue to be very well positioned with more than $5,000,000,000 of available M and A firepower to deploy capital towards leading vertical market software businesses. Our M and A pipeline continues to be very active and our teams are engaged on several opportunities. As usual, we’re excited to pursue these opportunities with our unbiased and disciplined approach.

Prior to turning to your questions and if you could flip to the final slide, our strategic compounding flywheel, we’d like to remind everyone that what we do at Roper is simple. We compound cash flow over a long arc of time by executing a low risk strategy and running our dual threat offense. First, we have a proven powerful business model that begins with operating a portfolio of market leading application specific and vertically oriented businesses. Once a company is part of Roper, we operate a decentralized environment, so our businesses can compete and win based on customer intimacy. We coach our businesses on how to structurally improve their long term and sustained organic growth rates and underlying business quality.

Second, we’re on a centralized process driven capital deployment strategy that focuses in a deliberate and disciplined manner on cultivating, curating and acquiring the next great vertical market leading business to add to our cash flow compounding flywheel. Taken together, we compound our cash flow over a long arc of time in the mid teens area, meaning we double our cash flow every five years or so. With that, we’d like to thank you for your continued interest and support and open the floor to your questions.

Conference Operator: All right. Thank you. We will now go to our question and answer portion of the call. If you would like to ask a question, you may do so by pressing star key followed by the digit one on your touch tone telephone. If you’re using a speakerphone, please speak of your handset before pressing any case.

And to withdraw your question, please press star then the digit two. Session. With that, our first question comes from the line of Dylan Becker with William Blair. Please go ahead.

Dylan Becker, Analyst, William Blair: Hey, gentlemen. Appreciate that question here. Maybe, Neil, starting for you, kind of the resiliency and strength across the software segments of the business. Can you kind of just give us a general breakdown of, again, the emphasis that your customers are kind of focusing on around productivity kind of in the current context, how that’s layering in momentum around AI and maybe this prolonged period of uncertainty, if there’s any easing that you’re seeing there as they can’t necessarily sit on their hands from a decisioning standpoint forever? Thanks.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So, the question. So, first, it was nice to see the high teens bookings in the second quarter. It gives you a sense that in the nooks and crannies of the market that our businesses serve, things are okay. Also, remind you and everybody that the end market exposure we have generally, not exclusively, but generally are less tied to macro.

I think education, legal, insurance, I mean, are areas that healthcare for sure that are generally less macro sensitive, but they don’t ignore the macro sensitivity, that. Other thing as you say, and this is not unique to us, there’s just an unprecedented generational opportunity in front of us, all of our businesses to really drive so much productivity gains inside of our customers with the use of these FRAI tools. Super, we can I’m sure that others will have questions on this, but lots of momentum in terms of the knowledge that’s being built up inside the company and that translating in the products into market and then many more products are in development. That’s very exciting. For instance, in Adderant, it was one of our faster growing businesses in the quarter.

They were one of the probably our first company to get actual AI based products, automation based products into the market. And you see that translating into their bookings activity, not just for the AI specific product, but for the drag along of existing tech stack with it as well.

Joe Giordano, Analyst, TD Cowen: Perfect. Very helpful. Thank you.

Dylan Becker, Analyst, William Blair: And then maybe on within some of the recent acquisitions as well, too, more of a kind of a payments orientation, outgo, obviously, within DAT as well. I guess, can you just give us a broader overview? You have a lot of value across the network and platform. You’re driving incremental adoption. How you’re thinking about the positioning of embedded and layering and more payments functionality across the suite and how that can tie into broader TAM expansion?

Thank you.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So certainly with ProCare, certainly with SubSplash a little bit or with TransAct and Seaboard, there is a payments element. The thing that’s essential to all three of those is that the payments, the right to the payments opportunity is earned through the software and that’s very much the case across all three. So we view it as a software led, heavy R and D led to earn the rights. It’s very natural control point to have the payments.

I’d say it’s not a thematic. I would not read too much into the last two or three transactions for if you count ALCO to have a payments angle, but we have a strategic so strategic decision has been made that we want to layer more payments. I think it’s more coincidental than anything else. The other thing about payments is it does create payments and software and other network effect as well, just creates a ton of stickiness. These businesses tend to have very high growth and net retention.

Outgo is a little bit different. Outgo is really the first tech only, tech forward, tech native, I should say, factoring software that’s used in the transportation space for the carriers that it’s really a slick user interface, a slick back end to enable just an ease of factoring. And so it certainly is enabled commerce and payments, but it’s a slightly different payment setup.

Dylan Becker, Analyst, William Blair: Perfect. Thank you, guys. Appreciate it.

Conference Operator: And your next question comes from the line of Brent Thill with Jefferies. Please go ahead.

Brent Thill, Analyst, Jefferies: Good morning. Neil, throughout the quarter, I’m just curious, did you see any signs of the tariff headlines or government spending blow down impact anything or perhaps throughout the quarter maybe things got better as you went through into the back of the quarter. Can you just give us a sense of what you saw in terms of the business trends through the quarter and how that’s trending so far in July?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So just the broader macro, the tariffs is obviously all in our test business is relatively small. I think we said last quarter, it’s in the 10,000,000 to $15,000,000 range. It’s still in that. The team is working very hard to mitigate.

They’ve mitigated some of that and supply chain mitigated some of that in pricing. So I won’t I think it’s too early to call it non effect, but for relative to others, it’s quite small. Relative to the broader other uncertainty, I am in pockets, there’s uncertainty in K-twelve education. So it’s just sort of had a muted effect on bookings activity across industry and Frontline had a slower bookings quarter, but that’s in the backdrop of high teens across the whole enterprise for enterprise bookings. Otherwise, I mean, government contracting inside of Deltek remains muted as we expected it to occur with BBB coming through and sort of not knowing what that was going look like as well as the sort of hangover lasting effects of Doge.

But I said in the comments relative to Deltek, we think the big beautiful bill is what the industry has been looking for, for the last twenty four months or so to unlock and sort of get things moving again, given that, one, there’s just a lot of spending in bill relative to the government contracting. But more importantly or maybe equally as importantly is the category of spends from civilian to defense, DoD, DHS goes from a relatively low spend where it’s contractor spend to a higher contractor spend. So definitely civilian spending is a low contract percentage and defense spending is a high contract percentage. So it should be the unlock. The timing is to be determined, so there’s still got to get contract and get the spending into the market, but it should be measured in a small number of quarters hopefully.

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: Yes. The timing is definitely the question because you’ve got agencies that don’t have employees that we normally interact with. So you’ve got just a tactical problem at this point. But the demand is there. The pipeline is very strong at Deltek.

Dylan Becker, Analyst, William Blair: Great. Thanks.

Neil Hun, President and Chief Executive Officer, Roper Technologies: I would say as we switch questions, should conclude with I mean, we’re talking about this, we’re getting ready for a call. We the call downs to our businesses on the macro topic was our business units were cautiously optimistic coming out of the calls and we are going into the calls not exactly sure we’re going to hear and we left equally cautiously optimistic about the go forward period.

Conference Operator: All right. Thank you. And your next question comes from the line of Joe Brewink with Baird. Please go ahead.

Joe Brewink, Analyst, Baird: Great. Thanks for taking my questions. I wanted to drill down on the high teens bookings. That seems like a very impressive number just given the year ago period was an inflection higher in its own right. And it seems like maybe, you know, GovCon or Frontline were not contributors to this quarter.

So maybe the question is what did contribute to the positive trend? And at this point, given bookings have been better now for five quarters, I suppose, do you kind of have the backlog you need to inflect your organic recurring revenue growth closer to the double digit level?

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: Thanks, Joe. It’s Jason. I yes, no, I think it was a very strong quarter. I think you’re correct in highlighting the two areas of weakness that Neil alluded to was at Deltek and Frontline. Otherwise, very strong.

And we mentioned that Aderant had their biggest bookings quarter in history. They landed one of the largest ground to cloud conversions ever, so that was good. And then just strength across some of their AI solutions cross selling there. Healthcare was solid, I’d say, spectacular, not above the range, but solid. So I think as we look into it really supports our second half guide.

I think we as you know, a lot of the bookings activity tends to Q4, so that’s playing more for 2026. But this like I said, this after kind of a more a little bit more of a muted first quarter, having the high teens kind of supports where we thought where we’d be year to date. And so think that’s positive to get back on plane.

Joe Brewink, Analyst, Baird: And then on AI, it strikes me even relative to last quarter, there’s just a lot more happening, a lot more references to what the individual business units are working on. Do you maybe have a better sense of how that starts to impact the P and L? How is it impacting like R and D spend? Are you getting engineering productivity through your own use of tools? And then when might the revenue implications start to show up?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So this is the question. So we are definitively getting the internal productivity gains that you’d expect any company to get 30% in one of our larger software businesses, 30% productivity gains in R and D, for instance, there’s productivity gains across customer support, go to market, obviously content generation. There’s a long way there’s still way more to go get in that regard. And in fact, we have a to do for our businesses where they’re sort of re underwriting or reimagining their entire business to be AI native.

The first part of that is for the customer value chain, sort of first, second, third derivative. The second part that’s a fast follow is leaning in very aggressively on the productivity gains. In terms of when all this goodness hits the P and L, there’s it’s small today, it’s tens of millions in terms of ARR today that’s direct AI native products that didn’t exist a year or two ago. It’s a multiple of that or two. It’s hard to track, but a multiple or two of that in terms of the pull along of the rest of the other tech stack.

But we are fundamental believers that this is a compounding effect. This compounding effect in terms of the knowledge inside the business, the skill, the curiosity, the compounding effect of availing the resources and the dollars both from freeing up legacy roadmap work to this work and also just having the dollars gain that we talked about at the beginning of this answer. And then that gets compounding in terms of releases and revenue recognition. So it’s going to be small for this year and it will gain momentum when we get it next year. Like I said, 25 products either end market or in development, that number is going to be much larger in three months, it will be much larger in six months, so much so that we’ll stop giving you the number, because everything’s just going to blur together in terms of everything’s just going be AI data, but we’re super, super bullish and man is it fun to be innovating in this market right now.

Joe Brewink, Analyst, Baird: Great. Thanks, Noah, for that.

Neil Hun, President and Chief Executive Officer, Roper Technologies: And

Conference Operator: your next question comes from the line of Brad Reback with Stifel. Please go ahead.

Brad Reback, Analyst, Stifel: Great. Neil, following up on that 30% productivity gain comment, how do you decide what falls to the bottom line and what gets invested back into faster organic growth?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So the the strong push to the businesses is at the moment, we’ve been very consistent with this answer is we want to do more than for the next period of time than trying to get it to the bottom line. There is so much to do, so much opportunity to drive product roadmap, to drive go to market expansion, whatever it is at the individual business level. So that is the mantra for the time being is do more and drive competitive advantage and top line growth.

Brad Reback, Analyst, Stifel: That’s great. On the AI monetization side of the equation, there’s a lot of debate going on inside of software, especially as it relates to seat based models. Do you have a good sense yet of early successes and the best way to price these products? Or is that still very much a work in progress? Thanks.

Neil Hun, President and Chief Executive Officer, Roper Technologies: I think it’s a work in process and I definitely don’t believe that or we don’t believe there’s going be a one size fits all. So, we have products today that again in this early days, you have AI products particularly at Deltek that are part of the existing subscription that’s driving an upgrade to the cloud, which is monetizing that way. That is certainly not going to be the long term method for all, but that is clear and obvious for the customer base and that customer base right now. You have others that have a sort of a subscription with sort of a consumption overage and then you have some that are straight consumption. And so it’s going to be bespoke to the business, to the customer.

But if I had to say, there’s one that there’s general sub gravitation to, it’s going to be sort of a subscription with a consumption over the top of it. But it’s hard to it’s we’re early days in this. But that’s those are our initial thoughts.

Brad Reback, Analyst, Stifel: Perfect. Thank you very much.

Conference Operator: And your next question comes from the line of Joshua Tilton with Wolfe Research. Please go ahead.

Joshua Tilton, Analyst, Wolfe Research: Hey guys, can you hear me?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Hey Josh.

Joshua Tilton, Analyst, Wolfe Research: Just two quick ones for me. My first one, I just want to follow-up on the Deltek subject. And I guess what I’m trying to understand is, if I look last quarter, it feels that you guys pretty much called out similar growth. So no change in the growth of the business from 2Q to 1Q. But you also talked to embedding some more conservatism in your outlook for Deltek last quarter because of all the uncertainties.

I guess what I’m trying to understand is, is Deltek just performing ahead of what you initially expected when you kind of set our expectations ninety days ago?

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: No, I wouldn’t say that. I think we’re just the beautiful bill is giving us I mean, had strong pipelines coming into that, but now you’re seeing just more activity, especially in defense, which plays strongly to Deltek. I think the area that so we’re more bullish, but I don’t think it’s a bullish for 25 comment. It’s more about when we can actually get those orders secured from our customers. So we may there may be some upside in the fourth quarter depending on timing, but we haven’t yet contemplated that because it’s just been a very uncertain dynamic in that market.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. And the upside would come in more perpetual, which is in Q4. So that’s obviously hard to predict at this stage. The other part is that, Deltek is only 60% GovCon, 40% is in professional services markets and they have been that part of the business has been very strong throughout.

Joshua Tilton, Analyst, Wolfe Research: Makes sense. Maybe just to put a finer point on that, guess, does the outlook still embed that conservatism that you spoke to last quarter? Yes. Okay. And then maybe just a quick follow-up.

Congrats on the acquisition. I feel like it is definitely the ultimate network software. The one question I have is you guys spoke to confidence in improving the growth profile of the business. We’re already at high teens. Can you just talk to what you saw during the diligence that maybe gives you confidence that you can improve that profile going forward?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. No. So I think it’s we feel confident in the ability to sustain the growth rate, but improve the margin profile. And so I’m happy to get into that, but if that answers your question, I’ll stop there.

Joshua Tilton, Analyst, Wolfe Research: I’d love to hear that as well, please.

Neil Hun, President and Chief Executive Officer, Roper Technologies: I’ll hear it as much. Just to give you a sense on the growth rate of the business, so faith based organizations, churches are super early in their modernization or digitization, if you will. I mean, it’s the TAM is only 50% served from a tech point of view. And really just now the technology is and the competitors and vendors in the space can sort of have a modern church management that manages the church, manages the engagement with the guests as well as the closed loop donation, donor sort of economics and sort of how that ties together in a single platform. So there is just a general wave that we get to ride there.

Second is SubSplash is, I would call it really the second generation technology platform that’s in the market. So very similar to, gosh, a decade ago with our strata business where we bought the new tech stack. It has it’s demonstrated its ability to gain market share in this growing market, which is why this business will continue to grow above the market at the top line. Now on the margin structure, there is the prior owner K1 did a great job from growing this business from a small business to a slightly larger business, but left lots of opportunity to sort of, if you would just generically call it, professionalize the business. Tim has done a great job running the business for sure, but there’s opportunities in almost every part of the cost part you look at, cost of sales, go to market, R and D, the way you can improve the payments, sort of what’s underneath the hood relative to payments infrastructure.

So there’s a dozen plus more levers available, we’ve underwritten to about half of those in the margin improvement where over the course of the next three to five years, it will look like not quite as high as the network margin, but meaningfully improve substantially improve from where it is. Final thing I’ll say on that is just to remind everybody, our strategy for the last couple of three years is to buy these maturing leader profiles, which this is just that. And so you get a business that is earlier in its life cycle relative to the SamTam conversion and then they get the scale and other cost structure, which unlocks more value for our shareholders over time.

Joshua Tilton, Analyst, Wolfe Research: Very helpful. Glad I asked you the follow-up.

Conference Operator: Thank you. And your next question comes from the line of Ken Wong with Oppenheimer. Please go ahead.

Joshua Tilton, Analyst, Wolfe Research: Great. First question

Brent Thill, Analyst, Jefferies: on the big beautiful bill, clearly some impact on Deltek, timing unknown. As we think about some of your other segments, are you guys have you guys thought through what tailwinds, headwinds might potentially impact some of the other sectors that you guys cater to?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes, so quite a bit as you’d expect. So I think we’ve drained the Deltek, so I’ll leave that unless you have follow-up questions there. Obviously, we have a lot of exposure to healthcare, but whether it’s all indirect to the payer to Medicaid, it’s all everything’s indirect obviously. We serve providers of healthcare, either through healthcare IT or with medical products. As you dig into sort of what the ten year Medicaid sort of impact is going to be, Roughly 12 the estimate is roughly 12,000,000 people roll off of Medicaid, but somewhere between 5,000,007 of those will go on to some other commercial or ACA coverage.

So the net effect of total dollars is going to be our estimate is flat to up over this period of time. So we would expect there to be minimal, if any impact, call it just neutral for our franchise. Final thing I’d say, I’ve been around healthcare IT for my entire career, twenty five years or so, and the one constant is there is always reimbursement pressure on the providers, whether it’s commercial, Medicaid, Medicare, whatever it is, and it’s just a way of life. And when you serve that community, if you do one of two things, you generally are going to be in a good spot, which is if you deliver a tangible hard dollar ROI, which essentially all of our healthcare IT assets do, or if you deliver a clinical benefit that is unique and compelling, which every one of our medical product businesses do. And so it’s sort of a neutral.

And then on K-twelve and higher ed, we would call that neutral ish as well. Certainly K-twelve, there’s very there’s small dollars that are tilting towards private, but for the larger K-twelve public enterprise, it’s largely a non event. And on higher ed, it puts more pressure on performance, if you will, for the higher ed institutions, which plays into the theme of our transact investment, which is better engagement of the students, so they can attract the students and retain the students, which is exactly what our software and capability does there.

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: And I would just add on healthcare, our central reach business, the Medicaid impact is more to adults than children and most of the end consumers and children, so fairly muted impact there. And then a lot of our alternate site health care businesses are more indexed to Medicare versus Medicaid. So again, not a huge impact.

Brent Thill, Analyst, Jefferies: Got it. Fantastic. And then just a quick follow-up on the record Adderant quarter. Any unique legal tailwinds that are driving that? Or is this more specific to idiosyncratic dynamics that you’re seeing within your business?

I think you guys called out maybe starting to see some AI flow through. Would just love to hear what you guys are seeing drive that outsized performance?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So just to frame Adderant and so everybody understands, it doesn’t paint too broad of a brush with legal tech. Adderant is in the business of law, not the practice of law. So think about in their principle go to market AI based products right now are on the concept of how you automate and streamline time entry to cash collection and substantial gains still gains to happen on the technology and product side. So, just Adderant over eight or nine years has been the clear market share winner.

I mean, going from 30% to 55% market share plus or minus in the largest law firms in the world. And there’s a large move to cloud that is still happening there, is driving the bookings. But let’s make no mistake about it, Aderant has the technology halo in the market right now on the business of law, period, full stop. Final thing is the largest law firms are winning in the market, right, they’re gaining share and so we’re riding along with that as well.

Brent Thill, Analyst, Jefferies: Perfect, thank you.

Neil Hun, President and Chief Executive Officer, Roper Technologies: You bet.

Conference Operator: And your next question comes from the line of Terry Tillman with Truist Securities. Please go ahead.

Zack Moxey, Vice President of Investor Relations, Roper Technologies0: Yes, thanks. Hi, Jason and Zach. A lot of my questions have been answered, but you have a bunch of platform businesses, so I still have a few. One thing I was going to ask about ProCare is it’s starting to move into the organic calculation. I think you all have had some leadership changes, go to market investments.

And also I think you’re working on improving attach rate of payments. Just how is ProCare performing particularly as it’s becoming more of an organic calculation? And then I had a Neptune follow-up.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes, sure. So ProCare, the first year was mixed. In the first year, it under delivered on our expectation on growth. It was more like a 10 ish percent grower with our expectation of 15. The root causes of that are known and already countermeasured and you alluded to some of them.

So it’s been a complete change of the leadership team to be more growth oriented, to be more process oriented. So there’s a new CEO, CFO, CRO, CTO, right? So that’s those are the leadership changes. So what’s happened a result of leadership changes is the go to market is massively improved, where we are winning in the market and the principal competitor is not. So that’s a great outcome.

The product the customer support, there’s a great lean Kaizen event on how solve customer support tickets more quickly about six or eight weeks ago already having an impact. And so you’re seeing a rotation there. We expect that by the way that the second half of the year to be back on slope of 15% mid teens organic growth for the reasons that we decided. So feel very good on a go forward trajectory for ProCare. It was just a little worse than we thought early on.

In terms of attach of payments, it’s been solid. Help me keep me honest, Jason, ended 75% So plus or minus that’s been a consistent attach rate. And also I’d say payments another thing I’d say, the whole payments apparatus has improved from a functional operational point of view in period that we’ve owned them as well.

Zack Moxey, Vice President of Investor Relations, Roper Technologies0: Thanks, Noah. That’s a lot of great color. I’m glad I asked about ProCare. And I guess just a follow-up on Neptune and it relates to kind of broadly. Tips But with this meter data management solutions, the billing acquisition and then on top of just ultrasonic meter reading, like do these just create opportunities for solid for longer or potentially some reaccelerations of growth from some of these newer dynamics?

Thank you.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So there’s a long answer, which we can all spare everybody with. The short answer is we think these are connecting the meter to cash is a unique, compelling and really Neptune is the only one playing running that strategy. We think it’s highly, highly compelling, especially in the segment of the market where Neptune really competes in wind, which is a long tail of smaller municipalities, where they want to have a single vendor that stitches all this together in that compelling way. And then when you put in once you have that, then you can do leak detection and you can help them engage with the municipalities engage with their end customers with more automation and more perhaps AI based communications, we’ll see what that looks like.

It’s very early days. And so we’re competing and winning today based on the strength of the go to market channel and the product that we have, which we would claim very aggressively that we have the best static meter from a readability point of view. And in the future, we expect that to pick up, but it’s going to the growth to pick up, but it’s going to take some time for this to fully get into the market.

Zack Moxey, Vice President of Investor Relations, Roper Technologies0: Thanks, Neil.

Neil Hun, President and Chief Executive Officer, Roper Technologies: And

Conference Operator: your next question comes from the line of Joe Giordano with TD Cowen. Please go ahead.

Joe Giordano, Analyst, TD Cowen: Hey, good morning, guys.

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: Good morning. Good morning.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Hey, so when you just based on

Joe Giordano, Analyst, TD Cowen: your comments on ProCare that you just gave, like when you reflect on that, like how do you kind of prevent similar things from happening? I know they’re totally different markets, but like when you look at Central Reach sub splash now that you’re going bring on board, like how do you kind of prevent those things before they start?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So I’d like to ask Jason to add some comments to this when I’m done. So we’ve learned a lot in the ProCare maturing leader. I think at the end of the day, this is we had Jason, we had Janet, who leads our capital deployment, we had Shannon, who is here with us in FP and A and our group executives sort of in weekly and every other weekly meetings. And we saw some of these challenges occurring, and some of which we moved very quickly and some of which we waited.

And I think the number one learning is you just don’t wait, right? It’s the number one learning. It’s simple and it’s so fundamental of a learning as that is. It is true and we’ve observed it. And so in TRANZACT or SubSplash or Center Reach to the extent we see something, we’re just not going to wait in the early ones.

The other but I’ll let you take it from there. Anything you want add, Jason?

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: Yes. No, I think it starts in diligence and we have now, I think, staffed up appropriately in certain areas where if we don’t see the proper telemetry on a business or just some of the infrastructure, we can help the business, sort of eliminate that so that we can have conversations that will drive actions quicker. And so that was another key learning at ProCare. So we’ve got a pretty rigorous schedule and execution plan on every deal. We thought we had one with ProCare, but now as you learn, you fine tune that a little bit more.

And since then, be it Transact or Central Reach, we’ve had a much smoother integration. Both of those are tracking really well on our value creation plan. And so good lesson learned for us.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Final thing I’d say on that is when we did our postmortem with Procure of the Board, the last Board meeting, we summarized it in that we got the slope right. So the market, the market growth, the competitive intensity, the competitive positioning, the number of jump balls, the right to win the payments, all of that is the slope of the forward growth rate, we got exactly right, if you will, slope. The intercept, we got wrong, right? And so the good news is the intercept is as things are 99% in our control about the way we operate the business. And so I just want to give you the context.

We went straight into what we did, but it would be harder and be a bigger issue if the slope was wrong. If we got something wrong about the market growth rate or the competitive intensity, but that is all fully intact.

Joe Giordano, Analyst, TD Cowen: Fair. On Subsplash specifically, can you talk about the market landscape there a little bit and the competitive landscape? I mean, I guess it doesn’t feel like a structural growing market in terms of like the total TAM, I guess. But it’s interesting to hear like only 50% serve. So just curious to hear like what the competitive landscape is.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So just to give you some sense of the market size or the market. There’s about a $2,500,000,000 market for software, like I said, about half served. In terms of church attendance, call it flattish over a twenty year period of time. The last two or three years is up low single digits, but we’ve sort of assumed just flattish church attendance.

And this is all U. S, I should say. We the number of faith based organizations, the number of buildings is actually up a couple of percent. And then giving is actually up about 4% or 5% over the last ten or twenty years. And then on top of that, then you have the digitization going from essentially no technology to manage, operate, engage with the congregates to now starting to do that.

And so that’s why you have a sort of call it nine ish percent growth rate in the market then the ability for this company to compete and win on top of that, which they’ve done for the last five, six, seven years. So there’s a lot penetration to still happen there. The important also relative to the competitive intensity, there is engagement technology with SubSplash really created and then it is a clear market leader. When you engage, when you use modern day engagement technologies and this is more than just websites and live streaming for churches, then you find there’s a 15% increase in donations when you engage the congregate that way, which then loops in the ability to drag along the church management software and other elements into the single stack. So lots of good flywheel effects here that the company has demonstrated in their most recent history and we’ve underwritten to going forward.

Final thing is something like 50% of donations in Churches are still cash and check, so there’s still a large of payments as well.

Dylan Becker, Analyst, William Blair: Thanks, guys.

Conference Operator: Thank you. And your next question comes from the line of Deane Dray with RBC Capital Markets. Please go ahead.

Brad Reback, Analyst, Stifel: Thank you. Good morning, everyone. Good morning, Dean. Hey, just want to circle back on the DAT and LoadLink combination. It makes intuitive sense here, but can you flesh out like what the synergies are expected to be both on kind of go to market, but might there be any cost synergies?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes, I think it’s first big opportunity for us is there’s a managerial synergy, if you will. We’ve got an amazing leadership team at DAT and the businesses are essentially the same, one in the Canadian market, one in The U. S. Market. So we just get a network oriented leadership team thinking about the network is one.

Two, there is a cross border U. S. To Canada and maybe in the future U. S. To Mexico, subtlety in the freight matching business, which we’ll be able to better manage in a when we sort of have the businesses together.

In terms of the actual network, the underlying technology itself, that’s we’re sort of taking a wait and see approach on that. I mean, the two markets, the two networks fundamentally operate very, very well today. DAT in The U. S. Is extraordinarily busy in an exciting way integrating the Trucker Tools transaction, the Outgo transaction and executing the monetization strategy.

So as you know, essentially every broker and every carrier in The U. S, North America is on the DAT network and we monetize both sides through a subscription. And now we’re going down looking at the value stack of a carrier, in this case factoring. We have that captive now to DAT and we have partnerships, for instance, with legal services and fuel cards. And on the broker side, you look at what they’re what we can do to help them, it starts with tracking with Trucker Tools and there’s other things that DAT is working on.

And so you have that sort of U. S. Centric oriented that port into the Canadian market over time as well. So it’s really playing the longer or the medium to long game here, Dean, versus some short term synergy play.

Brad Reback, Analyst, Stifel: Great. That was really helpful. And just a follow-up, and Neil, I’m not sure how much you can comment, but has there been any change in the Board’s thinking about potentially exiting some of the non software businesses? There was a media article suggesting Neptune might be exited. Can you comment on this?

Anything about potential timing? Thanks.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Deane, I’ll say what we said publicly for the better part of two point five years, which is it was really just November 2022 when this the current portfolio came into existence. And as you know, the driving force behind divesting TransCore and Z Tech and the industrial businesses to CD and R and various and Singapore telecom engineering, etcetera, was to beat the cyclicality out of our business. And so that was the decision that we made and we like that decision with the product businesses we have today are great businesses. They meet all of our criteria, leaders in its markets that compete on intimacy, that have great unit economics and margin profile, they’re consistent or selling better than organic growth aspirations. And so they have a they’re doing particularly well in the portfolio and proving to be non cyclical.

So that’s our strategy and we’re going to play this on through.

Zack Moxey, Vice President of Investor Relations, Roper Technologies1: Thank you.

Neil Hun, President and Chief Executive Officer, Roper Technologies: You bet.

Conference Operator: And your next question comes from the line of Scott Davis with Melius Research. Please go ahead.

Zack Moxey, Vice President of Investor Relations, Roper Technologies1: Hey, good morning guys.

Neil Hun, President and Chief Executive Officer, Roper Technologies: Good morning, Scott. Thanks for joining.

Zack Moxey, Vice President of Investor Relations, Roper Technologies1: Thanks for having me. Hey, I just want to follow on on kind of Dean’s question, but in a different way. When you think about the structural change that has occurred at Roper, which has been pretty meaningful the last few years, what would and now you include SubSplash, which seems like it’s a pretty interesting deal, but what do you think your core growth rate or kind of entitlement growth rate has changed kind of, don’t know, just say twenty twenty two to twenty twenty six?

Neil Hun, President and Chief Executive Officer, Roper Technologies: Yes. So the portfolio that in the Thanksgiving of twenty twenty two time, we snapped the chalk line with the divestitures, we talked about the the historical growth rate of that portfolio was somewhere in the 6%, 6.5% range. We believe that we have improved the sort of through cycle, if you will, sort of the minimal cycle that we have puts or takes in a given year to be in the 7%, 7.5 range. We’ve said that for the last couple of years. This isn’t any guidance to this year, next year.

This is sort of through year over year, so people aren’t confused. And the art of the possible is in the mid-8s with this portfolio. Then as we buy businesses that are growth accretive, sub splash is something like 15 basis points growth accretive organic, I think, since your reach was 30 basis or 40 basis points, something like that. Then it either, A, provides a hedge to what I just said or B, provides an opportunity to stack on top of that. So that’s I hope that answers your question, but happy to clarify anything I just said.

Zack Moxey, Vice President of Investor Relations, Roper Technologies1: No, that does answer it. And then, look, there’s been a lot of questions on subsplash, but just to be clear, with I’m not asking for an exact number, but within your deal model, are you assuming that subsplash will be somewhere around segment average EBITDA margin year five ish? Does that sound about right?

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: It’s going to be a little bit below, Scott, because Networks in sort of the mid to high 50s EBITDA. And so we’d say it’d be in the low 40s.

Zack Moxey, Vice President of Investor Relations, Roper Technologies0: Up to

Jason Conley, Executive Vice President and Chief Financial Officer, Roper Technologies: low 40s.

Zack Moxey, Vice President of Investor Relations, Roper Technologies: I got you.

Zack Moxey, Vice President of Investor Relations, Roper Technologies1: Okay. Thank you, guys.

Neil Hun, President and Chief Executive Officer, Roper Technologies: You bet.

Conference Operator: And this concludes our question and answer session. I would like to turn it back to Zach Moxey for any closing remarks.

Zack Moxey, Vice President of Investor Relations, Roper Technologies: Thank you everyone for joining us today. We look forward to speaking with you during our next earnings call.

Conference Operator: And the conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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