ROPMEDIUM SIGNALMANAGEMENT10-K

ROP significantly increased acquisition activity with $2.65B in 2025 deals while removing AI as a risk factor and repositioning it as a core growth opportunity.

The company has shifted from viewing AI as a business risk to embracing it as a competitive advantage, highlighting AI-enabled products and enhanced monetization opportunities. The substantial acquisition spend on AI-enabled SaaS platforms (CentralReach and Subsplash) demonstrates ROP's strategic pivot toward AI-driven solutions in vertical markets.

Comparing 2026-02-24 vs 2025-02-24View on EDGAR →
FINANCIAL ANALYSIS

ROP shows strong organic growth with revenue up 12.3% to $7.9B and proportional increases in R&D (14%) and SG&A (12.3%), indicating disciplined scaling. The company funded significant acquisition activity through increased debt ($9.3B vs $7.6B) while maintaining healthy cash generation, with cash rising 58% to $297.4M and current assets up 25%. The balanced growth across revenue, expenses, and working capital components suggests successful integration of acquisitions and solid operational execution.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+58%
$188.2M→$297.4M

Cash position surged 58% — strong cash generation or capital raise providing significant financial cushion.

Current Assets
Balance Sheet
+25%
$1.5B→$1.9B

Current assets grew 25% — improving short-term liquidity or inventory/receivables build.

Total Debt
Balance Sheet
+22%
$7.6B→$9.3B

Debt rose 22% — additional borrowing for investment or operations; monitor coverage ratios.

Total Liabilities
Balance Sheet
+17.9%
$12.5B→$14.7B

Liabilities increased 17.9% — monitor debt-to-equity ratio and interest coverage.

Inventory
Balance Sheet
+17.3%
$120.8M→$141.7M

Inventory built 17.3% — monitor whether demand supports this build or if write-downs may follow.

R&D Expense
P&L
+14%
$748.1M→$852.5M

R&D investment increased 14% — signals commitment to future product development, though near-term margin impact.

Accounts Receivable
Balance Sheet
+13.1%
$885.1M→$1.0B

Receivables grew 13.1% — monitor days sales outstanding for collection efficiency.

Revenue
P&L
+12.3%
$7.0B→$7.9B

Revenue growing 12.3% — solid top-line momentum, watch margins for quality of growth.

SG&A Expense
P&L
+12.3%
$2.9B→$3.2B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Gross Profit
P&L
+12.2%
$4.9B→$5.5B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-24
ADDED
and foreign trade policies, including increased trade restrictions or tariffs (including repeal of the United States-Mexico-Canada Agreement); increased warranty exposure; environmental compliance costs and liabilities; the effect of, or change in, government regulations (including tax); economic disruption caused by armed conflicts (such as the war in Ukraine and conflicts in the Middle East), terrorist attacks, health crises, or other unforeseen geopolitical events; and the factors discussed in Item 1A of this Annual Report under the heading Risk Factors.
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.
In 2023, this included approximately $1,380 for the acquisition of Syntellis, a leading provider of SaaS solutions for healthcare, financial institution, and higher education providers, which was combined with our Strata business.
The financial results of Indicor are reported as discontinued operations for all periods presented.
Increasingly, this includes AI-enabled products and functionality embedded within customers mission-critical workflows.
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REMOVED
and foreign trade policies, including increased trade restrictions or tariffs; increased warranty exposure; environmental compliance costs and liabilities; the effect of, or change in, government regulations (including tax); risks associated with the use of artificial intelligence; economic disruption caused by armed conflicts (such as the war in Ukraine and the conflict in the Middle East), terrorist attacks, health crises (such as the COVID-19 pandemic), or other unforeseen geopolitical events; and the factors discussed in Item 1A of this Annual Report under the heading Risk Factors.
In 2023, this included approximately $1,380 for the acquisition of Syntellis, a leading provider of SaaS solutions for healthcare, financial institution, and higher education providers, which was combined with our Strata business, and 2022 included approximately $3,750 for the acquisition of Frontline, a leading provider of SaaS solutions for school administration.
During 2021, Roper entered into definitive agreements to divest its TransCore, Zetec, and CIVCO Radiotherapy businesses ( 2021 Divestitures ).
The financial results of Indicor and the 2021 Divestitures are reported as discontinued operations for all periods presented.
Refer to Note 3 of the Notes to Consolidated Financial Statements included in this Annual Report for further information regarding discontinued operations.
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