Roper Technologies, Inc.

The forensic screens give a mixed but mostly reassuring picture, and each needs to be read on its own terms. The Beneish M-Score is -2.527, which is below -1.78 and therefore not in the elevated manipulation-risk zone. That is a screening result, not proof that the reported numbers are accurate. The Altman Z″-Score is 3.14, in the safe zone, which is a rough indicator of balance-sheet strength for a non-financial company like Roper. The Piotroski F-Score is 6 of 9 computable signals, a middling reading that tracks profitability, leverage, and efficiency changes year over year. Operating cash flow was 1.65 times net income for 2025 ($2.54 billion against $1.54 billion), which supports earnings quality, though 2025 net income of $1.54 billion was slightly below 2024's $1.55 billion. The filings describe several items a reader may want to track. The 10-K risk factors cover acquisition integration, including the risk that acquired businesses fail to meet expected revenue, profit, or cash flow levels, and the company says it may assume environmental liabilities it is not yet aware of at acquisition. Healthcare regulation applies to medical products such as precision measurement and airway management devices, which are subject to FDA oversight, and privacy laws such as GDPR and CCPA add compliance burden. The new five-year $3,500.0 million unsecured revolving credit facility under the Credit Agreement dated March 30, 2026 replaced the prior facility, and management says existing cash, operating cash flow, and facility availability should fund operations for the foreseeable future. Water meter technology weakened in the quarter, with the Technology Enabled Products segment operating margin falling to 32.4% from 35.0%.

Catalyst.Revenue is growing on both acquisitions and organic demand. In the first quarter of 2026, net revenues were $2,095.3 million, up 11.3% from $1,882.8 million a year earlier, with organic growth of 5.6%. Application Software grew 11.5%, led by the 2025 CentralReach acquisition, and Network Software grew 13.8%, led by Subsplash. Operating cash flow rose 12% to $592.1 million, and backlog increased 11.8% to $3,392.1 million at March 31, 2026. For full-year 2025, revenue reached $7.9 billion, up 12.3%.

Hidden risk.The growth has been funded more by borrowing than the headline suggests. Total debt, net of deferred financing costs, rose to $10,464.0 million at March 31, 2026 from $9,301.0 million at December 31, 2025, driven by $1,150.0 million of net revolver borrowings. Interest expense, net, rose to $99.3 million from $62.9 million. The net earnings margin rose to 24.3% from 17.6%, but that was helped by a $167.3 million gain on the Indicor equity investment, while the income from operations margin slipped to 27.2% from 27.9%. Readers may want to look at how much of the earnings improvement comes from that non-operating gain.