ROPER TECHNOLOGIES Business Summary

Roper Technologies Inc. (ROP) operates as a diversified technology compounder, generating revenue through a high-margin, asset-light model focused on vertical software and technology-enabled products. Approximately 65% of its total sales are derived from recurring software revenue, primarily through subscription-based SaaS models and transaction fees. The company organizes its portfolio of 29 niche businesses into three primary segments: Application Software (the largest contributor), Network Software, and Technology Enabled Products. This decentralized structure allows individual business units to maintain operational autonomy while the parent company focuses on disciplined capital allocation and the acquisition of market leaders in defensible, low-TAM (Total Addressable Market) niches. Relative to direct competitors such as Danaher Corporation, Fortive, AMETEK, and Illinois Tool Works, Roper distinguishes itself by its aggressive pivot away from traditional industrial manufacturing toward a software-centric enterprise characterized by negative working capital and superior free cash flow conversion. The company was founded in 1890 by George D. Roper as a pump manufacturer, though its modern identity as a software powerhouse was established under the late Brian Jellison. The current executive team is led by President and CEO Neil Hunn, who joined in 2011 and previously served as CFO of MedAssets, where he successfully led its IPO. Key leadership includes EVP and CFO Jason Conley, a veteran of Honeywell and Deloitte, and EVP and General Counsel John K. Stipancich, formerly of Newell Brands. To accelerate its digital strategy, Roper recently expanded its technical leadership in late 2025 by appointing Shane Luke as SVP of AI and Edward Raffaele as VP of AI Engineering, both arriving from Workday. The company is governed by a board chaired by Amy Woods Brinkley and includes notable directors such as former Danaher CEO Thomas P. Joyce Jr. and Shellye Archambeau. Roper maintains a high institutional ownership profile of approximately 94%, with major stakes held by The Vanguard Group, BlackRock, and T. Rowe Price.