ROPER TECHNOLOGIES INC
For the period ended Mar 31, 2026. Filed May 1, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
ROP$476.60-2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0000882835-25-000045
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0000882835-26-000019
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 82 previous paragraphs and 85 current paragraphs.
40 unchanged; 27 reworded; 18 added; 12 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
•the impacts of any U.S. government shutdowns;
Current report
In our Network Software segment, net revenues in the first quarter of 2026 grew 13.8% to $427.6 as compared to $375.9 in the first quarter of 2025, led by contributions from 2025 acquisitions, most notably Subsplash. The growth of 5.2% in organic revenues was broad-based across the segment, led by our network software businesses serving the freight match, construction, and alternate site healthcare markets. Gross margin increased to 84.3% in the first quarter of 2026 as compared to 84.0% in the first quarter of 2025 due primarily to lower amortization associated with fully amortized acquired intangibles and improved leverage on higher organic revenues, partially offset by margin profiles associated with our 2025 acquisitions, most notably payments revenue mix from Subsplash and the Convoy platform within our freight match software business. SG&A expenses as a percentage of net revenues increased to 43.6% in the first quarter of 2026 as compared to 39.6% in the first quarter of 2025 due primarily to SG&A profiles associated with our 2025 acquisitions, including higher amortization of acquired intangibles. As a result, operating margin was 40.6% in the first quarter of 2026 as compared to 44.3% in the first quarter of 2025.
Current report
Corporate expenses increased to $77.8 in the first quarter of 2026 as compared to $71.3 in the first quarter of 2025. The dollar increase was due primarily to higher stock-based compensation expense, partially offset by a reduction in fees for professional services. As a percentage of net revenues, corporate expenses decreased to 3.7% of net revenues in the first quarter of 2026 as compared to 3.8% of net revenues in the first quarter of 2025.
Current report
Operating activities
Current report
Investing activities
Current report
Financing activities
Current report
Cash used in financing activities during the three months ended March 31, 2026 primarily consisted of repurchases of our common stock as well as dividend payments, partially offset by net borrowings under our unsecured revolving credit facility. Cash used in financing activities during the three months ended March 31, 2025 was primarily for net repayments on our unsecured revolving credit facility and dividend payments.
Current report
Net working capital
Current report
Debt
Current report
On March 30, 2026, we entered into the Credit Agreement, which replaced the previous $3,500.0 unsecured credit facility, dated as of July 21, 2022. The Credit Agreement comprises a five-year $3,500.0 unsecured revolving credit facility, which includes availability of up to $150.0 for letters of credit. Loans under the unsecured credit facility are available in dollars, and letters of credit will be available in dollars and other currencies to be agreed. We may also, subject to compliance with specified conditions, request additional term loans or revolving credit commitments in an aggregate amount not to exceed $1,000.0.
Current report
Foreign cash, and cash equivalents
Current report
Capitalized expenditures
Current report
Tax legislation
Current report
On July 4, 2025, the U.S. government enacted H.R. 1, the One Big Beautiful Bill Act (the “OBBBA”), which introduced tax reform provisions that amend, eliminate, or extend certain tax rules under the Inflation Reduction Act and the Tax Cuts and Jobs Act. Legislative changes include the repeal of the requirement to capitalize and amortize domestic research and development expenditures under Internal Revenue Code Section 174. The legislation includes multiple effective dates and, as enacted, did not have a material impact on our effective tax rate in the first quarter of 2026 and is not expected to have a significant impact on our annual effective tax rate in full year 2026 or thereafter. We continue to assess the broader impacts of the OBBBA.
Current report
Share repurchase program
Current report
During the three months ended March 31, 2026, we repurchased 4.274 shares of our common stock for an aggregate purchase price of $1,500.0 and an average price paid per share of $350.99, excluding excise tax and broker commissions. As of March 31, 2026, $1,000.0 of the originally authorized amount remained available for future repurchases under the share repurchase program.
Current report
From April 1, 2026 through April 30, 2026, we repurchased 1.498 shares of our common stock for an aggregate purchase price of $528.4 and an average price paid per share of $352.87, excluding excise tax and broker commissions.
Current report
In April 2026, our Board approved an additional $3,000.0 in share repurchase authorization under the program. As of April 30, 2026, total share repurchase authorization of $3,471.6 remained available for future repurchases under the program.
Removed paragraphs (12)
Previous report
•the duration and impact of the U.S. government shutdown;
Previous report
In our Network Software segment, net revenues in the third quarter of 2025 grew 12.6% to $413.4 as compared to $367.1 in the third quarter of 2024, led by acquisition contribution from Subsplash. The growth of 6.0% in organic revenues was led by our network software businesses serving the alternate site healthcare, construction, and freight match markets, partially offset by a decline in our media and entertainment software business primarily related to end-market conditions. Gross margin decreased to 83.9% in the third quarter of 2025 as compared to 84.9% in the third quarter of 2024 due primarily to a lower gross margin profile associated with the higher payments revenue mix at Subsplash as well as revenue mix. SG&A expenses as a percentage of net revenues increased to 40.8% in the third quarter of 2025 as compared to 39.7% in the third quarter of 2024 due primarily to SG&A profiles associated with our third quarter 2025 acquisitions, Subsplash and Convoy, including higher amortization of acquired intangibles. As a result, operating margin was 43.1% in the third quarter of 2025 as compared to 45.2% in the third quarter of 2024.
Previous report
Corporate expenses increased to $78.3, or 3.9% of net revenues, in the third quarter of 2025 as compared to $70.3, or 4.0% of net revenues, in the third quarter of 2024. The dollar increase was due primarily to higher stock-based compensation expense.
Previous report
In our Application Software segment, net revenues in the nine months ended September 30, 2025 grew 18.2% to $3,324.1 as compared to $2,811.4 in the nine months ended September 30, 2024, led by acquisition contribution from Transact, CentralReach, and Procare. The growth of 6.1% in organic revenues was broad-based across the segment, led by our businesses serving the acute healthcare, property and casualty insurance, and legal markets. Gross margin decreased to 68.4% in the nine months ended September 30, 2025 as compared to 69.0% in the nine months ended September 30, 2024 due primarily to a lower gross margin profile associated with the higher payments revenue mix at Transact, partially offset by improved leverage on higher organic revenues. SG&A expenses as a percentage of net revenues improved to 41.5% in the nine months ended September 30, 2025 as compared to 42.3% in the nine months ended September 30, 2024, due primarily to operating leverage on higher organic revenues and a lower SG&A profile associated with the higher payments revenue mix at Transact. These benefits were partially offset by higher amortization of acquired intangibles from the acquisition of CentralReach. As a result, operating margin was 26.9% in the nine months ended September 30, 2025 as compared to 26.7% in the nine months ended September 30, 2024.
Previous report
In our Network Software segment, net revenues in the nine months ended September 30, 2025 grew 6.6% to $1,174.7 as compared to $1,102.1 in the nine months ended September 30, 2024, led by acquisition contribution from Subsplash. The growth of 3.8% in organic revenues was led by our network software businesses serving the construction, freight match, and alternate site healthcare markets. These increases were partially offset by a decline in our media and entertainment software business primarily related to end-market conditions. Gross margin decreased to 83.7% in the nine months ended September 30, 2025 as compared to 84.9% in the nine months ended September 30, 2024 due primarily to revenue mix as well as a lower gross margin profile associated with the higher payments revenue mix at Subsplash. SG&A expenses as a percentage of net revenues improved to 39.9% in the nine months ended September 30, 2025 as compared to 40.3% in the nine months ended September 30, 2024 due primarily to operating leverage on higher organic revenues, partially offset by higher amortization of acquired intangibles and SG&A profiles associated with acquisitions. As a result, operating margin was 43.8% in the nine months ended September 30, 2025 as compared to 44.7% in the nine months ended September 30, 2024.
Previous report
In our Technology Enabled Products segment, net revenues in the nine months ended September 30, 2025 grew 7.7% to $1,345.1 as compared to $1,248.6 in the nine months ended September 30, 2024. The growth of 7.1% in organic revenues was broad-based across the segment, led by our medical products businesses, highlighted by our precision measurement business, and growth in our water meter technology business. Gross margin increased to 58.3% in the nine months ended September 30, 2025 as compared to 57.7% in the nine months ended September 30, 2024 due primarily to revenue mix. SG&A expenses as a percentage of net revenues improved to 23.5% in the nine months ended September 30, 2025 as compared to 23.7% in the nine months ended September 30, 2024 due primarily to operating leverage on higher organic revenues. The resulting operating margin was 34.8% in the nine months ended September 30, 2025 as compared to 34.0% in the nine months ended September 30, 2024.
Previous report
Corporate expenses increased to $229.3, or 3.9% of net revenues, in the nine months ended September 30, 2025 as compared to $194.5, or 3.8% of net revenues, in the nine months ended September 30, 2024. The dollar increase was due primarily to higher compensation expense, predominantly higher stock-based compensation expense.
Previous report
Interest expense, net, increased to $231.7 for the nine months ended September 30, 2025 as compared to $188.4 for the nine months ended September 30, 2024 due primarily to a higher weighted-average fixed-rate debt balance and interest rate, partially offset by a lower weighted-average revolving credit facility balance.
Previous report
Income taxes as a percentage of pretax earnings remained relatively consistent at 20.9% for the nine months ended September 30, 2025 as compared to 21.0% for the nine months ended September 30, 2024.
Previous report
Financing activities – Cash provided by financing activities during the nine months ended September 30, 2025 was primarily from the issuance of $2,000.0 of senior notes in August 2025, net borrowings under our unsecured revolving credit facility primarily to fund the acquisitions of CentralReach and Subsplash, and net proceeds from stock-based compensation, partially offset by $700.0 of senior notes repaid at maturity in September 2025 and dividend payments. Cash provided by financing activities during the nine months ended September 30, 2024 was primarily from the issuance of $2,000.0 of senior notes in August 2024, net borrowings under our unsecured revolving credit facility to fund the acquisitions of Procare and Transact, and net proceeds from stock-based compensation, partially offset by $500.0 of senior notes repaid at maturity in September 2024 and dividend payments.
Previous report
On September 15, 2025, $700.0 of 1.000% senior notes due 2025 were repaid at maturity using borrowings under our unsecured revolving credit facility and a portion of the net proceeds from the issuance of the Notes.
Previous report
The enactment of the OBBBA on July 4, 2025 introduced various tax reform provisions, among which include the repeal of the requirement to capitalize and amortize domestic R&D expenditures. Currently, the OBBBA is expected to provide a full year 2025 cash tax benefit of approximately $150, with a cash tax benefit of approximately $120 expected in 2026. The legislation has multiple effective dates and is not expected to have a significant impact on effective tax rate in future years. We continue to assess the broader impacts of the OBBBA as further information becomes available.
Reworded paragraphs (27)
Previous wording
You should read the following discussion in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024 (“Annual Report”) as filed on February 24, 2025 with the U.S. Securities and Exchange Commission (“SEC”) and the Notes to Condensed Consolidated Financial Statements included elsewhere in this report.
Current wording
You should read the following discussion in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“Annual Report”) as filed on February 24, 2026 with the U.S. Securities and Exchange Commission (“SEC”) and the Notes to Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”).
Previous wording
•difficulty making acquisitions, including receiving the necessary regulatory approvals (including clearance under the Hart-Scott-Rodino Act in the U.S. and similar antitrust regulations in foreign countries), and successfully integrating acquired businesses;
Current wording
•difficulty making acquisitions, including receiving the necessary regulatory approvals (including clearance under the Hart-Scott-Rodino Act in the United States (“U.S.”) and similar antitrust regulations in foreign countries), and successfully integrating acquired businesses;
Previous wording
•information technology system failures, data security breaches, network disruptions, and cybersecurity events, including any litigation arising therefrom;
Current wording
•information technology (IT) system failures, data security breaches, network disruptions, and cybersecurity events, including any litigation arising therefrom;
Previous wording
•risks associated with the use of artificial intelligence;
Current wording
•risks associated with the use of artificial intelligence (“AI”), including our ability to develop, deploy, and use AI in our platforms and offerings;
Previous wording
•risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs (including repeal of the United States-Mexico-Canada Agreement);
Current wording
•risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs (including repeal or non-renewal of the United States-Mexico-Canada Agreement);
Previous wording
•economic disruption caused by armed conflicts (such as the war in Ukraine and the conflicts in the Middle East), terrorist attacks, health crises, or other unforeseen geopolitical events; and
Current wording
•economic disruption caused by armed conflicts (such as the conflicts in Ukraine and the Middle East), terrorist attacks, health crises, or other unforeseen geopolitical events; and
Previous wording
There were no material changes during the nine months ended September 30, 2025 to the items that we disclosed as our critical accounting policies and estimates in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.
Current wording
There were no material changes during the three months ended March 31, 2026 to the items that we disclosed as our critical accounting policies and estimates in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report.
Previous wording
Information regarding new accounting pronouncements is included in Note 2 of the Notes to Condensed Consolidated Financial Statements.
Current wording
Information regarding new accounting pronouncements can be found in Note 2 of the Notes to Condensed Consolidated Financial Statements.
Previous wording
Net revenues for the three months ended September 30, 2025 were $2,017.5 as compared to $1,764.6 for the three months ended September 30, 2024, an increase of 14.3%. The components of revenue growth for the three months ended September 30, 2025 were as follows:
Current wording
Net revenues for the three months ended March 31, 2026 were $2,095.3 as compared to $1,882.8 for the three months ended March 31, 2025, an increase of 11.3%. The components of revenue growth for the three months ended March 31, 2026 were as follows:
Previous wording
In our Application Software segment, net revenues in the third quarter of 2025 grew 17.9% to $1,161.0 as compared to $984.4 in the third quarter of 2024, led by acquisition contribution from Transact and CentralReach. The growth of 5.9% in organic revenues was broad-based across the segment, led by our businesses serving the acute healthcare, property and casualty insurance, and legal markets. Gross margin increased to 69.0% in the third quarter of 2025 as compared to 68.3% in the third quarter of 2024 due primarily to improved leverage on higher organic revenues, partially offset by a lower gross margin profile associated with the higher payments revenue mix at Transact. SG&A expenses as a percentage of net revenues improved to 41.2% in the third quarter of 2025 as compared to 42.0% in the third quarter of 2024 due primarily to cost synergies resulting from the integration of Transact with CBORD and operating leverage on higher organic revenues, partially offset by higher amortization of acquired intangibles from the acquisition of CentralReach. As a result, operating margin was 27.8% in the third quarter of 2025 as compared to 26.4% in the third quarter of 2024.
Current wording
In our Application Software segment, net revenues in the first quarter of 2026 grew 11.5% to $1,191.5 as compared to $1,068.2 in the first quarter of 2025, led by contributions from 2025 acquisitions, most notably CentralReach. The growth of 5.2% in organic revenues was broad-based across the segment, led by our application software businesses serving the legal, project-based private sector, higher education, and property and casualty insurance markets. Gross margin increased to 69.0% in the first quarter of 2026 as compared to 67.5% in the first quarter of 2025 due primarily to improved leverage on higher organic revenues as well as revenue mix. SG&A expenses as a percentage of net revenues increased to 42.2% in the first quarter of 2026 as compared to 41.6% in the first quarter of 2025 due primarily to higher amortization of acquired intangibles from the 2025 acquisition of CentralReach, partially offset by operating leverage on higher organic revenues. As a result, operating margin was 26.8% in the first quarter of 2026 as compared to 25.9% in the first quarter of 2025.
Previous wording
In our Technology Enabled Products segment, net revenues in the third quarter of 2025 grew 7.3% to $443.1 as compared to $413.1 in the third quarter of 2024. The growth of 6.1% in organic revenues was broad-based across the segment, led by our medical products businesses, highlighted by our precision measurement business, and growth in our access management businesses. Gross margin increased to 57.6% in the third quarter of 2025 as compared to 57.4% in the third quarter of 2024 due primarily to revenue mix as well as improved leverage on higher organic revenues at our precision measurement business. SG&A expenses as a percentage of net revenues increased to 23.7% in the third quarter of 2025 as compared to 23.2% in the third quarter of 2024 due primarily to revenue mix. The resulting operating margin was 33.9% in the third quarter of 2025 as compared to 34.2% in the third quarter of 2024.
Current wording
In our Technology Enabled Products segment, net revenues in the first quarter of 2026 grew 8.5% to $476.2 as compared to $438.7 in the first quarter of 2025. The growth of 7.1% in organic revenues was led by our medical products businesses, highlighted by our precision measurement and airway management businesses. These increases were partially offset by a decline in our water meter technology business. Gross margin decreased to 56.9% in the first quarter of 2026 as compared to 58.7% in the first quarter of 2025 due primarily to revenue mix within our medical products businesses weighted more towards consumables and input cost pressures at our water meter technology business. SG&A expenses as a percentage of net revenues increased to 24.4% in the first quarter of 2026 as compared to 23.6% in the first quarter of 2025 due primarily to reduced operating leverage associated with our water meter technology business. The resulting operating margin was 32.4% in the first quarter of 2026 as compared to 35.0% in the first quarter of 2025.
Previous wording
Interest expense, net, increased to $89.7 for the third quarter of 2025 as compared to $67.7 for the third quarter of 2024 due primarily to a higher weighted-average fixed-rate debt balance and interest rate.
Current wording
Interest expense, net, increased to $99.3 for the first quarter of 2026 as compared to $62.9 for the first quarter of 2025 due primarily to higher average debt balances and a higher weighted-average interest rate on our senior notes.
Previous wording
Equity investments activity, net, was a gain of $12.9 in the third quarter of 2025 due primarily to a $16.3 increase in the fair value of our equity investment in Indicor. Equity investments activity, net, was a gain of $37.4 in the third quarter of 2024 due primarily to an increase in the fair value of our equity investment in Indicor. Changes in the fair value of our Indicor investment are primarily due to fluctuations in the equity values of comparable guideline public companies.
Current wording
Equity investment activity, net, was a gain of $167.3 in the first quarter of 2026 due to an increase in the fair value of our equity investment in Indicor. Equity investment activity, net, was a loss of $44.4 in the first quarter of 2025 due primarily to a decrease in the fair value of our equity investment in Indicor. Changes in the fair value of our Indicor equity investment are primarily due to Indicor’s financial performance as well as fluctuations in the equity values of comparable guideline public companies.
Previous wording
Income taxes as a percentage of pretax earnings decreased to 20.0% for the third quarter of 2025 as compared to 21.3% for the third quarter of 2024, due primarily to favorable rate impact of 5.2% from the recognition of a net tax benefit associated with legal entity restructuring, offset by approximately 3.1% of rate impact related to the OBBBA and 1.2% of rate impact from the nonrecurrence of prior year valuation allowance releases.
Current wording
Income taxes as a percentage of pretax earnings decreased to 19.9% for the first quarter of 2026 as compared to 20.8% for the first quarter of 2025, due primarily to favorable rate impact from the recognition of a net tax benefit associated with legal entity restructuring, partially offset by a reduction in stock-based compensation tax benefits.
Previous wording
Backlog is equal to our remaining performance obligations expected to be recognized as revenue within the next 12 months as discussed in Note 13 of the Notes to Condensed Consolidated Financial Statements. Backlog increased 4.9% to $3,174.0 at September 30, 2025 as compared to $3,026.1 at September 30, 2024. Organic growth in backlog was driven by our software segments, partially offset by a decrease in our Technology Enabled Products segment associated with the normalization of supply chain ordering patterns.
Current wording
Backlog is equal to our remaining performance obligations expected to be recognized as revenue within the next 12 months as discussed in Note 13 of the Notes to Condensed Consolidated Financial Statements. Backlog increased 11.8% to $3,392.1 at March 31, 2026 as compared to $3,033.8 at March 31, 2025 due primarily to acquisitions and organic growth in our software segments.
Previous wording
All currency amounts are in millions
Current wording
All currency amounts are in millions, except per share data
Previous wording
Selected cash flows for the nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Selected cash flows for the three months ended March 31, 2026 and 2025 were as follows:
Previous wording
Operating activities – Net cash provided by operating activities increased by 8% to $1,802.3 in the nine months ended September 30, 2025 as compared to $1,671.0 in the nine months ended September 30, 2024 primarily due to higher net earnings net of non-cash expenses, and a benefit to cash income taxes paid in connection with the repeal of the requirement to capitalize and amortize domestic R&D expenditures under Internal Revenue Code Section 174. These increases were partially offset by less cash provided by net working capital primarily related to changes in the balances of accounts receivable and accrued expenses, including the payment of $24.0 related to settled litigation, and $30.2 of cash taxes paid in 2025 associated with our sale of the equity investment in Certinia in 2024.
Current wording
Net cash provided by operating activities increased by 12% to $592.1 in the three months ended March 31, 2026 as compared to $528.7 in the three months ended March 31, 2025 due primarily to higher net earnings before non-cash expenses, and more cash provided by net working capital primarily related to changes in the balances of accounts receivable, accrued compensation, and accounts payable, partially offset by changes in the balances of deferred revenue and accrued interest.
Previous wording
Investing activities – Cash used in investing activities during the nine months ended September 30, 2025 was primarily for the acquisitions of CentralReach, Subsplash, Convoy, and Orchard Software. Cash used in investing activities during the nine months ended September 30, 2024 was primarily for the acquisitions of Procare and Transact.
Current wording
Cash used in investing activities during the three months ended March 31, 2026 was primarily for a business acquisition, capitalized software expenditures, and capital expenditures. Cash used in investing activities during the three months ended March 31, 2025 was primarily for the acquisition of Muni-Link.
Previous wording
Net working capital (total current assets, excluding cash, less total current liabilities, excluding debt) was negative $1,342.0 at September 30, 2025 as compared to negative $1,434.6 at December 31, 2024. The change in net working capital was primarily driven by changes in tax-related balances, increases in accounts receivable as well as prepaid expenses and other current assets, and the payment for settled litigation, partially offset by an increase in deferred revenue predominantly due to the timing of SaaS renewals associated with our Frontline business.
Current wording
Net working capital (total current assets, excluding cash, less total current liabilities, excluding debt) was negative $1,332.8 at March 31, 2026 as compared to negative $1,389.7 at December 31, 2025. The change in net working capital was primarily driven by a decrease in deferred revenue predominantly due to the timing of SaaS renewals associated with our Frontline business, the timing of payments associated with incentive compensation and interest payments on our senior notes, partially offset by a decrease in accounts receivable and changes in tax-related balances.
Previous wording
The interest rate on borrowings under the $3,500.0 unsecured revolving credit facility is calculated based upon various recognized indices plus a margin as defined in the credit agreement. At September 30, 2025, we had $710.0 of borrowings outstanding under our unsecured revolving credit facility and $7.1 of outstanding letters of credit.
Current wording
The interest rate on borrowings under the new $3,500.0 unsecured revolving credit facility is calculated based upon various recognized indices plus a margin as defined in the Credit Agreement. At March 31, 2026, we had $7.1 of outstanding letters of credit.
Previous wording
We were in compliance with all debt covenants related to our unsecured credit facility throughout the nine months ended September 30, 2025.
Current wording
We were in compliance with all debt covenants related to our new and previous unsecured credit facilities throughout their respective periods of effectiveness during the three months ended March 31, 2026.
Previous wording
Total debt, net of deferred financing costs was $9,454.1 at September 30, 2025 as compared to $7,623.0 at December 31, 2024. Our total debt increased at September 30, 2025 as compared to December 31, 2024 due primarily to the issuance of $2,000.0 of senior notes and net borrowings on our unsecured revolving credit facility, partially offset by $700.0 of senior notes repaid at maturity in September 2025. The net proceeds from the issuance of senior notes were used to repay a portion of the borrowings outstanding under our unsecured credit facility associated with our 2025 acquisitions, as well as to repay a portion of the senior notes due in 2025. Our leverage is presented in the following table:
Current wording
Total debt, net of deferred financing costs was $10,464.0 at March 31, 2026 as compared to $9,301.0 at December 31, 2025. Our total debt increased at March 31, 2026 as compared to December 31, 2025 due primarily to net borrowings of $1,150.0 on our unsecured revolving credit facility. Our leverage is presented in the following table:
Previous wording
In relation to our total cash and cash equivalents, amounts held at our foreign subsidiaries represented 49.6% or $158.7 at September 30, 2025 as compared to 69.5% or $130.8 at December 31, 2024. The increase in foreign cash was due primarily to the cash generated at our foreign subsidiaries during the nine months ended September 30, 2025, partially offset by cash repatriation of $235.7. We intend to repatriate substantially all historical and future earnings.
Current wording
In relation to our total cash and cash equivalents, amounts held at our foreign subsidiaries represented 51.9% or $198.8 at March 31, 2026 as compared to 57.6% or $171.2 at December 31, 2025. The increase in foreign cash and cash equivalents was primarily due to cash generated at our foreign subsidiaries during the three months ended March 31, 2026, partially offset by cash repatriation of $40.0. We intend to repatriate substantially all historical and future foreign earnings that can be repatriated without incremental U.S. federal tax cost.
Previous wording
Capital expenditures were $37.6 for the nine months ended September 30, 2025 as compared to $39.2 for the nine months ended September 30, 2024. Capitalized software expenditures were $42.8 for the nine months ended September 30, 2025 as compared to $33.4 for the nine months ended September 30, 2024. We expect the aggregate of capital expenditures and capitalized software expenditures for 2025 to be comparable to prior years as a percentage of net revenues.
Current wording
Capital expenditures were $14.3 for the three months ended March 31, 2026 as compared to $9.5 for the three months ended March 31, 2025. Capitalized software expenditures were $15.4 for the three months ended March 31, 2026 as compared to $12.4 for the three months ended March 31, 2025. We expect the aggregate of capital expenditures and capitalized software expenditures for 2026 to be comparable to prior years as a percentage of net revenues.
Previous wording
Current geopolitical and economic uncertainties, including inflation, tariffs and changes in trade policy, supply chain disruptions, and labor shortages, could adversely affect our business prospects. An armed conflict (such as the ongoing war in Ukraine, as well as the conflicts in the Middle East), significant terrorist attack, other global conflict, widespread cybersecurity event or information technology failure, or public health crisis could cause changes in world economies that would adversely affect us. It is impossible to isolate each of these potential factor’s future effects on current economic conditions or any of our businesses. It is also impossible to predict with any reasonable degree of certainty what or when any additional events may occur that also would similarly disrupt the economy and have an adverse impact on our businesses.
Current wording
Current geopolitical and economic uncertainties, including inflation, tariffs and changes in trade policy, supply chain disruptions, and labor shortages, could adversely affect our business prospects. An armed conflict (such as the ongoing conflicts in Ukraine and the Middle East), significant terrorist attack, other global conflict, widespread cybersecurity event or information technology system failure, or public health crisis could cause changes in world economies that would adversely affect us. It is impossible to isolate each of these potential factor’s future effects on current economic conditions or any of our businesses. It is also impossible to predict with any reasonable degree of certainty what or when any additional events may occur that also would similarly disrupt the economy and have an adverse impact on our businesses.
Previous wording
We maintain an active acquisition program; however, future acquisitions will be dependent on numerous factors and it is not feasible to reasonably estimate if or when any such acquisitions will occur and what the impact will be on our business, financial condition, and results of operations. Such acquisitions may be financed by the use of existing credit agreements, future cash flows from operations, future divestitures, the proceeds from the issuance of new debt or equity securities, or any combination of these methods, the terms and availability of which will be subject to market and economic conditions generally.
Current wording
We believe that internally generated cash flows and the remaining availability under our unsecured credit facility will be adequate to finance our normal operating requirements. We maintain an active acquisition program; however, future acquisitions will be dependent on numerous factors and it is not feasible to reasonably estimate if or when any such acquisitions will occur and what the impact will be on our business, financial condition, and results of operations. Such acquisitions may be financed by the use of existing credit agreements, future cash flows from operations, future divestitures, the proceeds from the issuance of new debt or equity securities, or any combination of these methods, the terms and availability of which will be subject to market and economic conditions generally.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Nine Months Ended September 30, 2025 compared to the Nine Months Ended September 30, 2024
Previous report — wording carried elsewhere
Net revenues for the nine months ended September 30, 2025 were $5,843.9 as compared to $5,162.1 for the nine months ended September 30, 2024, an increase of 13.2%. The components of revenue growth for the nine months ended September 30, 2025 were as follows:
Previous report — wording carried elsewhere
Equity investments activity, net, was a loss of $14.9 in the nine months ended September 30, 2025 due primarily to a $16.3 decrease in the fair value of our equity investment in Indicor. Equity investments activity, net, was a gain of $93.6 in the nine months ended September 30, 2024 due primarily to an increase in the fair value of our equity investment in Indicor. Changes in the fair value of our Indicor investment are primarily due to fluctuations in the equity values of comparable guideline public companies.