ROPER TECHNOLOGIES, INC.

Red flags

• Approximately $8.96 billion was deployed toward acquisitions over the last three years, including $2.65 billion in 2025 alone, making integration and capital allocation central to the investment case.
• The company had $850 million outstanding under its revolving credit facility at December 31, 2025, versus $125 million a year earlier; the 2025 debt offering added $2.0 billion of senior notes at 4.25% to 5.10% coupons.
• Goodwill exposure is material: 25 reporting units had individual goodwill balances ranging from $17.5 million to $3.37 billion, leaving results sensitive to weaker growth, margins, discount rates, or valuation multiples.
• Nine 2025 acquisitions representing approximately 3% of consolidated revenue were excluded from management’s internal-control assessment, increasing the monitoring burden as the portfolio expands.
• Cybersecurity incidents, cloud outages, and AI-related errors have not been material to date, but could cause customer attrition, remediation costs, litigation, regulatory penalties, and service disruption.