For the fourth quarter, the difference between our GAAP results and adjusted results consists of the following items: amortization of acquisition-related intangible assets and financial impacts associated with our minority investment in Indicor. Then Jason will walk through our enterprise financials, our Q4 segment performance, our balance sheet, and capital allocation capacity. Next, we'll discuss our segment highlights and introduce our 2026 guidance, and then we'll close with a few summary thoughts before opening the call for questions. Revenue was up 12%, EBITDA was up 11%, and free cash flow was up 8%.
Importantly, enterprise software bookings grew in the low double-digit range for the year, providing strength as we head into 2026. That said, organic growth this past year was below our expectations in 2025, and we own that. To this end, our application software business is safe for Deltek, improved organic growth in the 70 basis points area, demonstrating broad-based growth improvements occurring within the segment. Importantly, we're not starting the year assuming organic growth will inflect in 2026, despite the traction we believe we're starting to achieve.
We're going to execute, and we'll reflect any improvement in organic growth in our guidance as it materializes throughout the year. Importantly, our decentralized model lets each business deploy AI with the appropriate domain specificity across our various end markets. During 2025, we materially advanced our portfolio and foundation through capital deployment, deploying $3.3 billion towards high-quality vertical software acquisitions during the year, highlighted by CentralReach, Subsplash, and several tuck-in acquisitions. We're very encouraged by the size and quality of our acquisition pipeline, and we expect to remain active while staying highly disciplined on price and business quality.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue growth | FY2026 | ~8% (Initiated) |
| Organic revenue growth | FY2026 | 5%-6% (Initiated) |
| Adjusted DEPS | FY2026 | $21.30-$21.55 (Initiated) |
| Adjusted DEPS | Q1 2026 | $4.95-$5.05 (Initiated) |
| Effective tax rate | FY2026 | ~21% (full year), ~22% in Q1 (Initiated) |
| Free cash flow margin | FY2026 | Safely over 30% of revenue (Initiated) |
| Metric | YoY | Note |
|---|---|---|
| Q4 total revenue ($2.06B) | +10% | Acquisitions contributed 5% and organic growth 4%, with organic below expectations on weak non-recurring revenue. |
| Q4 application software revenue | +10% | Organic growth of 4%; recurring revenue up 6% but non-recurring down 8%, driven by Deltek perpetual license weakness from the government shutdown. |
| Q4 network software revenue | +14% | Organic growth of 5%; recurring up 6% but non-recurring down 3% on lower services and customers shifting from perpetual to SaaS; margins lower at 52.8% as recent DAT bolt-ons scale to profitability. |
| Q4 TEP segment revenue | +6% | 5% organic; NDI outperformed on cardiac ablation demand while Neptune was down slightly on tougher comp and surcharge negotiations. |
| FY2025 revenue ($7.9B) | +12% | Acquisitions contributed nearly 7%; organic growth nearly 5.5%. |
| FY2025 EBITDA ($3.1B) | +11% | 39.8% margin with core margin up 30 basis points at 47% incremental margin. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI product opportunity | Early product development in 2025 | Hired Shane Luke and Eddy Raphael to lead a Roper AI Accelerator team; 2026 framed as the commercialization chapter; viewed as TAM expander and incremental upside not baked into guidance | Rising |
| Deltek / GovCon weakness | Flagged as the big swing factor last quarter | Remained challenged through 2025; no improvement assumed in 2026 guidance despite Omnibus appropriations seen as a tailwind over time | Steady |
| Capital allocation discipline | Active M&A in a muted market; buyback authorized and commenced in Q4 | Over $6 billion of capacity; remaining unbiased between M&A and buybacks based on durable cash flow per share compounding | Rising |
| M&A pipeline strength | Proactive execution despite weak market | Encouraged by size and quality of pipeline; expects market to pick up in 2026 with rising LP pressure on private equity sellers | Rising |
| Procare turnaround | — | Underperformed on implementation timing; leadership upgraded and payments fixed; learnings applied to CentralReach and Subsplash governance | Steady |
| DAT marketplace evolution | Continued execution amid freight recession | Advancing AI-first automated matching, broker TMS integrations, and fraud detection; no freight-market recovery assumed in 2026 guidance | Steady |