Roper Technologies, Inc. stock research
FY2025 Q1
Roper Technologies (ROP) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit were both higher compared to the immediately preceding quarter, while cost of revenue was slightly lower, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased at a faster rate, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit were both higher compared to the immediately preceding quarter, while cost of revenue was slightly lower, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased at a faster rate, leading to a weakened gross margin.
- The strongest observable margin driver is the relationship between revenue and cost of revenue. In the current quarter, revenue growth outpaced cost of revenue growth compared to the prior quarter, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin improved as revenue held steady while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as revenue grew but cost of revenue grew more rapidly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.7%
Gross profit
$1.3B
Revenue
$1.9B
Cost of revenue
$589.1M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $1.7B | $1.2B | $499.7M | 70.3% |
| Jun 30, 2024 | $1.7B | $1.2B | $523.5M | 69.5% |
| Sep 30, 2024 | $1.8B | $1.2B | $542.9M | 69.2% |
| Mar 31, 2025 | $1.9B | $1.3B | $589.1M | 68.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.5 pts
Year-over-year change
Mar 31, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue. In the current quarter, revenue growth outpaced cost of revenue growth compared to the prior quarter, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin improved as revenue held steady while cost of revenue decreased. Compared to the same quarter one year earlier, gross margin weakened as revenue grew but cost of revenue grew more rapidly.
Monitor the trend in cost of revenue relative to revenue, as its faster growth year-over-year compressed gross margin.