RO

Roper Technologies, Inc. stock research

Jun 30, 2025

FY2025 Q2

Roper Technologies (ROP) Gross Margin — Quarter Ended Jun 30, 2025

Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue rose at a slightly faster pace, resulting in a modestly lower gross margin. Sequentially, revenue was stable, gross profit was stable, and cost of revenue increased slightly, leading to a small improvement in gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue rose at a slightly faster pace, resulting in a modestly lower gross margin. Sequentially, revenue was stable, gross profit was stable, and cost of revenue increased slightly, leading to a small improvement in gross margin.

  • The strongest observable driver of gross margin was the relationship between revenue and cost of revenue: revenue grew year over year while cost of revenue grew at a higher rate, compressing margin. Sequentially, cost of revenue increased slightly while revenue held steady, which modestly improved margin.
  • Compared to the immediately preceding quarter, gross margin improved slightly as revenue remained stable and cost of revenue increased modestly. Compared to the same quarter one year earlier, gross margin weakened slightly as revenue and gross profit grew but cost of revenue grew at a faster pace.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

69.2%

Gross profit

$1.3B

Revenue

$1.9B

Cost of revenue

$598.2M

Quarter-over-quarter change

+0.5 pts

Year-over-year change

-0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$1.7B$1.2B$523.5M69.5%
Sep 30, 2024$1.8B$1.2B$542.9M69.2%
Mar 31, 2025$1.9B$1.3B$589.1M68.7%
Jun 30, 2025$1.9B$1.3B$598.2M69.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

+0.5 pts

Year-over-year change

Jun 30, 2024

-0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver of gross margin was the relationship between revenue and cost of revenue: revenue grew year over year while cost of revenue grew at a higher rate, compressing margin. Sequentially, cost of revenue increased slightly while revenue held steady, which modestly improved margin.

Compared to the immediately preceding quarter, gross margin improved slightly as revenue remained stable and cost of revenue increased modestly. Compared to the same quarter one year earlier, gross margin weakened slightly as revenue and gross profit grew but cost of revenue grew at a faster pace.

Monitor the trajectory of cost of revenue relative to revenue, as its growth rate outpaced revenue year over year and increased sequentially.

ROP Gross Margin — Quarter Ended Jun 30, 2025