The Roper Technologies, Inc. 2021 Incentive Plan is a stock-based compensation plan used to grant incentive stock options, nonqualified stock options, restricted stock and restricted stock units (collectively “restricted stock awards”), stock appreciation rights, or equivalent instruments to Roper’s employees, officers, directors, and consultants.

Information regarding the Company’s stock-based compensation expense, included as a component of “Selling, general and administrative expenses” (“SG&A expenses”), is provided in the following table:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Stock-based compensation	$	43.9	$	39.7	$	82.7	$	73.3
Tax benefit recognized in net earnings	$	6.8	$	6.7	$	13.1	$	12.6

The Company accounts for forfeitures of stock-based awards as they occur, with previously recognized compensation reversed in the period in which the awards are forfeited.

Stock Options – During the six months ended June 30, 2025, 0.271 options were granted with a weighted-average fair value of $181.63 per option. During the comparable period in 2024, 0.263 options were granted with a weighted-average fair value of $173.72 per option. All options were granted with an exercise price equal to the closing price of Roper’s common stock on the date of grant, as required by the Company’s stock-based compensation plan.

Roper records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option valuation model. Historical data is used to estimate the expected price volatility, the expected dividend yield, and the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected life of the option.

The following weighted average assumptions were used to estimate the fair value of options granted during the current and prior year periods using the Black-Scholes option valuation model:


	Six months ended June 30,
	2025	2024
Risk-free interest rate (%)	4.10	4.17
Expected option life (years)	5.74	5.73
Expected volatility (%)	25.10	25.57
Expected dividend yield (%)	0.52	0.51

Restricted Stock Awards – During the six months ended June 30, 2025, the Company granted 0.403 shares of restricted stock awards with a weighted-average grant date fair value of $601.02 per share. During the comparable period in 2024, the Company granted 0.368 shares of restricted stock awards with a weighted-average grant date fair value of $555.12 per share. These awards were granted at the fair market value of the shares on the date of grant.

Restricted stock awards include 0.074 and 0.072 performance-based restricted stock awards granted to certain members of the Roper senior leadership team during the six months ended June 30, 2025 and 2024, respectively, with a weighted-average grant date fair value of $663.42 and $563.03 per share, respectively. Such awards include the ability to earn up to 200% of the number of restricted stock awards originally granted contingent upon Roper’s performance over a three-year period, subject to a market modifier based on the Company’s ranking of total shareholder return relative to the other companies within the Standard & Poor’s 500 Stock Index.

During the six months ended June 30, 2025, 0.102 restricted stock award shares vested with a weighted-average grant date fair value of $479.88 per share and a weighted-average vest date fair value of $579.12 per share. During the comparable period in 2024, 0.105 restricted stock award shares vested with a weighted-average grant date fair value of $438.44 per share and a weighted-average vest date fair value of $555.71 per share.

Employee Stock Purchase Plan – Roper’s employee stock purchase plan (“ESPP”) allows employees in the U.S. and Canada to designate up to 10% of eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing price on the first and last day of each quarterly offering period. Common stock sold to employees pursuant to the ESPP may be either treasury stock, stock purchased on the open market, or newly issued shares.

During the six months ended June 30, 2025 and 2024, participants of the ESPP purchased 0.026 and 0.021 shares, respectively, of Roper’s common stock for total consideration of $12.5 and $10.3, respectively. All of these shares were purchased from Roper’s treasury shares.