The Roper Technologies, Inc. 2021 Incentive Plan, as amended (the “Amended 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. The amendment to the 2021 Incentive Plan, which was approved by shareholders at the Annual Meeting of Shareholders on May 19, 2026 (the “Annual Meeting”), increased the number of shares available to grant under the Amended Incentive Plan.

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,
	2026		2025		2026		2025
Stock-based compensation	$	55.6	$	43.9	$	108.2	$	82.7
Tax benefit recognized in net earnings	$	8.3	$	6.8	$	16.3	$	13.1

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, 2026, 0.544 options were granted with a weighted-average fair value of $91.94 per option. During the comparable period in 2025, 0.271 options were granted with a weighted-average fair value of $181.63 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 award.

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,
	2026	2025
Risk-free interest rate (%)	3.81	4.10
Expected option life (years)	5.77	5.74
Expected volatility (%)	21.82	25.10
Expected dividend yield (%)	0.96	0.52

Restricted Stock Awards – During the six months ended June 30, 2026, the Company granted 0.845 shares of restricted stock awards in total, with a weighted-average grant date fair value of $352.88 per share. During the comparable period in 2025, the Company granted 0.403 shares of restricted stock awards in total, with a weighted-average grant date fair value of $601.02 per share. These awards were granted at the fair market value of the shares on the date of grant.

Restricted stock awards include 0.157 and 0.074 performance-based restricted stock awards granted to certain members of the Roper senior leadership team during the six months ended June 30, 2026 and 2025, respectively, with weighted-average grant date fair values of $353.87 and $663.42 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.

During the six months ended June 30, 2026, 0.156 shares of restricted stock awards vested with a weighted-average grant date fair value of $488.23 per share and a weighted-average vest date fair value of $356.65 per share. During the comparable period in 2025, 0.102 shares of restricted stock awards 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.

Employee Stock Purchase Plan – Through June 30, 2026, Roper’s ESPP allowed eligible employees in the U.S. and Canada to contribute up to 10% of their eligible earnings to purchase Roper’s common stock at a 10% discount on the lower of the closing share price on the first or the last day of each quarterly offering period.

During the six months ended June 30, 2026 and 2025, participants of the ESPP purchased 0.041 and 0.026 shares, respectively, of Roper’s common stock for total consideration of $12.7 and $12.5, respectively. All of these shares were purchased from Roper’s treasury shares.

The Roper Technologies, Inc. Employee Stock Purchase Plan was amended and restated (the “Amended ESPP”) and became effective on July 1, 2026, following shareholder approval at the Annual Meeting.

Under the Amended ESPP, eligible employees in the U.S. and Canada will be able to contribute up to 15% of their eligible earnings to purchase Roper’s common stock at a 15% discount on the lower of the closing share price on the first or the last day of each offering period. The Company may change the length of offering periods as well as their start and end dates. Shares sold under the Amended ESPP may originate from treasury stock, shares purchased on the open market, or newly issued shares.