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 March 31,
		2026		2025
Stock-based compensation		$	52.6	$	38.8
Tax benefit recognized in net earnings		$	8.0	$	6.3

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 three months ended March 31, 2026, 0.528 options were granted with a weighted-average fair value of $91.86 per option. During the comparable period in 2025, 0.242 options were granted with a weighted-average fair value of $182.89 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:


	Three months ended March 31,
	2026	2025
Risk-free interest rate (%)	3.81	4.12
Expected option life (years)	5.77	5.74
Expected volatility (%)	21.82	25.07
Expected dividend yield (%)	0.96	0.52

Cash received from option exercises during the three months ended March 31, 2026 and 2025 was $8.3 and $61.1, respectively.

Restricted Stock Awards – During the three months ended March 31, 2026, the Company granted 0.803 shares of restricted stock awards in total, with a weighted-average grant date fair value of $353.92 per share. During the comparable period in 2025, the Company granted 0.342 shares of restricted stock awards in total, with a weighted-average grant date fair value of $608.04 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 three months ended March 31, 2026 and 2025, respectively, with a weighted-average grant date fair value 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 three months ended March 31, 2026, 0.144 restricted stock award shares vested with a weighted-average grant date fair value of $485.37 per share and a weighted-average vest date fair value of $356.15 per share. During the comparable period in 2025, 0.093 restricted stock award shares vested with a weighted-average grant date fair value of $479.18 per share and a weighted-average vest date fair value of $582.56 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 three months ended March 31, 2026 and 2025, participants of the ESPP purchased 0.023 and 0.016 shares, respectively, of Roper’s common stock for total consideration of $7.4 and $7.2, respectively. All of these shares were purchased from Roper’s treasury shares.