Neil Hunn
President and Chief Executive Officer at Roper Technologies
Thanks, Rob. Congrats to you and your team for upsizing and extending our revolver, especially in these market conditions. As we turn to page 9, we summarized for you our go-forward portfolio of 26 businesses, arrayed across 3 segments: Application Software, Network Software and Tech Enabled Products. In the 8-K issued a few weeks ago, we provided historical annual and quarterly financial disclosures on this segmented basis. Also, for the first time, we're breaking down our revenues by type. As you see, 61% of our total revenue and 82% of our software revenues are recurring or reoccurring in nature. 74% of our total revenues are software related.
For several quarters, we've communicated how the quality of our revenue stream continues to improve. You can see this point well illustrated here. Our 11% organic growth is underpinned by 12% growth in our software recurring revenue base. Further, you can see the breadth of the growth in software and products. Our strategy for nearly two decades now has been to improve the quality of our enterprise, and this is clearly reflected on this page. We could not be more excited for our future.
Let's turn to page 10 and walk through the 2Q highlights for Application Software segment. Revenues here were $627 million, up 7% on organic basis, and EBITDA margins were 43.1%. Across the segment, we saw recurring revenue, which is about 75% of the revenue for this segment, increase 8% in the quarter. This recurring revenue growth is enabled by strong customer retention and continued migration to our SaaS delivery models. Across this group of companies, the financial strength was quite broad.
As we highlight a few businesses, we'll start with Deltek. The Deltek team posted another great quarter of strength across all end market served with particular strength in their construction contractor end markets. In addition, Deltek continues to gain momentum driving adoption to their cloud-based product offerings. Vertafore had an excellent quarter, which was highlighted by strong ARR [Phonetic] booking activity and revenue growth. Also, during the quarter, we completed the acquisition of MGA Systems. This tuck-in acquisition enhances Vertafore's ability to compete and win in the managed general agent segment of the property and casualty insurance ecosystem.
CliniSys and Data Innovations continued to exhibit strong demand and operational strength. CliniSys continued its market share gains in the U.K. DI continued to demonstrate product market fit by gaining share of wallet across large health systems and the VA. Strata continues to be super solid for us. The acquisition of EPSi has been exceedingly strong as Strata has successfully lifted and shifted many EPSi customers to the Strata cloud-based offering. At the same time, Strata continues to improve the legacy EPSi product release and support capability. We remain committed to meeting the EPSi and Strata customers where they are. Finally, Aderant continues to be a solid performer for Roper extending their share gains in the large law space. Aderant continues to see an acceleration of SaaS bookings activity driving substantial increases in the recurring revenue base. Looking to the outlook for the second half of 2022 in this segment, we expect to see mid-single-digit growth for the balance of the year driven by continued ARR momentum.
Turning the page 11. Revenues in the quarter for a Network Software segment were $343 million, up 15% on organic basis, and EBITDA margins were strong at 52%. The 15% organic growth in this segment is underpinned by 19% growth in recurring revenue. As we dig into business-specific performance, our U.S. and Canadian freight matching businesses continue to be exceptional. The market conditions, while slowing a touch on the carrier side of the network, continue to be favorable. During the recent surge in transportation volumes, the market share of the ecosystem represented by the spot market increased as it became easier to transact volumes in the spot market compared to the contracted market. We believe this is a secular trend that DAT will benefit from over a multiyear arc. In addition, DAT continues to do a nice job of increasing revenue per user by both adding features and improving value capture. Finally, over a longer arc planning horizon, our freight matching businesses continue to be well positioned to enable the further digitization of the spot freight market.
Moving to Foundry, our software business that enables live action filming and computer-generated graphics to be combined in a single frame, continued their recent financial strength. Net retention is north of 110% and ARR grew double digits again. Foundry success is rooted in their fast-paced innovation capability and favorable long-term market conditions. iTrade, our network food supply chain business and iPipeline, our life insurance SaaS business that tech enables the quoting and underwriting processes, each had solid customer additions which helped drive strong ARR growth in the quarter. Finally, our businesses which focus on alternate site healthcare, namely skilled nursing, assisted living, and home health, grew nicely in the quarter despite their customers growth being constrained by staffing shortages. Proud of the execution here. Turning to the outlook for the balance of the year, we expect to see mid-single digit organic growth for this segment driven by continued recurring revenue momentum and moderating growth for our freight match businesses.
As we turn to page 12, revenues and our Tech Enabled Product segment were $340 million, up 13% on an organic basis, despite the very challenging supply chain environment. EBITDA margins for the segment were 34.9% in the quarter. Let's start with Neptune, which had record orders, revenue, and quarter-ending backlog. For a few quarters running, Neptune has been able to gain market share by being successful in keeping product lead times at industry-leading terms and releasing new products, both in terms of cellular connectivity and static meter reading technology. As a fun fact, Neptune turns 50 later this quarter and next year will mark our 20-year ownership anniversary, a great run so far with an even better forward view. Congrats, Don, to you and your team for building such a great company.
Verathon, Northern Digital, and each of our medical product franchises continue to see very strong ordering activity but were hampered by a variety of supply chain challenges during the quarter. That said, the teams are executing exceptionally well, and we remain confident in our ability to execute through these challenges. Looking over the horizon, each of our medical product businesses are benefactors of secular tailwinds, namely the increased demand for single-use devices and the aging of the population. As it relates to the outlook for the balance of the year, we expect to see high-single digit growth for this segment, underpinned by strong demand and backlog levels, but somewhat constrained by the current supply chain challenges.
Now please turn to page 14 and let's review our updated and increased outlook for the balance of the year. As a reminder, last quarter we increased our adjusted DEPS guidance to be between $15.50 and $15.75, which included $2.30 from our industrial businesses. Given our agreement to divest our industrial businesses, we're removing the $2.30 from our guidance model going forward. So on a new continuing ops off basis, our previous guidance equates to $13.20 to $13.45. Based on our strong Q2 and second half visibility, we're now increasing our continuing ops guidance to be between $13.46 and $13.62. Embedded in this guidance is full year organic growth of 8% to 9%, again, on a continuing ops basis. As we look to the third quarter, we're establishing DEPS guidance to be in the range of $3.42 and $3.46.
Now our concluding comments, and we'll get to your questions. As we turn to page 15, we want to leave you with the same three points with which we started: first, we had a strong quarter performance, and we're increasing the outlook for the full year; second, we took strategic actions to divest a majority stake in our industrial businesses; and third, we have a tremendous amount of M&A firepower, north of $7 billion. As it relates to our strong start, we grew revenues organically 11%, EBITDA 10%, and DEPS 16%, and free cash is growing 17% on a three-year compounded basis. We are lifting our full year organic growth and DEPS guidance based on the factors outlined during the call, specifically strong recurring revenue growth and a record demand for our product businesses.
Finally, we have reloaded our balance sheet and continue to have a highly active and engaged pipeline of M&A opportunities. We have north of $7 billion of M&A available firepower. As mentioned at the start of today's call, our high levels of activity are equally matched with our patience and discipline, and we remain confident in our ability to deploy this capital to further improve the quality and scale of our enterprise, just as we've done over the past two decades. Finally, kudos to Rob and Shannon and the finance team for increasing the size and term of our $3.5 billion revolver.
As we turn to your questions, let us remind everyone that our strategy is the same. We compound cash flow by acquiring and growing niche market-leading technology businesses. This is what we've done for over 20 years and we'll continue to do so. In addition, our value creation and governance model remains unchanged. We operate a portfolio of market-leading businesses in defensible niches. Each of our businesses has high levels of recurring revenue, strong margins, and competes based on customer intimacy, which yields highly-resilient organic growth rates. We operate a highly-decentralized operational structure that focuses on long-term business building. Our culture sets a very high bar for performance and focuses on continually improving. We're all paid [Phonetic] to grow, which reinforces our culture of transparency, nimbleness, and humility. Finally, we'll redeploy vast majority of our capital to acquire the next great business. We do this with a centralized corporate resource team in a highly disciplined, thoughtful, and analytical manner. This strategy, unchanged, delivers compounded and superior long-term shareholder value.
So thanks for joining us this morning. And with that, let's open up to your questions.
