June 8, 2026
ROLLINS, INC. REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
B
Strong Acceleration of Demand During March Drives Improvement in Organic Growth Profile
ATLANTA, April 22, 2026 /PRNewswire/ — Rollins, Inc. (NYSE: ROL) (“Rollins” or the “Company”), a premier global consumer and commercial services company, reported unaudited financial results for the first quarter of 2026.
Key Highlights
- First quarter revenues were $906 million, an increase of 10.2% over the first quarter of 2025 with organic revenues* increasing 6.6%.
- Quarterly operating income was $145 million, an increase of 2.0% over the first quarter of 2025. Quarterly operating margin was 16.1%, a decrease of 120 basis points compared to the first quarter of 2025. Adjusted operating income* was $153 million, an increase of 4.0% over the prior year. Adjusted operating margin* was 16.9%, a decrease of 100 basis points compared to the prior year.
- Adjusted EBITDA* was $179 million, an increase of 4.4% over the prior year. Adjusted EBITDA margin* was 19.8%, a decrease of 110 basis points versus the first quarter of 2025.
- Quarterly net income was $108 million, an increase of 2.5% over the prior year. Adjusted net income* was $113 million, an increase of 5.0% over the prior year.
- Quarterly EPS was $0.22 per diluted share in the first quarter of 2026 and 2025. Adjusted EPS* was $0.24 per diluted share, an increase of 9.1% over the prior year.
- Operating cash flow was $118 million for the quarter, a decrease of 19.4% compared to the prior year. Free cash flow* was $111 million for the quarter, a decrease of 20.6% compared to the prior year. Cash flow was negatively impacted by $40 million due to the timing of tax payments associated with our tax credit planning strategy, as well as $9 million due to the transition to semi-annual interest payments on our 2035 senior notes. The Company invested $18 million in acquisitions, $7 million in capital expenditures, and paid dividends totaling $88 million.
*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
Management Commentary
“Our results for the first quarter reflect our resilient business model and the ongoing focus of our teammates on operational excellence,” said Jerry Gahlhoff, Jr., President and CEO. “We continue to invest in our business by focusing on organic demand generation activities, while also strengthening our Rollins family of brands through strategic M&A like the Romex acquisition we made in April. Our peak season is off to a strong start, and we are well-positioned from a staffing and service perspective to deliver for our customers,” Mr. Gahlhoff added.
“We are encouraged by the sequential improvement in growth as we moved through the quarter, particularly as we exited the quarter with approximately 12 percent total growth and over 8 percent organic growth in March,” said Kenneth Krause, Executive Vice President and CFO. “While margin performance was muted by pressures from insurance and claims, as well as deleverage from people costs and selling investments on lower volume early in the quarter, we anticipate improving profitability in our underlying operations as we enter peak season. We continue to execute a balanced capital allocation program enabled by compounding cash flow and a strong balance sheet,” Mr. Krause concluded.
Three Months Ended Financial Highlights
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Three Months Ended March 31, |
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|
Variance |
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|
(unaudited, in thousands, except per share data and margins) |
2026 |
2025 |
$ |
% |
||
|
GAAP Metrics |
||||||
|
Revenues |
$ 906,424 |
$ 822,504 |
$ 83,920 |
10.2 % |
||
|
Gross profit (1) |
$ 460,902 |
$ 422,370 |
$ 38,532 |
9.1 % |
||
|
Gross profit margin (1) |
50.8 % |
51.4 % |
-60 bps |
|||
|
Operating income |
$ 145,486 |
$ 142,648 |
$ 2,838 |
2.0 % |
||
|
Operating margin |
16.1 % |
17.3 % |
-120 bps |
|||
|
Net income |
$ 107,838 |
$ 105,248 |
$ 2,590 |
2.5 % |
||
|
EPS |
$ 0.22 |
$ 0.22 |
$ — |
— % |
||
|
Net cash provided by operating activities |
$ 118,367 |
$ 146,892 |
$ (28,525) |
(19.4) % |
||
|
Non-GAAP Metrics |
||||||
|
Adjusted operating income (2) |
$ 152,793 |
$ 146,861 |
$ 5,932 |
4.0 % |
||
|
Adjusted operating margin (2) |
16.9 % |
17.9 % |
-100 bps |
|||
|
Adjusted net income (2) |
$ 113,229 |
$ 107,868 |
$ 5,361 |
5.0 % |
||
|
Adjusted EPS (2) |
$ 0.24 |
$ 0.22 |
$ 0.02 |
9.1 % |
||
|
Adjusted EBITDA (2) |
$ 179,469 |
$ 171,857 |
$ 7,612 |
4.4 % |
||
|
Adjusted EBITDA margin (2) |
19.8 % |
20.9 % |
-110 bps |
|||
|
Free cash flow (2) |
$ 111,228 |
$ 140,111 |
$ (28,883) |
(20.6) % |
||
|
(1) Exclusive of depreciation and amortization |
|
(2) Amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure. |
The following table presents financial information, including our significant expense categories, for the three months ended March 31, 2026 and 2025:
|
Three Months Ended March 31, |
||||
|
(unaudited, in thousands) |
2026 |
2025 |
||
|
$ |
% of
Revenue |
$ |
% of
Revenue |
|
|
Revenue |
$ 906,424 |
100.0 % |
$ 822,504 |
100.0 % |
|
Less: |
||||
|
Cost of services provided (exclusive of depreciation and amortization below): |
||||
|
Employee expenses |
289,722 |
32.0 % |
261,724 |
31.8 % |
|
Materials and supplies |
53,217 |
5.9 % |
48,491 |
5.9 % |
|
Insurance and claims |
21,147 |
2.3 % |
16,524 |
2.0 % |
|
Fleet expenses |
42,172 |
4.7 % |
36,857 |
4.5 % |
|
Other cost of services provided (1) |
39,264 |
4.3 % |
36,538 |
4.4 % |
|
Total cost of services provided (exclusive of depreciation and amortization below) |
445,522 |
49.2 % |
400,134 |
48.6 % |
|
Sales, general and administrative: |
||||
|
Selling and marketing expenses |
111,999 |
12.4 % |
98,250 |
11.9 % |
|
Administrative employee expenses |
89,749 |
9.9 % |
81,481 |
9.9 % |
|
Insurance and claims |
12,583 |
1.4 % |
10,004 |
1.2 % |
|
Fleet expenses |
10,262 |
1.1 % |
9,403 |
1.1 % |
|
Other sales, general and administrative (2) |
58,325 |
6.4 % |
51,375 |
6.2 % |
|
Total sales, general and administrative |
282,918 |
31.2 % |
250,513 |
30.5 % |
|
Depreciation and amortization |
32,498 |
3.6 % |
29,209 |
3.6 % |
|
Interest expense, net |
8,851 |
1.0 % |
5,796 |
0.7 % |
|
Other (income) expense, net |
(463) |
(0.1) % |
(692) |
(0.1) % |
|
Income tax expense |
29,260 |
3.2 % |
32,296 |
3.9 % |
|
Net income |
$ 107,838 |
11.9 % |
$ 105,248 |
12.8 % |
|
1) Other cost of services provided includes facilities costs, professional services, maintenance & repairs, software license costs, and other expenses directly related to providing services. |
|
2) Other sales, general and administrative includes facilities costs, professional services, maintenance & repairs, software license costs, bad debt expense, and other administrative expenses. |
About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with approximately 22,000 employees from more than 850 locations. Rollins is parent to Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, McCall Service, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Safeguard, Saela Pest Control, Trutech, Waltham Services, Western Pest Services, and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release as well as other written or oral statements by the Company may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “should,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance, including expectations regarding seasonal profitability improvement and margin trends; Rollins’ ongoing commitment to operational excellence; our resilient business model; a strategic approach to acquisitions, including statements regarding the anticipated benefits of the recent acquisitions such as Romex; compounding cash flow and strong balance sheet continuing to enable a balanced capital allocation strategy; a focus on pricing; a culture of continuous improvement supporting an improving margin profile; the stability of growth in our recurring and ancillary businesses; investing meaningfully in our business, including investments in organic demand generation and selling activities; intra-quarter trends in revenue growth, including monthly organic and total revenue growth rates; our staffing levels and readiness for peak season; and remaining well-positioned for continued growth.
These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and may also be described from time to time in our future reports filed with the SEC.
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.
Conference Call
Rollins will host a conference call on Thursday, April 23, 2026 at 8:30 a.m. Eastern Time to discuss the first quarter 2026 results. The conference call will also broadcast live over the internet via a link provided on the Rollins, Inc. website at www.rollins.com. Interested parties can also dial into the call at 1-877-869-3839 (domestic) or +1-201-689-8265 (internationally) with conference ID of 13759502. For interested individuals unable to join the call, a replay will be available on the website for 180 days.
|
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) (unaudited) |
|||
|
March 31, 2026 |
December 31,
2025 |
||
|
ASSETS |
|||
|
Cash and cash equivalents |
$ 116,543 |
$ 100,004 |
|
|
Trade receivables, net |
210,721 |
202,518 |
|
|
Financed receivables, short-term, net |
44,243 |
44,723 |
|
|
Materials and supplies |
44,128 |
42,982 |
|
|
Other current assets |
98,043 |
82,455 |
|
|
Total current assets |
513,678 |
472,682 |
|
|
Equipment and property, net |
124,910 |
126,187 |
|
|
Goodwill |
1,384,591 |
1,374,664 |
|
|
Intangibles, net |
565,723 |
582,384 |
|
|
Operating lease right-of-use assets |
412,690 |
424,528 |
|
|
Financed receivables, long-term, net |
110,879 |
110,057 |
|
|
Other assets |
47,763 |
50,021 |
|
|
Total assets |
$ 3,160,234 |
$ 3,140,523 |
|
|
LIABILITIES |
|||
|
Short-term debt |
$ 163,926 |
$ 123,683 |
|
|
Accounts payable |
61,188 |
44,361 |
|
|
Accrued insurance – current |
45,204 |
44,123 |
|
|
Accrued compensation and related liabilities |
102,461 |
128,259 |
|
|
Unearned revenues |
194,273 |
187,670 |
|
|
Operating lease liabilities – current |
136,714 |
137,410 |
|
|
Other current liabilities |
90,897 |
120,019 |
|
|
Total current liabilities |
794,663 |
785,525 |
|
|
Accrued insurance, less current portion |
88,274 |
79,157 |
|
|
Operating lease liabilities, less current portion |
279,873 |
290,765 |
|
|
Long-term debt |
486,627 |
486,147 |
|
|
Other long-term accrued liabilities |
129,109 |
124,608 |
|
|
Total liabilities |
1,778,546 |
1,766,202 |
|
|
STOCKHOLDERS’ EQUITY |
|||
|
Common stock |
481,462 |
481,194 |
|
|
Retained earnings and other equity |
900,226 |
893,127 |
|
|
Total stockholders’ equity |
1,381,688 |
1,374,321 |
|
|
Total liabilities and stockholders’ equity |
$ 3,160,234 |
$ 3,140,523 |
|
|
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share data) (unaudited) |
|||
|
Three Months Ended March 31, |
|||
|
2026 |
2025 |
||
|
REVENUES |
|||
|
Customer services |
$ 906,424 |
$ 822,504 |
|
|
COSTS AND EXPENSES |
|||
|
Cost of services provided (exclusive of depreciation and amortization below) |
445,522 |
400,134 |
|
|
Sales, general and administrative |
282,918 |
250,513 |
|
|
Depreciation and amortization |
32,498 |
29,209 |
|
|
Total operating expenses |
760,938 |
679,856 |
|
|
OPERATING INCOME |
145,486 |
142,648 |
|
|
Interest expense, net |
8,851 |
5,796 |
|
|
Other (income) expense, net |
(463) |
(692) |
|
|
CONSOLIDATED INCOME BEFORE INCOME TAXES |
137,098 |
137,544 |
|