Track market-moving stories before they get noisy

The headline numbers for Rollins (ROL) give insight into how the company performed in the quarter ended September 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

On its third-quarter 2026 earnings conference call, held on Oct. 22, 2026, Rollins (ROL +5.56%) addressed a residential customer acquisition slowdown caused by changing search patterns. Understanding how artificial intelligence affects customer discovery is critical for evaluating whether this pest control leader can protect its long-term market share. Three key statements from management highlight the strategic adjustments underway.

1. Artificial Intelligence Search Algorithms Are Fragmenting Customer DiscoveryTraditional search engines previously directed prospective pest control customers straight to major brand websites. Generative artificial intelligence and large language model (LLM) search tools now deliver variable recommendations across different providers, reducing digital lead volume for residential services.

AI and LLM-driven search are meaningfully changing the way customers discover service providers. With additional data through the third quarter, we clearly see the impact of the changing search landscape, which drove continued deceleration in digital lead flow.
-- Jerry Gahlhoff, President and Chief Executive Officer2. Relationship-Based Channels Provide Insulation Against Search VolatilityWhile digital search traffic decelerated, customer acquisition models built on direct sales, door-to-door outreach, and homebuilder partnerships expanded. These relationship-driven channels bypassed search engine friction entirely, helping the company maintain customer count growth in its residential business.

Brands that utilize relationship-driven customer acquisition channels, including direct sales, door-to-door marketing and homebuilder partnerships, delivered stronger organic growth. HomeTeam and Fox, for example, continued to perform well, leveraging their door-to-door sales forces to deliver growth well above the overall company.
-- Jerry Gahlhoff, President and Chief Executive Officer3. Marketing Strategy Focuses on Channel Optimization Over Expanded SpendingManagement isn't expanding overall marketing budgets to counter search headwinds. Instead, the company is adjusting local content, adding pricing transparency to digital listings, and reallocating ad dollars toward emerging search platforms where returns remain measurable.

Importantly, this is not simply about spending more, but continuously evaluating where our marketing dollars generate the strongest returns and investing behind those opportunities.
-- Jerry Gahlhoff, President and Chief Executive OfficerLooking AheadSearch volatility creates near-term customer friction, yet operational flexibility remains intact across the portfolio. Scale, strong cash generation, and pricing discipline support ongoing digital search optimization.

Our scale, financial flexibility and focus on disciplined execution position us well to adapt to changes in customer discovery while continuing to invest in the capabilities that support long-term growth.
-- Will Harkins, Executive Vice President and Chief Financial OfficerRefining search tactics and sustaining direct-sales models remain critical for protecting core residential revenue. Management is focused on converting local visibility into new account growth.

As we make progress toward that, we continue to believe the business has the potential to return to the organic growth algorithm of 7% to 8%, as outlined at our Investor Day.
-- Will Harkins, Executive Vice President and Chief Financial OfficerThe Motley Fool has positions in and recommends Rollins. The Motley Fool has a disclosure policy.

Rollins, Inc. (ROL) Q3 2026 Earnings Call October 22, 2026 8:30 AM EDT

Company Participants

Lyndsey Burton - Vice President of Investor Relations
Jerry Gahlhoff - Principal Executive Officer, President, CEO & Director
William Harkins - Executive VP, CFO & Chief Accounting Officer

Conference Call Participants

Timothy Mulrooney - William Blair & Company L.L.C., Research Division
Ronan Kennedy
Gregory Parrish - Morgan Stanley, Research Division
Curtis Nagle - BofA Securities, Research Division
Tomohiko Sano - JPMorgan Chase & Co, Research Division
Christina Johanna Bettink - BNP Paribas, Research Division
Connor Cerniglia - Bernstein Institutional Services LLC, Research Division
Keen Fai Tong - Goldman Sachs Group, Inc., Research Division
Stephanie Benjamin Moore - Jefferies LLC, Research Division
Peter Keith - Piper Sandler & Co., Research Division
Joshua Chan - UBS Investment Bank, Research Division

Presentation

Operator

Greetings, and welcome to the Rollins, Inc. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Lyndsey Burton. Thank you, Lyndsey. You may begin.

Lyndsey Burton
Vice President of Investor Relations

Thank you, Sam, and good morning, everyone. In addition to the earnings release that we issued yesterday, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at www.rollins.com.

We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation as well as in our earnings release. The company's earnings release and presentation contains certain forward-looking statements and discuss the business outlook. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially from any statement we make today.

Please refer to the cautionary statements

, /PRNewswire/ -- Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the third quarter of 2026.

Key Highlights

Third quarter revenues were $1.1 billion, an increase of 6.2% over the third quarter of 2025 with organic revenues* increasing 4.4% compared to the prior year. Quarterly operating income was $223 million, a decrease of 1.0% compared to the third quarter of 2025. Quarterly operating margin was 20.5%, a decrease of 140 basis points compared to the third quarter of 2025. Adjusted operating income* was $231 million, a decrease of 0.6% versus the prior year. Adjusted operating margin* was 21.2%, a decrease of 140 basis points compared to the prior year. Quarterly net income was $158 million, a decrease of 3.4% compared to the prior year. Adjusted net income* was $163 million, a decrease of 3.1% versus the prior year. Adjusted EBITDA* was $257 million, a decrease of 0.7% compared to the prior year. Adjusted EBITDA margin* was 23.5%, a decrease of 170 basis points versus the third quarter of 2025. Quarterly EPS was $0.33 per diluted share, a 2.9% decrease compared to the prior year. Adjusted EPS* was $0.34 per diluted share, a decrease of 2.9% versus the prior year. Operating cash flow was $242 million for the quarter, an increase of 26.4% compared to the prior year. Free cash flow* was $235 million for the quarter, an increase of 28.8% compared to the prior year. Cash flow was favorably impacted by $63 million due to the timing of a tax refund associated with our tax credit planning strategy. The Company invested $27 million in acquisitions, $6 million in capital expenditures, $120 million in share repurchases, and paid dividends totaling $87 million. *Amounts are non-GAAP financial measures. See the appendix to this release below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.

Management Commentary

"We are disappointed with our third quarter performance and are acting with urgency to address the challenges impacting our results. We now have a clearer understanding of how the customer acquisition landscape is evolving and are taking concrete steps to optimize our approach. This remains a dynamic environment that requires us to continually assess and adapt how we reach and win new customers. At the same time, our record of 100 consecutive quarters of revenue growth reflects the durability of our business and our ability to successfully adapt through changing conditions. With recurring customer relationships, a diversified portfolio and the underlying resilience of the pest control market, we remain confident in our ability to deliver sustainable, profitable growth over the long term," said Jerry Gahlhoff, Jr., President and Chief Executive Officer.

"Residential customer acquisition remained under pressure in the third quarter. We are responding with a more dynamic marketing approach—reallocating resources from the traditional digital playbook to the channels and capabilities generating the highest returns, including those that strengthen our visibility in AI- and LLM-driven discovery. Our capital allocation priorities remain unchanged: investing in the business through accretive M&A, maintaining and growing a healthy and sustainable dividend, and deploying excess cash opportunistically for share repurchases. Our financial flexibility and conviction in the intrinsic value of the business supported more meaningful share repurchase activity during the quarter. At the same time, we continue to invest in our people and the service quality that builds customer loyalty," said Will Harkins, Executive Vice President and Chief Financial Officer. 

Three and Nine Months Ended Financial Highlights

Three Months Ended September 30,

Nine Months Ended September 30,

Variance

Variance

(unaudited, in thousands, except per
share data and margins)

2026

2025

$

%

2026

2025

$

%

GAAP Metrics

Revenues

$  1,089,670

$  1,026,106

$ 63,564

6.2 %

$  3,074,670

$  2,848,137

$  226,533

8.0 %

Gross profit (1)

$     582,903

$     558,656

$ 24,247

4.3 %

$  1,613,751

$  1,518,692

$    95,059

6.3 %

Gross profit margin (1)

53.5 %

54.4 %

(90) bps

52.5 %

53.3 %

(80) bps

Operating income

$     222,859

$     225,021

$  (2,162)

(1.0) %

$     569,704

$    566,002

$      3,702

0.7 %

Operating margin

20.5 %

21.9 %

(140) bps

18.5 %

19.9 %

(140) bps

Net income

$     157,927

$     163,527

$  (5,600)

(3.4) %

$     409,675

$    410,264

$        (589)

(0.1) %

EPS

$           0.33

$           0.34

$    (0.01)

(2.9) %

$           0.85

$          0.85

$           —

— %

Net cash provided by operating
activities

$     241,859

$     191,349

$ 50,510

26.4 %

$     532,732

$    513,363

$    19,369

3.8 %

Non-GAAP Metrics

Adjusted operating income (2)

$     230,683

$     232,057

$  (1,374)

(0.6) %

$    593,415

$    584,826

$      8,589

1.5 %

Adjusted operating margin (2)

21.2 %

22.6 %

(140) bps

19.3 %

20.5 %

(120) bps

Adjusted net income (2)

$     163,343

$     168,501

$  (5,158)

(3.1) %

$    428,499

$    423,277

$     5,222

1.2 %

Adjusted EPS (2)

$           0.34

$           0.35

$    (0.01)

(2.9) %

$          0.89

$          0.87

$       0.02

2.3 %

Adjusted EBITDA (2)

$     256,571

$     258,334

$  (1,763)

(0.7) %

$    672,332

$    661,343

$   10,989

1.7 %

Adjusted EBITDA margin (2)

23.5 %

25.2 %

(170) bps

21.9 %

23.2 %

(130) bps

Free cash flow (2)

$     235,495

$     182,846

$ 52,649

28.8 %

$    512,800

$    491,003

$   21,797

4.4 %

(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 and nine months ended September 30, 2026 and 2025:

Three Months Ended September 30,

Nine Months Ended September 30,

(unaudited, in thousands)

2026

2025

2026

2025

$

% of
Revenue

$

% of 
Revenue

$

% of 
Revenue

$

% of 
Revenue

Revenue

$           1,089,670

100.0 %

$           1,026,106

100.0 %

$           3,074,670

100.0 %

$           2,848,137

100.0 %

Less:

Cost of services provided (exclusive of
depreciation and amortization below):

Employee expenses

328,186

30.1 %

312,249

30.4 %

946,695

30.8 %

872,326

30.6 %

Materials and supplies

65,082

6.0 %

62,933

6.1 %

184,638

6.0 %

170,924

6.0 %

Insurance and claims

23,048

2.1 %

11,127

1.1 %

66,127

2.2 %

48,385

1.7 %

Fleet expenses

45,482

4.2 %

38,997

3.8 %

134,613

4.4 %

117,688

4.1 %

Other cost of services provided (1)

44,969

4.1 %

42,144

4.1 %

128,846

4.2 %

120,122

4.2 %

Total cost of services provided (exclusive of
depreciation and amortization below)

506,767

46.5 %

467,450

45.6 %

1,460,919

47.5 %

1,329,445

46.7 %

Sales, general and administrative:

Selling and marketing expenses

146,339

13.4 %

138,881

13.5 %

410,305

13.3 %

377,309

13.2 %

Administrative employee expenses

92,358

8.5 %

88,601

8.6 %

277,840

9.0 %

259,384

9.1 %

Insurance and claims

13,722

1.3 %

6,929

0.7 %

39,544

1.3 %

29,872

1.0 %

Fleet expenses

11,739

1.1 %

9,502

0.9 %

33,776

1.1 %

29,348

1.0 %

Other sales, general and administrative (2)

62,613

5.7 %

57,491

5.6 %

183,201

6.0 %

163,600

5.7 %

Total sales, general and administrative

326,771

30.0 %

301,404

29.4 %

944,666

30.7 %

859,513

30.2 %

Depreciation and amortization

33,273

3.1 %

32,231

3.1 %

99,381

3.2 %

93,177

3.3 %

Interest expense, net

10,669

1.0 %

7,942

0.8 %

28,911

0.9 %

21,118

0.7 %

Other (income) expense, net

(400)

— %

(350)

— %

1,351

— %

(1,334)

— %

Income tax expense

54,663

5.0 %

53,902

5.3 %

129,767

4.2 %

135,954

4.8 %

Net income

$            157,927

14.5 %

$  163,527

15.9 %

$            409,675

13.3 %

$  410,264

14.4 %

(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 numerous brands, including Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, Orkin UK, Safeguard, Romex Pest Control, Saela Pest Control, Trutech, Waltham Services, and Western Pest Services. 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: the Company's expectations with respect to financial and business performance; near-term demand trends; the evolving customer acquisition landscape and the Company's actions to address customer acquisition challenges; lead volumes and consumer-initiated demand through search, digital media, inbound calls, and other channels; the Company's marketing strategy, including the reallocation of marketing resources and the expected benefits of investments in channels and capabilities intended to improve the Company's visibility in artificial intelligence - and large language model - driven discovery; the benefits of the Company's recurring customer relationships and diversified, multi-brand approach; the resilience of the pest control market; margin performance, margin trends, and the alignment of the Company's cost structure with demand conditions; investments in the Company's people and service quality and other investments intended to support long-term growth; the strength of the Company's balance sheet; cash flow generation; financial flexibility; capital allocation, including reinvestment in the business, acquisitions, capital expenditures, dividends and the Company's dividend policy, and share repurchases; and the Company's ability to execute its strategy and deliver sustainable, profitable growth over the long term.

These forward-looking statements are based on information available as of the date of this press release and on current expectations, forecasts, and assumptions, and involve judgments, risks and uncertainties, many of which are beyond the Company's control. Important factors that could cause actual results to differ materially include, but are not limited to: the Company's ability to attract and retain customers as customer acquisition channels evolve, including digital and artificial intelligence driven channels; the effectiveness of the Company's marketing efforts; competition; the Company's ability to execute its business strategies and successfully onboard acquisitions; labor, insurance, and other operating costs; economic conditions; weather and seasonality; and the other risks described in Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in the Company's subsequent filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.

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, October 22, 2026 at 8:30 a.m. Eastern Time to discuss the third 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 13762677. 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)

September 30,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$    129,050

$     100,004

Trade receivables, net

255,872

202,518

Financed receivables, short-term, net

48,824

44,723

Materials and supplies

42,215

42,982

Real estate assets held for sale

13,686

—

Other current assets

123,178

82,455

Total current assets

612,825

472,682

Equipment and property, net

111,031

126,187

Goodwill

1,466,429

1,374,664

Intangibles, net

589,832

582,384

Operating lease right-of-use assets

394,264

424,528

Financed receivables, long-term, net

119,701

110,057

Other assets

64,706

50,021

Total assets

$  3,358,788

$  3,140,523

LIABILITIES

Short-term debt

$    239,562

$     123,683

Accounts payable

74,249

44,361

Accrued insurance – current

51,588

44,123

Accrued compensation and related liabilities

126,097

128,259

Unearned revenues

192,825

187,670

Operating lease liabilities – current

137,157

137,410

Other current liabilities

165,165

120,019

Total current liabilities

986,643

785,525

Accrued insurance, less current portion

95,677

79,157

Operating lease liabilities, less current portion

261,402

290,765

Long-term debt

487,587

486,147

Other long-term accrued liabilities

137,021

124,608

Total liabilities

1,968,330

1,766,202

STOCKHOLDERS' EQUITY

Common stock

478,012

481,194

Retained earnings and other equity

912,446

893,127

Total stockholders' equity

1,390,458

1,374,321

Total liabilities and stockholders' equity

$  3,358,788

$  3,140,523

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

Three Months Ended September
30,

Nine Months Ended September
30,

2026

2025

2026

2025

REVENUES

Customer services

$  1,089,670

$  1,026,106

$  3,074,670

$  2,848,137

COSTS AND EXPENSES

Cost of services provided (exclusive of
depreciation and amortization below)

506,767

467,450

1,460,919

1,329,445

Sales, general and administrative

326,771

301,404

944,666

859,513

Depreciation and amortization

33,273

32,231

99,381

93,177

Total operating expenses

866,811

801,085

2,504,966

2,282,135

OPERATING INCOME

222,859

225,021

569,704

566,002

Interest expense, net

10,669

7,942

28,911

21,118

Other (income) expense, net

(400)

(350)

1,351

(1,334)

CONSOLIDATED INCOME BEFORE INCOME
TAXES

212,590

217,429

539,442

546,218

PROVISION FOR INCOME TAXES

54,663

53,902

129,767

135,954

NET INCOME

$    157,927

$     163,527

$    409,675

$     410,264

NET INCOME PER SHARE - BASIC AND
DILUTED

$          0.33

$           0.34

$          0.85

$           0.85

Weighted average shares outstanding - basic

478,970

484,635

480,567

484,565

Weighted average shares outstanding - diluted

478,978

484,670

480,586

484,598

DIVIDENDS PAID PER SHARE

$      0.1825

$      0.1650

$      0.5475

$      0.4950

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW INFORMATION

(in thousands)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

OPERATING ACTIVITIES

Net income

$    157,927

$     163,527

$    409,675

$     410,264

Depreciation and amortization

33,273

32,231

99,381

93,177

Change in working capital and other operating
activities

50,659

(4,409)

23,676

9,922

Net cash provided by operating activities

241,859

191,349

532,732

513,363

INVESTING ACTIVITIES

Acquisitions, net of cash acquired

(27,391)

(34,730)

(162,646)

(288,308)

Capital expenditures

(6,364)

(8,503)

(19,932)

(22,360)

Other investing activities, net

2,364

3,509

4,978

7,853

Net cash used in investing activities

(31,391)

(39,724)

(177,600)

(302,815)

FINANCING ACTIVITIES

Net borrowings (repayments)

23,644

(59,989)

125,132

95,215

Payment of dividends

(87,205)

(80,077)

(263,146)

(239,450)

Cash paid for common stock purchased

(120,065)

(3,651)

(162,891)

(18,573)

Other financing activities, net

(6,785)

(2,858)

(24,228)

(12,337)

Net cash used in financing activities

(190,411)

(146,575)

(325,133)

(175,145)

Effect of exchange rate changes on cash and
cash equivalents

(92)

(728)

(953)

2,324

Net increase (decrease) in cash and cash
equivalents

$      19,965

$        4,322

$      29,046

$      37,727

APPENDIX

Reconciliation of GAAP and non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

These measures should not be considered in isolation or as a substitute for revenues, net income, earnings per share or other performance measures prepared in accordance with GAAP. Management believes all of these non-GAAP financial measures are useful to provide investors with information about current trends in, and period-over-period comparisons of, the Company's results of operations. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.

The Company has used the following non-GAAP financial measures in this earnings release, including the appendix:

Organic revenues

Organic revenues are calculated as revenues less the revenues from acquisitions completed within the prior 12 months and excluding the revenues from divested businesses. Acquisition revenues are based on the trailing 12-month revenue of our acquired entities. Management uses organic revenues, and organic revenues by type to compare revenues over various periods excluding the impact of acquisitions and divestitures.

Adjusted operating income and adjusted operating margin

Adjusted operating income and adjusted operating margin are calculated by adding back to operating income those expenses associated with the amortization of intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control. Adjusted operating margin is calculated as adjusted operating income divided by revenues. Management uses adjusted operating income and adjusted operating margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods.

Adjusted net income and adjusted EPS

Adjusted net income and adjusted EPS are calculated by adding back to the GAAP measures amortization of intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control, excluding gains and losses on the sale of non-operational assets and gains and losses on the sale of businesses, and by further subtracting the tax impact of those expenses, gains, or losses. Management uses adjusted net income and adjusted EPS as measures of operating performance because these measures allow the Company to compare performance consistently over various periods.

EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and adjusted incremental EBITDA margin

EBITDA is calculated by adding back to net income depreciation and amortization, interest expense, net, and provision for income taxes. EBITDA margin is calculated as EBITDA divided by revenues. Adjusted EBITDA and adjusted EBITDA margin are calculated by further adding back those expenses associated with the adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control, and excluding gains and losses on the sale of non-operational assets and gains and losses on the sale of businesses. Management uses EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods. Incremental EBITDA margin is calculated as the change in EBITDA divided by the change in revenue. Management uses incremental EBITDA margin as a measure of operating performance because this measure allows the Company to compare performance consistently over various periods. Adjusted incremental EBITDA margin is calculated as the change in adjusted EBITDA divided by the change in revenue. Management uses adjusted incremental EBITDA margin as a measure of operating performance because this measure allows the Company to compare performance consistently over various periods.

Free cash flow and free cash flow conversion

Free cash flow is calculated by subtracting capital expenditures from cash provided by operating activities. Management uses free cash flow to demonstrate the Company's ability to maintain its asset base and generate future cash flows from operations. Free cash flow conversion is calculated as free cash flow divided by net income.

Management uses free cash flow conversion to demonstrate how much net income is converted into cash. Management believes that free cash flow is an important financial measure for use in evaluating the Company's liquidity. Free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, the Company's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.

Adjusted sales, general and administrative ("SG&A")

Adjusted SG&A is calculated by removing the adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control. Management uses adjusted SG&A to compare SG&A expenses consistently over various periods.

Leverage ratio

Leverage ratio, a financial valuation measure, is calculated by dividing adjusted net debt by adjusted EBITDAR. Adjusted net debt is calculated by adding short-term debt and operating lease liabilities to total long-term debt less a cash adjustment of 90% of total consolidated cash. Adjusted EBITDAR is calculated by adding back to net income depreciation and amortization, interest expense, net, provision for income taxes, operating lease cost, and stock-based compensation expense. Management uses leverage ratio as an assessment of overall liquidity, financial flexibility, and leverage.

Set forth below is a reconciliation of the non-GAAP financial measures contained in this release to their most directly comparable GAAP measures.

(unaudited, in thousands, except per share data and margins)

Three Months Ended September 30,

Nine Months Ended September 30,

Variance

Variance

2026

2025

$

%

2026

2025

$

%

Reconciliation of Revenues to Organic Revenues

Revenues

$  1,089,670

$ 1,026,106

63,564

6.2

$  3,074,670

$ 2,848,137

226,533

8.0

Revenues from acquisitions

(18,348)

—

(18,348)

1.8

(70,023)

—

(70,023)

2.5

Organic revenues

$  1,071,322

$ 1,026,106

45,216

4.4

$  3,004,647

$ 2,848,137

156,510

5.5

Reconciliation of Residential Revenues to Organic Residential Revenues

Residential revenues

$    499,682

$    476,271

23,411

4.9

$  1,375,031

$ 1,288,249

86,782

6.7

Residential revenues from
acquisitions

(12,310)

—

(12,310)

2.6

(44,405)

—

(44,405)

3.4

Residential organic revenues

$    487,372

$    476,271

11,101

2.3

$  1,330,626

$ 1,288,249

42,377

3.3

Reconciliation of Commercial Revenues to Organic Commercial Revenues

Commercial revenues

$    360,685

$   334,956

25,729

7.7

$  1,020,324

$    939,803

80,521

8.6

Commercial revenues from
acquisitions

(3,538)

—

(3,538)

1.1

(13,376)

—

(13,376)

1.5

Commercial organic revenues

$    357,147

$   334,956

22,191

6.6

$  1,006,948

$    939,803

67,145

7.1

Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues

Termite and ancillary revenues

$   217,930

$   204,670

13,260

6.5

$    647,504

$   588,655

58,849

10.0

Termite and ancillary revenues from
acquisitions

(2,500)

—

(2,500)

1.2

(12,242)

—

(12,242)

2.1

Termite and ancillary organic
revenues

$   215,430

$   204,670

10,760

5.3

$    635,262

$  588,655

46,607

7.9

Reconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues

Franchise and other revenues

$     11,373

$    10,209

1,164

11.4

$     31,811

$   31,430

381

1.2

Franchise and other revenues from
acquisitions

—

—

—

—

—

—

—

—

Franchise and other organic
revenues

$     11,373

$    10,209

1,164

11.4

$     31,811

$   31,430

381

1.2

Three Months Ended September 30,

Nine Months Ended September 30,

Variance

Variance

2026

2025

$

%

2026

2025

$

%

Reconciliation of Operating Income and Operating Income Margin to Adjusted Operating Income and Adjusted Operating Margin

Operating income

$     222,859

$     225,021

$     569,704

$     566,002

Acquisition-related expenses (1)

7,824

7,036

23,711

18,824

Adjusted operating income

$     230,683

$     232,057

(1,374)

(0.6)

$     593,415

$     584,826

8,589

1.5

Revenues

$  1,089,670

$  1,026,106

$  3,074,670

$  2,848,137

Operating margin

20.5 %

21.9 %

18.5 %

19.9 %

Adjusted operating margin

21.2 %

22.6 %

19.3 %

20.5 %

Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS

Net income

$     157,927

$    163,527

$     409,675

$    410,264

Acquisition-related expenses (1)

7,824

7,036

23,711

18,824

Loss (gain) on sale of assets, net (2)

(545)

(350)

1,590

(1,334)

Tax impact of adjustments (3)

(1,863)

(1,712)

(6,477)

(4,477)

Adjusted net income

$    163,343

$    168,501

(5,158)

(3.1)

$     428,499

$    423,277

5,222

1.2

EPS - basic and diluted

$          0.33

$          0.34

$           0.85

$          0.85

Acquisition-related expenses (1)

0.02

0.01

0.05

0.04

Loss (gain) on sale of assets, net (2)

—

—

—

—

Tax impact of adjustments (3)

—

—

(0.01)

(0.01)

Adjusted EPS - basic and diluted (4)

$          0.34

$         0.35

(0.01)

(2.9)

$           0.89

$         0.87

0.02

2.3

Weighted average shares outstanding
– basic

478,970

484,635

480,567

484,565

Weighted average shares outstanding
– diluted

478,978

484,670

480,586

484,598

Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA
Margin, and Adjusted Incremental EBITDA Margin

Net income

$     157,927

$     163,527

$     409,675

$     410,264

Depreciation and amortization

33,273

32,231

99,381

93,177

Interest expense, net

10,669

7,942

28,911

21,118

Provision for income taxes

54,663

53,902

129,767

135,954

EBITDA

$    256,532

$     257,602

(1,070)

(0.4)

$     667,734

$     660,513

7,221

1.1

Acquisition-related expenses (1)

584

1,082

3,008

2,164

Loss (gain) on sale of assets, net (2)

(545)

(350)

1,590

(1,334)

Adjusted EBITDA

$     256,571

$     258,334

(1,763)

(0.7)

$     672,332

$     661,343

10,989

1.7

Revenues

$  1,089,670

$  1,026,106

63,564

$  3,074,670

$  2,848,137

226,533

EBITDA margin

23.5 %

25.1 %

21.7 %

23.2 %

Incremental EBITDA margin

(1.7) %

3.2 %

Adjusted EBITDA margin

23.5 %

25.2 %

21.9 %

23.2 %

Adjusted incremental EBITDA margin

(2.8) %

4.9 %

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Conversion

Net cash provided by operating
activities

$     241,859

$    191,349

$ 532,732

$ 513,363

Capital expenditures

(6,364)

(8,503)

(19,932)

(22,360)

Free cash flow

$     235,495

$    182,846

52,649

28.8

$ 512,800

$ 491,003

21,797

4.4

Free cash flow conversion

149.1 %

111.8 %

125.2 %

119.7 %

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Reconciliation of SG&A to Adjusted SG&A

SG&A

$            326,771

$             301,404

$            944,666

$             859,513

Acquisition-related expenses (1)

584

1,082

3,008

2,164

Adjusted SG&A

$            326,187

$             300,322

$            941,658

$             857,349

Revenues

$         1,089,670

$          1,026,106

$         3,074,670

$          2,848,137

Adjusted SG&A as a % of revenues

29.9 %

29.3 %

30.6 %

30.1 %

Period Ended
September 30, 2026

Period Ended
December 31, 2025

Reconciliation of Debt and Net Income to Leverage Ratio

Short-term debt (5)

$            239,562

$            123,683

Long-term debt (6)

500,000

500,000

Operating lease liabilities (7)

398,559

428,175

Cash adjustment (8)

(116,145)

(90,004)

Adjusted net debt

$         1,021,976

$            961,854

Net income

$            526,116

$            526,705

Depreciation and amortization

130,948

124,744

Interest expense, net

36,351

28,558

Provision for income taxes

168,034

174,221

Operating lease cost (9)

170,431

159,924

Stock-based compensation expense

41,629

39,707

Adjusted EBITDAR

$         1,073,509

$          1,053,859

Leverage ratio

1.0x

0.9x

(1) Consists of expenses resulting from the amortization of intangible assets and adjustments to the fair value of contingent consideration associated with the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired companies is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.

(2) Consists of the gain or loss on the sale of non-operational assets.

(3) The tax effect of the adjustments is calculated using the applicable statutory tax rates for the respective periods.

(4) In some cases, the sum of the individual EPS amounts may not equal total adjusted EPS calculations due to rounding.

(5) The Company's short-term borrowings are presented under the short-term debt caption of our condensed consolidated statement of financial position, net of unamortized discounts.

(6) As of September 30, 2026 and December 31, 2025, the Company had outstanding borrowings of $500 million from the issuance of our 2035 Senior Notes. These borrowings are presented under the long-term debt caption of our condensed consolidated statement of financial position, net of unamortized discount and unamortized debt issuance costs. As of September 30, 2026 and December 31, 2025, the Company had no outstanding borrowings under the Revolving Credit Facility.

(7) Operating lease liabilities are presented under the operating lease liabilities - current and operating lease liabilities, less current portion captions of our condensed consolidated statement of financial position.

(8) Represents 90% of cash and cash equivalents per our condensed consolidated statement of financial position as of both periods presented.

(9) Operating lease cost excludes short-term lease cost associated with leases that have a duration of 12 months or less.

For Further Information Contact
Lyndsey Burton (404) 888-2348

SOURCE Rollins, Inc.

47 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The upcoming report from Rollins (ROL - Free Report) is expected to reveal quarterly earnings of $0.35 per share, indicating no change from the year-ago quarter. Analysts forecast revenues of $1.13 billion, representing an increase of 9.6% year over year.

The current level reflects a downward revision of 0.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Rollins metrics that are commonly tracked and projected by analysts on Wall Street.

Based on the collective assessment of analysts, 'Revenues- Residential' should arrive at $506.54 million. The estimate suggests a change of +6.4% year over year.

The consensus among analysts is that 'Revenues- Termite and ancillary' will reach $224.88 million. The estimate indicates a change of +9.9% from the prior-year quarter.

It is projected by analysts that the 'Revenues- Commercial' will reach $363.72 million. The estimate points to a change of +8.6% from the year-ago quarter.

View all Key Company Metrics for Rollins here>>>

Over the past month, shares of Rollins have returned +2.7% versus the Zacks S&P 500 composite's +2.4% change. Currently, ROL carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Los Angeles Holds No. 1 Spot on Orkin's 2026 Rattiest Cities ListPR NewswireATLANTA, Oct. 13, 2026Albuquerque and Nashville make double-digit jumps as cities ac

Your trash hauler, pest control company, and elevator servicer quietly raise prices every year, and most customers never push back. Four overlooked businesses are turning that habit into something worth paying attention to.

Some of the steadiest price increases in the market sit on invoices few people read closely: the trash bill, the pest contract, the uniform rental, the elevator maintenance agreement. In the second quarter of 2026, Waste Management (NYSE:WM | WM Price Prediction) reported core price of 5.7% while its Collection and Disposal volume declined 1.8% YoY. That is what this list looks for: essential services, customers who rarely switch, and evidence of charging a bit more each year without losing the account. Here are four businesses that fit.

Waste Management: Prices Rose While Volume Slipped What it does: WM is the largest US waste collection, transfer, landfill, recycling, renewable natural gas, and healthcare waste operator. Trucks run fixed routes to homes and businesses, and the company owns the landfills where most of that waste ends up.

Why demand holds: Trash keeps coming in a recession. The dividend history reflects how the business weathered the 2020 pandemic shock. The quarterly payout went from 0.5125 in 2019 to 0.545 in 2020 and 0.575 in 2021. On the latest call, the CEO described the economy simply: “We don’t see a hugely growing economy, but we also don’t see any red flags.”

Pricing evidence: Adjusted operating EBITDA margin expanded 40 bps to 30.9% despite the drop in volume. Management said that “despite ongoing inflationary pressures, including labor cost increases of approximately 4%, we limited the increase in collection operating costs to less than 1.7% compared to the second quarter of 2025.” The company also raised its full-year margin outlook to 31.0–31.2%.

Track record: Shares are down 3.74% year to date but up 299.7% over ten years. The quarterly dividend is now 0.945, a modest payout that comes from a much larger cash engine. Free cash flow reached $1.104B in the second quarter.

Risk: Pricing has a ceiling. Management traced commercial volume weakness to “some lost national accounts,” and said those losses are typically related to price. If WM pushes too hard, the largest customers can shop around.

Rollins: Recurring Pest Contracts Held While One-Time Calls Dried Up What it does: Rollins (NYSE:ROL) is the largest pure-play pest control operator in North America. It runs several well-known pest-control brands along with a long list of regional ones. Most of the revenue comes from scheduled visits to homes, restaurants, warehouses and hospitals, plus termite work.

Why demand holds: The second quarter of 2026 gave a live stress test. Reactive demand fell sharply, and management said residential rodent demand “could be down… 30 to 50%.” The recurring base held up through that slump. Management said “there were no notable shifts or deterioration in customer retention trends” and that “the recurring has been healthier.” Commercial pest control revenue rose 8.6% and termite and other rose 10.5%.

Pricing evidence: Rollins raised prices in a weak demand quarter and kept its customers. “Customer response to our recent price increase has been favorable, and we continue to expect to be positive on price costs for the year,” management said, adding, “We’ve not seen any hesitancy from our customers on pricing.”

Track record: Dividend records go back to 1999. The quarterly payout has stepped up from 0.13 in 2023 to 0.1825 now. The stock has had a hard year: it is down 46.11% year to date and still up 189.77% over ten years.

Risk: Costs were built for faster growth than the company got. GAAP operating margin declined 110 bps to 18.7%, and EPS of $0.32 missed the $0.34 consensus. Pricing power only helps margins if volume eventually catches up.

Cintas: Record Margins From Steady, Routine Price Increases What it does: Cintas (NASDAQ:CTAS) rents and launders work uniforms, stocks restroom supplies and floor mats, refills first aid cabinets and inspects fire extinguishers. It serves roughly a million business customers on recurring weekly service routes.

Why demand holds: Cintas’s dividend history covers the 2008 market collapse. The annual payout went from 0.46 in 2008 to 0.47 in 2009 and 0.48 in 2010. Those were small raises, but they came at the worst point of that downturn. Company leadership stated the position directly: “We prefer an absolutely thriving economy, just like any American would, but we don’t need it.” More than two-thirds of new business comes from companies that used to handle these tasks themselves, and that pool of potential customers does not depend on the economic cycle.

Pricing evidence: Cintas plays down its pricing. Management called it “probably the least important of the four” growth drivers and said it was “consistent with prior years.” The margins show what steady increases on a sticky base add up to: gross margin reached a record 51.5%, up 120 bps YoY, and runs margin rose to 23.6% vs 22.7%. Cintas also absorbs fuel costs without surcharges: “We do not pass through any fuel surcharges. We manage it operationally.”

Track record: Shares are up 725.43% over ten years and 8.45% year to date. The quarterly dividend rose from 0.45 to 0.52 in August.

Risk: The proposed UniFirst (NYSE:UNF) acquisition is still pending FTC review, which could delay the deal or add conditions. Uniform volume also depends on how many people customers employ.

Otis Worldwide: Paid to Keep 2.5 Million Elevators Running What it does: Otis Worldwide (NYSE:OTIS) builds elevators and escalators. Most of its revenue comes from maintaining, fixing and overhauling a portfolio of approximately 2.5 million units. Service revenue was $2.580B in the second quarter, about double New Equipment’s $1.279B.

Why demand holds: Elevators need inspection and repair whether or not anyone is building new towers. Otis is going through a construction slump in China now. New Equipment sales there fell by >20% in the first quarter, while Service grew 11% in both the first and second quarters. Its dividend records start in May 2020, in the middle of the pandemic, at 0.2. Dividends have risen every year since, to 0.44.

Pricing evidence: Maintenance contracts reset every few years, and Otis gets increases at renewal. In the second quarter, maintenance growth included 3% pricing, and repair sales rose 12% with help from targeted price changes. When costs jumped during the Middle East conflict, management said, “we needed to raise prices besides the normal price adjustments we get on service,” and those increases largely offset the impact. The modernization backlog was +26% at constant currency.

Track record: Shares are down 23.21% year to date and 14.1% over five years. The quality of the business is easier to see than the returns.

Risk: Customer retention outside China declined, mostly in the Americas, and service margin fell 170 basis points to 23.2% as Otis spent on service quality. Otis has chosen to hold back on maintenance price increases to keep customers, so pricing gains will show up more slowly.

Where the Evidence Is Strongest All four businesses send a recurring bill that customers find hard to cancel, and each one has raised prices in 2026. WM and Cintas have the strongest evidence, with margins rising alongside price. Rollins and Otis are paying now for growth and service quality, and their share prices reflect it. The first two have already shown their pricing power, and the last two still need to prove it in the next few quarters.

Contact [email protected] for any questions or corrections.

Rollins (NYSE:ROL – Get Free Report) and Element Fleet Management (OTCMKTS:ELEEF – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Dividends Rollins pays an annual dividend of $0.73 per share and has a dividend yield of 2.4%. Element Fleet Management pays an annual dividend of $0.43 per share and has a dividend yield of 2.8%. Rollins pays out 66.4% of its earnings in the form of a dividend. Element Fleet Management pays out 58.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rollins has increased its dividend for 4 consecutive years. Element Fleet Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability This table compares Rollins and Element Fleet Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Rollins 13.55% 38.81% 17.24% Element Fleet Management 23.33% 24.75% 3.91% Earnings & Valuation This table compares Rollins and Element Fleet Management”s revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Rollins $3.76 billion 3.85 $526.71 million $1.10 27.34 Element Fleet Management $1.19 billion 5.16 $279.13 million $0.74 21.11 Rollins has higher revenue and earnings than Element Fleet Management. Element Fleet Management is trading at a lower price-to-earnings ratio than Rollins, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership 51.8% of Rollins shares are owned by institutional investors. 5.8% of Rollins shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations This is a summary of current ratings and price targets for Rollins and Element Fleet Management, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Rollins 4 10 4 1 2.11 Element Fleet Management 0 0 2 1 3.33 Rollins currently has a consensus price target of $45.94, suggesting a potential upside of 52.77%. Given Rollins’ higher probable upside, equities analysts clearly believe Rollins is more favorable than Element Fleet Management.

Summary Rollins beats Element Fleet Management on 11 of the 16 factors compared between the two stocks.

About Rollins (Get Free Report)

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

(Get Free Report)

Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.

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Pest control and sanitation companies sell contracts that customers keep renewing even when share prices collapse, and two of these three stocks are down sharply this year while their retention numbers barely flinched.

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Pests, grease traps and scale in cooling towers come back on their own schedule, so the companies that handle them sell service on a route and bill on a calendar. The global pest control market grew from $15.4 billion in 2015 to $29.0 billion in 2025, a 6.6% compound annual rate, in a category Rentokil’s own filing describes as “resilient and non-cyclical.” That durability shows up in the revenue line more reliably than in the share price. Two of the three names below are down sharply this year while their customers keep renewing.

Rollins: Pest Control Routes Where Retention Held Through a Rough Quarter Rollins (NYSE:ROL | ROL Price Prediction) is the Atlanta-based parent of Orkin, HomeTeam Pest Defense, Fox Pest Control, Western Pest Services and roughly 20 regional brands. It sends technicians on scheduled visits to homes and businesses. Second-quarter revenue came to $1.08B, up 7.9%, split among residential ($485.8M), commercial ($347.9M) and termite and other work ($234.2M).

The customer keeps paying because the contract is for prevention. Chief executive Jerry Gahlhoff told analysts there were “no notable shifts or deterioration in customer retention trends” and that “customer response to our recent price increase has been favorable.” The weakness sat in one-time jobs, which management said “went negative throughout a large part of the quarter,” while “the recurring has been healthier.” That split is the contract thesis in miniature. Gross margin was 52.8%, down 100 basis points, which still leaves a wide buffer for a route business.

On downturns, Rollins kept paying through the financial crisis, with the quarterly dividend largely at $0.07 across the 2009 to 2011 payments. Its quarterly record stretches back to at least February 1999. The payout rose from $0.08 in 2021 to $0.1825 beginning in November 2025, and it held there through the second-quarter miss. The annualized $0.73 is modest. Over ten years the shares returned 165.77%.

Risk: the front of the pipeline. Adjusted EPS of $0.32 missed the $0.34 consensus as consumer-initiated residential leads (search, digital, inbound calls) moderated, and operating margin contracted 110 bps to 18.7%. The stock has fallen 49.39% year to date, to $30.04, and it underperformed competitors on Thursday. Gahlhoff compared the stretch to 2017: “It was a pretty painful Q2, but we came right out of it in Q3.” The third-quarter report will show whether that pattern repeats.

Rentokil: Global Pest Control With a Currency Layer for US Holders Rentokil (NYSE:RTO) runs the same route model across roughly 90 countries, including Terminix in the US. Pest control is the large majority of the group: first-half revenue of $3.589B included $2.968B from pest control and $621M from hygiene and wellbeing.

Customers stayed and paid more. Retention improved to 80.7% domestically and 86.1% internationally, and the company says pricing remains ahead of inflation. Organic revenue grew 3.6%, adjusted operating profit rose 6.6% at constant currency to $556M, and free cash flow conversion improved to 95.7% from 92.6%.

How the Dividend Reaches a US Account Rentokil is dual listed, and US investors typically hold American depositary receipts. The company declared an interim dividend of 4.48 cents per ordinary share on July 30, 2026, up 8.0% under its progressive policy, paid September 21. The ADR payment of $0.224 per ADR arrived on September 22, routed through the depositary. Payments come twice a year, and past ADR amounts carry unusual decimals, such as $0.273817 in August 2025, a sign of conversion from a non-dollar amount. The latest per-ADR figure also sits below that prior-year interim payment despite the headline increase, so the declared dividend and what lands in a US brokerage account do not move in together. Timing, amount and any depositary charges can differ from the London payment.

Returns have been uneven: 63.39% over ten years, but down 44.95% over five and 28.41% this year. Shares fell as much as 17% after new CEO Mike Duffy retired the North America 20% margin target for 2027 in favor of volume growth.

Risk: termite claims. An additional $47M provision brought total termite damage liability to $392M. Litigated claim rates rose 11% during the first six months and non-litigated claims rose 6%. That liability comes with the Terminix book, and it grows on its own schedule.

Ecolab: A Water and Hygiene Company Where Pest Elimination Is One Segment Ecolab (NYSE:ECL) belongs here for its contracts. The St. Paul company sells water treatment, cleaning and sanitation, and infection prevention programs, with technicians visiting kitchens, food plants, hospitals and factories. Second-quarter revenue of $4.415B broke down into Global Water ($2.223B), Institutional and Specialty ($1.621B), Pest Elimination ($351.1M), Life Sciences ($220.1M) and Ecolab Digital ($121M).

Ecolab rolled out a global energy surcharge in the first quarter, pricing contributed 4% in the second quarter, and management expects 5%-6% in the second half. CEO Christophe Beck said retention stayed “super stable” and that “we never give the pricing back in our model.” First-quarter adjusted operating margin expanded 70 bps to 16.7%. Institutional and Specialty grew 4% while US restaurant traffic was down 5% year over year.

Through the 2020 pandemic, when its restaurant and hotel customers took the hardest hit, Ecolab held its quarterly dividend at $0.47 and raised it to $0.48 in December 2020. The payout has stepped up every year in the listed history, from $0.37 in late 2016 to $0.73 in December 2025 (that kind of multi-decade raise streak is exactly what we screened for with the Dividend Kings report). The shares returned 159.71% over ten years and are up 7.32% this year. Full-year adjusted EPS guidance was raised to $8.05-$8.25.

Risk: input costs and a changing mix. Rising commodity costs are squeezing gross margins, Middle East disruptions created a roughly 1% volume drag, and CoolIT acquisition costs weigh on near-term EPS. The fastest growth now comes from data center and semiconductor customers (Global High-Tech rose 29% organically), a corner that acts differently from a restaurant’s weekly dish machine service.

What Keeps These Contracts Renewing Pests, dirty kitchens and cooling-tower scale will be around next year too. The contracts that handle them renew quietly, even in a year when two of these share prices have fallen. The numbers worth checking each quarter are retention and pricing, and all three companies currently report both holding up.

Contact [email protected] for any questions or corrections.

Rollins NYSE: ROL executives said the pest-control company is working to adapt its marketing and customer-acquisition strategy after an unusually volatile period in residential lead generation, which management believes was driven largely by changes in AI-powered search.

24.9.2026 20:05, DJI, SPX, QQQ

Americké akciové trhy se pohybují v mírně záporném pásmu, přičemž index Dow Jones odepisuje 0,38 % na 51 317,46 bodu, S&P 500 klesá o 0,12 % na 7 696,91 bodu a technologický Nasdaq Composite ztrácí 0,22 % na 26 876,34 bodu. Akcie postupně odmazávají hlubší ztráty díky zprávám o možném jednání mezi USA a Íránem o znovuotvření Hormuzského průlivu, což mírní obavy z vysokých cen energií a navazující inflace. Trhy však udržují pod tlakem prohlášení některých představitelů FEDu, kteří upozorňují na potřebu dalšího zvyšování úrokových sazeb.

Mezi sektory se nejvíce daří komunikačním službám se ziskem 1,4 %, energiím s růstem o 1 % a zdravotní péči, která přidává 0,6 %. Naopak nejslabším odvětvím jsou základní materiály se ztrátou 1,1 %, následované sektory průmyslu a informačních technologií, které shodně odepisují 0,6 %.

Na čele růstových akcií se nachází společnost Everpure (P) se ziskem 14 %. Výrazně posilují také Charles River Laboratories International (CRL) o 6,2 %, GoDaddy (GDDY) o 5,0 %, Illumina (ILMN) o 4,6 % a Royal Caribbean Cruises (RCL) o 4,4 %. Naopačnému tlaku čelí společnost MGM Resorts International (MGM), jejíž akcie propadají o 11 % v reakci na zprávu, že ze záměru na její převzetí odstoupila společnost People Inc. Ztráty zaznamenávají také Gen Digital (GEN) o 9,1 %, First Solar (FSLR) o 8,1 %, Rollins (ROL) o 6,9 % a Xylem (XYL) o 5,1 %.

Na komoditních trzích rostou ceny ropy. Americká ropa WTI přidává 3 % na 94,94 dolaru za barel a severomořský Brent se obchoduje kolem 106 dolarů. Spotové zlato naopak oslabuje o 0,6 % na 4 260,70 dolaru za unci. Na devizovém trhu posiluje dolarový index o 0,3 %, zatímco euro zůstává bez výraznějších změn na úrovni 1,1372 USD. Britská libra oslabuje o 0,1 % na 1,3220 USD a japonský jen ztrácí 0,4 % na 158,89 JPY za dolar. Výnosy dluhopisů pokračují v růstu. Desetileté americké dluhopisy dosahují výnosu 5,15 % a třicetileté dluhopisy vystupují na 5,44 %, což představuje nejvyšší úroveň od roku 2004.

Index Dow Jones -0,38 % na 51317,46 b.
S&P 500 -0,12 % na 7696,91 b.
Nasdaq Composite -0,22 % na 26876,34 b.

Index S&P 500 -0,12 % na 7696,91 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +1,4 % Základní materiály -1,1 % Energie +1 % Průmysl -0,6 % Zdravotní péče +0,6 % Informační technologie -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Everpure (P) +14 % MGM Resorts International (MGM) -11 % Charles River Laboratories International (CRL) +6,2 % Gen Digital (GEN) -9,1 % GoDaddy (GDDY) +5,0 % First Solar (FSLR) -8,1 % Illumina (ILMN) +4,6 % Rollins (ROL) -6,9 % Royal Caribbean Cruises (RCL) +4,4 % Xylem (XYL) -5,1 %
Daniel Marván, Fio banka, a.s.

Waste Management spent a decade delivering nearly 300% returns while nobody called it exciting. Four other companies share the same quiet structural advantage, and their customers cannot leave without breaking something.

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Boring works. Over the past decade, Waste Management (NYSE:WM | WM Price Prediction) has returned 290.37% on price alone, without ever being confused for a growth story. The five names below share a simple trait: their customers barely think about the invoice, and they could not stop paying it without breaking something operational. Each has demonstrated the ability to raise prices faster than costs rise, and each has a dividend record that documents it.

Waste Management: Trash Is a Toll Road WM collects and disposes of solid waste, runs landfills and recycling, and now operates a healthcare-waste business from the Stericycle deal. Municipal and commercial customers sign multi-year contracts, and switching haulers is expensive and disruptive. In Q2 FY26, core price came in at 5.7% with Collection & Disposal yield of 3.6%, and adjusted operating EBITDA margin expanded 40 basis points to 30.9%. Management noted that “despite ongoing inflationary pressures, including labor cost increases of approximately 4%, we limited the increase in collection operating costs to less than 1.7% compared to the second quarter of 2025.” The dividend record backs the pricing story: the quarterly payout has stepped up from $0.75 in 2024 to $0.825 in 2025 to $0.945 in 2026, with no stock splits complicating the comparison. Risk: Collection & Disposal volumes were down 1.8% year over year, and recycled commodity and RNG credit prices have weakened.

Republic Services: Same Toll Road, Different Booth Republic Services (NYSE:RSG) does what WM does. Customer captivity is the same: contract structures, route density, and landfill scarcity all make leaving impractical. In Q1 FY26, core price on total revenue was 5.7%, with open market pricing at 8.4%, and adjusted EBITDA margin expanded 50 basis points to 32.1%. On the Q2 FY26 call, CEO Jon Vander Ark said “this level of pricing exceeded our cost inflation, which drove margin expansion in the underlying business” and reiterated “we always take price over volume.” Republic announced an increase to its dividend for the 23rd consecutive year; the quarterly payout most recently stepped up from $0.625 to $0.67. The dividend record is clean through the available history, with only a single 1.5x adjustment recorded in 2007. Risk: recycled commodity prices declined to $120/ton from $155, and organic volume ran negative.

Rollins: Pest Control on Autopilot Rollins (NYSE:ROL) runs Orkin and a family of pest-control brands. The recurring commercial and termite work is contracted, scheduled, and hard to cancel because customers are paying to prevent problems they cannot see. In Q2 FY26, commercial revenue grew 8.6% and termite & ancillary grew 10.5% even as consumer-initiated residential leads softened. On the call, CEO Jerry Gahlhoff said “we’ve not seen any hesitancy from our customers on pricing” and the CFO added that “customer response to our recent price increase has been favorable, and we continue to expect to be positive on price costs for the year.” The regular quarterly dividend has stepped from $0.15 in 2024 to $0.165 in 2025 to $0.1825 in 2026. The per-share history is complicated by seven 1.5x share adjustments over the past two decades, so read the trajectory rather than the absolute numbers. Risk: the stock is down 45.13% year to date on softer top-of-funnel demand, and GAAP operating margin fell 110 basis points in Q2 to 18.7%.

Cintas: Uniforms Nobody Cancels Cintas (NASDAQ:CTAS) rents uniforms, mats, restroom supplies, and first-aid stock to roughly a million businesses. The service arrives on a route, whether the customer thinks about it or not. In Q1 FY27, reported today, revenue rose 10.9% to $3.01 billion, organic growth was 8.9%, and gross margin reached 51.5%, an all-time high. Operating margin of 23.6% was also a record. Notably, CEO Todd Schneider emphasized productivity as the margin driver: “as inflation is up we don’t take the approach that well prices our costs are up so we’re just going to pass along to the customers… we’ve got to be better than that.” Margin expansion is coming from productivity rather than surcharges. Cintas said on the call it has increased its dividend every year since going public 43 years ago, and the most recent quarterly step-up went from $0.45 to $0.52. Risk: the pending UniFirst acquisition is under FTC second-request review, and integration is a live question.

Otis Worldwide: Elevators That Bill Forever Otis Worldwide (NYSE:OTIS) sells new elevators and escalators, but the durable business is service: maintenance, repair, and modernization on an installed base measured in the millions of units. Building owners cannot easily switch, and the equipment demands regulated inspection. In Q2 FY26, service revenue grew 11% (organic +9%), modernization organic sales rose 24%, and the modernization backlog was up 26% at constant currency. CEO Judy Marks described maintenance micro-pricing as an “account by account” exercise balancing retention with price, and said “service remains the key growth engine of the business.” The quarterly dividend has moved from $0.20 in 2020 to $0.44 in 2026, with no stock splits in the record. Risk: New Equipment sales in China fell high teens to more than 20%, and service margin compressed 180 basis points in Q2 on labor and material costs the company has not yet fully recovered in price.

These are businesses whose contracts, routes, and installed bases make the invoice easy to renew and hard to escape, and the dividend records document what that has looked like in cash. Yields here are modest; what matters is that the pricing was there when it was needed. If multi-decade raise streaks are what you’re screening for, we ranked ten of the longest in a free Dividend Kings report. Read the margin trend, watch the volume trend, and let the boring work.

Contact [email protected] for any questions or corrections.

Representative Rick W. Allen (Republican-Georgia) recently bought shares of Broadcom Inc. (NASDAQ:AVGO). In a filing disclosed on September 22nd, the Representative disclosed that they had bought between $1,001 and $15,000 in Broadcom stock on August 12th. The trade occurred in the Representative’s “R.W. ALLEN & ASSOCIATES, INC. > RWA&A – SECURITIES” account.

Representative Rick W. Allen also recently made the following trade(s):

Purchased $1,001 – $15,000 in shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) on 8/12/2026. Sold $15,001 – $50,000 in shares of Rollins (NYSE:ROL) on 8/12/2026. Sold $15,001 – $50,000 in shares of Abbott Laboratories (NYSE:ABT) on 7/14/2026. Purchased $1,001 – $15,000 in shares of Broadcom (NASDAQ:AVGO) on 7/14/2026. Purchased $1,001 – $15,000 in shares of Advanced Micro Devices (NASDAQ:AMD) on 7/14/2026. Broadcom Stock Down 2.6% NASDAQ AVGO opened at $354.99 on Thursday. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The company’s 50 day simple moving average is $377.21 and its 200 day simple moving average is $380.26. Broadcom Inc. has a 12 month low of $289.96 and a 12 month high of $495.00. The company has a market capitalization of $1.69 trillion, a P/E ratio of 45.34 and a beta of 1.44.

Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.Broadcom’s revenue was up 85.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.69 earnings per share. Equities research analysts expect that Broadcom Inc. will post 10.36 earnings per share for the current fiscal year. Broadcom Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be paid a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 33.21%.

Insider Activity In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares in the company, valued at $78,254,935.37. The trade was a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,492 shares of company stock valued at $20,840,292 over the last three months. 1.90% of the stock is owned by insiders.

Institutional Trading of Broadcom Institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Broadcom in the fourth quarter valued at about $24,252,196,000. Legal & General Group Plc acquired a new stake in Broadcom in the 2nd quarter valued at about $11,998,148,000. Bank of New York Mellon Corp bought a new position in shares of Broadcom in the second quarter worth about $10,528,191,000. Jupiter Topco LLC bought a new position in shares of Broadcom in the second quarter worth about $7,396,271,000. Finally, State Street Corp lifted its position in shares of Broadcom by 8.7% during the second quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after purchasing an additional 16,651,378 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Analysts Set New Price Targets AVGO has been the subject of several analyst reports. Rosenblatt Securities began coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a “buy” rating and a $600.00 price objective for the company. DA Davidson set a $350.00 target price on shares of Broadcom and gave the stock a “neutral” rating in a research report on Friday, September 4th. Fox Advisors upgraded Broadcom to an “outperform” rating in a report on Thursday, September 3rd. Wall Street Zen cut Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Broadcom in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $509.04.

Check Out Our Latest Research Report on AVGO

Key Headlines Impacting Broadcom Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom’s custom AI-chip opportunity remains the main bullish catalyst. Articles highlighted management’s projections for approximately $115 billion in AI semiconductor revenue in fiscal 2027 and $230 billion in fiscal 2028, supported by demand for custom silicon and networking infrastructure. The AI Boom Isn’t Over: 3 Stocks You Need to Watch Positive Sentiment: Analysts and investment writers continue to view Broadcom as a key beneficiary of AI inference spending, particularly as major technology customers seek lower-cost, purpose-built chips rather than relying exclusively on general-purpose processors. A top chip stock analyst sees big things for Nvidia, Broadcom Positive Sentiment: Broadcom is also being promoted as an income-and-growth investment because of its history of dividend increases and exposure to AI infrastructure. This may support demand from long-term and income-oriented investors. 3 Companies With a Strong History of Dividend Growth Neutral Sentiment: The bullish thesis depends on execution. Broadcom’s ambitious forecasts require sustained customer adoption, successful delivery of custom chips and networking products, and continued expansion of AI infrastructure spending. Can execution catch up with expectations at Broadcom Negative Sentiment: China reportedly surveyed Broadcom’s switches used in state-backed data centers as Beijing encourages domestic semiconductor suppliers and reduces reliance on foreign AI infrastructure. The review raises concerns about potential restrictions, lost orders or slower growth in China. China surveys Broadcom switch use in state data centers Negative Sentiment: Semiconductor stocks broadly weakened as higher Treasury yields, rising oil prices and a pause in the wider equity rally pressured richly valued growth shares. Broadcom’s elevated valuation increases its sensitivity to any doubts about AI growth or execution. Why are Intel, AMD, Broadcom stocks down About Representative Allen Rick Allen (Republican Party) is a member of the U.S. House, representing Georgia’s 12th Congressional District. He assumed office on January 3, 2015. His current term ends on January 3, 2027.

Allen (Republican Party) ran for re-election to the U.S. House to represent Georgia’s 12th Congressional District. He won in the general election on November 5, 2024.

Allen was born in Augusta, Georgia, in 1951. He attended Auburn University in Alabama, graduating in 1973 with a B.S. in building construction.

After earning his degree, Allen worked as an estimator, project administrator and assistant to the president with a construction firm in Augusta. In 1976, he founded his own construction business, R. W. Allen & Associates, Inc. The company operates in six states across the country. In 2008, Allen was presented with the Augusta Metro Chamber of Commerce’s Small Business Person of the Year award.

About Broadcom (Get Free Report)

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.

Featured Articles Five stocks we like better than Broadcom Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.

Rollins, Inc. Announces Availability of Recorded Fireside Chat from J.P. Morgan Annual U.S. All Stars ConferencePR NewswireATLANTA, Sept. 23, 2026ATLANTA, Sept.

Rollins, Inc. (NYSE:ROL – Get Free Report) shares reached a new 52-week low on Monday . The company traded as low as $32.42 and last traded at $32.1880, with a volume of 16335172 shares trading hands. The stock had previously closed at $32.43.

Wall Street Analyst Weigh In A number of equities analysts recently issued reports on ROL shares. Zacks Research lowered Rollins from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 28th. Raymond James Financial set a $35.00 price target on Rollins in a research report on Thursday, July 23rd. Canaccord Genuity Group set a $45.00 price target on Rollins and gave the stock a “hold” rating in a research note on Thursday, July 23rd. UBS Group reissued a “neutral” rating and set a $43.00 price target (down from $50.00) on shares of Rollins in a report on Friday, July 24th. Finally, Morgan Stanley cut their price objective on shares of Rollins from $70.00 to $65.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $48.71.

Get Our Latest Stock Analysis on ROL

Rollins Stock Up 1.7% The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34. The firm has a market cap of $15.83 billion, a price-to-earnings ratio of 29.90, a price-to-earnings-growth ratio of 3.48 and a beta of 0.74. The stock’s 50 day moving average is $37.23 and its 200 day moving average is $46.15. Rollins (NYSE:ROL – Get Free Report) last released its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). Rollins had a return on equity of 38.81% and a net margin of 13.55%.The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the company earned $0.30 earnings per share. The business’s revenue for the quarter was up 7.9% on a year-over-year basis. Analysts forecast that Rollins, Inc. will post 1.18 EPS for the current year.

Rollins Announces Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a dividend of $0.1825 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.73 annualized dividend and a yield of 2.2%. Rollins’s dividend payout ratio (DPR) is currently 66.36%.

Institutional Investors Weigh In On Rollins Several hedge funds and other institutional investors have recently bought and sold shares of ROL. BlackRock Inc. acquired a new position in shares of Rollins in the 2nd quarter worth approximately $1,204,334,000. Geode Capital Management LLC lifted its stake in Rollins by 6.6% during the fourth quarter. Geode Capital Management LLC now owns 10,163,847 shares of the business services provider’s stock valued at $608,256,000 after purchasing an additional 626,866 shares during the last quarter. State Street Corp boosted its holdings in Rollins by 3.7% during the second quarter. State Street Corp now owns 13,561,228 shares of the business services provider’s stock worth $566,046,000 after buying an additional 488,046 shares in the last quarter. Norges Bank bought a new stake in Rollins during the fourth quarter worth approximately $244,669,000. Finally, AMF Tjanstepension AB grew its position in Rollins by 2.4% in the first quarter. AMF Tjanstepension AB now owns 3,669,234 shares of the business services provider’s stock worth $195,974,000 after buying an additional 87,139 shares during the last quarter. 51.79% of the stock is currently owned by institutional investors.

Rollins Company Profile (Get Free Report)

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. The company helps protect homes, businesses, and other properties from insects, rodents, termites, wildlife, and other pests through inspection, prevention, treatment, and ongoing monitoring programs.

Rollins operates through a portfolio of recognized pest control brands, including Orkin, Terminix, HomeTeam Pest Defense, Western Exterminator, and Critter Control. Its services include general pest management, termite protection, mosquito and bed bug control, wildlife management, and specialized commercial pest control programs.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins serves customers across the United States and internationally.

See Also Five stocks we like better than Rollins Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure Oura’s $15.6 Billion IPO Is Betting Investors See More Than a Smart Ring AMD Chips Away at NVIDIA’s AI Throne Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again? Receive News & Ratings for Rollins Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rollins and related companies with MarketBeat.com's FREE daily email newsletter.

Corient Private Wealth LP cut its holdings in shares of Rollins, Inc. (NYSE: ROL) by 10.0% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 438,422 shares of the business services provider's stock after selling 48,712 shares during the quarter. Corient Private

DALLAS--(BUSINESS WIRE)--Patricia Rollins to lead global marketing efforts to expand the reach the newly launched Thryv Growth Platform™ among local service businesses.

NEW YORK, Aug. 25, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Rollins, Inc. (“Rollins” or the “Company”) (NYSE: ROL).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rollins and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On July 22, 2026, Rollins announced its financial results for the second quarter of fiscal year 2026.  Among other items, the Company reported that its quarterly operating margin was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025, and an operating cash flow of $173 million for the quarter, a decrease of 1.5% compared to the prior year.  In an accompanying earnings call, CEO Jerry Gahlhoff said that “second quarter results did not meet our expectations,” in part because “the lead environment got progressively worse as we moved through the quarter.”  Gahlhoff further stated that “we just had fewer people year-over-year, actively searching the digital channel for pest control needs.  That’s the conclusion that we came to that it just seemed fewer.” 

On this news, Rollins’s stock price fell $4.03 per share, or 9.27%, to close at $39.44 per share on July 23, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rollins, Inc. ("Rollins" or the "Company") (NYSE: ROL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rollins and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On July 22, 2026, Rollins announced its financial results for the second quarter of fiscal year 2026. Among other items, the Company reported that its quarterly operating margin was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025, and an operating cash flow of $173 million for the quarter, a decrease of 1.5% compared to the prior year. In an accompanying earnings call, CEO Jerry Gahlhoff said that "second quarter results did not meet our expectations," in part because "the lead environment got progressively worse as we moved through the quarter." Gahlhoff further stated that "we just had fewer people year-over-year, actively searching the digital channel for pest control needs. That's the conclusion that we came to that it just seemed fewer." 

On this news, Rollins's stock price fell $4.03 per share, or 9.27%, to close at $39.44 per share on July 23, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 7.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Rollins Q2 Earnings Miss EstimatesRollin Inc. reported unimpressive second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate.

ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.

The quarter was affected by slower growth in parts of the residential pest control business, although commercial and termite operations continued to post healthy gains.

ROL's Quarterly Performance Reflects Mixed Demand TrendsResidential revenues increased 6.6% year over year to $485.8 million. Commercial revenues climbed 8.6% to $347.9 million, while termite and ancillary revenues rose 10.5% to $234.2 million. Franchise and other revenues declined 7.4% to $10.7 million.

Management attributed the softer residential performance to weaker consumer-initiated demand across search, digital media and inbound calls, which reduced lead volumes during the quarter. However, relationship-based channels, including home builders and door-to-door sales, delivered solid organic growth.

Rollins Faces Margin Pressure Despite Revenue GrowthOperating income increased 1.5% year over year to $201.4 million. However, the operating margin contracted 110 basis points to 18.7% as costs remained aligned for a stronger demand environment entering the peak season.

Adjusted operating income rose 2% to $209.9 million, while the adjusted operating margin declined 110 basis points to 19.5%. Adjusted EBITDA increased 2.2% to $236.3 million, with the adjusted EBITDA margin contracting 120 basis points to 21.9%.

ROL Management Takes Steps to Improve ExecutionManagement noted that demand trends softened during the quarter while the company's cost structure remained positioned for stronger growth, weighing on profitability.

To address these challenges, Rollins has implemented organizational and operational changes aimed at improving local execution, strengthening accountability and better aligning resources with current demand conditions. Management also indicated that lead volumes improved toward the end of June and continued into the first few weeks of July.

Rollins Maintains Healthy Cash GenerationThe company generated operating cash flow of $172.5 million during the quarter, down 1.5% from the prior-year period. Free cash flow totaled $166.1 million, declining 1.2% year over year.

During the quarter, Rollins invested $117 million in acquisitions, spent $6.4 million on capital expenditures and paid dividends totaling $88.1 million, reflecting its continued focus on growth investments and shareholder returns.

ROL Balance Sheet Remains StrongRollins exited the quarter with cash and cash equivalents of $109.1 million compared with $100 million at year-end 2025. Long-term debt totaled $487.1 million, essentially unchanged from year-end 2025.

The company reiterated that its balance sheet remains strong and provides ample financial flexibility to pursue acquisitions, invest in long-term growth initiatives and maintain its balanced capital allocation strategy.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -9.4% due to these changes.

VGM ScoresCurrently, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Rollins has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

, /PRNewswire/ -- HomeTeam Pest Defense has reached another major milestone, surpassing more than 2 million installations of the Taexx built-in pest control system in homes across the country.

Taexx is installed during new home construction before the drywall is put up. The built-in system creates a network of protection for homeowners by targeting pests inside the wall voids where pests live, hide, and breed. Because treatment is protected from weather and other outdoor elements, it is more efficient and longer lasting. Keeping pest control materials inside the walls also means there is minimal exposure to families and pets in the home.  

Brady Camp, President of HomeTeam Pest Defense says, "Reaching 2 million Taexx systems installed is an incredible achievement for HomeTeam Pest Defense, especially during our 30th anniversary year. It reflects the trust our builder partners and homeowners have placed in us, as well as the dedication of our teammates who bring this innovative pest control solution to life every day. We are proud of how far we have come and excited to continue protecting homes and improving communities for years to come."

The built-in system provides new homeowners with a convenient pest control feature from the moment they move in. By integrating pest control technology directly into the home, HomeTeam technicians can service the home through secure external hubs, so nobody needs to be home for service. With more than 1,000 builder partners nationwide, working with HomeTeam gives builders an innovative way to add value and provide an enhanced homeowner experience. Learn more about protecting homes from the start at www.pestdefense.com.

About HomeTeam Pest Defense, Inc. 
HomeTeam Pest Defense, established in 1996, is an award-winning leader in the pest management industry and is currently ranked #1 in servicing home builders. HomeTeam has installed over 2 million homes with Taexx®, a built-in pest control networked system. The company offers termite protection services and innovative pest control. The company has over 58 locations throughout the United States and partners with homeowners and homebuilders to provide more than 2,000,000 services a year. HomeTeam is a wholly owned subsidiary of Atlanta-based Rollins, Inc. (NYSE: ROL). You can learn more about Rollins and HomeTeam at www.rollins.com and www.pestdefense.com.

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.

Contact: Marketing & Communications Team
[email protected]

SOURCE HomeTeam Pest Defense

Shares of Rollins, Inc. (NYSE:ROL – Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $35.92 and last traded at $35.97, with a volume of 3946446 shares changing hands. The stock had previously closed at $36.20.

Analysts Set New Price Targets Several research firms have recently issued reports on ROL. BNP Paribas Exane cut their price target on Rollins from $63.00 to $44.00 and set a “hold” rating for the company in a research note on Friday, July 24th. Raymond James Financial set a $35.00 target price on shares of Rollins in a report on Thursday, July 23rd. Barclays set a $45.00 target price on shares of Rollins and gave the stock an “overweight” rating in a research report on Friday, July 24th. Royal Bank Of Canada lowered Rollins from an “outperform” rating to a “sector perform” rating and decreased their price objective for the company from $52.00 to $40.00 in a research note on Thursday, July 23rd. Finally, Zacks Research downgraded shares of Rollins from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $48.71.

Get Our Latest Stock Analysis on Rollins

Rollins Trading Down 0.6% The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58. The business has a fifty day moving average of $42.13 and a 200-day moving average of $50.97. The stock has a market capitalization of $17.31 billion, a price-to-earnings ratio of 32.70, a price-to-earnings-growth ratio of 3.95 and a beta of 0.75. Rollins (NYSE:ROL – Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). The company had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm’s revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.30 earnings per share. On average, equities analysts anticipate that Rollins, Inc. will post 1.19 earnings per share for the current fiscal year.

Rollins Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $0.1825 dividend. The ex-dividend date is Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a dividend yield of 2.0%. Rollins’s dividend payout ratio is currently 66.36%.

Hedge Funds Weigh In On Rollins A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Rollins by 5.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,812 shares of the business services provider’s stock valued at $1,663,000 after acquiring an additional 1,620 shares in the last quarter. Empowered Funds LLC raised its position in shares of Rollins by 16.7% during the 1st quarter. Empowered Funds LLC now owns 6,427 shares of the business services provider’s stock valued at $347,000 after acquiring an additional 918 shares during the last quarter. Woodline Partners LP boosted its holdings in Rollins by 40.7% during the first quarter. Woodline Partners LP now owns 23,728 shares of the business services provider’s stock worth $1,282,000 after buying an additional 6,859 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in Rollins by 75.8% during the first quarter. Geneos Wealth Management Inc. now owns 870 shares of the business services provider’s stock valued at $47,000 after purchasing an additional 375 shares during the period. Finally, First Trust Advisors LP grew its holdings in shares of Rollins by 185.0% in the 2nd quarter. First Trust Advisors LP now owns 368,718 shares of the business services provider’s stock valued at $20,803,000 after buying an additional 239,361 shares during the period. 51.79% of the stock is currently owned by institutional investors and hedge funds.

Rollins Company Profile (Get Free Report)

Rollins, Inc (NYSE: ROL) is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.

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Rollins is reiterated as a Buy, with valuation and margin of safety improving amid recent share price declines. Despite near-term consumer weakness and margin pressures, ROL maintains robust M&A activity and expects >6% organic growth with margin improvement in H2. ROL's strong balance sheet and financial flexibility position it to capitalize on macro weakness and pursue accretive acquisitions.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rollins, Inc. ("Rollins" or the "Company") (NYSE: ROL).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rollins and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On July 22, 2026, Rollins announced its financial results for the second quarter of fiscal year 2026.  Among other items, the Company reported that its quarterly operating margin was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025, and an operating cash flow of $173 million for the quarter, a decrease of 1.5% compared to the prior year.  In an accompanying earnings call, CEO Jerry Gahlhoff said that "second quarter results did not meet our expectations," in part because "the lead environment got progressively worse as we moved through the quarter."  Gahlhoff further stated that "we just had fewer people year-over-year, actively searching the digital channel for pest control needs.  That's the conclusion that we came to that it just seemed fewer." 

On this news, Rollins's stock price fell $4.03 per share, or 9.27%, to close at $39.44 per share on July 23, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP