US Market News
2月前
ROLLINS, INC. REPORTS FIRST QUARTER 2026 FINANCIAL RESULTSApril 22, 2026 4:05 PM
PR Newswire (US)
Strong Acceleration of Demand During March Drives Improvement in Organic Growth Profile ATLANTA, April 22, 2026 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the first quarter of 2026.
Key HighlightsFirst quarter revenues were $906 million, an increase of 10.2% over the first quarter of 2025 with organic revenues* increasing 6.6%.Quarterly operating income was $145 million, an increase of 2.0% over the first quarter of 2025. Quarterly operating margin was 16.1%, a decrease of 120 basis points compared to the first quarter of 2025. Adjusted operating income* was $153 million, an increase of 4.0% over the prior year. Adjusted operating margin* was 16.9%, a decrease of 100 basis points compared to the prior year.Adjusted EBITDA* was $179 million, an increase of 4.4% over the prior year. Adjusted EBITDA margin* was 19.8%, a decrease of 110 basis points versus the first quarter of 2025.Quarterly net income was $108 million, an increase of 2.5% over the prior year. Adjusted net income* was $113 million, an increase of 5.0% over the prior year.Quarterly EPS was $0.22 per diluted share in the first quarter of 2026 and 2025. Adjusted EPS* was $0.24 per diluted share, an increase of 9.1% over the prior year.Operating cash flow was $118 million for the quarter, a decrease of 19.4% compared to the prior year. Free cash flow* was $111 million for the quarter, a decrease of 20.6% compared to the prior year. Cash flow was negatively impacted by $40 million due to the timing of tax payments associated with our tax credit planning strategy, as well as $9 million due to the transition to semi-annual interest payments on our 2035 senior notes. The Company invested $18 million in acquisitions, $7 million in capital expenditures, and paid dividends totaling $88 million.*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.Management Commentary"Our results for the first quarter reflect our resilient business model and the ongoing focus of our teammates on operational excellence," said Jerry Gahlhoff, Jr., President and CEO. "We continue to invest in our business by focusing on organic demand generation activities, while also strengthening our Rollins family of brands through strategic M&A like the Romex acquisition we made in April. Our peak season is off to a strong start, and we are well-positioned from a staffing and service perspective to deliver for our customers," Mr. Gahlhoff added. "We are encouraged by the sequential improvement in growth as we moved through the quarter, particularly as we exited the quarter with approximately 12 percent total growth and over 8 percent organic growth in March," said Kenneth Krause, Executive Vice President and CFO. "While margin performance was muted by pressures from insurance and claims, as well as deleverage from people costs and selling investments on lower volume early in the quarter, we anticipate improving profitability in our underlying operations as we enter peak season. We continue to execute a balanced capital allocation program enabled by compounding cash flow and a strong balance sheet," Mr. Krause concluded.Three Months Ended Financial Highlights
Three Months Ended March 31,
Variance(unaudited, in thousands, except per share data and margins)2026
2025
$%GAAP Metrics
Revenues$ 906,424
$ 822,504
$ 83,92010.2 %Gross profit (1)$ 460,902
$ 422,370
$ 38,5329.1 %Gross profit margin (1)50.8 %
51.4 %
-60 bpsOperating income$ 145,486
$ 142,648
$ 2,8382.0 %Operating margin16.1 %
17.3 %
-120 bpsNet income$ 107,838
$ 105,248
$ 2,5902.5 %EPS$ 0.22
$ 0.22
$ —— %Net cash provided by operating activities$ 118,367
$ 146,892
$ (28,525)(19.4) %
Non-GAAP Metrics
Adjusted operating income (2)$ 152,793
$ 146,861
$ 5,9324.0 %Adjusted operating margin (2)16.9 %
17.9 %
-100 bpsAdjusted net income (2)$ 113,229
$ 107,868
$ 5,3615.0 %Adjusted EPS (2)$ 0.24
$ 0.22
$ 0.029.1 %Adjusted EBITDA (2)$ 179,469
$ 171,857
$ 7,6124.4 %Adjusted EBITDA margin (2)19.8 %
20.9 %
-110 bpsFree cash flow (2)$ 111,228
$ 140,111
$ (28,883)(20.6) %(1) Exclusive of depreciation and amortization(2) Amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.The following table presents financial information, including our significant expense categories, for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,(unaudited, in thousands)20262025
$% of
Revenue$% of
RevenueRevenue$ 906,424100.0 %$ 822,504100.0 %
Less:
Cost of services provided (exclusive of depreciation and amortization below):
Employee expenses289,72232.0 %261,72431.8 %Materials and supplies53,2175.9 %48,4915.9 %Insurance and claims21,1472.3 %16,5242.0 %Fleet expenses42,1724.7 %36,8574.5 %Other cost of services provided (1)39,2644.3 %36,5384.4 %Total cost of services provided (exclusive of depreciation and amortization below)445,52249.2 %400,13448.6 %
Sales, general and administrative:
Selling and marketing expenses111,99912.4 %98,25011.9 %Administrative employee expenses89,7499.9 %81,4819.9 %Insurance and claims12,5831.4 %10,0041.2 %Fleet expenses10,2621.1 %9,4031.1 %Other sales, general and administrative (2)58,3256.4 %51,3756.2 %Total sales, general and administrative282,91831.2 %250,51330.5 %
Depreciation and amortization32,4983.6 %29,2093.6 %Interest expense, net8,8511.0 %5,7960.7 %Other (income) expense, net(463)(0.1) %(692)(0.1) %Income tax expense29,2603.2 %32,2963.9 %Net income$ 107,83811.9 %$ 105,24812.8 %1) Other cost of services provided includes facilities costs, professional services, maintenance & repairs, software license costs, and other expenses directly related to providing services.2) Other sales, general and administrative includes facilities costs, professional services, maintenance & repairs, software license costs, bad debt expense, and other administrative expenses.About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with approximately 22,000 employees from more than 850 locations. Rollins is parent to Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, McCall Service, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Safeguard, Saela Pest Control, Trutech, Waltham Services, Western Pest Services, and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com. Cautionary Statement Regarding Forward-Looking Statements
This press release as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance, including expectations regarding seasonal profitability improvement and margin trends; Rollins' ongoing commitment to operational excellence; our resilient business model; a strategic approach to acquisitions, including statements regarding the anticipated benefits of the recent acquisitions such as Romex; compounding cash flow and strong balance sheet continuing to enable a balanced capital allocation strategy; a focus on pricing; a culture of continuous improvement supporting an improving margin profile; the stability of growth in our recurring and ancillary businesses; investing meaningfully in our business, including investments in organic demand generation and selling activities; intra-quarter trends in revenue growth, including monthly organic and total revenue growth rates; our staffing levels and readiness for peak season; and remaining well-positioned for continued growth.These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and may also be described from time to time in our future reports filed with the SEC.Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.Conference Call
Rollins will host a conference call on Thursday, April 23, 2026 at 8:30 a.m. Eastern Time to discuss the first quarter 2026 results. The conference call will also broadcast live over the internet via a link provided on the Rollins, Inc. website at www.rollins.com. Interested parties can also dial into the call at 1-877-869-3839 (domestic) or +1-201-689-8265 (internationally) with conference ID of 13759502. For interested individuals unable to join the call, a replay will be available on the website for 180 days.ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(in thousands)(unaudited)
March 31,
2026
December 31,
2025ASSETS
Cash and cash equivalents$ 116,543
$ 100,004Trade receivables, net210,721
202,518Financed receivables, short-term, net44,243
44,723Materials and supplies44,128
42,982Other current assets98,043
82,455Total current assets513,678
472,682Equipment and property, net124,910
126,187Goodwill1,384,591
1,374,664Intangibles, net565,723
582,384Operating lease right-of-use assets412,690
424,528Financed receivables, long-term, net110,879
110,057Other assets47,763
50,021Total assets$ 3,160,234
$ 3,140,523LIABILITIES
Short-term debt$ 163,926
$ 123,683Accounts payable61,188
44,361Accrued insurance – current45,204
44,123Accrued compensation and related liabilities102,461
128,259Unearned revenues194,273
187,670Operating lease liabilities – current136,714
137,410Other current liabilities90,897
120,019Total current liabilities794,663
785,525Accrued insurance, less current portion88,274
79,157Operating lease liabilities, less current portion279,873
290,765Long-term debt486,627
486,147Other long-term accrued liabilities129,109
124,608Total liabilities1,778,546
1,766,202STOCKHOLDERS' EQUITY
Common stock481,462
481,194Retained earnings and other equity900,226
893,127Total stockholders' equity1,381,688
1,374,321Total liabilities and stockholders' equity$ 3,160,234
$ 3,140,523ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share data)(unaudited)
Three Months Ended March 31,
2026
2025REVENUES
Customer services$ 906,424
$ 822,504COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)445,522
400,134Sales, general and administrative282,918
250,513Depreciation and amortization32,498
29,209Total operating expenses760,938
679,856OPERATING INCOME145,486
142,648Interest expense, net8,851
5,796Other (income) expense, net(463)
(692)CONSOLIDATED INCOME BEFORE INCOME TAXES137,098
137,544PROVISION FOR INCOME TAXES29,260
32,296NET INCOME$ 107,838
$ 105,248NET INCOME PER SHARE - BASIC AND DILUTED$ 0.22
$ 0.22Weighted average shares outstanding - basic481,385
484,414Weighted average shares outstanding - diluted481,398
484,434DIVIDENDS PAID PER SHARE$ 0.1825
$ 0.1650ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED CASH FLOW INFORMATION(in thousands)(unaudited)
Three Months Ended March 31,
2026
2025OPERATING ACTIVITIES
Net income$ 107,838
$ 105,248Depreciation and amortization32,498
29,209Change in working capital and other operating activities(21,969)
12,435Net cash provided by operating activities118,367
146,892INVESTING ACTIVITIES
Acquisitions, net of cash acquired(18,488)
(27,191)Capital expenditures(7,139)
(6,781)Other investing activities, net1,060
1,405Net cash used in investing activities(24,567)
(32,567)FINANCING ACTIVITIES
Net borrowings (repayments)49,496
95,215Payment of dividends(87,849)
(79,910)Cash paid for common stock purchased(22,350)
(14,671)Other financing activities, net(15,489)
(5,246)Net cash used in financing activities(76,192)
(4,612)Effect of exchange rate changes on cash and cash equivalents(1,069)
1,834Net increase (decrease) in cash and cash equivalents$ 16,539
$ 111,547APPENDIXReconciliation of GAAP and non-GAAP Financial MeasuresA 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:Organic revenuesOrganic 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 marginAdjusted 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 and Saela 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 EPSAdjusted 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 and Saela Pest Control, excluding gains and losses on the sale of non-operational assets and gains 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 marginEBITDA 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 and Saela Pest Control, and excluding gains and losses on the sale of non-operational assets and gains 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 conversionFree 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 and Saela Pest Control. Management uses adjusted SG&A to compare SG&A expenses consistently over various periods.Leverage ratioLeverage 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 March 31,
Variance
2026
2025
$
%Reconciliation of Revenues to Organic Revenues
Revenues$ 906,424
$ 822,504
83,920
10.2Revenues from acquisitions(29,858)
—
(29,858)
3.6Organic revenues$ 876,566
$ 822,504
54,062
6.6
Reconciliation of Residential Revenues to Organic Residential Revenues
Residential revenues$ 389,504
$ 356,313
33,191
9.3Residential revenues from acquisitions(18,145)
—
(18,145)
5.1Residential organic revenues$ 371,359
$ 356,313
15,046
4.2
Reconciliation of Commercial Revenues to Organic Commercial Revenues
Commercial revenues$ 311,726
$ 284,357
27,369
9.6Commercial revenues from acquisitions(5,371)
—
(5,371)
1.9Commercial organic revenues$ 306,355
$ 284,357
21,998
7.7
Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues
Termite and ancillary revenues$ 195,423
$ 172,130
23,293
13.5Termite and ancillary revenues from acquisitions(6,342)
—
(6,342)
3.7Termite and ancillary organic revenues$ 189,081
$ 172,130
16,951
9.8
Reconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues
Franchise and other revenues$ 9,771
$ 9,704
67
0.7Franchise and other revenues from acquisitions—
—
—
—Franchise and other organic revenues$ 9,771
$ 9,704
67
0.7
Three Months Ended March 31,
Variance
2026
2025
$
%Reconciliation of Operating Income and Operating Income Margin to Adjusted Operating Income and Adjusted Operating Margin
Operating income$ 145,486
$ 142,648
Acquisition-related expenses (1)7,307
4,213
Adjusted operating income$ 152,793
$ 146,861
5,932
4.0Revenues$ 906,424
$ 822,504
Operating margin16.1 %
17.3 %
Adjusted operating margin16.9 %
17.9 %
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
Net income$ 107,838
$ 105,248
Acquisition-related expenses (1)7,307
4,213
Gain on sale of assets, net (2)(61)
(692)
Tax impact of adjustments (3)(1,855)
(901)
Adjusted net income$ 113,229
$ 107,868
5,361
5.0EPS - basic and diluted$ 0.22
$ 0.22
Acquisition-related expenses (1)0.02
0.01
Gain on sale of assets, net (2)—
—
Tax impact of adjustments (3)—
—
Adjusted EPS - basic and diluted (4)$ 0.24
$ 0.22
0.02
9.1Weighted average shares outstanding – basic481,385
484,414
Weighted average shares outstanding – diluted481,398
484,434
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin
Net income$ 107,838
$ 105,248
Depreciation and amortization32,498
29,209
Interest expense, net8,851
5,796
Provision for income taxes29,260
32,296
EBITDA$ 178,447
$ 172,549
5,898
3.4Acquisition-related expenses (1)1,083
—
Gain on sale of assets, net (2)(61)
(692)
Adjusted EBITDA$ 179,469
$ 171,857
7,612
4.4Revenues$ 906,424
$ 822,504
83,920
EBITDA margin19.7 %
21.0 %
Incremental EBITDA margin
7.0 %
Adjusted EBITDA margin19.8 %
20.9 %
Adjusted incremental EBITDA margin
9.1 %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Conversion
Net cash provided by operating activities$ 118,367
$ 146,892
Capital expenditures(7,139)
(6,781)
Free cash flow$ 111,228
$ 140,111
(28,883)
(20.6)Free cash flow conversion103.1 %
133.1 %
Three Months Ended March 31,
2026
2025Reconciliation of SG&A to Adjusted SG&ASG&A$ 282,918
$ 250,513Acquisition-related expenses (1)1,083
—Adjusted SG&A$ 281,835
$ 250,513
Revenues$ 906,424
$ 822,504Adjusted SG&A as a % of revenues31.1 %
30.5 %
Period Ended
March 31, 2026
Period Ended
December 31, 2025Reconciliation of Debt and Net Income to Leverage Ratio
Short-term debt (5)$ 163,926
$ 123,683Long-term debt (6)500,000
500,000Operating lease liabilities (7)416,587
428,175Cash adjustment (8)(104,889)
(90,004)Adjusted net debt$ 975,624
$ 961,854
Net income$ 529,295
$ 526,705Depreciation and amortization128,033
124,744Interest expense, net31,613
28,558Provision for income taxes171,185
174,221Operating lease cost (9)163,890
159,924Stock-based compensation expense41,730
39,707Adjusted EBITDAR$ 1,065,746
$ 1,053,859
Leverage ratio0.9x
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 and Saela 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 March 31, 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 March 31, 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
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Original: ROLLINS, INC. REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
US Market News
4月前
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTSFebruary 11, 2026 4:05 PM
PR Newswire (US)
24th consecutive year of revenue growth; FY 2025 Delivered Double-Digit Revenue, Earnings, and Cash Flow GrowthATLANTA, Feb. 11, 2026 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported financial results for the fourth quarter and full year of 2025.
2025 Fourth Quarter Highlights
(All comparisons against the fourth quarter of 2024 unless otherwise noted)Revenues were $913 million, an increase of 9.7% over the prior year with organic revenues* increasing 5.7% and acquisition-related revenues* increasing 4.0%.Operating income was $160 million, an increase of 6.3% over the prior year. Operating margin was 17.5%, a decrease of 60 basis points versus the prior year. Adjusted operating income* was $167 million, an increase of 8.1% over the prior year. Adjusted operating margin* was 18.3%, a decrease of 30 basis points compared to the prior year.Adjusted EBITDA* was $194 million, an increase of 7.0% over the prior year. Adjusted EBITDA margin* was 21.2%, a decrease of 60 basis points compared to the prior year.Net income was $116 million, an increase of 10.2% over the prior year. Adjusted net income* was $121 million, an increase of 11.1% over the prior year.GAAP EPS was $0.24 per diluted share, an increase of 9.1% compared to the prior year. Adjusted EPS* was $0.25 per diluted share, an increase of 8.7% over the prior year.Operating cash flow was $165 million, a decrease of 12.4% over the prior year. The Company invested $21 million in acquisitions, $6 million in capital expenditures, and paid dividends totaling $88 million.2025 Full Year Highlights
(All comparisons against the full year 2024 unless otherwise noted)Revenues were $3.8 billion, an increase of 11.0% over the prior year with organic revenues* increasing 6.9% and acquisition-related revenues* increasing 4.1%.Operating income was $726 million, an increase of 10.5% over the prior year. Operating margin was 19.3%, a decrease of 10 basis points versus the prior year. Adjusted operating income* was $752 million, an increase of 11.4% over the prior year. Adjusted operating margin* was 20.0%, an increase of 10 basis points over the prior year.Adjusted EBITDA* was $855 million, an increase of 10.8% over the prior year. Adjusted EBITDA margin* was 22.7%, a decrease of 10 basis points versus the prior year.Net income was $527 million, an increase of 12.9% over the prior year. Adjusted net income* was $544 million, an increase of 13.6% over the prior year.GAAP EPS was $1.09 per diluted share, an increase of 13.5% over the prior year. Adjusted EPS* was $1.12 per diluted share, an increase of 13.1% over the prior year.Operating cash flow was $678 million, an increase of 11.6% over the prior year. The Company invested $310 million in acquisitions, $28 million in capital expenditures, and paid dividends totaling $328 million.*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.2026 Financial OutlookFor 2026, the Company anticipates:The underlying health of core pest control markets, as well as Rollins' ongoing commitment to operational execution, should support another year of organic growth, further complemented by a strategic and disciplined approach to acquisitions.A focus on pricing, ongoing modernization efforts, and a culture of continuous improvement should support an improving margin profile.Compounding cash flow and strong balance sheet should continue to enable a balanced capital allocation strategy.Management Commentary"We delivered solid financial results in 2025 and made important progress on a number of key initiatives. Our underlying markets remain healthy, customer and teammate retention rates are strong, and we are confident that nothing has fundamentally changed with respect to our consumer. We continue to invest meaningfully in our business and are well-positioned as we begin 2026. I'd like to thank our teammates for their hard work and dedication to our customers, as well as each other," said Jerry Gahlhoff, President and CEO."We are pleased with the double-digit revenue, earnings, and cash flow growth we delivered for the year, despite the negative impact that erratic weather patterns had on our business in the fourth quarter, specifically on one-time business and seasonal work across all three service offerings in certain pockets of the country. Our recurring base of business and ancillary service line, which represents over 80 percent of total revenue, grew over 7 percent organically for both the quarter and the year. This growth was partially offset by declines in one-time business during the fourth quarter versus last year, which we view as transitory. We believe that the stability of growth in our recurring and ancillary businesses, coupled with ongoing modernization efforts, position us to deliver on our financial outlook for 2026 and beyond. We continue to execute a balanced capital allocation program enabled by compounding cash flow and a strong balance sheet," said Kenneth Krause, Executive Vice President and CFO.Three and Twelve Months Ended Financial Highlights
Three Months Ended December 31,
Twelve Months Ended December 31,
Variance
Variance(unaudited, in thousands, except per share data and margins)2025
2024
$%
2025
2024
$%GAAP Metrics
Revenues$ 912,913
$ 832,169
$ 80,7449.7 %
$ 3,761,050
$ 3,388,708
$ 372,34211.0 %Gross profit (1)$ 465,352
$ 426,707
$ 38,6459.1 %
$ 1,984,044
$ 1,785,511
$ 198,53311.1 %Gross profit margin (1)51.0 %
51.3 %
-30 bps
52.8 %
52.7 %
10 bpsOperating income$ 160,066
$ 150,627
$ 9,4396.3 %
$ 726,068
$ 657,224
$ 68,84410.5 %Operating margin17.5 %
18.1 %
-60 bps
19.3 %
19.4 %
-10 bpsNet income$ 116,441
$ 105,675
$ 10,76610.2 %
$ 526,705
$ 466,379
$ 60,32612.9 %EPS$ 0.24
$ 0.22
$ 0.029.1 %
$ 1.09
$ 0.96
$ 0.1313.5 %Net cash provided by operating activities$ 164,744
$ 188,158
$ (23,414)(12.4) %
$ 678,107
$ 607,653
$ 70,45411.6 %
Non-GAAP Metrics
Adjusted operating income (2)$ 167,374
$ 154,839
$ 12,5358.1 %
$ 752,200
$ 675,126
$ 77,07411.4 %Adjusted operating margin (2)18.3 %
18.6 %
-30 bps
20.0 %
19.9 %
10 bpsAdjusted net income (2)$ 121,136
$ 108,995
$ 12,14111.1 %
$ 544,412
$ 479,190
$ 65,22213.6 %Adjusted EPS (2)$ 0.25
$ 0.23
$ 0.028.7 %
$ 1.12
$ 0.99
$ 0.1313.1 %Adjusted EBITDA (2)$ 193,801
$ 181,162
$ 12,6397.0 %
$ 855,144
$ 771,493
$ 83,65110.8 %Adjusted EBITDA margin (2)21.2 %
21.8 %
-60 bps
22.7 %
22.8 %
-10 bpsFree cash flow (2)$ 159,018
$ 183,975
$ (24,957)(13.6) %
$ 650,021
$ 580,081
$ 69,94012.1 %
(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 twelve months ended December 31, 2025 and 2024:
Three Months Ended December 31,Twelve Months Ended December 31,(unaudited, in thousands)2025202420252024
$% of Revenue$% of Revenue$% of Revenue$% of RevenueRevenue$ 912,913100.0 %$ 832,169100.0 %$ 3,761,050100.0 %$ 3,388,708100.0 %
Less:
Cost of services provided (exclusive of depreciation and amortization below):
Employee expenses293,71832.2 %264,06331.7 %1,166,04431.0 %1,048,99231.0 %Materials and supplies54,5386.0 %53,7946.5 %225,4626.0 %212,2966.3 %Insurance and claims18,5112.0 %18,9982.3 %66,8971.8 %68,3262.0 %Fleet expenses39,7734.4 %32,8984.0 %157,4614.2 %131,8983.9 %Other cost of services provided (1)41,0214.5 %35,7094.3 %161,1424.3 %141,6854.2 %Total cost of services provided (exclusive of depreciation and amortization below)447,56149.0 %405,46248.7 %1,777,00647.2 %1,603,19747.3 %
Sales, general and administrative:
Selling and marketing expenses107,54911.8 %95,15711.4 %484,85912.9 %427,91612.6 %Administrative employee expenses86,2609.4 %79,0999.5 %345,6439.2 %313,8149.3 %Insurance and claims10,9441.2 %11,7751.4 %40,8161.1 %41,4341.2 %Fleet expenses10,2591.1 %8,3221.0 %39,6081.1 %33,5801.0 %Other sales, general and administrative (2)58,7076.4 %51,1926.2 %222,3065.9 %198,3235.9 %Total sales, general and administrative273,71930.0 %245,54529.5 %1,133,23230.1 %1,015,06730.0 %
Depreciation and amortization31,5673.5 %30,5353.7 %124,7443.3 %113,2203.3 %Interest expense, net7,4400.8 %5,0270.6 %28,5580.8 %27,6770.8 %Other expense (income), net(2,082)(0.2) %250— %(3,416)(0.1) %(683)— %Income tax expense38,2674.2 %39,6754.8 %174,2214.6 %163,8514.8 %Net income$ 116,44112.8 %$ 105,67512.7 %$ 526,70514.0 %$ 466,37913.8 %
1) Other cost of services provided includes facilities costs, professional services, maintenance & repairs, software license costs, and other expenses directly related to providing services.2) Other sales, general and administrative includes facilities costs, professional services, maintenance & repairs, software license costs, bad debt expense, and other administrative expenses.About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with approximately 22,000 employees from more than 850 locations. Rollins is parent to Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, McCall Service, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Safeguard, Saela Pest Control, Trutech, Waltham Services, Western Pest Services, and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com.Cautionary Statement Regarding Forward-Looking StatementsThis press release as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance; the underlying health of core pest control markets; Rollins' ongoing commitment to operational execution; a strategic and disciplined approach to acquisitions; a focus on pricing; ongoing modernization efforts; a culture of continuous improvement supporting an improving margin profile; compounding cash flow and strong balance sheet continuing to enable a balanced capital allocation strategy; strong customer and teammate retention rates; investing meaningfully in our business; the stability of growth in our recurring and ancillary businesses; and remaining well-positioned for continued growth.These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may also be described from time to time in our future reports filed with the SEC.Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.Conference Call
Rollins will host a conference call on Thursday, February 12, 2026, at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2025 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 13758137. For interested individuals unable to join the call, a replay will be available on the website for 180 days. ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(in thousands)(unaudited)
December 31,
2025
December 31,
2024ASSETS
Cash and cash equivalents$ 100,004
$ 89,630Trade receivables, net202,518
196,081Financed receivables, short-term, net44,723
40,301Materials and supplies42,982
39,531Other current assets82,455
77,080Total current assets472,682
442,623Equipment and property, net126,187
124,839Goodwill1,374,664
1,161,085Intangibles, net582,384
541,589Operating lease right-of-use assets424,528
414,474Financed receivables, long-term, net110,057
89,932Other assets50,021
45,153Total assets$ 3,140,523
$ 2,819,695LIABILITIES
Short-term debt$ 123,683
$ —Accounts payable44,361
49,625Accrued insurance – current44,123
54,840Accrued compensation and related liabilities128,259
122,869Unearned revenues187,670
180,851Operating lease liabilities – current137,410
121,319Other current liabilities120,019
115,658Total current liabilities785,525
645,162Accrued insurance, less current portion79,157
61,946Operating lease liabilities, less current portion290,765
295,899Long-term debt486,147
395,310Other long-term accrued liabilities124,608
90,785Total liabilities1,766,202
1,489,102STOCKHOLDERS' EQUITY
Common stock481,194
484,372Retained earnings and other equity893,127
846,221Total stockholders' equity1,374,321
1,330,593Total liabilities and stockholders' equity$ 3,140,523
$ 2,819,695 ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share data)(unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024REVENUES
Customer services$ 912,913
$ 832,169
$ 3,761,050
$ 3,388,708COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)447,561
405,462
1,777,006
1,603,197Sales, general and administrative273,719
245,545
1,133,232
1,015,067Depreciation and amortization31,567
30,535
124,744
113,220Total operating expenses752,847
681,542
3,034,982
2,731,484OPERATING INCOME160,066
150,627
726,068
657,224Interest expense, net7,440
5,027
28,558
27,677Other (income) expense, net(2,082)
250
(3,416)
(683)CONSOLIDATED INCOME BEFORE INCOME TAXES154,708
145,350
700,926
630,230PROVISION FOR INCOME TAXES38,267
39,675
174,221
163,851NET INCOME$ 116,441
$ 105,675
$ 526,705
$ 466,379NET INCOME PER SHARE - BASIC AND DILUTED$ 0.24
$ 0.22
$ 1.09
$ 0.96Weighted average shares outstanding - basic482,738
484,304
484,105
484,249Weighted average shares outstanding - diluted482,781
484,351
484,147
484,295DIVIDENDS PAID PER SHARE$ 0.1825
$ 0.1650
$ 0.6775
$ 0.6150 ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED CASH FLOW INFORMATION(in thousands)(unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024OPERATING ACTIVITIES
Net income$ 116,441
$ 105,675
$ 526,705
$ 466,379Depreciation and amortization31,567
30,535
124,744
113,220Change in working capital and other operating activities16,736
51,948
26,658
28,054Net cash provided by operating activities164,744
188,158
678,107
607,653INVESTING ACTIVITIES
Acquisitions, net of cash acquired(21,210)
(51,942)
(309,518)
(157,471)Capital expenditures(5,726)
(4,183)
(28,086)
(27,572)Other investing activities, net3,052
3,453
10,905
8,811Net cash used in investing activities(23,884)
(52,672)
(326,699)
(176,232)FINANCING ACTIVITIES
Net debt borrowings (repayments)114,430
(50,000)
209,645
(96,000)Payment of dividends(88,451)
(80,025)
(327,901)
(297,989)Cash paid for common stock purchased(198,282)
(72)
(216,855)
(11,606)Other financing activities, net3,869
(5,105)
(8,468)
(35,113)Net cash used in financing activities(168,434)
(135,202)
(343,579)
(440,708)Effect of exchange rate changes on cash and cash equivalents221
(5,936)
2,545
(4,908)Net (decrease) increase in cash and cash equivalents$ (27,353)
$ (5,652)
$ 10,374
$ (14,195) APPENDIXReconciliation of GAAP and non-GAAP Financial MeasuresA 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:Organic revenuesOrganic 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 marginAdjusted 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 and Saela 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 EPSAdjusted 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 and Saela Pest Control, excluding gains and losses on the sale of non-operational assets and gains 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 marginEBITDA 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 and Saela Pest Control, and excluding gains and losses on the sale of non-operational assets and gains 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, free cash flow conversion, adjusted free cash flow, and adjusted free cash flow conversionFree 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. Adjusted free cash flow is calculated by adding back to cash provided by operating activities the impact of certain delayed income tax payments. Adjusted free cash flow conversion is calculated as adjusted free cash flow divided by net income.Management uses free cash flow conversion and adjusted free cash flow conversion to demonstrate how much net income is converted into cash. Management believes that free cash flow and adjusted free cash flow are important financial measures for use in evaluating the Company's liquidity. Free cash flow and adjusted 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 and adjusted 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 and adjusted free cash flow as measures that provide supplemental information to our 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 and Saela Pest Control. Management uses adjusted SG&A to compare SG&A expenses consistently over various periods.Leverage ratioLeverage 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 with their most directly comparable GAAP measures.(unaudited, in thousands, except per share data and margins)
Three Months Ended December 31,
Twelve Months Ended December 31,
Variance
Variance
2025
2024
$
%
2025
2024
$
%Reconciliation of Revenues to Organic RevenuesRevenues$ 912,913
$ 832,169
80,744
9.7
$ 3,761,050
$ 3,388,708
372,342
11.0Revenues from acquisitions(33,449)
—
(33,449)
4.0
(138,587)
—
(138,587)
4.1Organic revenues$ 879,464
$ 832,169
47,295
5.7
$ 3,622,463
$ 3,388,708
233,755
6.9
Reconciliation of Residential Revenues to Organic Residential RevenuesResidential revenues$ 404,995
$ 369,062
35,933
9.7
$ 1,693,244
$ 1,535,104
158,140
10.3Residential revenues from acquisitions(19,584)
—
(19,584)
5.3
(80,778)
—
(80,778)
5.3Residential organic revenues$ 385,411
$ 369,062
16,349
4.4
$ 1,612,466
$ 1,535,104
77,362
5.0
Reconciliation of Commercial Revenues to Organic Commercial RevenuesCommercial revenues$ 304,930
$ 280,446
24,484
8.7
$ 1,244,733
$ 1,125,964
118,769
10.5Commercial revenues from acquisitions(6,442)
—
(6,442)
2.3
(32,686)
—
(32,686)
2.9Commercial organic revenues$ 298,488
$ 280,446
18,042
6.4
$ 1,212,047
$ 1,125,964
86,083
7.6
Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary RevenuesTermite and ancillary revenues$ 192,887
$ 172,428
20,459
11.9
$ 781,542
$ 688,186
93,356
13.6Termite and ancillary revenues from acquisitions(7,423)
—
(7,423)
4.3
(25,123)
—
(25,123)
3.7Termite and ancillary organic revenues$ 185,464
$ 172,428
13,036
7.6
$ 756,419
$ 688,186
68,233
9.9
Reconciliation of Franchise and Other Revenues to Organic Franchise and Other RevenuesFranchise and other revenues$ 10,101
$ 10,233
(132)
(1.3)
$ 41,531
$ 39,454
2,077
5.3Franchise and other revenues from acquisitions—
—
—
—
—
—
—
—Franchise and other organic revenues$ 10,101
$ 10,233
(132)
(1.3)
$ 41,531
$ 39,454
2,077
5.3
Three Months Ended December 31,
Twelve Months Ended December 31,
Variance
Variance
2025
2024
$
%
2025
2024
$
%Reconciliation of Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating MarginOperating income$ 160,066
$ 150,627
$ 726,068
$ 657,224
Acquisition-related expenses (1)7,308
4,212
26,132
17,902
Adjusted operating income$ 167,374
$ 154,839
12,535
8.1
$ 752,200
$ 675,126
77,074
11.4Revenues$ 912,913
$ 832,169
$ 3,761,050
$ 3,388,708
Operating margin17.5 %
18.1 %
19.3 %
19.4 %
Adjusted operating margin18.3 %
18.6 %
20.0 %
19.9 %
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS Net income$ 116,441
$ 105,675
$ 526,705
$ 466,379
Acquisition-related expenses (1)7,308
4,212
26,132
17,902
(Gain) loss on sale of assets, net (2)(998)
250
(2,332)
(683)
Tax impact of adjustments (3)(1,615)
(1,142)
(6,093)
(4,408)
Adjusted net income$ 121,136
$ 108,995
12,141
11.1
$ 544,412
$ 479,190
65,222
13.6EPS - basic and diluted$ 0.24
$ 0.22
$ 1.09
$ 0.96
Acquisition-related expenses (1)0.02
0.01
0.05
0.04
(Gain) loss on sale of assets, net (2)—
—
—
—
Tax impact of adjustments (3)—
—
(0.01)
(0.01)
Adjusted EPS - basic and diluted (4)$ 0.25
$ 0.23
0.02
8.7
$ 1.12
$ 0.99
0.13
13.1Weighted average shares outstanding - basic482,738
484,304
484,105
484,249
Weighted average shares outstanding - diluted482,781
484,351
484,147
484,295
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA MarginNet income$ 116,441
$ 105,675
$ 526,705
$ 466,379
Depreciation and amortization31,567
30,535
124,744
113,220
Interest expense, net7,440
5,027
28,558
27,677
Provision for income taxes38,267
39,675
174,221
163,851
EBITDA$ 193,715
$ 180,912
12,803
7.1
$ 854,228
$ 771,127
83,101
10.8Acquisition-related expenses (1)1,084
—
3,248
1,049
(Gain) loss on sale of assets, net (2)(998)
250
(2,332)
(683)
Adjusted EBITDA$ 193,801
$ 181,162
12,639
7.0
$ 855,144
$ 771,493
83,651
10.8Revenues$ 912,913
$ 832,169
80,744
$ 3,761,050
$ 3,388,708
372,342
EBITDA margin21.2 %
21.7 %
22.7 %
22.8 %
Incremental EBITDA margin
15.9 %
22.3 %
Adjusted EBITDA margin21.2 %
21.8 %
22.7 %
22.8 %
Adjusted incremental EBITDA margin
15.7 %
22.5 %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow, Free Cash Flow Conversion, Adjusted Free Cash Flow, and Adjusted Free Cash Flow ConversionNet cash provided by operating activities$ 164,744
$ 188,158
$ 678,107
$ 607,653
Capital expenditures(5,726)
(4,183)
(28,086)
(27,572)
Free cash flow$ 159,018
$ 183,975
(24,957)
(13.6)
$ 650,021
$ 580,081
69,940
12.1Delayed income tax payments(5)—
(21,710)
21,710
(21,710)
Adjusted free cash flow$ 159,018
$ 162,265
(3,247)
(2.0)
$ 671,731
$ 558,371
113,360
20.3Free cash flow conversion136.6 %
174.1 %
123.4 %
124.4 %
Adjusted free cash flow conversion136.6 %
153.6 %
127.5 %
119.7 %
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024Reconciliation of SG&A to Adjusted SG&A
SG&A$ 273,719
$ 245,545
$ 1,133,232
$ 1,015,067Acquisition-related expenses (1)1,084
—
3,248
1,049Adjusted SG&A$ 272,635
$ 245,545
$ 1,129,984
$ 1,014,018
Revenues$ 912,913
$ 832,169
$ 3,761,050
$ 3,388,708Adjusted SG&A as a % of revenues29.9 %
29.5 %
30.0 %
29.9 %
Twelve Months Ended December 31,
2025
2024Reconciliation of Long-term Debt and Net Income to Leverage Ratio
Short-term debt (6)
$ 123,683
$ —Long-term debt (7)
500,000
397,000Operating lease liabilities (8)
428,175
417,218Cash adjustment (9)
(90,004)
(80,667)Adjusted net debt
$ 961,854
$ 733,551
Net income
$ 526,705
$ 466,379Depreciation and amortization
124,744
113,220Interest expense, net
28,558
27,677Provision for income taxes
174,221
163,851Operating lease cost (10)
159,924
133,420Stock-based compensation expense
39,707
29,984Adjusted EBITDAR
$ 1,053,859
$ 934,531
Leverage ratio
0.9x
0.8x
(1) Consists of 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 and Saela Pest Control. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired company 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 non-GAAP EPS calculations due to rounding.(5) The U.S. Internal Revenue Service provided disaster relief to all State of Georgia taxpayers due to the impact of Hurricane Helene. Therefore, we did not make an estimated payment for U.S. federal income tax purposes in the fourth quarter of 2024. That tax payment was made during the second quarter of 2025.(6) As of December 31, 2025, the Company had outstanding borrowings of $114.4 million under our commercial paper program and $9.3 million in bank overdrafts. The Company's short-term borrowings are presented under the short-term debt caption of our consolidated statements of financial position, net of unamortized discounts.(7) As of December 31, 2025, the Company had outstanding borrowings of $500.0 million from the issuance of our 2035 Senior Notes and no outstanding borrowings under the Revolving Credit Facility. These borrowings are presented under the long-term debt caption of our consolidated statements of financial position, net of a $7.1 million unamortized discount and $6.7 million in unamortized debt issuance costs as of December 31, 2025. As of December 31, 2024, the Company had outstanding borrowings of $397.0 million, under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility are presented under the long-term debt caption of our consolidated statements of financial position, net of $1.7 million in unamortized debt issuance costs as of December 31, 2024.(8) Operating lease liabilities are presented under the operating lease liabilities - current and operating lease liabilities, less current portion captions of our consolidated statements of financial position.(9) Represents 90% of cash and cash equivalents per our consolidated statements of financial position as of both periods presented.(10) 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/rollins-inc-reports-fourth-quarter-and-full-year-2025-financial-results-302685636.htmlSOURCE Rollins, Inc.
Original: ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS
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