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and benefits, but also providing tools, training and development opportunities that drive a high level of teammate engagement.
The 10-K against last year's
133 changes: 46 added, 12 removed, 74 reworded, 1 quiet changes
10-K 0000084839-26-000008 (2026-02-12) vs 10-K 0000084839-25-000024 (2025-02-13)
The redline
The paragraph that changed most in each section
Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 140 words changed in this paragraph; it is 49% similar to last year's version.
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 Adjusted 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 calculated by adding back to cash provided by operating activities as a measure the impact of our liquidity. Additionally, the Company’s definition of certain delayed income tax payments. Adjusted free cash flow conversion 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 calculated as adjusted free cash flow as a measure that provides supplemental information to our consolidated statements of cash flows. divided by net income.
Source: Item 7, 10-K 0000084839-26-000008 vs Item 7, 10-K 0000084839-25-000024
Risk Factors 132 words changed in this paragraph; it is 58% similar to last year's version.
Source: Item 1A, 10-K 0000084839-26-000008 vs Item 1A, 10-K 0000084839-25-000024
Accounting Policies 91 words changed in this paragraph; it is 76% similar to last year's version.
In December 2023, 2025, the FASB issued ASU 2023-09, Company adopted the Accounting Standard Update ("ASU") 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). The guidance is effective company has applied this update retrospectively across all periods presented to allow for annual periods beginning after December greater comparability. Refer to Note 15, 2024, with early adoption permitted Income Taxes for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new ASU on its disclosures. further details.
Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000084839-26-000008 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000084839-25-000024
Legal Proceedings 64 words changed in this paragraph; it is 62% similar to last year's version.
Item 103 of SEC Regulation S-K requires disclosure of certain environmental legal proceedings if the proceeding reasonably involves potential monetary sanctions of $300,000 or more. The In January 2023, the Company has received a notice of alleged violations and information requests from local governmental authorities in California for our Orkin and Clark Pest Control operations and is currently working with several local governments regarding operations, relating to compliance with environmental and other regulations governing the management of certain waste streams and pesticide disposal. The investigation was part of a broader effort to investigate waste handling and disposal processes of a number of industries. The Company and district attorneys reached a settlement and a payment was made during 2025.
Source: Item 3, 10-K 0000084839-26-000008 vs Item 3, 10-K 0000084839-25-000024
Every change, by type
Sentences and paragraphs added, removed or reworded
Sentences and paragraphs of ROL's Risk Factors and MD&A, 10-K 2026-02-12 against 10-K 2025-02-13. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, wouldAddedRisk Factors
While each of our brands may possess their own unique cultures, all of them share one important commonality: the most important people in their businesses are their teammates and their customers. In an effort to leverage this common foundation across our brands to drive deeper unity and connection for our family of brands to Rollins, we developed what we call "The Rollins Way," which we believe is the recipe for continued, sustainable growth and long, profitable relationships with our customers and teammates. "The Rollins Way" is articulated in just six words and three two-word couplets: 1) Heroic Impact; 2) Essential Together; and 3) Be Remarkable.
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Our teammates have the opportunity to make a Heroic Impact on our customers and feel pride in what they do. We expect every leader to have a Heroic Impact on their people and their teams. This means embracing the concept of servant leadership by demonstrating leadership in action.
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The work we do is essential to the health, safety and well-being of the customers we serve. Our work is different, but interdependent and equally critical to our success of the whole because we are Essential Together. While we each have an opportunity to make a Heroic Impact in our respective roles, we must be aligned as a team for our customers. Our collective success relies on all of us being individually committed to delivering an exceptional customer experience.
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We expect our teammates and our leaders to Be Remarkable. We believe this is a key ingredient to building lasting and memorable relationships throughout our business. We expect our leaders to be keenly aware of and connected to their teammates. Being remarkable for them makes it more likely that they will be remarkable for their customers.
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We are making a significant investment in our leaders to support the growth of our Company and establish consistent leadership behaviors across the enterprise. Our talent and development team has designed a program called The Co-Lab - a three-and-a-half-day experience for people managers across Rollins. Leaders meet in cross-brand groups for best practice
AddedRisk Factors
sharing and networking. Servant leadership is the foundation of these sessions where leaders develop skills to help them develop themselves, their people and ultimately our business. Following the sessions leaders participate in three months of guided practice, peer coaching and continuous learning. Since The Co-Lab was established in 2025, approximately 300 leaders have completed the program.
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Through these efforts, we are creating a marketplace of cross-brand and cross-functional talent where teammates can transfer between brands and divisions, and between our home office and field operations. This provides career opportunities for our teammates, keeping our talent within Rollins, and will fuel the Company’s growth with a pipeline of future-ready leaders.
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AddedRisk Factors
• Mission First: Provides a network that supports U.S. veterans and their families by helping employees translate military experience to civilian roles.
AddedRisk Factors
Workplace Inclusion will continue to partner across brands, divisions, and teams to ensure inclusion is not a program but a fundamental part of how we work and lead.
AddedRisk Factors
We empower our teammates to be leaders in safety by continuously evaluating and improving our performance, implementing best practices, monitoring regulatory changes, and fostering a culture of safety excellence in everything we do.
AddedRisk Factors
To ensure accountability, we set measurable safety goals and have enhanced our tracking systems to provide timely, user-friendly insights for field leaders. In 2025, we maintained a strong focus on improving driver safety scores. Thanks to the engagement of our field leaders and front-line teammates, we achieved measurable improvements in these scores.
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We proactively work with our supplier base and in 2024, each of the last two years we hosted a Partner Summit, partner summit, with over 30 of our top suppliers strategic partners in attendance at our corporate headquarters, to enhance collaboration and strategic relationships.
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Our business is subject to various local and national legislative and regulatory enactments including, but not limited to, environmental laws, antitrust laws, employment and benefit laws (including wage and hour laws, payroll taxes, anti-discrimination laws, pension laws and regulations, requirements related to enforcement of restrictive covenants, and ERISA), immigration laws, motor vehicle laws and regulations, human health and safety laws, consumer protection laws, securities laws including, but not limited to, SEC regulations, and federal, state and local laws and regulations governing worker safety and the pest and termite control industry.
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Our mission is to foster a culture of inclusion, where all individuals teammates feel respected, are treated fairly, with an and have the opportunity to excel.
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We are subject to a myriad of complex laws and regulations in the various federal, state, provincial, regional, and local governments in the countries in which we operate related to employees, including, but not limited to wage and hour laws, anti-discrimination laws, immigration, pension benefit plans, requirements related to enforcement of restrictive covenants, ERISA laws, and retirement benefits.
RewordedRisk Factors
Our structure is designed to support ensure effectiveness and alignment with our organization’s the Company’s goals and objectives.
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Any failure to comply with such applicable laws or regulations could result in fines fines, enforcement actions, class actions or legal proceedings.
AddedMD&A
•that maintaining and enhancing our brands increases our ability to enter new markets and launch new and innovative services that better serve the needs of our customers;
AddedMD&A
•the Saela acquisition expanding the Rollins family of brands and driving long-term value;
AddedMD&A
•the Company's credit risk, including that we do not believe that a one percent increase in interest rates would have a material effect on our results of operations or cash flows, and our belief that foreign exchange rate risk will not have a material impact upon the Company’s results of operations going forward;
AddedMD&A
•our belief that the contracted and recurring nature of our services provide us with visibility into a significant portion of our future revenue;
AddedMD&A
•our belief that our key strategic objectives will help us to drive continued success for Rollins;
AddedMD&A
•our belief that our scale enables delivery of great service and provides us with a significant and reinforcing competitive advantage;
AddedMD&A
•that we have strategically invested in proprietary routing and scheduling technologies to increase our competitive advantage;
AddedMD&A
•our belief that geographic diversity allows us to increase brand recognition, meet demands of global customers, and draw on business and technical expertise from teams in several countries, and offers us an opportunity to access new markets;
AddedMD&A
•that our acquisition strategy targets businesses that have the potential to achieve organic growth and margin expansion;
AddedMD&A
•our belief that, through our wholly-owned subsidiaries, we compete effectively and favorably with our competitors as one of the world’s largest pest and termite control companies;
AddedMD&A
•that we continue to execute various strategies previously implemented to help mitigate the impact of economic disruptors;
AddedMD&A
•our belief that interest expense will be approximately $30 million in 2026 associated with borrowings under our 2035 Senior Notes and commercial paper program;
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Twelve Months Ended December 31, Variance 2025 2024 2023 $ % Reconciliation of Operating Income and Operating Income Margin to Adjusted Operating Income and Adjusted Operating Margin Operating income $ 726,068 $ 657,224 $ 583,226 Fox acquisition-related Acquisition-related expenses (1) 26,132 17,902 15,795 Restructuring costs (2) — 5,196 Adjusted operating income $ 752,200 $ 675,126 $ 604,217 70,909 11.7 77,074 11.4 Revenues $ 3,761,050 $ 3,388,708 $ 3,073,278 Operating income margin 19.3 % 19.4 % 19.0 % Adjusted operating margin 20.0 % 19.9 % 19.7 % Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS (7) Net income $ 526,705 $ 466,379 $ 434,957 Fox acquisition-related Acquisition-related expenses (1) 26,132 17,902 15,795 Restructuring costs (2) — 5,196 Loss (gain) (Gain) loss on sale of assets, net (3) (2) (2,332) (683) (6,636) Gain on sale of businesses (4) — (15,450) Tax impact of adjustments (5) (3) (6,093) (4,408) 280 Adjusted net income $ 544,412 $ 479,190 $ 434,142 45,048 10.4 65,222 13.6 EPS - basic and diluted $ 1.09 $ 0.96 $ 0.89 Fox acquisition-related Acquisition-related expenses (1) 0.05 0.04 0.03 Restructuring costs (2) — 0.01 Loss (gain) (Gain) loss on sale of assets, net (3) (2) — (0.01) Gain on sale of businesses (4) — (0.03) Tax impact of adjustments (5) (3) (0.01) — (0.01) Adjusted EPS - basic and diluted (6) (4) $ 1.12 $ 0.99 $ 0.89 0.10 11.2 0.13 13.1 Weighted average shares outstanding - basic 484,105 484,249 489,949 Weighted average shares outstanding - diluted 484,147 484,295 490,130 Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin (7) Net income $ 526,705 $ 466,379 $ 434,957 Depreciation and amortization 124,744 113,220 99,752 Interest expense, net 28,558 27,677 19,055 Provision for income taxes 174,221 163,851 151,300 EBITDA 854,228 771,127 705,064 66,063 9.4 Fox acquisition-related 83,101 10.8 Acquisition-related expenses (1) $ 3,248 $ 1,049 $ 3,148 Restructuring costs (2) — 5,196 Loss (gain) (Gain) loss on sale of assets, net (3) (2) (2,332) (683) (6,636) Gain on sale of businesses (4) — (15,450) Adjusted EBITDA $ 855,144 $ 771,493 $ 691,322 80,171 11.6 83,651 10.8 Revenues $ 3,761,050 $ 3,388,708 $ 3,073,278 EBITDA margin 22.7 % 22.8 % 22.9 % Incremental EBITDA margin 20.9 22.3 % Adjusted EBITDA margin 22.7 % 22.8 % 22.5 % Adjusted incremental EBITDA margin 25.4 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 Conversion Net cash provided by operating activities $ 678,107 607,653 528,366 Capital expenditures $ (28,086) $ (27,572) $ (32,465) Free cash flow $ 650,021 $ 580,081 69,940 12.1 Delayed income tax payments (5) 21,710 (21,710) Adjusted free cash flow $ 495,901 84,180 17.0 671,731 $ 558,371 113,360 20.3 Free cash flow conversion 123.4 % 124.4 % 114.0 Adjusted free cash flow conversion 127.5 % 119.7 %
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Twelve Months Ended December 31, Variance 2025 2024 2023 $ % Reconciliation of Revenues to Organic Revenues Revenues $ 3,388,708 $3,073,278 315,430 10.3 $3,761,050 $3,388,708 372,342 11.0 Revenues from acquisitions (95,517) (138,587) — (95,517) 3.1 Revenues of divestitures — (20,559) 20,559 (0.7) (138,587) 4.1 Organic revenues $ 3,293,191 $3,052,719 240,472 7.9 $3,622,463 $3,388,708 233,755 6.9 Reconciliation of Residential Revenues to Organic Residential Revenues Residential revenues $ 1,535,104 $1,409,872 125,232 8.9 $1,693,244 $1,535,104 158,140 10.3 Residential revenues from acquisitions (62,799) (80,778) — (62,799) 4.5 Residential revenues of divestitures — (11,913) 11,913 (0.8) (80,778) 5.3 Residential organic revenues $ 1,472,305 $1,397,959 74,346 5.2 $1,612,466 $1,535,104 77,362 5.0 Reconciliation of Commercial Revenues to Organic Commercial Revenues Commercial revenues $ 1,125,964 $1,024,176 101,788 9.9 $1,244,733 $1,125,964 118,769 10.5 Commercial revenues from acquisitions (24,460) (32,686) — (24,460) 2.4 Commercial revenues of divestitures — (8,646) 8,646 (0.8) (32,686) 2.9 Commercial organic revenues $ 1,101,504 $1,015,530 85,974 8.3 $1,212,047 $1,125,964 86,083 7.6 Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues Termite and ancillary revenues $ 688,186 $605,533 82,653 $781,542 $688,186 93,356 13.6 Termite and ancillary revenues from acquisitions (8,258) (25,123) — (8,258) 1.4 (25,123) 3.7 Termite and ancillary organic revenues $ 679,928 $605,533 74,395 12.2 $756,419 $688,186 68,233 9.9 Reconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues Franchise and other revenues $41,531 $39,454 2,077 5.3 Franchise and other revenues from acquisitions — — — — Franchise and other organic revenues $41,531 $39,454 2,077 5.3
RewordedMD&A
Twelve Months Ended December 31, 2025 2024 2023 Reconciliation of Long-term Debt and Net Income to Leverage Ratio Short-term debt (6) $ 123,683 $ — Long-term debt (8) $ (7) 500,000 397,000 $ 493,000 Operating lease liabilities (9) (8) 428,175 417,218 325,572 Cash adjustment (10) (9) (90,004) (80,667) (93,443) Adjusted net debt $ 961,854 $ 733,551 $ 725,129 Net income $ 526,705 $ 466,379 $ 434,957 Depreciation and amortization 124,744 113,220 99,752 Interest expense, net 28,558 27,677 19,055 Provision for income taxes 174,221 163,851 151,300 Operating lease cost (11) (10) 159,924 133,420 110,627 Stock-based compensation expense 39,707 29,984 24,605 Adjusted EBITDAR $ 1,053,859 $ 934,531 $ 840,296 Leverage ratio 0.9x 0.8x 0.9x
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A total of $298.0 $327.9 million was paid in cash dividends ($0.68 per share) during the twelve months ended December 31, 2025, compared to $298.0 million in cash dividends paid ($0.62 per share) during the twelve months ended December 31, 2024, compared to $264.3 million in cash dividends paid ($0.54 per share) during the twelve months ended December 31, 2023. 2024.
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During the twelve months ended December 31, 2024, 2025, interest expense, net increased $8.6 $0.9 million compared to the prior year, due to the increase in the average debt balance associated primarily with the share repurchase completed in the third quarter issuance of 2023 and the acquisition of Fox in the second quarter of 2023. our 2035 Senior Notes, as well as borrowings under our commercial paper program.
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During the twelve months ended December 31, 2024, 2025, other income, (income) expense, net decreased $21.4 increased $2.7 million primarily due to the Company recognizing a $15.5 million gain on the sale of certain businesses during 2023, with no such gain on sale during 2024, and lower higher gains on sales of non-operational assets.
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Cash paid for acquisitions totaled $309.5 million for the twelve months ended December 31, 2025, compared to $157.5 million for the twelve months ended December 31, 2024, as compared to $366.9 million for the twelve months ended December 31, 2023, primarily driven primarily by the acquisition of Fox Saela Pest Control in 2023. 2025.
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Adjusted operating income and adjusted operating margin are calculated by adding back to net operating income those expenses resulting from associated with the amortization of certain intangible assets, assets and adjustments to the fair value of contingent consideration resulting from the acquisition acquisitions of Fox, Fox Pest Control and restructuring costs related to restructuring and workforce reduction plans. Saela Pest Control.
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Quiet changesMD&A
The increase in revenues was largely driven by demand from our customers that remained strong throughout the year across all major service offerings.