For Further Information Contact
ATLANTA, GEORGIA, October 21, 2026: 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.
• 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.
"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. 1
(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. 2 The following table presents financial information, including our significant expense categories, for the three and nine months ended September 30, 2026 and 2025:
(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. 3 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.
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. 4
September 30, December 31, 2026 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 126,097 128,259 liabilities 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 95,677 79,157 portion Operating lease liabilities, less 261,402 290,765 current portion 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’ $ 3,358,788 $ 3,140,523 equity
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, 8 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)
(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.
(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. 11
Full text with the tables
Exhibit 99.1
For Further Information Contact
Lyndsey Burton (404) 888-2348
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS
ATLANTA, GEORGIA, October 21, 2026: 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.
1
Three and Nine Months Ended Financial Highlights
…
…
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… … $ % …
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(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.
2
The following table presents financial information, including our significant
expense categories, for the three and nine months ended September 30, 2026 and
2025:
… …
… …
… …
… …
… … 2… 2… … 2…
──────────────────────────────────────────────────────────────────────────────
% % % %
$ … $ of $ of $ of
… R… R… R…
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$ … … % $ … … % $ … … % $ … … %
(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.
3
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.
4
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
September 30, December 31,
2026 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 126,097 128,259
liabilities
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 95,677 79,157
portion
Operating lease liabilities, less 261,402 290,765
current portion
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’ $ 3,358,788 $ 3,140,523
equity
5
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Thr… Nine
Mon… Mon…
End… End…
Sep… Sep…
30, 30,
R… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
C… $ 1,… $ 1,0… $ 3,… $ 2,8…
s…
C…
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E…
C…
of
s…
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(… 50… 467… 1,… 1,3…
of
d…
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S…
g… 32… 301… 94… 859…
a…
a…
D…
a… 33… 32,… 99… 93,…
a…
T…
o… 86… 801… 2,… 2,2…
e…
O… 22… 225… 56… 566…
I…
I…
e… 10… 7,9… 28… 21,…
n…
O…
(… -4… -350 1,… -1,…
e…
n…
C…
I…
B… 21… 217… 53… 546…
I…
T…
P…
F… 54… 53,… 12… 135…
I…
T…
N… $ 15… $ 163… $ 40… $ 410…
I…
N…
I…
P…
S… $ 0.… $ 0.34 $ 0.… $ 0.85
-
B…
A…
D…
W…
a…
s… 478… 48… 480… 48…
o…
-
b…
W…
a…
s… 478… 48… 480… 48…
o…
-
d…
D…
P… $ 0.… $ 0.1… $ 0.… $ 0.4…
P…
S…
6
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW INFORMATION
(in thousands)
(unaudited)
Three Nine
Months Months
Ended Ended
Septe… Septem…
OPER… 30, 30,
ACTI… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 157,927 $ 163,5… $ 409,6… $ 410,264
inco…
Depr…
and 33,273 32,231 99,381 93,177
amor…
Chan…
in
work…
capi… 50,659 -4,409 23,676 9,922
and
other
oper…
acti…
Net
cash
prov… 241,859 191,3… 532,7… 513,363
by
oper…
acti…
INVE…
ACTI…
Acqu…
net
of -27,391 -34,7… -162,… -288,3…
cash
acqu…
Capi… -6,364 -8,503 -19,9… -22,360
expe…
Other
inve… 2,364 3,509 4,978 7,853
acti…
net
Net
cash
used -31,391 -39,7… -177,… -302,8…
in
inve…
acti…
FINA…
ACTI…
Net
borr… 23,644 -59,9… 125,1… 95,215
(rep…
Paym…
of -87,205 -80,0… -263,… -239,4…
divi…
Cash
paid
for -120,0… -3,651 -162,… -18,573
comm…
stock
purc…
Other
fina… -6,785 -2,858 -24,2… -12,337
acti…
net
Net
cash
used -190,4… -146,… -325,… -175,1…
in
fina…
acti…
Effe…
of
exch…
rate
chan… -92 -728 -953 2,324
on
cash
and
cash
equi…
Net
incr…
(dec…
in $ 19,965 $ 4,322 $ 29,046 $ 37,727
cash
and
cash
equi…
7
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,
8
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)
T… N…
M… M…
E… E…
S… S…
3… V… 3… …
──────────────────────────────────────────────────────────────────────────────
2… 2… $ % 2… … $ %
…
…
…
…
…
…
… $ 1… $ 1… 6… 6… $ 3… $ 2… 2… …
…
… -… — -… 1… -… — -… …
…
… $ 1… $ 1… 4… 4… $ 3… $ 2… 1… …
…
…
…
…
…
…
…
…
…
… $ 4… $ 4… 2… 4… $ 1… $ 1… 8… …
…
…
… -… — -… 2… -… — -… …
…
…
…
… $ 4… $ 4… 1… 2… $ 1… $ 1… 4… …
…
…
…
…
…
…
…
…
…
… $ 3… $ 3… 2… 7… $ 1… $ 9… 8… …
…
…
… -… — -… 1… -… — -… …
…
…
…
… $ 3… $ 3… 2… 6… $ 1… $ 9… 6… …
…
…
…
…
…
…
…
…
…
…
…
…
…
…
… $ 2… $ 2… 1… 6… $ 6… $ 5… 5… …
…
…
…
…
… -… — -… 1… -… — -… …
…
…
…
…
…
… $ 2… $ 2… 1… 5… $ 6… $ 5… 4… …
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
… $ 1… $ 1… 1… 1… $ 3… $ 3… 3… …
…
…
…
…
… — — — — — — — —
…
…
…
…
…
… $ 1… $ 1… 1… 1… $ 3… $ 3… 3… …
…
…
9
…
…
…
…
… …
──────────────────────────────────────────────────────────────────────────────
… … $ % … %
$ … $ … … $
… … …
$ … $ … … … … $ …
$ … $ … … $
… % … % … %
… % … % … %
$ … $ … … $
… … …
… … …
… … …
$ … $ … … … … $ …
$ … $ … … $
… … …
— — —
— — …
$ … $ … … … … $ …
… … …
… … …
$ … $ … … $
… … …
… … …
… … …
$ … $ … … … … $ …
… … …
… … …
$ … $ … … … … $ …
$ … $ … … … $ …
… % … % … %
… % …
… % … % … %
… % …
$ … $ … … $
… … …
$ … $ … … … … $ …
… % … % … %
10
Rec… Three Nine
of Mont… Mon…
SG&A Ended End…
to Sept… Sep…
Adj… 30, 30,
SG&A 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
SG&A $ 326,… $ 301,… $ 944,… $ 859…
Acq… 584 1,082 3,008 2,1…
exp…
Adj… $ 326,… $ 300,… $ 941,… $ 857…
SG&A
Rev… $ 1,08… $ 1,02… $ 3,07… $ 2,8…
Adj…
SG&A
as a 29.9 % 29.3 % 30.6 % 30.1 %
% of
rev…
Period Ended
September 30, Period Ended
2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Reconciliation
of Debt and Net
Income to
Leverage Ratio
Short-term $ 239,562 $ 123,683
debt(5)
Long-term 500,000 500,000
debt(6)
Operating lease 398,559 428,175
liabilities(7)
Cash -116,145 -90,004
adjustment(8)
Adjusted net $ 1,021,976 $ 961,854
debt
Net income $ 526,116 $ 526,705
Depreciation and 130,948 124,744
amortization
Interest 36,351 28,558
expense, net
Provision for 168,034 174,221
income taxes
Operating lease 170,431 159,924
cost(9)
Stock-based
compensation 41,629 39,707
expense
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.
11