Rollins, Inc.
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Item 1. Business
General Overview
Rollins, Inc. (“Rollins,” “we,” “us,” “our,” or the “Company”), is an international services company headquartered in Atlanta, Georgia. Through our family of leading brands, we provide essential pest and wildlife control services and protection against termite damage, rodents and insects to more than two million residential and commercial customers from more than 800 Company-owned and franchised locations in approximately 70 countries. Over the course of our lengthy operating history, we have garnered a reputation for providing great customer service. The contracted and recurring nature of our services provide us with visibility into a significant portion of our future revenue.
In 1964, brothers O. Wayne and John Rollins acquired Orkin Exterminating Company and in 1965 we changed our name from Rollins Broadcasting, Inc to Rollins, Inc. In 1968, Rollins began trading on the New York Stock Exchange under the symbol “ROL.” Since then, we have grown into a premier global consumer and commercial services company with numerous industry leading brands including 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.
Pest control generally consists of assessing a customer's property for conditions that invite pests, tackling current infestations, and stopping the life cycle to prevent future invaders. Termite protection programs include liquid treatments, wet and dry foam applications, termite baiting and wood treatments. We operate under one reportable segment which contains our three service offerings:
•Residential: Pest control services protecting residential properties from common pests, including rodents, insects and wildlife;
•Commercial: Workplace pest control solutions for customers across diverse end markets such as healthcare, food service, logistics; and
•Termite and Ancillary: Termite protection services and ancillary services for both residential and commercial customers.
Recurring services, which make up the majority of our business, include ongoing pest prevention treatment under a scheduled service agreement and relationships often extend over multi-year periods. Ancillary services include pest, rodent, and wildlife exclusion; crawlspace encapsulation and moisture remediation, and insulation, amongst other services, and represents an opportunity to increase our depth of relationship with our existing customers. One-time services typically consist of single-service treatment for specific pest issues such as bed bugs, wildlife removal, termite treatments, and infestations.
As of December 31, 2025, approximately 75% of our business was recurring services, 10% was ancillary services, and 15% was one-time services.
Risk factors associated with our business are discussed in Item 1.A. "Risk Factors."
Our Strategic Objectives
We regularly assess the business environment, as well as our own strengths and opportunities, and have aligned around key strategic objectives that will help us drive continued success for Rollins.
People First
We promote a people first mindset that prioritizes the well-being and development of the teammate, as well as our collective team, in all aspects of our business. To provide our customers with the best customer experience, we must focus on cultivating our position as the employer of choice in our industry. This means not only investing in competitive wages
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and benefits, but also providing tools, training and development opportunities that drive a high level of teammate engagement.
Customer Loyalty
We focus on creating the best customer experience that will enable a loyal customer base and in turn reduce the amount of churn across our customer base. This starts with our people and the interactions they have with our customers. By focusing on this key objective, we expect it to enable growth that will outpace our market growth.
Growth Mindset
A growth mindset helps us consider ways to improve and best position our business. Our focus here is to identify changes that may present both risks and opportunities to our business. We focus on evaluating changes in the markets we compete in but also across other industries to continue to identify changing dynamics that may impact our people and our customers and that may impact our position in the markets we compete.
Operational Efficiency
As a complement to our growth mindset, our dedication to continuous improvement and operational efficiency is another key tenet of our strategy and culture. We approach our operations from the perspective that everything we do can be improved upon. We are constantly striving to improve our service levels by optimizing our business model and modernizing our business.
We believe that our alignment around the key strategic areas will enable us to grow faster than our market, position our business for the future, and deliver value for all stakeholders, including our customers, our teammates, our communities and our shareholders.
Our Competitive Strengths
Rollins is a leader in the global pest control market. We have established a portfolio of premier brands with extensive service capabilities across a deep operating network with a focus on our core pest control market. Our scale enables delivery of great customer service and provides a significant and reinforcing competitive advantage through (i) comprehensive capabilities to win new residential and commercial accounts, (ii) technology investments for operations optimization and enhanced customer experience, (iii) a diverse portfolio of brands of varying sizes of which to innovate, test, learn, and grow or expand, particularly when it comes to emerging technology, (iv) route density to manage variable costs, and (v) financial flexibility to generate organic growth and pursue acquisitions.
Robust Operating Platform with Proprietary Technology
Our extensive footprint creates an efficient and scalable operating platform to facilitate exceptional customer service delivery, increased cross-selling opportunities, and cost efficiencies. We have strategically invested in proprietary routing and scheduling technologies to increase our competitive advantage, which includes real-time service tracking and customer internet communication to personalize the customer experience. The majority of our business runs on our proprietary Branch Operating Support System (“BOSS”), which offers a back-end interface to facilitate service tracking and payment processing for technicians. BOSS also provides virtual route management tools to increase route efficiency across our network, reducing miles driven and associated costs while increasing customer retention through on-time and rapid response service. We have made investments to evolve and modernize BOSS capabilities to standardize for efficiency, while continuing to deliver differentiating and exceptional customer and employee experiences. Additionally, InSite, a proprietary web reporting capability unique to our commercial customers, provides a competitive advantage and supports the growth of our commercial division.
Differentiated Employee Base and Service Delivery
Our teammates are critical to delivering an outstanding customer experience, and we are highly focused on providing our team with best-in-class training and development opportunities. We operate the 27,000 square foot Rollins Learning Center training facility located in Atlanta, GA, which is a distance-learning and global broadcast facility with simulated environments and classrooms for training. In addition to in-person training, the Rollins Learning Center offers on-demand training sessions that teammates can access from anywhere in the world that are produced at our on-site, state-of-the-art
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broadcast studio. Our unique programs contribute to our position as an employer of choice and have earned us recognition from Training magazine among the Top 125 U.S. Training Companies 17 times in the past 23 years. We continuously monitor co-worker engagement and customer loyalty.
Experienced Management Team
Our management team combines extensive business and consumer services experience with robust local pest control leadership. Consistent with our culture of attracting, developing and progressing talented individuals, our senior leadership team consists of a combination of long-term internal leaders and strategic hires from well-respected external platforms.
Our Executive Chairman Emeritus, Gary Rollins, is the son of Rollins, Inc. co-founder O. Wayne Rollins and has spent his entire career with the Company, serving as Chief Executive Officer (“CEO”) from 2001 to 2022 and Executive Chairman from 2020 to 2025.
John Wilson, having served in various roles of increasing responsibility at the Company for over 28 years, currently serves as Executive Chairman of the Company effective January 1, 2025.
Jerry Gahlhoff, Jr. currently serves as President and CEO. Mr. Gahlhoff joined the Company as part of the HomeTeam acquisition in 2008. Mr. Gahlhoff has extensive knowledge of the Company’s business and industry, having served in various roles of increasing responsibility at HomeTeam and the Company, collectively, for over 24 years. He is also a trained Entomologist.
Additional members of our Executive Leadership Team include:
•Kenneth Krause has served as the Executive Vice President and Chief Financial Officer of the Company since September 2022. Mr. Krause brings over 10 years of public company Chief Financial Officer experience and over 25 years of global finance and strategy experience.
•Elizabeth Chandler joined the Company in 2013 and currently serves as our Chief Legal Officer. Ms. Chandler brings over 37 years of legal experience.
•Pat Chrzanowski, President of Orkin USA, joined the Company in 2007 and has over 23 years of pest control experience.
•Stanford Phillips, President of Rollins Brands, joined the Company in 2017 and has over 24 years of pest control experience.
•Thomas Tesh joined the Company in 2012 and currently serves as Executive Vice President of Home Office Operations and Chief Administrative Officer. Mr. Tesh brings over 26 years of pest control experience.
•Renee Pearson joined the Company in 2023 and currently serves as Senior Vice President and Chief Information Officer. Ms. Pearson brings over 27 years of information technology experience.
•Clay Scherer joined the Company in 2024 and currently serves as Senior Vice President, Operational Support Group. Mr. Scherer brings over 31 years of global pest markets experience.
•Jamie Benton joined the Company in 2014 and currently serves as Senior Vice President, Human Resources. Mr. Benton brings 23 years of Human Resources experience.
International Business
We continue to expand our international presence through organic growth, acquisitions, and our international franchise programs. In 2025, we saw revenue growth in our company-owned operations in Canada, Australia, the United Kingdom, and Singapore. We believe 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.
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Franchising Programs
We have franchise programs through Orkin, Critter Control, MissQuito, and our Australian subsidiaries. We had a total of 131 domestic franchise agreements as of December 31, 2025. International franchise agreements totaled 66 as of December 31, 2025. Transactions with our franchises involve sales of territories and customer contracts to establish new franchises and the payment of initial franchise fees and royalties by franchisees. The territories, customer contracts and initial franchise fees are typically paid for by a combination of cash and notes.
Acquisition Strategy
We have extensive experience acquiring companies of all sizes. Over the last three years, we have completed 94 acquisitions, including 26 acquisitions in 2025. Our acquisition strategy targets high quality, profitable businesses with strong leadership, a healthy level of brand awareness, and customer loyalty in the markets they serve that would benefit from incremental growth capital and have the potential to achieve organic growth and margin expansion.
Seasonality
Our business is affected by weather conditions, including climate change and the seasonal nature of our pest and termite control services. The increase in pest presence and activity, as well as the metamorphosis of termites in the spring and summer (the occurrence of which is determined by the timing of the change in seasons), has historically resulted in an increase in the revenue of our pest and termite control operations during such periods as evidenced by the following table.
| Consolidated Net Revenues | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| First Quarter | $ | ||||||||||||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ROLLINS, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report on Form 10-Q.
GENERAL OPERATING COMMENTS
Below is a summary of the key operating results for the three months ended June 30, 2026:
•Second quarter revenues were $1.1 billion, an increase of 7.9% over the second quarter of 2025 with organic revenues* increasing 5.7%. This represents our 99th consecutive quarter of revenue growth.
•Quarterly operating income was $201.4 million, an increase of 1.5% over the second quarter of 2025. Quarterly operating margin was 18.7%, a decrease of 110 basis points versus the second quarter of 2025. Adjusted operating income* was $209.9 million, an increase of 2.0% over the prior year. Adjusted operating margin* was 19.5%, a decrease of 110 basis points compared to the prior year.
•Quarterly net income was $143.9 million, an increase of 1.7% over the prior year. Adjusted net income* was $151.9 million, an increase of 3.4% over the prior year.
•Adjusted EBITDA* was $236.3 million, an increase of 2.2% over the prior year. Adjusted EBITDA margin* was 21.9%, a decrease of 120 basis points versus the second quarter of 2025.
•Quarterly EPS was $0.30 per diluted share, a 3.4% increase over the prior year EPS of $0.29. Adjusted EPS* was $0.32 per diluted share, an increase of 6.7% over the prior year.
•Operating cash flow was $172.5 million for the quarter, a decrease of 1.5% compared to the prior year. Free cash flow* was $166 million for the quarter, a decrease of 1.2% compared to the prior year. Cash flow was negatively impacted due to the timing of tax payments associated with our tax credit planning strategy. The Company invested $116.8 million in acquisitions, $6.4 million in capital expenditures, and paid dividends totaling $88.1 million.
Our reported results for the second quarter fell short of our expectations. Organic revenue* growth in the quarter was negatively impacted by slower growth in parts of our residential service offering due to a decline in lead volume. Specifically, those of our brands that are more reliant on consumer-initiated demand through search, digital media and inbound calls experienced a more challenging demand environment. Encouragingly, other areas of our business that leverage relationship-based channels, such as home builders and door-to-door sales, delivered solid organic revenue* growth in the quarter, reinforcing the importance of our diversified, multi-brand approach. Although we remain cautious regarding near-term demand trends, lead volume improved toward the end of June and has maintained this momentum through the first few weeks of July.
We are focused on execution, accountability, and consistent improvement. We have implemented organizational and operational changes to improve local execution, strengthen accountability, and better align resources with current demand conditions, while continuing to invest in areas that will drive long-term growth.
Given our first half results and visibility into near-term operating conditions, we are updating our full-year outlook. We expect to report at least 6% organic revenue* growth, 2% to 3% inorganic revenue* growth, adjusted incremental EBITDA margin* of at least 10%, and free cash flow conversion* of greater than 100% in 2026. We believe the medium-term financial outlook and opportunities outlined at our Investor & Analyst Conference in May remain ahead of us and we maintain conviction in our ability to achieve those financial targets over time.
*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.
RECENT DEVELOPMENTS AND ECONOMIC CONDITIONS
The continued disruption in economic markets due to inflation, changing interest rates, tariffs, trade disputes, business interruptions due to natural disasters and changes in weather patterns, employee shortages, and supply chain issues all pose
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ROLLINS, INC. AND SUBSIDIARIES
challenges which may adversely affect our future performance. The Company continues to execute various strategies previously implemented to help mitigate the impact of these economic disruptors. However, the Company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future.
The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements. The Company considered the impact of economic trends on the assumptions and estimates used in preparing the condensed consolidated financial statements. In the opinion of management, all material adjustments necessary for a fair presentation of the Company’s financial results for the quarter have been made. These adjustments are of a normal recurring nature but are complicated by the continued uncertainty surrounding these macroeconomic trends. The severity, magnitude and duration of certain economic trends continue to be uncertain and are difficult to predict. Therefore, our accounting estimates and assumptions may change over time in response to economic trends and may change materially in future periods.
The extent to which these economic trends will continue to impact the Company’s business, financial condition and results of operations is uncertain. Therefore, we cannot reasonably estimate the full future impacts of these matters at this time.
RESULTS OF OPERATIONS
Quarter ended June 30, 2026 compared to quarter ended June 30, 2025
| Three Months Ended June 30, | ||||||||||||||||||||
| Variance | ||||||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | $ | % | ||||||||||||||||
| GAAP Metrics | ||||||||||||||||||||
| Revenues | $ | 1,078,576 | $ | 999,527 | $ | 79,049 | 7.9 | % | ||||||||||||
Gross profit (1) | $ | 569,946 | $ | 537,666 | $ | 32,280 | 6.0 | % | ||||||||||||
Gross profit margin (1) | 52.8 | % | 53.8 | % | (100) bps | |||||||||||||||
| Operating income | $ | 201,359 | $ | 198,333 | $ | 3,026 | 1.5 | % | ||||||||||||
| Operating margin | 18.7 | % | 19.8 | % | (110) bps | |||||||||||||||
| Net income | $ | 143,910 | $ | 141,489 | $ | 2,421 | 1.7 | % | ||||||||||||
| EPS | $ | 0.30 | $ | 0.29 | $ | 0.01 | 3.4 | % | ||||||||||||
| Operating cash flow | $ | 172,506 | $ | 175,122 | $ | (2,616) | (1.5) | % | ||||||||||||
| Non-GAAP Metrics | ||||||||||||||||||||
Adjusted operating income (2) | $ | 209,939 | $ | 205,900 | $ | 4,039 | 2.0 | % | ||||||||||||
Adjusted operating margin (2) | 19.5 | % | 20.6 | % | (110) bps | |||||||||||||||
Adjusted net income (2) | $ | 151,927 | $ | 146,902 | $ | 5,025 | 3.4 | % | ||||||||||||
Adjusted EPS (2) | $ | 0.32 | $ | 0.30 | $ | 0.02 | 6.7 | % | ||||||||||||
Adjusted EBITDA (2) | $ | 236,292 | $ | 231,152 | $ | 5,140 | 2.2 | % | ||||||||||||
Adjusted EBITDA margin (2) | 21.9 | % | 23.1 | % | (120) bps | |||||||||||||||
Free cash flow (2) | $ | 166,077 | $ | 168,046 | $ | (1,969) | (1.2) | % | ||||||||||||
(1) Exclusive of depreciation and amortization
(2) Amounts are non-GAAP financial measures. See "Non-GAAP Financial Measures" of this Form 10-Q for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
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ROLLINS, INC. AND SUBSIDIARIES
The following table presents financial information, including our significant expense categories, for the three months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||
| $ | % of Revenue | $ | % of Revenue | |||||||||||||||||||
| Revenue | $ | 1,078,576 | 100.0 | % | $ | 999,527 | 100.0 | % | ||||||||||||||
| Less: | ||||||||||||||||||||||
| Cost of services provided (exclusive of depreciation and amortization below): | ||||||||||||||||||||||
| Employee expenses | 328,787 | 30.5 | % | 298,354 | 29.8 | % | ||||||||||||||||
| Materials and supplies | 66,339 | 6.2 | % | 59,500 | 6.0 | % | ||||||||||||||||
| Insurance and claims | 21,932 | 2.0 | % | 20,734 | 2.1 | % | ||||||||||||||||
| Fleet expenses | 46,959 | 4.4 | % | 41,834 | 4.2 | % | ||||||||||||||||
Other cost of services provided (1) | 44,613 | 4.1 | % | 41,439 | 4.1 | % | ||||||||||||||||
| Total cost of services provided (exclusive of depreciation and amortization below) | $ | 508,630 | 47.2 | % | $ | 461,861 | 46.2 | % | ||||||||||||||
| Sales, general and administrative: | ||||||||||||||||||||||
| Selling and marketing expenses | 151,967 | 14.1 | % | 140,177 | 14.0 | % | ||||||||||||||||
| Administrative employee expenses | 95,733 | 8.9 | % | 89,303 | 8.9 | % | ||||||||||||||||
| Insurance and claims | 13,239 | 1.2 | % | 12,939 | 1.3 | % | ||||||||||||||||
| Fleet expenses | 11,775 | 1.1 | % | 10,443 | 1.0 | % | ||||||||||||||||
Other sales, general and administrative (2) | 62,263 | 5.8 | % | 54,734 | 5.5 | % | ||||||||||||||||
| Total sales, general and administrative | $ | 334,977 | 31.1 | % | $ | 307,596 | 30.8 | % | ||||||||||||||
| Depreciation and amortization | 33,610 | 3.1 | % | 31,737 | 3.2 | % | ||||||||||||||||
| Interest expense, net | 9,391 | 0.9 | % | 7,380 | 0.7 | % | ||||||||||||||||
| Other (income) expense, net | 2,214 | 0.2 | % | (292) | — | % | ||||||||||||||||
| Income tax expense | 45,844 | 4.3 | % | 49,756 | 5.0 | % | ||||||||||||||||
| Net income | $ | 143,910 | 13.3 | % | $ | 141,489 | 14.2 | % | ||||||||||||||
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.
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ROLLINS, INC. AND SUBSIDIARIES
Revenues
The following presents a summary of revenues by service offering for the three months ended June 30, 2026 and June 30, 2025, respectively:
Revenues for the quarter ended June 30, 2026 were $1.1 billion, an increase of $79.0 million, or 7.9%, from 2025 revenues of $999.5 million. The increase in revenues was driven by demand from our customers across all major service offerings. Organic revenue* growth was 5.7% with acquisitions adding 2.2% in the quarter. Residential pest control revenue increased 6.6%, commercial pest control revenue increased 8.6% and termite and ancillary services grew 10.5% including both organic and acquisition-related growth in each area. Organic revenue* growth was 3.6% in residential, 7.2% in commercial, and 8.9% in termite and ancillary activity. The Company’s foreign operations accounted for approximately 7% of total revenues for the quarters ended June 30, 2026 and June 30, 2025.
*Amounts are non-GAAP financial measures. See "Non-GAAP Financial Measures" of this Form 10-Q for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
Revenues are impacted by weather conditions, including climate change and the seasonal nature of the Company’s pest and termite control services. The increase in pest activity, as well as the metamorphosis of termites in the spring and summer (the occurrence of which is determined by the change in seasons), has historically resulted in an increase in the Company’s revenues as evidenced by the following table:
| Consolidated Net Revenues | |||||||||||||||||
| (in thousands) | 2026 | 2025 | 2024 | ||||||||||||||
| First quarter | $ | 906,424 | $ | 822,504 | $ | 748,349 | |||||||||||
| Second quarter | 1,078,576 | 999,527 | 891,920 | ||||||||||||||
| Third quarter | — | 1,026,106 | 916,270 | ||||||||||||||
| Fourth quarter | — | 912,913 | 832,169 | ||||||||||||||
| Year to date | $ | 1,985,000 | $ | 3,761,050 | $ | 3,388,708 | |||||||||||
Gross Profit (exclusive of Depreciation and Amortization)
Gross profit for the quarter ended June 30, 2026 was $569.9 million, an increase of $32.3 million, or 6.0%, compared to $537.7 million for the quarter ended June 30, 2025.
Gross margin decreased 100 basis points to 52.8% in 2026 compared to 53.8% in 2025. The decrease is primarily due to 70 basis points of higher employee expenses, including higher employee medical costs and service salaries, 20 basis points of higher materials and supplies, and 20 basis points of higher fleet expenses associated with higher fuel costs. This was partially offset by 10 basis points of leverage in insurance and claims costs.
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Sales, General and Administrative
For the quarter ended June 30, 2026, sales, general and administrative ("SG&A") expenses were $335.0 million, an increase of $27.4 million, or 8.9%, compared to the quarter ended June 30, 2025.
As a percentage of revenue, SG&A increased 30 basis points to 31.1% from 30.8% in the prior year, primarily due to 10 basis points of higher selling and marketing costs and 10 basis points of higher fleet expenses associated with higher fuel costs. The remaining increase was driven by other SG&A costs.
Depreciation and Amortization
For the quarter ended June 30, 2026, depreciation and amortization increased $1.9 million, or 5.9%, compared to the quarter ended June 30, 2025. The increase was due to higher amortization of intangible assets from acquisitions, most notably from the acquisition of Romex.
Operating Income
For the quarter ended June 30, 2026, operating income increased $3.0 million, or 1.5%, compared to the prior year.
As a percentage of revenue, operating income was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025. Operating margin decreased mostly due to higher employee expenses, higher materials and supplies, higher fleet expenses, and other SG&A expenses.
Interest Expense, Net
During the quarter ended June 30, 2026, interest expense, net increased $2.0 million compared to the prior year primarily due to a higher average debt balance associated with higher borrowings under our commercial paper program.
Other (Income) Expense, Net
During the quarter ended June 30, 2026, other (income) expense, net decreased $2.5 million primarily due to higher losses on non-operational asset sales and disposals.
Income Taxes
The Company’s effective tax rate was 24.2% in the second quarter of 2026 and 26.0% in the second quarter of 2025. The reduced rate is primarily due to the purchase of transferable federal income tax credits during the three months ended June 30, 2026.
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ROLLINS, INC. AND SUBSIDIARIES
Six months ended June 30, 2026 compared to six months ended June 30, 2025
| Six Months Ended June 30, | ||||||||||||||||||||
| Variance | ||||||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | $ | % | ||||||||||||||||
| GAAP Metrics | ||||||||||||||||||||
| Revenues | $ | 1,985,000 | $ | 1,822,031 | $ | 162,969 | 8.9 | % | ||||||||||||
Gross profit (1) | $ | 1,030,848 | $ | 960,036 | $ | 70,812 | 7.4 | % | ||||||||||||
Gross profit margin (1) | 51.9 | % | 52.7 | % | (80) | bps | ||||||||||||||
| Operating income | $ | 346,845 | $ | 340,981 | $ | 5,864 | 1.7 | % | ||||||||||||
| Operating margin | 17.5 | % | 18.7 | % | (120) | bps | ||||||||||||||
| Net income | $ | 251,748 | $ | 246,737 | $ | 5,011 | 2.0 | % | ||||||||||||
| EPS | $ | 0.52 | $ | 0.51 | $ | 0.01 | 2.0 | % | ||||||||||||
| Operating cash flow | $ | 290,873 | $ | 322,014 | $ | (31,141) | (9.7) | % | ||||||||||||
| Non-GAAP Metrics | ||||||||||||||||||||
Adjusted operating income (2) | $ | 362,732 | $ | 352,769 | $ | 9,963 | 2.8 | % | ||||||||||||
Adjusted operating margin (2) | 18.3 | % | 19.4 | % | (110) | bps | ||||||||||||||
Adjusted net income (2) | $ | 265,156 | $ | 254,775 | $ | 10,381 | 4.1 | % | ||||||||||||
Adjusted EPS (2) | $ | 0.55 | $ | 0.53 | $ | 0.02 | 3.8 | % | ||||||||||||
Adjusted EBITDA (2) | $ | 415,761 | $ | 403,009 | $ | 12,752 | 3.2 | % | ||||||||||||
Adjusted EBITDA margin (2) | 20.9 | % | 22.1 | % | (120) | bps | ||||||||||||||
Free cash flow (2) | $ | 277,305 | $ | 308,157 | $ | (30,852) | (10.0) | % | ||||||||||||
(1) Exclusive of depreciation and amortization
(2) Amounts are non-GAAP financial measures. See "Non-GAAP Financial Measures" of this Form 10-Q for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
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ROLLINS, INC. AND SUBSIDIARIES
The following table presents financial information, including our significant expense categories, for the six months ended June 30, 2026 and 2025:
| Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||
| $ | % of Revenue | $ | % of Revenue | |||||||||||||||||||
| Revenue | $ | 1,985,000 | 100.0 | % | $ | 1,822,031 | 100.0 | % | ||||||||||||||
| Less: | ||||||||||||||||||||||
| Cost of services provided (exclusive of depreciation and amortization below): | ||||||||||||||||||||||
| Employee expenses | 618,509 | 31.2 | % | 560,077 | 30.7 | % | ||||||||||||||||
| Materials and supplies | 119,556 | 6.0 | % | 107,991 | 5.9 | % | ||||||||||||||||
| Insurance and claims | 43,079 | 2.2 | % | 37,258 | 2.0 | % | ||||||||||||||||
| Fleet expenses | 89,131 | 4.5 | % | 78,691 | 4.3 | % | ||||||||||||||||
Next expected filings
- ~2026-10-29 10-Q expected by 2026-11-13 (in 95 days)
- ~2027-02-11 10-K expected by 2027-02-16 (in 200 days)
- ~2027-04-22 10-Q expected by 2027-05-07 (in 270 days)
- ~2027-07-22 10-Q expected by 2027-08-06 (in 361 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-23 10-Q Quarterly Report
- 2026-07-22 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-27 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-04-29 S-3ASR S-3ASR
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