ROLLINS, INC. REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS
ROLLINS INC (ROL) filed an SEC Form 8-K — Results of Operations and Financial Condition. 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 com
How this was made
The 30-second read
Why it matters
The Q3 2026 results show mixed performance: revenue up, but margins and EPS down, influencing short-term price action.
Market read
First disclosure of Rollins' Q3 2026 earnings, providing fresh data for traders to assess valuation and momentum.
What to watch
Tax refund timing boosted cash flow; one-time items may mask underlying performance.
Rollins reported third-quarter revenue growth of 6.2% but lower operating income, net income, EPS and adjusted EBITDA as residential customer acquisition remained under pressure and margins contracted.
Third-quarter revenues, organic revenues and cash flow increased, but profitability declined year over year, with operating margin down 140 basis points, adjusted EBITDA margin down 170 basis points and adjusted EPS down 2.9%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $1.09B | – | 6.2 % |
| Organic revenues, three months ended September 30, 2026non-GAAP | $1.07B | – | 4.4 |
| Gross profit, three months ended September 30, 2026GAAP | $582.9M | – | 4.3 % |
| Gross profit margin, three months ended September 30, 2026GAAP | 53.5 % | – | (90) bps |
| Operating income, three months ended September 30, 2026GAAP | $222.9M | – | (1.0) % |
| Operating margin, three months ended September 30, 2026GAAP | 20.5 % | – | (140) bps |
| Net income, three months ended September 30, 2026GAAP | $157.9M | – | (3.4) % |
| EPS, basic and diluted, three months ended September 30, 2026GAAP | $ 0.33 | – | (2.9) % |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $241.9M | – | 26.4 % |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $230.7M | – | (0.6) % |
| Adjusted operating margin, three months ended September 30, 2026non-GAAP | 21.2 % | – | (140) bps |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $163.3M | – | (3.1) % |
| Adjusted EPS, basic and diluted, three months ended September 30, 2026non-GAAP | $ 0.34 | – | (2.9) % |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $256.6M | – | (0.7) % |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 23.5 % | – | (170) bps |
| Free cash flow, three months ended September 30, 2026non-GAAP | $235.5M | – | 28.8 % |
| Free cash flow conversion, three months ended September 30, 2026non-GAAP | 149.1 % | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | 866,811 | – | – |
| Cost of services provided, three months ended September 30, 2026GAAP | 506,767 | – | – |
| Sales, general and administrative, three months ended September 30, 2026GAAP | 326,771 | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | 33,273 | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | 10,669 | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $3.07B | – | 8.0 % |
| Organic revenues, nine months ended September 30, 2026non-GAAP | $3.00B | – | 5.5 |
| Gross profit, nine months ended September 30, 2026GAAP | $1.61B | – | 6.3 % |
| Gross profit margin, nine months ended September 30, 2026GAAP | 52.5 % | – | (80) bps |
| Operating income, nine months ended September 30, 2026GAAP | $569.7M | – | 0.7 % |
| Operating margin, nine months ended September 30, 2026GAAP | 18.5 % | – | (140) bps |
| Net income, nine months ended September 30, 2026GAAP | $409.7M | – | (0.1) % |
| EPS, basic and diluted, nine months ended September 30, 2026GAAP | $ 0.85 | – | — % |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $532.7M | – | 3.8 % |
| Adjusted operating income, nine months ended September 30, 2026non-GAAP | $593.4M | – | 1.5 % |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $428.5M | – | 1.2 % |
| Adjusted EPS, basic and diluted, nine months ended September 30, 2026non-GAAP | $ 0.89 | – | 2.3 % |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $672.3M | – | 1.7 % |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $512.8M | – | 4.4 % |
| Leverage ratio, period ended September 30, 2026non-GAAP | 1.0x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Residential revenues, three months ended September 30, 2026Residential customer acquisition remained under pressure in the third quarter. | $499.7M | – | 4.9 |
| Residential organic revenues, three months ended September 30, 2026Organic residential growth was lower than reported residential revenue growth after excluding revenues from acquisitions. | $487.4M | – | 2.3 |
| Commercial revenues, three months ended September 30, 2026Commercial revenues grew faster than total revenue. | $360.7M | – | 7.7 |
| Commercial organic revenues, three months ended September 30, 2026Commercial organic revenues excluded revenues from acquisitions. | $357.1M | – | 6.6 |
| Termite and ancillary revenues, three months ended September 30, 2026Termite and ancillary revenues included $ 2,500 of revenues from acquisitions. | $217.9M | – | 6.5 |
| Termite and ancillary organic revenues, three months ended September 30, 2026Organic growth excluded revenues from acquisitions. | $215.4M | – | 5.3 |
| Franchise and other revenues, three months ended September 30, 2026No revenues from acquisitions were reported for franchise and other revenues. | $11.37M | – | 11.4 |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Company invested $27 million in acquisitions during the quarter.
- The Company invested $6 million in capital expenditures during the quarter.
- The Company deployed $120 million in share repurchases during the quarter.
- The Company paid dividends totaling $87 million during the quarter.
- Cash paid for common stock purchased was (120,065) for the three months ended September 30, 2026, compared with (3,651) in 2025.
- Payment of dividends was (87,205) for the three months ended September 30, 2026, compared with (80,077) in 2025.
- Dividends paid per share were $ 0.1825 for the three months ended September 30, 2026, compared with $ 0.1650 in 2025.
What drove it
- Third-quarter revenue increased 6.2 %, while organic revenues increased 4.4.
- Commercial revenues increased 7.7, commercial organic revenues increased 6.6, and termite and ancillary organic revenues increased 5.3.
- Management is reallocating resources from its traditional digital marketing approach to channels and capabilities generating the highest returns, including those intended to strengthen visibility in AI- and LLM-driven discovery.
- The Company cited recurring customer relationships, a diversified portfolio and the underlying resilience of the pest control market.
- Acquisition-related expenses were 7,824 in the third quarter, compared with 7,036 in the prior-year quarter.
Concerns
- Residential customer acquisition remained under pressure in the third quarter.
- Gross profit margin declined to 53.5 % from 54.4 %, while operating margin declined to 20.5 % from 21.9 %.
- Insurance and claims expense in cost of services provided was 23,048, or 2.1 % of revenue, compared with 11,127, or 1.1 % of revenue, in the prior-year quarter.
- Insurance and claims expense in sales, general and administrative was 13,722, or 1.3 % of revenue, compared with 6,929, or 0.7 % of revenue, in the prior-year quarter.
- Interest expense, net was 10,669, compared with 7,942 in the prior-year quarter.
- Adjusted EBITDA margin declined to 23.5 % from 25.2 %.
What to watch
- Residential customer acquisition trends and the effectiveness of the more dynamic marketing approach.
- The results of investments in AI- and LLM-driven discovery visibility.
- Operating-margin performance, particularly insurance and claims, fleet expenses, and sales, general and administrative costs.
- Whether cash flow remains supported by the tax refund timing benefit of $63 million.
- The pace of acquisitions, share repurchases and dividend payments alongside increased short-term debt.
Balance sheet and cash flow
- Cash and cash equivalents were $ 129,050 as of September 30, 2026, compared with $ 100,004 as of December 31, 2025.
- Short-term debt was $ 239,562 as of September 30, 2026, compared with $ 123,683 as of December 31, 2025.
- Long-term debt was $ 487,587 as of September 30, 2026, compared with $ 486,147 as of December 31, 2025.
- Outstanding borrowings from the issuance of 2035 Senior Notes were $500 million as of September 30, 2026. The Company had no outstanding borrowings under the Revolving Credit Facility.
- Total assets were $ 3,358,788 and total liabilities were 1,968,330 as of September 30, 2026.
- Net cash provided by operating activities was $ 241,859 for the quarter and $ 532,732 for the nine months ended September 30, 2026.
- Free cash flow was $ 235,495 for the quarter and $ 512,800 for the nine months ended September 30, 2026.
- Quarterly cash flow was favorably impacted by $63 million due to the timing of a tax refund associated with the Company's tax credit planning strategy.
- Acquisitions, net of cash acquired, were (27,391) in the quarter and (162,646) for the nine months ended September 30, 2026.
- Capital expenditures were (6,364) in the quarter and (19,932) for the nine months ended September 30, 2026.
Analysis
Rollins delivered $ 1,089,670 of third-quarter revenue, up 6.2 % from $ 1,026,106, while organic revenues rose 4.4 to $ 1,071,322. Growth was led by commercial revenues, which increased 7.7, and termite and ancillary revenues, which increased 6.5. Residential revenues increased 4.9, but residential organic revenues increased 2.3, and management said residential customer acquisition remained under pressure.
Profitability weakened despite revenue growth. Gross profit increased 4.3 to $ 582,903, but gross profit margin declined to 53.5 % from 54.4 %. Operating income declined 1.0 to $ 222,859 and operating margin fell 140 basis points to 20.5 %. Adjusted operating income declined 0.6 to $ 230,683, while adjusted EBITDA declined 0.7 to $ 256,571 and adjusted EBITDA margin fell 170 basis points to 23.5 %.
Cost pressure was particularly evident in insurance and claims. Cost-of-services insurance and claims expense was 23,048, compared with 11,127 in the prior-year quarter, while SG&A insurance and claims expense was 13,722, compared with 6,929. Fleet expenses also rose in both cost of services and SG&A. Net income declined 3.4 to $ 157,927, and EPS declined 2.9 to $ 0.33. Adjusted net income and adjusted EPS declined 3.1 and 2.9, respectively.
Cash generation strengthened, although the release identified a timing benefit. Operating cash flow rose 26.4 to $ 241,859 and free cash flow increased 28.8 to $ 235,495. Quarterly cash flow was favorably impacted by $63 million from the timing of a tax refund associated with the Company's tax credit planning strategy. The Company used cash for $27 million in acquisitions, $6 million in capital expenditures, $120 million in share repurchases and $87 million of dividends.
For the nine-month period, revenue increased 8.0 to $ 3,074,670 and organic revenues increased 5.5 to $ 3,004,647. Operating income increased 0.7 to $ 569,704, while operating margin declined to 18.5 % from 19.9 %. Rollins provided no numerical forward guidance. Management's stated near-term focus is optimizing customer acquisition through a more dynamic marketing allocation, including investment in capabilities designed to improve AI- and LLM-driven discovery visibility.
Management, verbatim
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.
Jerry Gahlhoff, Jr., President and Chief Executive Officer
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.
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.
Will Harkins, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Numerical forward revenue, margin, operating expense, tax-rate or other financial guidance was not provided.
- Previous-period outlook was not provided, so comparison with prior guidance is unavailable.
- Quarter-over-quarter comparisons were not provided for the reported metrics.
- A GAAP effective tax rate was not reported.
- Geographic revenue segments were not reported.
- The release did not provide a separate quarterly balance-sheet comparison to the immediately preceding quarter.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Rollins Inc. (NYSE:ROL) is a leading pest control and services company that reports quarterly results via SEC Form 8‑K.
Ticker impact
Rollins Inc. disclosed its Q3 2026 unaudited results, including a 6.2% revenue increase and a 2.9% EPS decline.
likely downward pressure as investors digest lower operating margin and EPS
The report shows decreasing profitability metrics despite revenue growth, which typically leads to short-term sell pressure.
Market effects
Pest control sector may see broader scrutiny of margin trends.
US consumer services investors may reassess exposure to Rollins.
Limited to US-listed consumer services equities.
Counterpoint
Strong cash flow and continued share repurchases could offset margin weakness, supporting a bounce.
Key entities
- ExecutiveJerry Gahlhoff, Jr.
President and CEO of Rollins, provided commentary on performance.
- ExecutiveWill Harkins
Executive Vice President and CFO, discussed cash flow and capital allocation.
