Rollins says it is 'disappointed' as profit dips and residential pest-control sign-ups lag

Rollins grew revenue in the third quarter but told investors it was "disappointed" with the results, as weaker residential customer sign-ups squeezed the pest-control company's margins.

Revenue rose 6.2% to $1.1 billion, with organic revenue up 4.4%, according to the earnings release Rollins filed with an 8-K on Wednesday. But net income fell 3.4% to $158 million, and diluted EPS slipped 2.9% to 33 cents. Adjusted EPS, a non-GAAP measure, was 34 cents, also down 2.9%.

Operating margin narrowed by 1.4 percentage points to 20.5%, and adjusted EBITDA margin fell 1.7 points to 23.5%.

Changing the playbook

"We are disappointed with our third quarter performance and are acting with urgency to address the challenges impacting our results," President and CEO Jerry Gahlhoff Jr. said in the release.

He said residential customer acquisition "remained under pressure" and that Rollins is reallocating resources from the traditional digital playbook to the channels producing the highest returns, including those that strengthen its visibility in AI- and LLM-driven discovery. He noted the company has posted 100 consecutive quarters of revenue growth.

Cash flow

Operating cash flow rose 26.4% to $242 million, and free cash flow rose 28.8% to $235 million, helped by a $63 million tax refund timing benefit. Rollins spent $120 million on share repurchases, paid $87 million in dividends and invested $27 million in acquisitions in the quarter.

By the numbers

• Revenue: $1.1 billion, up 6.2%
• Organic revenue growth: 4.4%
• Net income: $158 million, down 3.4%
• EPS: $0.33, down 2.9%
• Operating margin: 20.5%, down 1.4 points
• Q3 buybacks: $120 million

Sources

1. Rollins, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0000084839-26-000042

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