Rollins二季度业绩增速放缓且管理层称住宅虫害防治需求低于预期

ROLLINS, INC. REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS
99th Consecutive Quarter of Revenue Growth
ATLANTA, July 22, 2026 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the second quarter of 2026.
Key Highlights
- Second quarter revenues were $1.1 billion, an increase of 7.9% over the second quarter of 2025 with organic revenues* increasing 5.7%.
- Quarterly operating income was $201 million, an increase of 1.5% over the second quarter of 2025. Quarterly operating margin was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025. Adjusted operating income* was $210 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 $144 million, an increase of 1.7% over the prior year. Adjusted net income* was $152 million, an increase of 3.4% over the prior year.
- Adjusted EBITDA* was $236 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 $173 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. The Company invested $117 million in acquisitions, $6 million in capital expenditures, and paid dividends totaling $88 million.
*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.
Management Commentary
"Our second quarter results fell short of our expectations due to slower growth in parts of our residential pest control business, specifically brands more reliant on consumer-initiated demand through search, digital media and inbound calls, as lead volume declined in the quarter. Meanwhile, areas of the business that leverage relationship-based channels, such as home builders and door-to-door sales, delivered solid organic 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," said Jerry Gahlhoff, Jr., President and Chief Executive Officer.
"Demand trends softened during the quarter, while our cost structure remained positioned for a stronger growth environment entering peak season. As a result, our margin performance was below our expectations. 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. Despite near-term challenges, our balance sheet remains strong, cash flow generation is healthy, and we have significant flexibility to reinvest in our business through our disciplined and balanced approach to capital allocation," said Will Harkins, Executive Vice President and Chief Financial Officer.
Three and Six Months Ended Financial Highlights
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
Variance |
Variance |
||||||||||||
(unaudited, in thousands, except per |
2026 |
2025 |
$ |
% |
2026 |
2025 |
$ |
% |
|||||
GAAP Metrics |
|||||||||||||
Revenues |
$ 1,078,576 |
$ 999,527 |
$ 79,049 |
7.9 % |
$ 1,985,000 |
$ 1,822,031 |
$ 162,969 |
8.9 % |
|||||
Gross profit (1) |
$ 569,946 |
$ 537,666 |
$ 32,280 |
6.0 % |
$ 1,030,848 |
$ 960,036 |
$ 70,812 |
7.4 % |
|||||
Gross profit margin (1) |
52.8 % |
53.8 % |
(100) bps |
51.9 % |
52.7 % |
(80) bps |
|||||||
Operating income |
$ 201,359 |
$ 198,333 |
$ 3,026 |
1.5 % |
$ 346,845 |
$ 340,981 |
$ 5,864 |
1.7 % |
|||||
Operating margin |
18.7 % |
19.8 % |
(110) bps |
17.5 % |
18.7 % |
(120) bps |
|||||||
Net income |
$ 143,910 |
$ 141,489 |
$ 2,421 |
1.7 % |
$ 251,748 |
$ 246,737 |
$ 5,011 |
2.0 % |
|||||
EPS |
$ 0.30 |
$ 0.29 |
$ 0.01 |
3.4 % |
$ 0.52 |
$ 0.51 |
$ 0.01 |
2.0 % |
|||||
Net cash provided by operating |
$ 172,506 |
$ 175,122 |
$ (2,616) |
(1.5) % |
$ 290,873 |
$ 322,014 |
$ (31,141) |
(9.7) % |
|||||
Non-GAAP Metrics |
|||||||||||||
Adjusted operating income (2) |
$ 209,939 |
$ 205,900 |
$ 4,039 |
2.0 % |
$ 362,732 |
$ 352,769 |
$ 9,963 |
2.8 % |
|||||
Adjusted operating margin (2) |
19.5 % |
20.6 % |
(110) bps |
18.3 % |
19.4 % |
(110) bps |
|||||||
Adjusted net income (2) |
$ 151,927 |
$ 146,902 |
$ 5,025 |
3.4 % |
$ 265,156 |
$ 254,775 |
$ 10,381 |
4.1 % |
|||||
Adjusted EPS (2) |
$ 0.32 |
$ 0.30 |
$ 0.02 |
6.7 % |
$ 0.55 |
$ 0.53 |
$ 0.02 |
3.8 % |
|||||
Adjusted EBITDA (2) |
$ 236,292 |
$ 231,152 |
$ 5,140 |
2.2 % |
$ 415,761 |
$ 403,009 |
$ 12,752 |
3.2 % |
|||||
Adjusted EBITDA margin (2) |
21.9 % |
23.1 % |
(120) bps |
20.9 % |
22.1 % |
(120) bps |
|||||||
Free cash flow (2) |
$ 166,077 |
$ 168,046 |
$ (1,969) |
(1.2) % |
$ 277,305 |
$ 308,157 |
$ (30,852) |
(10.0) % |
(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. |
The following table presents financial information, including our significant expense categories, for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
(unaudited, in thousands) |
2026 |
2025 |
2026 |
2025 |
||||
$ |
% of |
$ |
% of |
$ |
% of |
$ |
% of |
|
Revenue |
$ 1,078,576 |
100.0 % |
$ 999,527 |
100.0 % |
$ 1,985,000 |
100.0 % |
$ 1,822,031 |
100.0 % |
Less: |
||||||||
Cost of services provided (exclusive of |
||||||||
Employee expenses |
328,787 |
30.5 % |
298,354 |
29.8 % |
618,509 |
31.2 % |
560,077 |
30.7 % |
Materials and supplies |
66,339 |
6.2 % |
59,500 |
6.0 % |
119,556 |
6.0 % |
107,991 |
5.9 % |
Insurance and claims |
21,932 |
2.0 % |
20,734 |
2.1 % |
43,079 |
2.2 % |
37,258 |
2.0 % |
Fleet expenses |
46,959 |
4.4 % |
41,834 |
4.2 % |
89,131 |
4.5 % |
78,691 |
4.3 % |
Other cost of services provided (1) |
44,613 |
4.1 % |
41,439 |
4.1 % |
83,877 |
4.2 % |
77,978 |
4.3 % |
Total cost of services provided (exclusive of |
508,630 |
47.2 % |
461,861 |
46.2 % |
954,152 |
48.1 % |
861,995 |
47.3 % |
Sales, general and administrative: |
||||||||
Selling and marketing expenses |
151,967 |
14.1 % |
140,177 |
14.0 % |
263,966 |
13.3 % |
238,428 |
13.1 % |
Administrative employee expenses |
95,733 |
8.9 % |
89,303 |
8.9 % |
185,482 |
9.3 % |
170,783 |
9.4 % |
Insurance and claims |
13,239 |
1.2 % |
12,939 |
1.3 % |
25,822 |
1.3 % |
22,943 |
1.3 % |
Fleet expenses |
11,775 |
1.1 % |
10,443 |
1.0 % |
22,037 |
1.1 % |
19,846 |
1.1 % |
Other sales, general and administrative (2) |
62,263 |
5.8 % |
54,734 |
5.5 % |
120,588 |
6.1 % |
106,109 |
5.8 % |
Total sales, general and administrative |
334,977 |
31.1 % |
307,596 |
30.8 % |
617,895 |
31.1 % |
558,109 |
30.6 % |
Depreciation and amortization |
33,610 |
3.1 % |
31,737 |
3.2 % |
66,108 |
3.3 % |
60,946 |
3.3 % |
Interest expense, net |
9,391 |
0.9 % |
7,380 |
0.7 % |
18,242 |
0.9 % |
13,176 |
0.7 % |
Other (income) expense, net |
2,214 |
0.2 % |
(292) |
— % |
1,751 |
0.1 % |
(984) |
(0.1) % |
Income tax expense |
45,844 |
4.3 % |
49,756 |
5.0 % |
75,104 |
3.8 % |
82,052 |
4.5 % |
Net income |
$ 143,910 |
13.3 % |
$ 141,489 |
14.2 % |
$ 251,748 |
12.7 % |
$ 246,737 |
13.5 % |
1) Other cost of services provided includes facilities costs, professional services, maintenance & repairs, software license costs, and other expenses directly related to prov