Rollins reported first‑quarter 2026 revenue of $906.4 million, a 10.2% year‑over‑year increase from $823 million in Q1 2025. The growth was driven by 9.3% revenue gains in residential services, 9.6% in commercial pest control, and 13.5% in termite and ancillary services, underscoring strong demand across its core segments.
Operating income rose to $145.5 million, but operating margin slipped to 16.1% from 17.3% a year earlier. The compression was largely due to insurance and claims costs rising to 3.7% of sales from 2.9% in Q1 2025, and a 70‑basis‑point increase in SG&A, including 50 bps from selling investments and 20 bps from insurance and claims.
Net income reached $107.8 million, giving a GAAP earnings per share of $0.22, which missed consensus of $0.23 by $0.01. Adjusted EPS of $0.24 met consensus. The GAAP miss was driven by higher insurance and claims expenses and a shift toward lower‑margin one‑time services during the early winter season.
"Our results for the first quarter reflect our resilient business model and the ongoing focus of our teammates on operational excellence," said CEO Jerry Gahlhoff, Jr. CFO Kenneth Krause added, "In total, we delivered revenue growth of 10.2% year‑over‑year. Organic growth of 6.6% represents 90 basis points of improvement versus Q4 of 2025." He also noted that the company expects 7‑8% organic revenue growth for the year with 2‑3% from M&A, and reported operating cash flow of $118 million and free cash flow of $111 million.
Rollins reiterated its 2026 guidance of 7‑8% organic revenue growth and margin expansion, signaling confidence that current demand and cost management will support the outlook.
Shares were little changed in extended trading on Wednesday, with a slight pre‑market dip of 0.58% but a 2.27% increase prior to the earnings announcement. The muted reaction reflects the balance between a revenue beat and a GAAP EPS miss, as well as margin compression.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.