Rollins, Inc. operates a network of subsidiaries that specialize in delivering pest and wildlife management solutions to a diverse clientele, encompassing both ...
Rollins, Inc. is a leading provider of pest and wildlife control services, operating through a vast network of subsidiaries and franchises. The company offers comprehensive residential pest control, protecting homes from rodents, insects, and other nuisance wildlife. For commercial clients, it provides tailored pest management solutions across sectors such as ...Rollins, Inc. is a leading provider of pest and wildlife control services, operating through a vast network of subsidiaries and franchises. The company offers comprehensive residential pest control, protecting homes from rodents, insects, and other nuisance wildlife. For commercial clients, it provides tailored pest management solutions across sectors such as healthcare, foodservice, and logistics. In addition to standard pest control, Rollins offers termite defense options, including conventional treatments and baiting systems. The company's extensive brand portfolio includes over 60 brands, with Orkin being its flagship subsidiary, along with Critter Control and others. Rollins generates revenue primarily through recurring service contracts, with a strong focus on customer retention and cross-selling opportunities. Financially, the company has demonstrated robust profitability, with a net profit margin of 13.6%, return on equity of 37.2%, and a gross profit margin of 50.7% as of the latest TTM data. It has a market capitalization of approximately $18.2 billion and pays a dividend yield of 1.9%. Rollins employs around 22,000 people worldwide, with operations spanning North America, South America, Europe, Asia, Africa, and Australia. Leadership is headed by CEO Jerry E. Gahlhoff Jr., who has been in the role since 2023, and the company maintains a strong focus on organic growth and strategic acquisitions to expand its market presence. With a commitment to protecting homes, families, and businesses, Rollins continues to solidify its position as a global industry leader in essential pest control services.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.8B
+11.0%
+19.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$526.7M
+12.9%
+33.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+49.4%
-6.2%
-2.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+19.4%
-0.0%
+16.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+14.0%
+1.8%
+12.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$650.0M
+12.1%
+49.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.3%
+1.0%
+25.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
75.5%
+23.7%
+1.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.60x
-12.3%
-2.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Greetings, and welcome to Rollins, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lyndsey Burton, Vice President of Investor Relations. Thank you. Please go ahead.
Lyndsey Burton : Thank you, Donna, and good morning, everyone. In addition to the earnings release that we issued yesterday, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at www.rollins.com. We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation as well as in our earnings release. The company's earnings release discusses the business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially from any statement we make today. Please refer to yesterday's press release and the company's SEC filings, including the Risk Factors section of our Form 10-K for the year ended December 31, 2025. On the line with me today speaking are Jerry Gahlhoff, President and Chief Executive Officer; and Will Harkins, Executive Vice President and Chief Financial Officer. Management will make some opening remarks, and then we'll open the line for your questions. Jerry, would you like to begin?
Jerry Gahlhoff : Thank you, Lyndsey. Good morning, everyone. Our second quarter results did not meet our expectations, driven primarily by slower growth within certain portions of our residential pest control business. The pressure was concentrated in brands such as Orkin that rely more heavily on consumer-initiated demand through search, digital media and inbound calls. The lead environment got progressively worse as we moved through the quarter before showing signs of improvement at the very end of June. Our experience with respect to a slowdown in underlying residential demand was not broad-based across the portfolio, brands that generate customers through relationship-based channels like direct sales, door-to-door models, and relationships with homebuilders delivered organic growth above our targeted 7% to 8% range for the quarter. For example, Home Team experienced double-digit residential growth as did Fox, who leverage their door-to-door sales force to grow in the high teens organically during the quarter. This is a testament to the importance of our diversified multi-brand approach. And beyond residential, our termite and ancillary business delivered solid double-digit growth, while commercial grew high single digits demonstrating that strategic investments we have made in support of these service areas continue to pay off. We spent a great deal of time …