Rollins Reports Q3 2026 Results: Revenues Up 6.2% to $1.09B as EPS Dips to $0.33

Rollins, Inc. (NYSE: ROL) Q3 2026 Earnings Overview

Rollins, Inc. filed Form 8-K under Item 2.02 disclosing unaudited financial results for the third quarter ended September 30, 2026.

Key Financial Metrics

• Revenues: $1,089.7 million, up 6.2% compared to $1,026.1 million in Q3 2025. Organic revenues grew 4.4% year-over-year.
• Gross Profit: $582.9 million (+4.3% YoY); gross margin contracted 90 bps to 53.5%.
• Operating Income: $222.9 million, down 1.0% compared to $225.0 million in Q3 2025. Operating margin declined by 140 basis points to 20.5%.
• Adjusted Operating Income: $230.7 million (-0.6% YoY); adjusted operating margin was 21.2% (-140 bps).
• Net Income & EPS: Net income decreased 3.4% to $157.9 million, resulting in diluted EPS of $0.33 (-2.9% YoY). Adjusted net income stood at $163.3 million with Adjusted EPS of $0.34 (-2.9% YoY).
• Adjusted EBITDA: $257 million, down 0.7% YoY with a margin of 23.5% (down 170 bps).

Cash Flow & Capital Allocation

• Operating Cash Flow: $241.9 million (+26.4% YoY), positively impacted by a $63 million timing-related tax refund from tax credit planning strategies.
• Free Cash Flow: $235 million (+28.8% YoY).
• Capital Deployment: $120 million deployed to share repurchases, $87 million in dividend payments, $27 million in acquisitions, and $6 million in capital expenditures.

Management Commentary & Strategic Pivot

• Customer Acquisition Headwinds: CEO Jerry Gahlhoff, Jr. acknowledged disappointing quarterly performance driven by a changing customer acquisition environment, particularly within residential customer channels.
• Marketing Strategy Adjustments: CFO Will Harkins outlined a shift away from traditional digital advertising playbooks toward channels enhancing brand discovery within AI- and large language model (LLM)-driven search interfaces.