What guidance did Rollins's management provide for the next earnings period?

What factors drove the changes in Rollins's revenue and profit?

What is Rollins's gross profit margin?

What does Rollins do and what are its main business segments?

Did Rollins beat or miss consensus estimates last quarter?

What is Rollins's latest dividend and current dividend yield?

What is the market's earnings forecast for Rollins next quarter?

What were the key takeaways from Rollins’s earnings call?

- **Resilient Growth**: 2025 revenue of $3.8 billion with 11% growth, despite Q4 onetime revenue decline of 3% due to weather. Recurring revenue (80% of business) grew 7% organically.
- **Margin Focus**: 2026 gross margin improvement expected from reduced fleet costs, better teammate retention, and 3-4% pricing. Full-year EBITDA margin target 25-30%.
- **M&A Momentum**: 26 tuck-in acquisitions in 2025, Saela contributing $55M revenue. 2026 M&A to add 2-3% growth.
- **Customer-Centric Strategy**: 8% improvement in new teammate retention, The Co-lab leadership program, and 7.6% growth in termite and ancillary services highlight focus on long-term customer relationships.

**【CEO Summary Section】**
- Fiscal 2025 revenue reached $3.8 billion, with double-digit growth in revenue, earnings, and cash flow. Q4 organic growth of 5.7% was impacted by early winter weather, particularly in the Midwest and Northeast, leading to a 3% decline in onetime revenue. Recurring and ancillary services grew 7% organically, driven by strong demand and customer retention. 
- Key initiatives include The Co-lab program for leadership development, improved teammate retention (8% improvement in 2025), and 26 tuck-in acquisitions. Saela acquisition contributed $55 million in revenue and $0.02 EPS accretion year-to-date.
- 2026 outlook: 7-8% organic growth, disciplined M&A (2-3% contribution), and focus on recurring revenue and ancillary services.

**【CFO Financial Commentary】**
- 2025 results: 11% revenue growth, 10.8% adjusted EBITDA growth to $854 million, and free cash flow of $650 million (20% growth excluding one-time tax payment). Q4 GAAP net income was $11 million, with adjusted EPS of $0.25 (8.9% growth).
- Q4 challenges: 3% decline in onetime revenue due to weather, 30bp gross margin decline from fleet costs and lower volume. SG&A as a percentage of revenue increased 50bp due to investments in growth.
- 2026 expectations: 7-8% organic growth, 20%+ free cash flow conversion, and incremental margin improvement through pricing (3-4%), reduced turnover, and fleet optimization.

**【Q&A Highlights】**
- **Organic Growth Sustainability**: Recurring revenue (80% of business) grew 7% in Q4, with ancillary services up 11.9%. Weather-impacted onetime business is transitory, and recurring retention rates remain strong.
- **Margin Improvement**: 2026 gross margin tailwinds include reduced fleet headwinds ($17M 2025 impact), improved teammate retention, and pricing discipline. Full-year EBITDA margin target is 25-30%.
- **M&A Pipeline**: 2026 M&A expected to contribute 2-3% growth, with a robust pipeline of tuck-in and platform opportunities.
- **Weather Impact by Segment**: Commercial fumigation (15% of business) and residential wildlife services were most affected. West and South regions performed near plan despite Q4 challenges.
- **1Q 2026 Outlook**: Slower start due to January weather closures, but confident in 7-8% full-year growth. Ancillary services (20%+ growth) and recurring revenue will drive recovery.

Rollins, Inc. (ROL) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: 12% total, 7.2% organic, driven by double-digit service line growth and Saela outperformance. 
- **Profitability**: 25.2% EBITDA margin, 35.4% incremental margins, 21% net income growth. 
- **Cash Flow**: 31% FCF growth, 120% cash flow conversion, 11% dividend hike. 
- **Strategic Moves**: Saela acquisition 75% of target, commercial sales investments paying off, [Collab] leadership program scaling. 
- **Competitive Edge**: Diversified customer acquisition (door-to-door, cross-sell, digital), 7-8% organic growth target. 
- **Risk Management**: Vehicle gains headwind (~$5M), moderate inflation (~3-4% pricing).

**【CEO Summary Section】**
- Total revenue grew 12% year-over-year (YoY), with 7.2% organic growth, driven by double-digit increases across all service lines (residential, commercial, termite & ancillary). 
- Saela acquisition performed exceptionally, exceeding expectations with year-1 revenue ~75% of target vs. ~65% projected. 
- Commercial division delivered double-digit recurring growth, benefiting from ~$5M in favorable claims adjustments. 
- Launched [Collab] leadership development program, training 2,000+ managers to enhance cross-brand talent mobility and retention. 
- Emphasized balance between organic growth (7-8% target) and M&A (3-4% contribution) for 2025. 

**【CFO Financial Commentary】**
- Adjusted EBITDA margin expanded 120bps to 25.2%, with 35.4% incremental margins (31% ex-claims). 
- GAAP net income rose 21% to $0.34/share, vs. $0.28 prior year. 
- Free cash flow increased 31% to $183M, enabling 11% dividend hike and $35M in Q3 acquisitions. 
- Year-to-date cash flow conversion at 120%, with 44% of FCF allocated to dividends. 
- Tax rate improved 120bps to 24.8%, supporting long-term margin expansion. 
- Fleet-related vehicle gains created ~$5M headwind, expected to moderate in Q4. 

**【Q&A Highlights】**
- **Residential Momentum**: Q3 exit rate strong, with recurring revenue growth ~6%, sustained into early October. 
- **Saela Performance**: 75% of year-1 target vs. 65% projection, driven by balanced customer acquisition (1/3 door-to-door, 2/3 cross-sell/digital). 
- **Commercial Growth**: Double-digit recurring growth (8.3% organic), benefiting from 2024 investments in dedicated sales teams. 
- **Incremental Margins**: 35%+ achievable in Q3, targeting 25-30% for full year. 
- **Competitive Landscape**: Maintain 7-8% organic growth despite PE entrants, leveraging diversified customer acquisition channels. 
- **M&A Pipeline**: 7 deals closed in Q3, targeting 2-3% revenue from acquisitions. 
- **AI Impact**: SEO disruption offset by higher-quality leads, with cross-selling and commercial growth mitigating reliance on digital marketing. 
- **Cost Inflation**: 3-4% pricing strategy offsetting input costs, with stable labor and materials inflation.

Rollins, Inc. (ROL) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 12.1% total revenue growth, 7.3% organic, driven by strong demand and Saela integration.
- **Saela Success**: Double-digit growth and accretive margins from the Saela acquisition.
- **Commercial Strength**: 11.4% growth in commercial pest control, with new leadership to drive further expansion.
- **Cash Flow Excellence**: 21% increase in operating cash flow, 23% in free cash flow, supporting sustainable dividend growth.
- **Margin Challenges**: Legacy auto claims impacted margins, but improving cash flow and retention trends offset headwinds.
- **AI and Growth**: Investments in AI and digital marketing enhance customer engagement, with marketing teams adapting to generative AI trends.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue increased 12.1% year-over-year, with organic growth of 7.3%, driven by strong demand across all service lines.
- **Saela Integration Success**: The Saela acquisition exceeded expectations, contributing double-digit growth and accretive margins.
- **Investments in Growth**: Continued hiring in sales and marketing, with a focus on AI and digital marketing to enhance customer engagement.
- **Commercial Momentum**: Commercial pest control grew 11.4%, with double-digit recurring revenue growth, supported by a new Chief Operating Officer for Commercial Operations.
- **Margin Challenges**: Gross margin of 53.8% was impacted by higher insurance claims and vehicle costs, but operating expenses were leveraged despite investments.

**【CFO Financial Commentary】**
- **Earnings Performance**: GAAP net income of $141 million ($0.29 per share) and adjusted EPS of $0.30, up 11.1% year-over-year.
- **Cash Flow Strength**: Operating cash flow increased 21% to $175 million, with free cash flow up 23% to $168 million.
- **Balance Sheet Health**: Leverage ratio of 0.9x, with $226 million in acquisitions and $79 million in dividends paid, maintaining a sustainable dividend policy.
- **Legacy Claims Impact**: Adjusted $6 million for legacy auto claims, affecting incremental margins but expecting improvement in the second half.

**【Q&A Highlights】**
- **Residential Performance**: Organic growth of 4.9% in residential, with strong June sales despite May's challenging weather. Adjustments to AI-driven marketing improved lead quality and close rates.
- **M&A Strategy**: Valuations remain competitive, with Saela as a model of accretive growth. Pipeline remains healthy, with focus on strategic tuck-in deals.
- **Labor Retention**: Double-digit improvement in short-term retention, reducing hiring needs and enhancing customer service consistency.
- **Commercial Outlook**: Commercial growth expected to continue, with focus on high-margin, high-retention contracts and expanded service offerings.
- **AI and Technology**: Investments in AI for customer service and operations, with marketing teams adapting to generative AI search trends to maintain competitive edge.

Rollins, Inc. (ROL) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 9.9% YoY total, 7.4% organic, driven by North American recovery and Saela acquisition.
- **Profitability**: 51.4% gross margin (highest on record), $140M free cash flow (+17% YoY).
- **Commercial Strength**: Recurring commercial growth near 10%, outpacing expectations.
- **M&A Impact**: Saela to add $45-50M annual revenue, accretive in first full year.
- **Resilience**: 21% EBITDA margin, minimal tariff exposure, strong cash conversion (>100%).

**【CEO Opening Remarks】**
- Q1 2025 revenue grew 9.9% YoY, with organic growth of 7.4% despite one fewer business day. Key drivers include North American market recovery and strategic M&A.
- Acquired Saela Pest Control for $45-50M annual revenue contribution, enhancing multi-brand strategy and geographic reach.
- Commercial pest control revenue rose 10.2% YoY, with recurring commercial growth near 10%, driven by dedicated salesforce and operational efficiency.
- Gross margin improved to 51.4%, highest in recent history, due to pricing strategy and cost control.
- Emphasized recession-resilient business model, with limited exposure to tariffs (fleet costs <5% of income statement).

**【CFO Financial Highlights】**
- GAAP net income: $105M ($0.22/share) vs. $0.19/share YoY; Non-GAAP EPS: $0.22 (+10%).
- Operating cash flow: $147M (+15% YoY); Free cash flow: $140M (+17% YoY).
- EBITDA: $173M (21% margin), up 8.1% YoY.
- Saela acquisition expected to be accretive in first full year, with Q2 2025 revenue contribution of ~$15M.
- Fleet costs represent ~3% of income statement, mitigating tariff risks.

**【Q&A Key Takeaways】**
- **Demand Resilience**: Residential and Termite organic growth moderated due to one fewer day and FX, but Q1 exit trends strong. Commercial growth (+10%) outperformed expectations.
- **M&A Strategy**: Pipeline remains healthy; Saela acquisition adds 3-4% M&A growth vs. prior 2-3% guidance. Focus on accretive, strategically aligned deals.
- **Labor Retention**: Improved first-year technician retention through enhanced onboarding and support, reducing hot hiring needs.
- **Tariff Impact**: Minimal exposure; fleet cost mitigation strategies in place.
- **Termite Growth**: Driven by cross-selling to existing customers, not digital leads, reflecting strong customer relationships.


Rollins (ROL)-24 Apr 25-2025 Q1 Earnings call transcript

- **Record Revenue Growth**: $3.4 billion in 2024 (+10.3% YoY), with Q4 organic growth hitting 8.5%, the highest of the year.
- **Commercial Expansion**: 15% salesforce expansion and new commercial division driving cross-sell opportunities.
- **Strong Cash Flow**: $580 million free cash flow (+17% YoY), enabling $500 million in capital deployment.
- **Investment-Grade Ratings**: BBB+ (Fitch) and BBB (S&P) with leverage at 0.8x, supporting disciplined M&A.
- **2025 Outlook**: 7-8% organic growth, 2-3% M&A contribution, and 30%+ incremental margins.

**【CEO Summary Section】**
- **Revenue Growth**: Full-year revenue reached $3.4 billion, up 10.3% YoY, with organic growth of 7.9% driven by strong demand across all service lines.
- **Commercial Expansion**: Launched a dedicated commercial division within Orkin, growing the sales force by 15% and investing in training to support new hires.
- **M&A Pipeline**: Completed 44 tuck-in acquisitions in 2024, with a robust pipeline for 2025 targeting 2-3% growth contribution.
- **Safety Initiatives**: Introduced enhanced safety training programs and new driver safety protocols, though legacy auto claims remain a challenge.
- **2025 Outlook**: Guided for 7-8% organic growth, with Q4 2024 showing the highest quarterly organic growth rate of the year at 8.5%.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $106 million ($0.22 EPS) and adjusted net income of $109 million ($0.23 EPS), up nearly 10% YoY.
- **Cash Flow**: Operating cash flow of $608 million and free cash flow of $580 million, up 15% and 17% YoY, supporting $500 million in capital deployment.
- **Incremental Margins**: Underlying operations generated 30%+ incremental margins, though Q4 was impacted by $4 million in legacy auto claims and growth investments.
- **Credit Ratings**: Achieved BBB+ (Fitch) and BBB (S&P) investment-grade ratings, with leverage at 0.8x using a conservative definition.
- **2025 Guidance**: Target 7-8% organic growth, 2-3% M&A contribution, and free cash flow conversion above 100%.

**【Q&A Key Highlights】**
- **Residential Growth**: Q4 organic growth of 6.5% driven by rodent infestations and strong lead flow, defying broader economic trends.
- **Sales & Marketing**: Increased expenses reflect investments in people (e.g., commercial salesforce) rather than cost-per-lead inflation; 50bps of admin cost savings reinvested into growth.
- **Auto Claims Impact**: Q4 gross margin and SG&A were each negatively impacted by 20bps due to legacy claims, though safety programs are reducing future risk.
- **Commercial Trends**: Q4 deceleration due to one-time jobs, but 2025 outlook remains strong with cross-selling opportunities.
- **Pricing Strategy**: Aiming for 3-4% price increases in line with CPI, supported by essential service value proposition.
- **M&A Pipeline**: 2-3% contribution from rollover deals, with focus on disciplined, investment-grade-aligned acquisitions.


Actual											0.0867	0.1533	0.16	0.13	0.19	0.2	0.19	0.13	0.15	0.2	0.22	0.17	0.18	0.22	0.26	0.22	0.19	0.27	0.28	0.22	0.22	0.29	0.34	0.24
Forecast											0.089	0.1201	0.157	0.1266	0.1131	0.1767	0.2025	0.145	0.1424	0.204	0.2059	0.1681	0.1696	0.2346	0.2468	0.2106	0.199	0.2648	0.3001	0.2318	0.221	0.3017	0.3281	0.2648
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-2.58%	+27.64%	+1.91%	+2.69%	+67.99%	+13.19%	-6.17%	-10.34%	+5.34%	-1.96%	+6.85%	+1.13%	+6.13%	-6.22%	+5.35%	+4.46%	-4.52%	+1.96%	-6.70%	-5.09%	-0.45%	-3.88%	+3.63%	-9.37%

ROL

ROL fundamentals

ROL Q4 2025 Earnings

Earnings Call

You can ask Aime

ROL

ROL fundamentals

ROL Q4 2025 Earnings

Earnings Call

ROL Earnings Call Summary for Q4/20258:30 AM on Feb 12, 2026

ROL Earnings Call Summary for Q3/20258:30 AM on Oct 30, 2025

ROL Earnings Call Summary for Q2/20258:30 AM on Jul 24, 2025

ROL Earnings Call Summary for Q1/20258:30 AM on Apr 24, 2025

ROL Earnings Call Summary for Q4/20248:30 AM on Feb 13, 2025

You can ask Aime