10-Q · July 23, 2026
Rollins delivered Q2 revenue growth of 7.9% to $1.079 billion, but both GAAP EPS of $0.30 and adjusted EPS of $0.32 reflected modest growth and margins deteriorated materially year over year. Gross margin declined 100…
Earnings analysis · 10-Q
ROL earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Rollins delivered Q3 revenue of $1.090 billion, up 6.2% year over year but below the $1.110 billion consensus estimate. GAAP EPS was $0.33 and adjusted EPS was $0.34, while operating margin improved sequentially to…
Read full summary
Rollins delivered Q3 revenue of $1.090 billion, up 6.2% year over year but below the $1.110 billion consensus estimate. GAAP EPS was $0.33 and adjusted EPS was $0.34, while operating margin improved sequentially to 20.5% but declined 140 basis points year over year. Free cash flow increased to $235.495 million, aided in part by a $63 million tax-refund timing benefit. The filing provides no quantitative guidance and reports no material changes to the previously disclosed risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.33
- Operating margin
- 20.5%
What stood out
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Revenue grew but missed consensus
Q3 revenue was $1.090 billion, up approximately 0.9% from $1.08 billion in Q2 2026 and 6.2% from $1.03 billion in Q3 2025, but below the $1.110 billion consensus estimate.
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Sequential margin recovery, YoY decline
Operating margin was 20.5%, up 180 basis points from 18.7% in Q2 2026 but down 140 basis points from 21.9% in Q3 2025, indicating sequential recovery but year-over-year pressure.
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EPS broadly in line with estimates
GAAP diluted EPS was $0.33, compared with $0.30 in Q2 2026 and $0.34 in Q3 2025. Adjusted EPS of $0.34 matched the consensus estimate of $0.34.
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Free cash flow surged
Free cash flow was $235.495 million, up from $166 million in Q2 2026 and $183 million in Q3 2025. The prior earnings disclosure attributed part of the year-over-year increase to a $63 million tax-refund timing benefit.
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Romex added modest acquisition growth
Romex Pest Control contributed $10.1 million of revenue and $0.7 million of net earnings in Q3; nine-month contributions were $20.3 million and $1.5 million, respectively.
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Share repurchases remained active
The company repurchased 3,108,591 shares during the quarter at an average price of $38.76 or $37.96 by monthly tranche, leaving authorization for 7.9 million shares at September 30, 2026.
What to watch
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Residential growth and margin pressure
Residential customer acquisition pressure contributed to the year-over-year operating-margin decline to 20.5% from 21.9%, while Q3 revenue of $1.090 billion missed the $1.110 billion consensus estimate.
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Acquisition integration controls
Management excluded Romex from its internal-control assessment while integration continues. Romex contributed $10.1 million of Q3 revenue and $0.7 million of net earnings, creating integration and control-monitoring risk.
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Claims and regulatory uncertainty
The filing states there were no material risk-factor changes from the 2025 Form 10-K, but retained liability claims remain subject to estimation uncertainty; environmental proceedings use a $1.0 million disclosure threshold, and no required environmental disclosure currently exists.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance, nor does it state a change to the prior outlook. No numeric outlook was disclosed in the filing.
Earlier filings 4
10-Q · April 23, 2026
Rollins reported Q1 2026 revenue of $906.4M, up 10.2% year-over-year, with organic revenue growth of 6.6% and acquisitions contributing 3.6%. GAAP EPS was $0.22 (unchanged YoY) while adjusted EPS rose 9.1% to $0.24;…
10-K · February 12, 2026
Rollins reported a record 2025 with revenues of $3.761 billion (up 11.0% vs. 2024) driven by 6.9% organic growth and 4.1% from acquisitions, producing $526.7 million of net income (EPS $1.09) and free cash flow of…
10-Q · October 30, 2025
Rollins reported a strong Q3: revenues rose to $1,026,106,000 (up $109,836,000 vs. Q3 2024) and operating income increased to $225,021,000, driving EPS to $0.34 (vs. $0.28). Operating cash flow remains robust at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.