A month has gone by since the last earnings report for Rollins (ROL). Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rollins due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Rollins, Inc. before we dive into how investors and analysts have reacted as of late.
Rollins Q3 Earnings Beat Estimates
Rollins reported impressive third-quarter 2025 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of 35 cents per share beat the consensus estimate by 9.4% and increased 20.7% year over year. Revenues of $1 billion beat the consensus mark by a slight margin and improved 12% year over year. Organic revenues of $982.1 million increased 7.2% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.
ROL's Third-Quarter Details
Residential revenues increased 11.2% year over year to $476.3 million and beat our estimate of $466.8 million. Commercial revenues increased 11.8% year over year to $335 million and surpassed our estimate of $326.2 million. Termite and ancillary revenues increased 15.2% year over year to $204.7 million but missed our estimate of $207.7 million.
Adjusted EBITDA of $258.3 million increased 17.7% year over year. This compares to our expectation of an adjusted EBITDA of $247.7 million. Adjusted EBITDA margin of 25.2% increased 120 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 24.4%.
Rollins exited the quarter with a cash and cash equivalents balance of $127.4 million compared with the prior quarter’s $123 million. Long-term debt at the end of the quarter was $485.7 million compared with $485.3 million at the end of the prior quarter.
The company generated $175.1 million in cash from operating activities in the quarter, and capital expenditure was $7.1 million. Free cash flow came in at $168 million. The company paid dividends worth $79 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Rollins has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Rollins has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Rollins, Inc. (ROL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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