Rollins Stock Declines as Q4 Earnings and Revenues Miss Estimates

Rollins, Inc. ROL reported unimpressive fourth-quarter 2025 results with both earnings and revenues missing the Zacks Consensus Estimate. The overall underperformance disappointed investors, resulting in the stock declining by double digits in after-hours trading following the earnings release.

ROL’s adjusted earnings per share of 25 cents fell below the consensus mark by 7.4% but rose 8.7% year over year. Total revenues came in at $912.9 million, marginally missing the consensus mark but increasing 9.7% from the year-ago quarter.

The company’s shares, however, have gained 6.4% over the past month, outperforming the industry’s 5.4% rise.

Quarterly Details of ROL

Residential revenues of the pest control company increased 9.7% year over year to $405 million but missed the Zacks Consensus Estimate of $407 million. Commercial revenues rose 8.7% year over year to $304.9 million but lagged the consensus estimate of $312.4 million. Termite and ancillary revenues were $192.9 million, representing an 11.9% year-over-year increase but missing the consensus estimate of $195.5 million.

Adjusted operating income was $167 million, up 8.1% year over year, while adjusted operating margin decreased 30 basis points to 18.3%.

Adjusted EBITDA of $194 million jumped 7% year over year. The adjusted EBITDA margin of 21.2% decreased 60 basis points year over year.

Key Balance Sheet & Cash Flow Figures

Rollins exited the quarter with a cash and cash equivalent balance of $100 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $486.1 million compared with $395.3 million at the end of the fourth quarter of 2024.

The company generated $164.7 million in cash from operating activities in the quarter and the capital expenditure was $5.7 million. Free cash flow came in at $159 million. ROL paid dividends worth $88.5 million in the quarter.

Rollins currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Recent Earnings Snapshots

Aptiv Plc APTV reported better-than-expected fourth-quarter 2025 results. APTV’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 2.2% and increased 6.3% from the year-ago quarter. Revenues of $5.2 billion surpassed the consensus estimate by 1.5% and improved 5% year over year.

Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2026 results. BR’s adjusted earnings of $1.59 per share outpaced the consensus mark by 18.7% and rose 1.9% from the year-ago quarter. Total revenues of $1.7 billion surpassed the consensus mark by 7.6% and increased 7.9% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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