ROL · Rollins, Inc.

Rollins, Inc. delivered first quarter 2026 results reflecting a resilient business model amid seasonal demand acceleration, particularly in March with approximately 12% total revenue growth and over 8% organic growth. Revenues grew 10.2% to $906 million, supported by 6.6% organic contribution, while gross profit margin dipped 60 basis points to 50.8% due to higher employee expenses (32.0% of revenue vs. 31.8%) and insurance/claims (2.3% vs. 2.0%). Operating income rose modestly 2.0% to $145 million, with margin contracting 120 basis points to 16.1%, pressured by insurance costs, people deleverage, and early-quarter volume softness; adjusted operating margin was 16.9% (-100 bps). Net income increased 2.5% to $108 million, with adjusted EPS up 9.1% to $0.24. Management highlighted operational excellence, strategic M&A including the Romex acquisition, and peak season readiness with strong staffing. CFO Kenneth Krause noted margin headwinds from insurance and claims but anticipates profitability improvement. Cash flow was impacted negatively by $40 million in tax payment timing and $9 million from semi-annual interest on 2035 notes, resulting in operating cash flow of $118 million (-19.4%). Capital allocation included $18 million in acquisitions, $7 million capex, and $88 million dividends. Balance sheet remains solid with cash at $117 million and total debt around $651 million. No explicit numerical guidance provided, but forward-looking commentary signals continued growth and margin expansion potential.