EL7.AI
StocksMedium•21 October 2026•
2 min read

Rollins revenue rises 6.2% in third quarter, misses estimates

Key Facts

1Rollins' third-quarter revenue was about $1.1 billion.
2Net profit fell 3.4% year on year to about $158 million.
3Organic revenue growth was 4.4% year on year.
4Reported operating margin contracted by 140 basis points year on year.
5Cash flow benefited from a $63 million tax refund.

Pest control company Rollins reported revenue of about $1.1 billion in third-quarter results released on 21 October 2026, missing analysts' estimates as earnings fell and residential customer acquisition remained under pressure. The company said revenue grew 6.2% year on year, compared with 7.9% growth in the second quarter. Revenue had been forecast at $1.11 billion, according to the company's earnings table on Investing.com. Net profit was about $158 million, down 3.4% from the same period a year earlier, according to the official statement. Adjusted earnings per share were $0.34, against an estimate of $0.350 reported by Investing.com. Reported operating margin fell to 20.5%, a year-on-year contraction of 140 basis points. The company had also missed second-quarter estimates, reporting earnings per share of $0.320 against $0.340 expected, and revenue of $1.08 billion against estimates of $1.09 billion, according to the website.

Organic revenue growth slowed to 4.4% year on year in the third quarter from 5.7% in the second quarter, according to Rollins data. Organic residential revenue growth was 2.3%, according to the revenue table accompanying the earnings statement. Chief Financial Officer Will Harkins said "residential customer acquisition remained under pressure" during the quarter. Management said it was reallocating marketing resources toward channels with higher returns, including strengthening the company's visibility in search and discovery driven by artificial intelligence and language models. At a JPMorgan investor conference before the earnings release, management had said it did not expect a quick fix to search-related disruption in customer acquisition, according to Investing.com's coverage of the conference. In the conference published in September 2026, management maintained its full-year organic revenue growth forecast at 6%.

On liquidity, operating cash flow was about $242 million in the third quarter, according to the company's statement. Cash flow benefited from the timing of a $63 million tax refund related to its tax credit planning strategy. Rollins spent $120 million on share repurchases during the quarter. The company approved a quarterly cash dividend of $0.20 per share, payable on 10 December 2026 to shareholders of record at the close of business on 10 November 2026. It is scheduled to hold its earnings call on Thursday, 22 October 2026, at 8:30 a.m. U.S. Eastern Time, before the market opens.