Rollins (ROL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 7.9% year-over-year to $1.1 billion, with organic growth of 5.7% and acquisition-driven growth of 2.2%.

• Adjusted EPS increased 6.7% to $0.32; net income rose 1.7% to $144 million; adjusted net income up 3.4%.

• Relationship-based channels (commercial, door-to-door) outperformed, while consumer-initiated demand lagged but showed improvement late in the quarter.

• Organizational and operational changes were implemented to improve execution and align resources, including new leadership appointments.

• Free cash flow was $166.1 million, down 1.2% due to timing of tax payments, but conversion remained strong at 115%.

Financial highlights

• Total revenue increased 7.9% year-over-year to $1.1 billion; organic growth was 5.7%.

• Residential revenues rose 6.6%, commercial pest control 8.6%, and termite/ancillary 10.5%.

• Gross margin was 52.8%, down 100 basis points due to higher employee, medical, and fuel costs.

• Adjusted EBITDA reached $236 million (+2.2% YoY), with a 21.9% margin (down 120 bps YoY).

• Free cash flow conversion was 115% for the quarter.

Outlook and guidance

• Full-year 2026 outlook: at least 6% organic revenue growth, 2–3% inorganic growth, and free cash flow conversion above 100%.

• Medium-term targets: 7–8% organic growth, 2–3% M&A-driven growth, and adjusted incremental EBITDA margin of 30–35%.

• Management remains confident in achieving long-term financial targets and is focused on improving customer acquisition and operational execution.