ROLLINS INC is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: Rollins (ROL) delivered 7.9% revenue growth to $1.1B in Q2 FY2026, but operating-margin compression and softer consumer-initiated residential demand limited operating-income growth to 1.5%. Source: 10-Q Item 2 MD&A, pp.25-29.
Drawn from management commentary in the Q2 2026 10-Q:
Q2 FY2026 revenue increased $79.0M, or 7.9%, to $1.1B; organic revenue grew 5.7% and acquisitions contributed 2.2%. Residential revenue grew 6.6%, commercial revenue grew 8.6%, and termite and ancillary revenue grew 10.5%; foreign operations represented approximately 7% of quarterly revenue.
Gross margin declined 100 basis points year over year to 52.8%, primarily reflecting higher employee expenses, materials and supplies, and fleet costs. Operating margin fell 110 basis points to 18.7%, while SG&A rose 8.9% to $335.0M and increased to 31.1% of revenue from 30.8%.
Management said results fell short of expectations because parts of the residential service offering experienced slower growth from lower lead volume, particularly brands dependent on search, digital media, and inbound calls. Relationship-based channels, including home builders and door-to-door sales, delivered solid organic growth; management said lead volume improved toward the end of June and into early July.
Revenue
$1.08B
++7.91% YoY
EPS (Basic)
$0.30
++3.45% YoY
Operating Income
$201.36M
++1.53% YoY
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