Rollins 10-Q: Q3 EPS $0.33, Organic Growth Outlook Cut to 4-6%
ROL sits 20% above its 52-week low of $29.285 on elevated volume (2.0× avg).
Summary
Rollins grew Q3 revenue 6.2% to $1.09B, but margin compression pushed EPS to $0.33 and the company cut full-year organic growth guidance to 4%-6%. Strong cash flow funded $140M of buybacks and a dividend hike to $0.20.
Key Events · Earnings and Guidance · ROL
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Q3 Revenue Up 6.2%, Margins Compress
Revenue rose to $1.09B from $1.03B, but operating margin fell 140 bps to 20.5% and EPS slipped to $0.33 from $0.34 on higher insurance, claims and fleet costs.
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Full-Year Organic Growth Guidance Cut
Organic revenue growth outlook was lowered to 4%-6% from at least 6%, with adjusted incremental EBITDA margin now seen at slightly positive to 10%.
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Cash Flow Funds Buybacks and Dividend
Nine-month operating cash flow of $532.7M supported $140.0M of open-market repurchases (none in 2025) and $263.3M of dividends; the quarterly dividend was raised to $0.20 per share.
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Acquisitions Add Growth but Lift Leverage
Romex ($95.7M) and 15 other deals ($86.7M) added 1.8 points of Q3 growth; commercial paper borrowings rose to $239.6M from $114.4M at year-end, with leverage at 1.0x.
Analysis · ROL · Trade & Services
The core problem is plain in Rollins' third quarter: revenue grew 6.2% to $1.09B, yet operating margin fell 140 bps to 20.5% and EPS slipped to $0.33 from $0.34 as insurance and claims costs and fleet/fuel expenses ate the gains. Management cut full-year organic revenue growth to 4%-6% from at least 6% and guided adjusted incremental EBITDA margin to only slightly positive to 10%, citing pressure on residential customer acquisition. Cash is the offset: nine-month operating cash flow of $532.7M funded $140.0M of buybacks (versus none in 2025) and $263.3M of dividends, and the board raised the quarterly dividend to $0.20. Whether the residential slowdown is cyclical or structural is the debate — the 10-Q gives no date for a turnaround, only that marketing is being reallocated toward AI/LLM-driven discovery channels.
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In the 30 days to Oct 22, 2026, 29.3% of the 1526 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.41%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, ROL was trading at $35.26 on NYSE in the Trade & Services sector, with a market capitalization of approximately $17B. The 52-week trading range was $29.29 to $66.14. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.