Rollins, Inc. reported unaudited financial results for the third quarter ended September 30, 2026. The company reported quarterly revenues of $1.09 billion, representing a 6.2% increase compared to the same period in 2025. Organic revenues increased by 4.4% over the prior year.
Despite the top-line growth, the company reported a decrease in profitability metrics. Quarterly operating income was $222.9 million, a decline of 1.0% year-over-year. This resulted in an operating margin of 20.5%, a decrease of 140 basis points. Adjusted operating income was $230.7 million, with an adjusted operating margin of 21.2%. Net income for the quarter was $157.9 million, a decrease of 3.4%, while adjusted net income was $163.3 million.
On a per-share basis, diluted earnings per share (EPS) were $0.33, down 2.9% from the prior year. Adjusted EPS was $0.34. Adjusted EBITDA for the quarter was $256.6 million, with a margin of 23.5%, a decrease of 170 basis points.
Rollins noted that operating cash flow increased by 26.4% to $241.9 million, while free cash flow rose by 28.8% to $235.5 million. The company attributed the cash flow improvement to a $63 million tax refund related to its tax credit planning strategy.
Regarding capital allocation, Rollins invested $27 million in acquisitions, $6 million in capital expenditures, and authorized $120 million in share repurchases during the quarter. Dividends paid totaled $87 million.
Management commented that the company is disappointed with the third quarter performance and is acting with urgency to address challenges in customer acquisition. The company noted that residential customer acquisition remained under pressure and is responding by reallocating marketing resources to channels that offer the highest returns, including those that improve visibility in AI- and LLM-driven discovery. The company emphasized its record of 100 consecutive quarters of revenue growth.
