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Rollins Q2 Earnings Beat Estimates and Increase Year Over Year

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Key Takeaways

  • ROL reported Q2 EPS of $0.30, up 11% YoY and 3.5% above consensus, revenues rose 12.1% to $999.5M.
  • Commercial and termite revenues grew 11.4% and 13.9%, offsetting softer residential performance.
  • Adjusted EBITDA rose 10% to $231M, though margin dipped 50 bps to 23.1% amid rising costs.

Rollins, Inc. (ROL - Free Report) reported better-than-expected second-quarter 2025 results.

Adjusted earnings of 30 cents per share beat the consensus estimate by 3.5% and increased 11% year over year. Revenues of $999.5 million topped the consensus mark by 2.1% and improved 12.1% year over year. Organic revenues of $956.9 million rose 7.3% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Rollins shares have risen 23.5% in the past year, underperforming the 24.4% growth of the industry.

ROL’s Second-Quarter Details

Residential revenues increased 4.9% year over year to $428.5 million but missed our estimate of $431.6 million. Commercial revenues rose 11.4% year over year to $320.5 million and surpassed our estimate of $310.3 million. Termite and ancillary revenues increased 13.9% year over year to $211.9 million and beat our estimate of $211.6 million.

Adjusted EBITDA of $231 million jumped 10% year over year. This compares to our expectation of adjusted EBITDA of $227.5 million. The adjusted EBITDA margin of 23.1% decreased 50 basis points (bps) year over year compared to our expectation of an adjusted EBITDA margin of 23.6%.

Rollins exited the quarter with a cash and cash equivalent balance of $123.04 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $485.3 million compared with $395.3 million at the end of the fourth quarter of 2024.

The company generated $175.22 million in cash from operating activities in the quarter, and the capital expenditure was $7.08 million. Free cash flow came in at $168.01 million. ROL paid dividends worth $79 million in the quarter.

Currently, Rollins carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, and revenues missed the same.

FI’s adjusted earnings per share of $2.47 beat the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.


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