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Rollins Stock Declines as Q4 Earnings and Revenues Miss Estimates
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Key Takeaways
ROL missed Q4 earnings and revenue estimates despite 9.7% year-over-year sales growth.
ROL saw margin pressure as operating margin fell 30 basis points to 18.3% in the quarter.
ROL generated $159M in free cash flow and its cash balance touched $100M.
Rollins, Inc. (ROL - Free Report) reported unimpressive fourth-quarter 2025 results with both earnings and revenues missing the Zacks Consensus Estimate. The overall underperformance disappointed investors, resulting in the stock declining by double digits in after-hours trading following the earnings release.
ROL’s adjusted earnings per share of 25 cents fell below the consensus mark by 7.4% but rose 8.7% year over year. Total revenues came in at $912.9 million, marginally missing the consensus mark but increasing 9.7% from the year-ago quarter.
The company’s shares, however, have gained 6.4% over the past month, outperforming the industry’s 5.4% rise.
Residential revenues of the pest control company increased 9.7% year over year to $405 million but missed the Zacks Consensus Estimate of $407 million. Commercial revenues rose 8.7% year over year to $304.9 million but lagged the consensus estimate of $312.4 million. Termite and ancillary revenues were $192.9 million, representing an 11.9% year-over-year increase but missing the consensus estimate of $195.5 million.
Adjusted operating income was $167 million, up 8.1% year over year, while adjusted operating margin decreased 30 basis points to 18.3%.
Adjusted EBITDA of $194 million jumped 7% year over year. The adjusted EBITDA margin of 21.2% decreased 60 basis points year over year.
Key Balance Sheet & Cash Flow Figures
Rollins exited the quarter with a cash and cash equivalent balance of $100 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $486.1 million compared with $395.3 million at the end of the fourth quarter of 2024.
The company generated $164.7 million in cash from operating activities in the quarter and the capital expenditure was $5.7 million. Free cash flow came in at $159 million. ROL paid dividends worth $88.5 million in the quarter.
Aptiv Plc (APTV - Free Report) reported better-than-expected fourth-quarter 2025 results. APTV’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 2.2% and increased 6.3% from the year-ago quarter. Revenues of $5.2 billion surpassed the consensus estimate by 1.5% and improved 5% year over year.
Broadridge Financial Solutions, Inc. (BR - Free Report) posted impressive second-quarter fiscal 2026 results. BR’s adjusted earnings of $1.59 per share outpaced the consensus mark by 18.7% and rose 1.9% from the year-ago quarter. Total revenues of $1.7 billion surpassed the consensus mark by 7.6% and increased 7.9% year over year.
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Rollins Stock Declines as Q4 Earnings and Revenues Miss Estimates
Key Takeaways
Rollins, Inc. (ROL - Free Report) reported unimpressive fourth-quarter 2025 results with both earnings and revenues missing the Zacks Consensus Estimate. The overall underperformance disappointed investors, resulting in the stock declining by double digits in after-hours trading following the earnings release.
ROL’s adjusted earnings per share of 25 cents fell below the consensus mark by 7.4% but rose 8.7% year over year. Total revenues came in at $912.9 million, marginally missing the consensus mark but increasing 9.7% from the year-ago quarter.
The company’s shares, however, have gained 6.4% over the past month, outperforming the industry’s 5.4% rise.
Rollins, Inc. Price, Consensus and EPS Surprise
Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote
Quarterly Details of ROL
Residential revenues of the pest control company increased 9.7% year over year to $405 million but missed the Zacks Consensus Estimate of $407 million. Commercial revenues rose 8.7% year over year to $304.9 million but lagged the consensus estimate of $312.4 million. Termite and ancillary revenues were $192.9 million, representing an 11.9% year-over-year increase but missing the consensus estimate of $195.5 million.
Adjusted operating income was $167 million, up 8.1% year over year, while adjusted operating margin decreased 30 basis points to 18.3%.
Adjusted EBITDA of $194 million jumped 7% year over year. The adjusted EBITDA margin of 21.2% decreased 60 basis points year over year.
Key Balance Sheet & Cash Flow Figures
Rollins exited the quarter with a cash and cash equivalent balance of $100 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $486.1 million compared with $395.3 million at the end of the fourth quarter of 2024.
The company generated $164.7 million in cash from operating activities in the quarter and the capital expenditure was $5.7 million. Free cash flow came in at $159 million. ROL paid dividends worth $88.5 million in the quarter.
Rollins currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Aptiv Plc (APTV - Free Report) reported better-than-expected fourth-quarter 2025 results. APTV’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 2.2% and increased 6.3% from the year-ago quarter. Revenues of $5.2 billion surpassed the consensus estimate by 1.5% and improved 5% year over year.
Broadridge Financial Solutions, Inc. (BR - Free Report) posted impressive second-quarter fiscal 2026 results. BR’s adjusted earnings of $1.59 per share outpaced the consensus mark by 18.7% and rose 1.9% from the year-ago quarter. Total revenues of $1.7 billion surpassed the consensus mark by 7.6% and increased 7.9% year over year.