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Why Is Rollins (ROL) Down 5.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Rollins Q4 Earnings Beat Estimates

Rollins reported unimpressive fourth-quarter 2025 results with both earnings and revenues missing the Zacks Consensus Estimate.

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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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