Double-Digit Income Expansion Drives 20%+ EPS Expansion and 30%+ Money Wave Expansion
ATLANTA, Oct. 29, 2025 /PRNewswire/ — Rollins, Inc. (NYSE:ROL) (“Rollins” or the “Company”), a premier world shopper and industrial products and services corporate, reported unaudited monetary effects for the 3rd quarter of 2025.
Key Highlights
- 3rd quarter revenues had been $1 billion, an building up of 12.0% over the 3rd quarter of 2024 with natural revenues* expanding 7.2%.
- Quarterly working source of revenue was once $225 million, an building up of 17.3% over the 3rd quarter of 2024. Quarterly working margin was once 21.9%, an building up of 100 foundation issues in comparison to the 3rd quarter of 2024. Adjusted working source of revenue* was once $232 million, an building up of 18.4% over the prior occasion. Adjusted working margin* was once 22.6%, an building up of 120 foundation issues in comparison to the prior occasion.
- Adjusted EBITDA* was once $258 million, an building up of 17.7% over the prior occasion. Adjusted EBITDA margin* was once 25.2%, an building up of 120 foundation issues as opposed to the 3rd quarter of 2024.
- Quarterly internet source of revenue was once $164 million, an building up of nineteen.4% over the prior occasion. Adjusted internet source of revenue* was once $169 million, an building up of 20.7% over the prior occasion.
- Quarterly EPS was once $0.34 in step with diluted proportion, a 21.4% building up over the prior occasion EPS of $0.28. Adjusted EPS* was once $0.35 in step with diluted proportion, an building up of 20.7% over the prior occasion.
- Running money stream was once $191 million for the quarter, an building up of 30.2% in comparison to the prior occasion. The Corporate invested $35 million in acquisitions, $9 million in capital expenditures, and paid dividends totaling $80 million.
*Quantities are non-GAAP monetary measures. See the schedules beneath for a dialogue of non-GAAP monetary metrics together with a reconciliation to essentially the most at once similar GAAP measure.
Control Statement
“We delivered a strong third quarter with record revenue and an improving margin profile, a reflection of an ongoing commitment to execution by our teammates,” mentioned Jerry Gahlhoff, Jr., President and CEO. “As we look to close out 2025, we remain well-positioned for continued growth, both organically and through acquisitions, and are focused on continuous improvement initiatives to enhance profitability throughout our business,” Mr. Gahlhoff added.
“Double-digit revenue growth drove exceptional earnings and cash flow results in the quarter,” mentioned Kenneth Krause, Government Vice President and CFO. “Adjusted EBITDA margins improved 120 basis points, associated with leverage across the income statement. Additionally, we continue to execute a balanced capital allocation program enabled by compounding cash flow, a strong balance sheet, and access to investment grade credit markets,” Mr. Krause concluded.
3 and 9 Months Ended Monetary Highlights
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
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| |
|
|
|
|
Variance |
|
|
|
|
|
Variance |
||
|
(unaudited, in 1000’s, aside from in step with |
2025 |
|
2024 |
|
$ |
% |
|
2025 |
|
2024 |
|
$ |
% |
|
GAAP Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ 1,026,106 |
|
$ 916,270 |
|
$ 109,836 |
12.0 % |
|
$ 2,848,137 |
|
$ 2,556,539 |
|
$ 291,598 |
11.4 % |
|
Improper benefit (1) |
$ 558,656 |
|
$ 494,378 |
|
$ 64,278 |
13.0 % |
|
$ 1,518,692 |
|
$ 1,358,804 |
|
$ 159,888 |
11.8 % |
|
Improper benefit margin (1) |
54.4 % |
|
54.0 % |
|
|
40 bps |
|
53.3 % |
|
53.2 % |
|
|
10 bps |
|
Running source of revenue |
$ 225,021 |
|
$ 191,796 |
|
$ 33,225 |
17.3 % |
|
$ 566,002 |
|
$ 506,597 |
|
$ 59,405 |
11.7 % |
|
Running margin |
21.9 % |
|
20.9 % |
|
|
100 bps |
|
19.9 % |
|
19.8 % |
|
|
10 bps |
|
Web source of revenue |
$ 163,527 |
|
$ 136,913 |
|
$ 26,614 |
19.4 % |
|
$ 410,264 |
|
$ 360,704 |
|
$ 49,560 |
13.7 % |
|
EPS |
$ 0.34 |
|
$ 0.28 |
|
$ 0.06 |
21.4 % |
|
$ 0.85 |
|
$ 0.74 |
|
$ 0.11 |
14.9 % |
|
Web money supplied via working actions |
$ 191,349 |
|
$ 146,947 |
|
$ 44,402 |
30.2 % |
|
$ 513,363 |
|
$ 419,495 |
|
$ 93,868 |
22.4 % |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted working source of revenue (2) |
$ 232,057 |
|
$ 196,012 |
|
$ 36,045 |
18.4 % |
|
$ 584,826 |
|
$ 520,286 |
|
$ 64,540 |
12.4 % |
|
Adjusted working margin (2) |
22.6 % |
|
21.4 % |
|
|
120 bps |
|
20.5 % |
|
20.4 % |
|
|
10 bps |
|
Adjusted internet source of revenue (2) |
$ 168,501 |
|
$ 139,617 |
|
$ 28,884 |
20.7 % |
|
$ 423,277 |
|
$ 370,194 |
|
$ 53,083 |
14.3 % |
|
Adjusted EPS (2) |
$ 0.35 |
|
$ 0.29 |
|
$ 0.06 |
20.7 % |
|
$ 0.87 |
|
$ 0.76 |
|
$ 0.11 |
14.5 % |
|
Adjusted EBITDA (2) |
$ 258,334 |
|
$ 219,460 |
|
$ 38,874 |
17.7 % |
|
$ 661,343 |
|
$ 590,331 |
|
$ 71,012 |
12.0 % |
|
Adjusted EBITDA margin (2) |
25.2 % |
|
24.0 % |
|
|
120 bps |
|
23.2 % |
|
23.1 % |
|
|
10 bps |
|
Independent money stream (2) |
$ 182,846 |
|
$ 139,425 |
|
$ 43,421 |
31.1 % |
|
$ 491,003 |
|
$ 396,106 |
|
$ 94,897 |
24.0 % |
| |
|
(1) Unique of depreciation and amortization |
|
(2) Quantities are non-GAAP monetary measures. See the appendix to this let fall for a dialogue of non-GAAP monetary metrics together with a reconciliation to essentially the most at once similar GAAP measure. |
Please see desk gifts monetary knowledge, together with our important expense divisions, for the 3 and 9 months ended September 30, 2025 and 2024:
| |
3 Months Ended September 30, |
9 Months Ended September 30, |
||||||
|
(unaudited, in 1000’s) |
2025 |
2024 |
2025 |
2024 |
||||
| |
$ |
% of Income |
$ |
% of Income |
$ |
% of Income |
$ |
% of Income |
|
Income |
$ 1,026,106 |
100.0 % |
$ 916,270 |
100.0 % |
$ 2,848,137 |
100.0 % |
$ 2,556,539 |
100.0 % |
| |
|
|
|
|
|
|
|
|
|
Much less: |
|
|
|
|
|
|
|
|
|
Value of products and services supplied (unique of |
|
|
|
|
|
|
|
|
|
Worker bills |
312,249 |
30.4 % |
278,296 |
30.4 % |
872,326 |
30.6 % |
784,868 |
30.7 % |
|
Fabrics and provides |
62,933 |
6.1 % |
56,675 |
6.2 % |
170,924 |
6.0 % |
158,502 |
6.2 % |
|
Insurance coverage and claims |
11,127 |
1.1 % |
16,649 |
1.8 % |
48,385 |
1.7 % |
49,327 |
1.9 % |
|
Fleet bills |
38,997 |
3.8 % |
33,650 |
3.7 % |
117,688 |
4.1 % |
99,000 |
3.9 % |
|
Alternative price of products and services supplied (1) |
42,144 |
4.1 % |
36,622 |
4.0 % |
120,122 |
4.2 % |
106,038 |
4.1 % |
|
Overall price of products and services supplied (unique of |
467,450 |
45.6 % |
421,892 |
46.0 % |
1,329,445 |
46.7 % |
1,197,735 |
46.8 % |
| |
|
|
|
|
|
|
|
|
|
Gross sales, normal and administrative: |
|
|
|
|
|
|
|
|
|
Promoting and advertising bills |
138,881 |
13.5 % |
124,388 |
13.6 % |
377,309 |
13.2 % |
332,749 |
13.0 % |
|
Administrative worker bills |
88,601 |
8.6 % |
79,507 |
8.7 % |
259,384 |
9.1 % |
234,701 |
9.2 % |
|
Insurance coverage and claims |
6,929 |
0.7 % |
10,045 |
1.1 % |
29,872 |
1.0 % |
29,659 |
1.2 % |
|
Fleet bills |
9,502 |
0.9 % |
8,297 |
0.9 % |
29,348 |
1.0 % |
25,257 |
1.0 % |
|
Alternative gross sales, normal and administrative (2) |
57,491 |
5.6 % |
52,681 |
5.7 % |
163,600 |
5.7 % |
147,156 |
5.8 % |
|
Overall gross sales, normal and administrative |
301,404 |
29.4 % |
274,918 |
30.0 % |
859,513 |
30.2 % |
769,522 |
30.1 % |
| |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
32,231 |
3.1 % |
27,664 |
3.0 % |
93,177 |
3.3 % |
82,685 |
3.2 % |
|
Pastime expense, internet |
7,942 |
0.8 % |
7,150 |
0.8 % |
21,118 |
0.7 % |
22,650 |
0.9 % |
|
Alternative (source of revenue) expense, internet |
(350) |
— % |
(582) |
(0.1) % |
(1,334) |
— % |
(933) |
— % |
|
Source of revenue tax expense |
53,902 |
5.3 % |
48,315 |
5.3 % |
135,954 |
4.8 % |
124,176 |
4.9 % |
|
Web source of revenue |
$ 163,527 |
15.9 % |
$ 136,913 |
14.9 % |
$ 410,264 |
14.4 % |
$ 360,704 |
14.1 % |
| |
|
1) Alternative price of products and services supplied comprises amenities prices, skilled products and services, upkeep & upkeep, instrument license prices, and alternative bills at once linked to offering products and services. |
|
2) Alternative gross sales, normal and administrative comprises amenities prices, skilled products and services, upkeep & upkeep, instrument license prices, wicked debt expense, and alternative administrative bills. |
About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier world shopper and industrial products and services corporate. Via its community of important manufacturers, the Corporate and its franchises lend very important pest regulate products and services and coverage in opposition to termite injury, rodents, and bugs to greater than 2.8 million shoppers in North The usa, South The usa, Europe, Asia, Africa, and Australia, with greater than 20,000 workers from greater than 800 places. Rollins is father or mother to Aardwolf Pestkare, Clark Pest Keep an eye on, Crane Pest Keep an eye on, Critter Keep an eye on, Fox Pest Keep an eye on, HomeTeam Pest Protection, Commercial Fumigant Corporate, McCall Provider, MissQuito, Northwest Exterminating, OPC Pest Services and products, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Ensure, Saela Pest Keep an eye on, Trutech, Waltham Services and products, Western Pest Services and products, and extra. You’ll be told extra about Rollins and its subsidiaries via visiting www.rollins.com.
Cautionary Observation Referring to Ahead-Taking a look Statements
This press let fall in addition to alternative written or oral statements via the Corporate would possibly include “forward-looking statements” as outlined within the Non-public Securities Litigation Reform Occupation of 1995. We’ve got founded those forward-looking statements on our flow reviews, expectancies, intentions, ideals, plans, targets, suppositions and projections about era occasions and monetary tendencies affecting the working effects and monetary situation of our industry. Even if we imagine that those forward-looking statements are affordable, we can’t ensure you that we will be able to reach or notice those plans, intentions, or expectancies. Usually, statements that don’t relate to historic details, together with statements regarding conceivable or assumed era movements, industry methods, occasions or result of operations, are forward-looking statements. The phrases “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “should,” “will,” “would,” and homogeneous expressions would possibly determine forward-looking statements, however the absence of those phrases does now not ruthless {that a} remark isn’t forward-looking. Ahead-looking statements on this press let fall come with, however aren’t restricted to, statements relating to: expectancies with recognize to our monetary and industry efficiency; an ongoing loyalty to execution via our teammates; residue well-positioned for persevered expansion, each organically and thru acquisitions; concerned about steady development tasks to strengthen profitability all over our industry; and a balanced capital allocation program enabled via compounding money stream, a powerful steadiness sheet, and get admission to to funding grade credit score markets.
Those forward-looking statements are in response to knowledge to be had as of the age of this press let fall, and flow expectancies, forecasts, and suppositions, and contain a lot of judgments, dangers and uncertainties. Remarkable elements may reason original effects to vary materially from the ones indicated or implied via forward-looking statements together with, however now not restricted to, the ones poised forth within the divisions entitled “Risk Factors” in our Annual Record on Method 10-Okay for the fiscal occasion ended December 31, 2024 and can also be described from while to while in our era studies filed with the SEC.
Accordingly, forward-looking statements must now not be relied upon as representing our perspectives as of any next age, and we don’t adopt any legal responsibility to replace forward-looking statements to mirror occasions or cases later the age they had been made, whether or not on account of unused knowledge, era occasions or in a different way, aside from as could also be required via regulation.
Convention Name
Rollins will host a convention name on Thursday, October 30, 2025 at 8:30 a.m. Jap Presen to speak about the 3rd quarter 2025 effects. The convention name may also broadcast are living over the web by the use of a hyperlink supplied at the Rollins, Inc. website online at www.rollins.com. events too can dial into the decision at 1-877-869-3839 (home) or +1-201-689-8265 (the world over) with convention ID of 13755878. For folks not able to tied the decision, a replay will probably be to be had at the website online for 180 days.
|
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in 1000’s) (unaudited)
|
|||
| |
September 30, |
|
December 31, |
|
ASSETS |
|
|
|
|
Money and money equivalents |
$ 127,357 |
|
$ 89,630 |
|
Business receivables, internet |
236,570 |
|
196,081 |
|
Financed receivables, non permanent, internet |
46,202 |
|
40,301 |
|
Fabrics and provides |
43,482 |
|
39,531 |
|
Alternative flow belongings |
97,099 |
|
77,080 |
|
Overall flow belongings |
550,710 |
|
442,623 |
|
Apparatus and detail, internet |
128,662 |
|
124,839 |
|
Esteem |
1,358,242 |
|
1,161,085 |
|
Intangibles, internet |
598,191 |
|
541,589 |
|
Running rent right-of-use belongings |
423,069 |
|
414,474 |
|
Financed receivables, long-term, internet |
104,902 |
|
89,932 |
|
Alternative belongings |
55,884 |
|
45,153 |
|
Overall belongings |
$ 3,219,660 |
|
$ 2,819,695 |
|
LIABILITIES |
|
|
|
|
Trim-term debt |
$ — |
|
$ — |
|
Accounts payable |
54,956 |
|
49,625 |
|
Accumulated insurance coverage – flow |
40,412 |
|
54,840 |
|
Accumulated repayment and linked liabilities |
126,892 |
|
122,869 |
|
Unearned revenues |
200,215 |
|
180,851 |
|
Running rent liabilities – flow |
134,242 |
|
121,319 |
|
Alternative flow liabilities |
156,127 |
|
115,658 |
|
Overall flow liabilities |
712,844 |
|
645,162 |
|
Accumulated insurance coverage, much less flow portion |
77,552 |
|
61,946 |
|
Running rent liabilities, much less flow portion |
292,181 |
|
295,899 |
|
Lengthy-term debt |
485,659 |
|
395,310 |
|
Alternative long-term gathered liabilities |
119,376 |
|
90,785 |
|
Overall liabilities |
1,687,612 |
|
1,489,102 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
Usual inventory |
484,628 |
|
484,372 |
|
Retained profits and alternative fairness |
1,047,420 |
|
846,221 |
|
Overall stockholders’ fairness |
1,532,048 |
|
1,330,593 |
|
Overall liabilities and stockholders’ fairness |
$ 3,219,660 |
|
$ 2,819,695 |
|
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in 1000’s aside from in step with proportion knowledge) (unaudited)
|
|||||||
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
||||
| |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
REVENUES |
|
|
|
|
|
|
|
|
Buyer products and services |
$ 1,026,106 |
|
$ 916,270 |
|
$ 2,848,137 |
|
$ 2,556,539 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
Value of products and services supplied (unique of depreciation and amortization beneath) |
467,450 |
|
421,892 |
|
1,329,445 |
|
1,197,735 |
|
Gross sales, normal and administrative |
301,404 |
|
274,918 |
|
859,513 |
|
769,522 |
|
Depreciation and amortization |
32,231 |
|
27,664 |
|
93,177 |
|
82,685 |
|
Overall working bills |
801,085 |
|
724,474 |
|
2,282,135 |
|
2,049,942 |
|
OPERATING INCOME |
225,021 |
|
191,796 |
|
566,002 |
|
506,597 |
|
Pastime expense, internet |
7,942 |
|
7,150 |
|
21,118 |
|
22,650 |
|
Alternative (source of revenue) expense, internet |
(350) |
|
(582) |
|
(1,334) |
|
(933) |
|
CONSOLIDATED INCOME BEFORE INCOME TAXES |
217,429 |
|
185,228 |
|
546,218 |
|
484,880 |
|
PROVISION FOR INCOME TAXES |
53,902 |
|
48,315 |
|
135,954 |
|
124,176 |
|
NET INCOME |
$ 163,527 |
|
$ 136,913 |
|
$ 410,264 |
|
$ 360,704 |
|
NET INCOME PER SHARE – BASIC AND DILUTED |
$ 0.34 |
|
$ 0.28 |
|
$ 0.85 |
|
$ 0.74 |
|
Weighted reasonable stocks remarkable – ordinary |
484,635 |
|
484,317 |
|
484,565 |
|
484,231 |
|
Weighted reasonable stocks remarkable – diluted |
484,670 |
|
484,359 |
|
484,598 |
|
484,270 |
|
DIVIDENDS PAID PER SHARE |
$ 0.165 |
|
$ 0.150 |
|
$ 0.495 |
|
$ 0.450 |
|
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED CASH FLOW INFORMATION (in 1000’s) (unaudited)
|
|||||||
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
||||
| |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Web source of revenue |
$ 163,527 |
|
$ 136,913 |
|
$ 410,264 |
|
$ 360,704 |
|
Depreciation and amortization |
32,231 |
|
27,664 |
|
93,177 |
|
82,685 |
|
Exchange in running capital and alternative working actions |
(4,409) |
|
(17,630) |
|
9,922 |
|
(23,894) |
|
Web money supplied via working actions |
191,349 |
|
146,947 |
|
513,363 |
|
419,495 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Acquisitions, internet of money obtained |
(34,730) |
|
(23,875) |
|
(288,308) |
|
(105,529) |
|
Capital expenditures |
(8,503) |
|
(7,522) |
|
(22,360) |
|
(23,389) |
|
Alternative making an investment actions, internet |
3,509 |
|
1,458 |
|
7,853 |
|
5,358 |
|
Web money worn in making an investment actions |
(39,724) |
|
(29,939) |
|
(302,815) |
|
(123,560) |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Web borrowings (repayments) |
(59,989) |
|
(57,000) |
|
95,215 |
|
(46,000) |
|
Fee of dividends |
(80,077) |
|
(72,797) |
|
(239,450) |
|
(217,964) |
|
Alternative financing actions, internet |
(6,509) |
|
(1,823) |
|
(30,910) |
|
(41,542) |
|
Web money worn in financing actions |
(146,575) |
|
(131,620) |
|
(175,145) |
|
(305,506) |
|
Impact of change price adjustments on money and money equivalents |
(728) |
|
3,197 |
|
2,324 |
|
1,028 |
|
Web (short) building up in money and money equivalents |
$ 4,322 |
|
$ (11,415) |
|
$ 37,727 |
|
$ (8,543) |
APPENDIX
Reconciliation of GAAP and non-GAAP Monetary Measures
A non-GAAP monetary measure is a numerical measure of monetary efficiency, monetary place, or money flows that both 1) excludes quantities, or is topic to changes that experience the impact of apart from quantities, which might be integrated in essentially the most at once similar measure calculated and introduced according to GAAP within the remark of source of revenue, remark of monetary place or remark of money flows, or 2) comprises quantities, or is topic to changes that experience the impact of together with quantities, which might be excluded from essentially the most at once similar measure so calculated and introduced.
Those measures must now not be regarded as in isolation or as an alternative choice to revenues, internet source of revenue, profits in step with proportion or alternative efficiency measures ready according to GAAP. Control believes all of those non-GAAP monetary measures are helpful to lend traders with details about flow tendencies in, and period-over-period comparisons of, the Corporate’s result of operations. An research of any non-GAAP monetary measure must be worn along side effects introduced according to GAAP.
The Corporate has worn please see non-GAAP monetary measures on this profits let fall:
Natural revenues
Natural revenues are calculated as revenues much less the revenues from acquisitions finished inside the prior 365 days and apart from the revenues from divested companies. Acquisition revenues are in response to the trailing 12-month income of our obtained entities. Control makes use of natural revenues, and natural revenues via sort to match revenues over numerous classes apart from the affect of acquisitions and divestitures.
Adjusted working source of revenue and changed working margin
Adjusted working source of revenue and changed working margin are calculated via including again to internet source of revenue the ones bills attributable to the amortization of intangible belongings and changes to the truthful price of contingent attention attributable to the acquisitions of Fox Pest Keep an eye on and Saela Pest Keep an eye on. Adjusted working margin is calculated as adjusted working source of revenue divided via revenues. Control makes use of adjusted working source of revenue and changed working margin as measures of working efficiency as a result of those measures permit the Corporate to match efficiency constantly over numerous classes.
Adjusted internet source of revenue and changed EPS
Adjusted internet source of revenue and changed EPS are calculated via including again to the GAAP measures amortization of intangible belongings and changes to the truthful price of contingent attention attributable to the acquisitions of Fox Pest Keep an eye on and Saela Pest Keep an eye on, apart from positive factors and losses at the sale of non-operational belongings and positive factors at the sale of companies, and via additional subtracting the tax affect of the ones bills, positive factors, or losses. Control makes use of adjusted internet source of revenue and changed EPS as measures of working efficiency as a result of those measures permit the Corporate to match efficiency constantly over numerous classes.
EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and changed incremental EBITDA margin
EBITDA is calculated via including again to internet source of revenue depreciation and amortization, hobby expense, internet, and provision for source of revenue taxes. EBITDA margin is calculated as EBITDA divided via revenues. Adjusted EBITDA and changed EBITDA margin are calculated via additional including again the ones bills attributable to the changes to the truthful price of contingent attention attributable to the acquisitions of Fox Pest Keep an eye on and Saela Pest Keep an eye on, and apart from positive factors and losses at the sale of non-operational belongings and positive factors at the sale of companies. Control makes use of EBITDA, EBITDA margin, adjusted EBITDA and changed EBITDA margin as measures of working efficiency as a result of those measures permit the Corporate to match efficiency constantly over numerous classes. Incremental EBITDA margin is calculated because the alternate in EBITDA divided via the alternate in income. Control makes use of incremental EBITDA margin as a measure of working efficiency as a result of this measure lets in the Corporate to match efficiency constantly over numerous classes. Adjusted incremental EBITDA margin is calculated because the alternate in adjusted EBITDA divided via the alternate in income. Control makes use of adjusted incremental EBITDA margin as a measure of working efficiency as a result of this measure lets in the Corporate to match efficiency constantly over numerous classes.
Independent money stream and independent money stream conversion
Independent money stream is calculated via subtracting capital expenditures from money supplied via working actions. Control makes use of independent money stream to show the Corporate’s talent to uphold its asset bottom and generate era money flows from operations. Independent money stream conversion is calculated as independent money stream divided via internet source of revenue. Control makes use of independent money stream conversion to show how a lot internet source of revenue is transformed into money. Control believes that independent money stream is an noteceable monetary measure for usefulness in comparing the Corporate’s liquidity. Independent money stream must be regarded as along with, instead than as an alternative choice to, internet money supplied via working actions as a measure of our liquidity. Moreover, the Corporate’s definition of independent money stream is restricted, in that it does now not constitute residual money flows to be had for discretionary expenditures, because of the truth that the measure does now not deduct the bills required for debt provider and alternative contractual responsibilities or bills made for industry acquisitions. Subsequently, control believes it’s noteceable to view independent money stream as a measure that gives supplemental knowledge to our consolidated statements of money flows.
Adjusted gross sales, normal, and administrative (“SG&A”)
Adjusted SG&A is calculated via disposing of the changes to the truthful price of contingent attention attributable to the acquisitions of Fox Pest Keep an eye on and Saela Pest Keep an eye on. Control makes use of adjusted SG&A to match SG&A bills constantly over numerous classes.
Leverage ratio
Leverage ratio, a monetary valuation measure, is calculated via dividing adjusted internet debt via adjusted EBITDAR. Adjusted internet debt is calculated via including non permanent debt and working rent liabilities to general long-term debt much less a money adjustment of 90% of general consolidated money. Adjusted EBITDAR is calculated via including again to internet source of revenue depreciation and amortization, hobby expense, internet, provision for source of revenue taxes, working rent price, and stock-based repayment expense. Control makes use of leverage ratio as an evaluate of general liquidity, monetary flexibility, and leverage.
Eager forth beneath is a reconciliation of the non-GAAP monetary measures contained on this let fall to their maximum at once similar GAAP measures.
|
(unaudited, in 1000’s, aside from in step with proportion knowledge and margins)
|
|||||||||||||||
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
||||||||||||
| |
|
|
|
|
Variance |
|
|
|
|
|
Variance |
||||
| |
2025 |
|
2024 |
|
$ |
|
% |
|
2025 |
|
2024 |
|
$ |
|
% |
|
Reconciliation of Revenues to Natural Revenues |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ 1,026,106 |
|
$ 916,270 |
|
109,836 |
|
12.0 |
|
$ 2,848,137 |
|
$ 2,556,539 |
|
291,598 |
|
11.4 |
|
Revenues from acquisitions |
(43,986) |
|
— |
|
(43,986) |
|
4.8 |
|
(105,138) |
|
— |
|
(105,138) |
|
4.1 |
|
Natural revenues |
$ 982,120 |
|
$ 916,270 |
|
65,850 |
|
7.2 |
|
$ 2,742,999 |
|
$ 2,556,539 |
|
186,460 |
|
7.3 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Residential Revenues to Natural Residential Revenues |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential revenues |
$ 476,271 |
|
$ 428,290 |
|
47,981 |
|
11.2 |
|
$ 1,288,249 |
|
$ 1,166,042 |
|
122,207 |
|
10.5 |
|
Residential revenues from acquisitions |
(25,620) |
|
— |
|
(25,620) |
|
6.0 |
|
(61,194) |
|
— |
|
(61,194) |
|
5.3 |
|
Residential natural revenues |
$ 450,651 |
|
$ 428,290 |
|
22,361 |
|
5.2 |
|
$ 1,227,055 |
|
$ 1,166,042 |
|
61,013 |
|
5.2 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Business Revenues to Natural Business Revenues |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business revenues |
$ 334,956 |
|
$ 299,633 |
|
35,323 |
|
11.8 |
|
$ 939,803 |
|
$ 845,517 |
|
94,286 |
|
11.2 |
|
Business revenues from acquisitions |
(10,523) |
|
— |
|
(10,523) |
|
3.5 |
|
(26,244) |
|
— |
|
(26,244) |
|
3.2 |
|
Business natural revenues |
$ 324,433 |
|
$ 299,633 |
|
24,800 |
|
8.3 |
|
$ 913,559 |
|
$ 845,517 |
|
68,042 |
|
8.0 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Termite and Ancillary Revenues to Natural Termite and Ancillary Revenues |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termite and ancillary revenues |
$ 204,670 |
|
$ 177,674 |
|
26,996 |
|
15.2 |
|
$ 588,655 |
|
$ 515,758 |
|
72,897 |
|
14.1 |
|
Termite and ancillary revenues from acquisitions |
(7,843) |
|
— |
|
(7,843) |
|
4.4 |
|
(17,700) |
|
— |
|
(17,700) |
|
3.4 |
|
Termite and ancillary natural revenues |
$ 196,827 |
|
$ 177,674 |
|
19,153 |
|
10.8 |
|
$ 570,955 |
|
$ 515,758 |
|
55,197 |
|
10.7 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Franchise and Alternative Revenues to Natural Franchise and Alternative Revenues |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise and alternative revenues |
$ 10,209 |
|
$ 10,673 |
|
(464) |
|
(4.3) |
|
$ 31,430 |
|
$ 29,222 |
|
2,208 |
|
7.6 |
|
Franchise and alternative revenues from acquisitions |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Franchise and alternative natural revenues |
$ 10,209 |
|
$ 10,673 |
|
(464) |
|
(4.3) |
|
$ 31,430 |
|
$ 29,222 |
|
2,208 |
|
7.6 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
||||||||||||
| |
|
|
|
|
Variance |
|
|
|
|
|
Variance |
||||
| |
2025 |
|
2024 |
|
$ |
|
% |
|
2025 |
|
2024 |
|
$ |
|
% |
|
Reconciliation of Running Source of revenue and Running Source of revenue Margin to Adjusted Running Source of revenue and Adjusted Running Margin |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Running source of revenue |
$ 225,021 |
|
$ 191,796 |
|
|
|
|
|
$ 566,002 |
|
$ 506,597 |
|
|
|
|
|
Acquisition-related bills (1) |
7,036 |
|
4,216 |
|
|
|
|
|
18,824 |
|
13,689 |
|
|
|
|
|
Adjusted working source of revenue |
$ 232,057 |
|
$ 196,012 |
|
36,045 |
|
18.4 |
|
$ 584,826 |
|
$ 520,286 |
|
64,540 |
|
12.4 |
|
Revenues |
$ 1,026,106 |
|
$ 916,270 |
|
|
|
|
|
$ 2,848,137 |
|
$ 2,556,539 |
|
|
|
|
|
Running margin |
21.9 % |
|
20.9 % |
|
|
|
|
|
19.9 % |
|
19.8 % |
|
|
|
|
|
Adjusted working margin |
22.6 % |
|
21.4 % |
|
|
|
|
|
20.5 % |
|
20.4 % |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Web Source of revenue and EPS to Adjusted Web Source of revenue and Adjusted EPS |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Web source of revenue |
$ 163,527 |
|
$ 136,913 |
|
|
|
|
|
$ 410,264 |
|
$ 360,704 |
|
|
|
|
|
Acquisition-related bills (1) |
7,036 |
|
4,216 |
|
|
|
|
|
18,824 |
|
13,689 |
|
|
|
|
|
Acquire on sale of belongings, internet (2) |
(350) |
|
(582) |
|
|
|
|
|
(1,334) |
|
(933) |
|
|
|
|
|
Tax affect of changes (3) |
(1,712) |
|
(930) |
|
|
|
|
|
(4,477) |
|
(3,266) |
|
|
|
|
|
Adjusted internet source of revenue |
$ 168,501 |
|
$ 139,617 |
|
28,884 |
|
20.7 |
|
$ 423,277 |
|
$ 370,194 |
|
53,083 |
|
14.3 |
|
EPS – ordinary and diluted |
$ 0.34 |
|
$ 0.28 |
|
|
|
|
|
$ 0.85 |
|
$ 0.74 |
|
|
|
|
|
Acquisition-related bills (1) |
0.01 |
|
0.01 |
|
|
|
|
|
0.04 |
|
0.03 |
|
|
|
|
|
Acquire on sale of belongings, internet (2) |
— |
|
— |
|
|
|
|
|
— |
|
— |
|
|
|
|
|
Tax affect of changes (3) |
— |
|
— |
|
|
|
|
|
(0.01) |
|
(0.01) |
|
|
|
|
|
Adjusted EPS – ordinary and diluted (4) |
$ 0.35 |
|
$ 0.29 |
|
0.06 |
|
20.7 |
|
$ 0.87 |
|
$ 0.76 |
|
0.11 |
|
14.5 |
|
Weighted reasonable stocks remarkable – ordinary |
484,635 |
|
484,317 |
|
|
|
|
|
484,565 |
|
484,231 |
|
|
|
|
|
Weighted reasonable stocks remarkable – diluted |
484,670 |
|
484,359 |
|
|
|
|
|
484,598 |
|
484,270 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Web Source of revenue to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Web source of revenue |
$ 163,527 |
|
$ 136,913 |
|
|
|
|
|
$ 410,264 |
|
$ 360,704 |
|
|
|
|
|
Depreciation and amortization |
32,231 |
|
27,664 |
|
|
|
|
|
93,177 |
|
82,685 |
|
|
|
|
|
Pastime expense, internet |
7,942 |
|
7,150 |
|
|
|
|
|
21,118 |
|
22,650 |
|
|
|
|
|
Provision for source of revenue taxes |
53,902 |
|
48,315 |
|
|
|
|
|
135,954 |
|
124,176 |
|
|
|
|
|
EBITDA |
$ 257,602 |
|
$ 220,042 |
|
37,560 |
|
17.1 |
|
$ 660,513 |
|
$ 590,215 |
|
70,298 |
|
11.9 |
|
Acquisition-related bills (1) |
1,082 |
|
— |
|
|
|
|
|
2,164 |
|
1,049 |
|
|
|
|
|
Acquire on sale of belongings, internet (2) |
(350) |
|
(582) |
|
|
|
|
|
(1,334) |
|
(933) |
|
|
|
|
|
Adjusted EBITDA |
$ 258,334 |
|
$ 219,460 |
|
38,874 |
|
17.7 |
|
$ 661,343 |
|
$ 590,331 |
|
71,012 |
|
12.0 |
|
Revenues |
$ 1,026,106 |
|
$ 916,270 |
|
109,836 |
|
|
|
$ 2,848,137 |
|
$ 2,556,539 |
|
291,598 |
|
|
|
EBITDA margin |
25.1 % |
|
24.0 % |
|
|
|
|
|
23.2 % |
|
23.1 % |
|
|
|
|
|
Incremental EBITDA margin |
|
|
|
|
34.2 % |
|
|
|
|
|
|
|
24.1 % |
|
|
|
Adjusted EBITDA margin |
25.2 % |
|
24.0 % |
|
|
|
|
|
23.2 % |
|
23.1 % |
|
|
|
|
|
Adjusted incremental EBITDA margin |
|
|
|
|
35.4 % |
|
|
|
|
|
|
|
24.4 % |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Web Money Equipped via Running Actions to Independent Money Wave and Independent Money Wave Conversion |
|||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Web money supplied via working actions |
$ 191,349 |
|
$ 146,947 |
|
|
|
|
|
$ 513,363 |
|
$ 419,495 |
|
|
|
|
|
Capital expenditures |
(8,503) |
|
(7,522) |
|
|
|
|
|
(22,360) |
|
(23,389) |
|
|
|
|
|
Independent money stream |
$ 182,846 |
|
$ 139,425 |
|
43,421 |
|
31.1 |
|
$ 491,003 |
|
$ 396,106 |
|
94,897 |
|
24.0 |
|
Independent money stream conversion |
111.8 % |
|
101.8 % |
|
|
|
|
|
119.7 % |
|
109.8 % |
|
|
|
|
| |
3 Months Ended September 30, |
|
9 Months Ended September 30, |
||||
| |
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Reconciliation of SG&A to Adjusted SG&A |
|
|
|||||
| |
|
|
|
|
|
|
|
|
SG&A |
$ 301,404 |
|
$ 274,918 |
|
$ 859,513 |
|
$ 769,522 |
|
Acquisition-related bills (1) |
1,082 |
|
— |
|
2,164 |
|
1,049 |
|
Adjusted SG&A |
$ 300,322 |
|
$ 274,918 |
|
$ 857,349 |
|
$ 768,473 |
| |
|
|
|
|
|
|
|
|
Revenues |
$ 1,026,106 |
|
$ 916,270 |
|
$ 2,848,137 |
|
$ 2,556,539 |
|
Adjusted SG&A as a % of revenues |
29.3 % |
|
30.0 % |
|
30.1 % |
|
30.1 % |
| |
Duration Ended |
|
Duration Ended |
|
Reconciliation of Debt and Web Source of revenue to Leverage Ratio |
|
|
|
|
Trim-term debt (5) |
$ — |
|
$ — |
|
Lengthy-term debt (6) |
500,000 |
|
397,000 |
|
Running rent liabilities (7) |
426,423 |
|
417,218 |
|
Money adjustment (8) |
(114,621) |
|
(80,667) |
|
Adjusted internet debt |
$ 811,802 |
|
$ 733,551 |
| |
|
|
|
|
Web source of revenue |
$ 515,939 |
|
$ 466,379 |
|
Depreciation and amortization |
123,712 |
|
113,220 |
|
Pastime expense, internet |
26,145 |
|
27,677 |
|
Provision for source of revenue taxes |
175,629 |
|
163,851 |
|
Running rent price (9) |
154,191 |
|
133,420 |
|
Book-based repayment expense |
37,086 |
|
29,984 |
|
Adjusted EBITDAR |
$ 1,032,702 |
|
$ 934,531 |
| |
|
|
|
|
Leverage ratio |
0.8x |
|
0.8x |
| |
|
|
|
|
(1) Is composed of bills attributable to the amortization of intangible belongings and changes to the truthful price of contingent attention attributable to the acquisitions of Fox Pest Keep an eye on and Saela Pest Keep an eye on. Age we exclude such bills on this non-GAAP measure, the income from the obtained corporations is mirrored on this non-GAAP measure and the obtained belongings give a contribution to income date. |
|
(2) Is composed of the achieve or loss at the sale of non-operational belongings. |
|
(3) The tax impact of the changes is calculated the use of the acceptable statutory tax charges for the respective classes. |
|
(4) In some circumstances, the sum of the person EPS quantities won’t equivalent general adjusted EPS calculations because of rounding. |
|
(5) As of September 30, 2025 and December 31, 2024, the Corporate had incorrect remarkable borrowings beneath our industrial paper program. The Corporate’s non permanent borrowings are introduced beneath the non permanent debt caption of our condensed consolidated remark of monetary place, internet of unamortized reductions. |
|
(6) As of September 30, 2025, the Corporate had remarkable borrowings of $500.0 million from the issuance of our 2035 Senior Notes and incorrect remarkable borrowings beneath the Revolving Credit score Facility. Those borrowings are introduced beneath the long-term debt caption of our condensed consolidated remark of monetary place, internet of a $7.3 million unamortized bargain and $7.0 million in unamortized debt issuance prices as of September 30, 2025. As of December 31, 2024, the Corporate had remarkable borrowings of $397.0 million beneath the Revolving Credit score Facility. Borrowings beneath the Revolving Credit score Facility are introduced beneath the long-term debt caption of our condensed consolidated remark of monetary place, internet of $1.7 million in unamortized debt issuance prices as of December 31, 2024. |
|
(7) Running rent liabilities are introduced beneath the working rent liabilities – flow and working rent liabilities, much less flow portion captions of our condensed consolidated remark of monetary place. |
|
(8) Represents 90% of money and money equivalents in step with our condensed consolidated remark of monetary place as of each classes introduced. |
|
(9) Running rent price excludes non permanent rent price related to rentals that experience a length of 365 days or much less. |
For Additional Data Touch
Lyndsey Burton (404) 888-2348
SOURCE Rollins, Inc.
