Interprétation IA fondée sur des extraits vérifiés. Les déclarations de l’entreprise et les limites de couverture restent explicites.
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Through our family of leading brands, we provide essential pest and wildlife control services and protection against termite damage, rodents and insects to more than two million residential and commercial customers from more than 800 Company-owned and franchised locations in approximately 70 countries.
Business / customer and service footprint · Dépôt 12/02/2026
The contracted and recurring nature of our services provide us with visibility into a significant portion of our future revenue.
Business / contracted and recurring services · Dépôt 12/02/2026
We operate in a highly competitive industry with fragmented markets and low barriers to entry.
Risk factors / competition and entry barriers · Dépôt 12/02/2026
We compete with other large pest control companies, as well as numerous smaller pest control companies and do-it-yourself options, for a finite number of customers.
Risk factors / competitor categories · Dépôt 12/02/2026
We believe that the principal competitive factors in the market areas that we serve are quality and speed of service, customer proximity, customer satisfaction, brand awareness and reputation, terms of guarantees, technical proficiency and price.
Risk factors / competitive factors · Dépôt 12/02/2026
Our pest and termite control services are performed pursuant to terms of contracts that specify the pricing arrangement with the customer.
MD&A / contractual pricing arrangements · Dépôt 12/02/2026
Total franchising revenues were less than 1.0% of the Company’s annual revenues for each of the three years.
Revenue recognition / franchise revenue contribution · Dépôt 12/02/2026
Right to access intellectual property (Franchise)—The right to access Orkin’s, MissQuito’s, Critter Control’s, and our Australia franchisors’ intellectual property is an essential part of our franchise agreements.
Revenue recognition / franchise intellectual property · Dépôt 12/02/2026
These agreements provide the franchisee a license to use the brand name and trademark when advertising and selling services to end customers in their 53 Table of Contents normal course of business.
Revenue recognition / trademark licensing · Dépôt 12/02/2026
Our scale enables delivery of great customer service and provides a significant and reinforcing competitive advantage through (i) comprehensive capabilities to win new residential and commercial accounts, (ii) technology investments for operations optimization and enhanced customer experience, (iii) a diverse portfolio of brands of varying sizes of which to innovate, test, learn, and grow or expand, particularly when it comes to emerging technology, (iv) route density to manage variable costs, and (v) financial flexibility to generate organic growth and pursue acquisitions.
Business / management description of scale advantages · Dépôt 12/02/2026
The majority of our business runs on our proprietary Branch Operating Support System (“BOSS”), which offers a back-end interface to facilitate service tracking and payment processing for technicians.
Business / deployed BOSS operating platform · Dépôt 12/02/2026
BOSS also provides virtual route management tools to increase route efficiency across our network, reducing miles driven and associated costs while increasing customer retention through on-time and rapid response service.
Business / management description of routing efficiencies · Dépôt 12/02/2026
Effective sales and service staffing levels helped us to capitalize on continued demand and deliver solid results for the year, with organic revenues* growing by 6.9% compared to 2024.
Strategic update / 2025 organic growth · Dépôt 12/02/2026
Gross margin improved 10 basis points to 52.8% in 2025 compared to 52.7% in 2024.
MD&A / 2025 gross margin · Dépôt 12/02/2026
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 OPERATING ACTIVITIES Net income $ 251,748 $ 246,737 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 66,108 60,946 Stock-based compensation expense 21,495 19,809 Provision for expected credit losses 17,359 16,461 Loss (gain) on sale of assets, net 2,135 (984) Provision for deferred income taxes 2,053 12,470 Other operating activities, net 1,778 (1,223) Changes in operating assets and liabilities: Trade accounts receivable (52,765) (44,654) Financing receivables (12,412) (12,927) Materials and supplies (252) (2,086) Other current assets (67,288) (18,062) Accounts payable and accrued expenses 47,996 43,967 Unearned revenue 8,454 17,893 Other long-term assets and liabilities 4,464 (16,333) Net cash provided by operating activities 290,873 322,014 INVESTING ACTIVITIES Acquisitions, net of cash acquired (135,255) (253,578) Capital expenditures (13,568) (13,857) Proceeds from sale of assets 1,121 3,470 Other investing activities, net 1,493 874 Net cash used in investing activities (146,209) (263,091) FINANCING ACTIVITIES Payment of contingent consideration (9,495) (3,447) Issuance of senior notes — 492,215 Borrowings under revolving commitment — 11,000 Borrowings under commercial paper, net 101,488 59,989 Repayments of revolving commitment — (408,000) Payment of debt issuance costs — (5,986) Payment of dividends (175,941) (159,373) Cash paid for common stock purchased (42,826) (14,922) Other financing activities, net (7,948) (46) Net cash used in financing activities (134,722) (28,570) Effect of exchange rate changes on cash (861) 3,052 Net increase in cash and cash equivalents 9,081 33,405 Cash and cash equivalents at beginning of period 100,004 89,630 Cash and cash equivalents at end of period $ 109,085 $ 123,035 Supplemental disclosure of cash flow information: Cash paid for interest $ 17,729 $ 5,211 Cash paid for income taxes, net $ 134,763 $ 85,017 Non-cash additions to operating lease right-of-use assets $ 58,896 $ 70,534 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated cash flows / first half 2026 and 2025 · Dépôt 23/07/2026
GENERAL OPERATING COMMENTS Below is a summary of the key operating results for the three months ended June 30, 2026: •Second quarter revenues were $1.1 billion, an increase of 7.9% over the second quarter of 2025 with organic revenues* increasing 5.7%.
MD&A / second-quarter 2026 revenue and organic growth · Dépôt 23/07/2026
This represents our 99th consecutive quarter of revenue growth.
MD&A / consecutive quarters of revenue growth · Dépôt 23/07/2026
Our reported results for the second quarter fell short of our expectations.
MD&A / results below management expectations · Dépôt 23/07/2026
Organic revenue* growth in the quarter was negatively impacted by slower growth in parts of our residential service offering due to a decline in lead volume.
MD&A / residential lead weakness · Dépôt 23/07/2026
Specifically, those of our brands that are more reliant on consumer-initiated demand through search, digital media and inbound calls experienced a more challenging demand environment.
MD&A / inbound customer acquisition channels · Dépôt 23/07/2026
Encouragingly, other areas of our business that leverage relationship-based channels, such as home builders and door-to-door sales, delivered solid organic revenue* growth in the quarter, reinforcing the importance of our diversified, multi-brand approach.
MD&A / relationship-based channel growth · Dépôt 23/07/2026
RESULTS OF OPERATIONS Quarter ended June 30, 2026 compared to quarter ended June 30, 2025 Three Months Ended June 30, Variance (in thousands, except per share data) 2026 2025 $ % GAAP Metrics Revenues $ 1,078,576 $ 999,527 $ 79,049 7.9 % Gross profit (1) $ 569,946 $ 537,666 $ 32,280 6.0 % Gross profit margin (1) 52.8 % 53.8 % (100) bps Operating income $ 201,359 $ 198,333 $ 3,026 1.5 % Operating margin 18.7 % 19.8 % (110) bps Net income $ 143,910 $ 141,489 $ 2,421 1.7 % EPS $ 0.30 $ 0.29 $ 0.01 3.4 % Operating cash flow $ 172,506 $ 175,122 $ (2,616) (1.5) % Non-GAAP Metrics Adjusted operating income (2) $ 209,939 $ 205,900 $ 4,039 2.0 % Adjusted operating margin (2) 19.5 % 20.6 % (110) bps Adjusted net income (2) $ 151,927 $ 146,902 $ 5,025 3.4 % Adjusted EPS (2) $ 0.32 $ 0.30 $ 0.02 6.7 % Adjusted EBITDA (2) $ 236,292 $ 231,152 $ 5,140 2.2 % Adjusted EBITDA margin (2) 21.9 % 23.1 % (120) bps Free cash flow (2) $ 166,077 $ 168,046 $ (1,969) (1.2) % (1) Exclusive of depreciation and amortization (2) Amounts are non-GAAP financial measures.
MD&A / second-quarter operating results · Dépôt 23/07/2026
The decrease is primarily due to 70 basis points of higher employee expenses, including higher employee medical costs and service salaries, 20 basis points of higher materials and supplies, and 20 basis points of higher fleet expenses associated with higher fuel costs.
MD&A / realized service-cost pressures · Dépôt 23/07/2026
Organic revenue* growth was 6.1% with acquisitions adding 2.8% in the six months ended June 30, 2026.
MD&A / first-half organic and acquisition growth · Dépôt 23/07/2026
Interest Expense, Net For the six months ended June 30, 2026, interest expense, net increased $5.1 million, compared to the six months ended June 30, 2025, primarily due to a higher average debt balance associated with higher borrowings under our commercial paper program.
MD&A / borrowing-related interest expense · Dépôt 23/07/2026
The Audit Committee presently consists of four independent directors, all of whom are considered financially literate under NYSE rules.
Proxy / audit committee independence · Dépôt 17/03/2026
In fulfilling its oversight responsibilities with respect to the year ended December 31, 2025, the Audit Committee: •Approved the engagement and terms of service of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2025; •Reviewed with management and the Company’s independent registered public accounting firm, the interim financial information included in the Company’s Forms 10-Q prior to the Forms 10-Q being filed with the SEC, as well as the financial information in each quarterly earnings release; •Reviewed and discussed with the Company’s management (including internal audit) and the Company’s independent registered public accounting firm, the audited consolidated statements of financial position of the Company as of December 31, 2025 and 2024 and the related statements of income, comprehensive earnings, shareholders’ equity and cash flows for each of the three years ended December 31, 2025 including the related footnotes and financial statement schedule, and the related ICFR; •Discussed with the Company’s independent registered public accounting firm matters required to be discussed by the applicable requirements of the PCAOB and the SEC; and •Received from the Company’s independent registered public accounting firm the written disclosures and the letter in accordance with the requirements of the PCAOB regarding the firm’s communications with the Audit Committee concerning independence, and discussed with such firm its independence from the Company.
Proxy / completed 2025 audit committee oversight · Dépôt 17/03/2026
PClawback Policy. In 2023, we adopted a Clawback Policy which provides certain triggers for mandatory recovery of erroneously awarded compensation.
Proxy / adopted compensation clawback policy · Dépôt 17/03/2026
In 2025, the equity component of compensation for named executive officers (as well as certain other employees) continued to include grants of time-lapse restricted stock ("RSAs") and performance share units (“PSUs”), as in past years.
Proxy / equity awards granted in 2025 · Dépôt 17/03/2026
The RSAs will vest pro rata over a three-year period.
Proxy / restricted stock vesting terms · Dépôt 17/03/2026
The PSUs will cliff vest after three years based upon the Company’s successful achievement of certain financial performance goals and feature a relative TSR component, as described in more detail below.
Proxy / performance award vesting conditions · Dépôt 17/03/2026
2026 Proxy Statement 83 Appendix A Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow, Free Cash Flow Conversion, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Conversion Twelve Months Ended December 31, Variance (unaudited, in thousands) 2025 2024 $ % Net cash provided by operating activities $ 678,107 $ 607,653 Capital expenditures (28,086) (27,572) Free cash flow 650,021 580,081 $ 69,940 12.1 % Delayed income tax payments (1) 21,710 (21,710) Adjusted free cash flow $ 671,731 $ 558,371 $ 113,360 20.3 % Free cash flow conversion 123.4 % 124.4 % Adjusted free cash flow conversion 127.5 % 119.7 % (1)The U.S.
Proxy appendix / 2025 and 2024 operating cash flow and capital expenditure · Dépôt 17/03/2026
The Nominating and Corporate Governance Committee does not have a formal policy with regard to the consideration of director candidates.
Proxy / absence of formal director candidate policy · Dépôt 17/03/2026
The Company's Nominating and Corporate Governance Committee approved the agreements in accordance with its Related Party Transactions policy.
Proxy / related-party agreement approval · Dépôt 17/03/2026
In addition, the Company completed the repurchase of 3,478,260 of the shares of Common Stock offered in the 2025 Offering for approximately $200 million at the same per share price paid by the Underwriter to the Selling Stockholders in the 2025 Offering, or $56.93 per share.
Proxy / completed 2025 secondary-offering share repurchase · Dépôt 17/03/2026
Although in the aggregate, our global portfolio of more than 450 trademarks is a valuable asset that is important to our operations, we believe that our competitive advantage is also largely attributable to the technical, marketing, and sales competence and capabilities of our teammates, rather than on any individual trademark; however, the loss of the Orkin trademark could be material to our business as a whole.
Business / trademark portfolio and management assessment · Dépôt 13/02/2025
The Company has now resolved this inquiry by entering into a voluntary consent order (the "Consent Order") with the FTC restricting the Company from entering into certain employment non-compete restrictive covenants with certain of its employees or enforcing such restrictive covenants.
Contingencies / FTC employment non-compete consent order · Dépôt 23/04/2026
Our pest and termite control services are performed pursuant to terms of contracts that specify the pricing arrangement with the customer.
Customer service contracts and pricing arrangements · Dépôt 12/02/2026
The Company has used the following non-GAAP financial measures in this Form 10-Q:
Organic revenues
Organic revenues are calculated as revenues less the revenues from acquisitions completed within the prior 12 months and excluding the revenues from divested businesses.
Non-GAAP financial measures: organic revenues · Dépôt 23/07/2026
Our pest and termite control services are performed pursuant to terms of contracts that specify the pricing arrangement with the customer.
Customer service contract pricing arrangements · Dépôt 12/02/2026
The Company has used the following non-GAAP financial measures in this Form 10-Q:
Organic revenues
Organic revenues are calculated as revenues less the revenues from acquisitions completed within the prior 12 months and excluding the revenues from divested businesses.
Definition of organic revenues · Dépôt 23/07/2026
Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance, including expectations regarding seasonal profitability improvement and margin trends; Rollins' ongoing commitment to operational excellence; our resilient business model; a strategic approach to acquisitions, including statements regarding the anticipated benefits of the recent acquisitions such as Romex; compounding cash flow and strong balance sheet continuing to enable a balanced capital allocation strategy; a focus on pricing; a culture of continuous improvement supporting an improving margin profile; the stability of growth in our recurring and ancillary businesses; investing meaningfully in our business, including investments in organic demand generation and selling activities; intra-quarter trends in revenue growth, including monthly organic and total revenue growth rates; our staffing levels and readiness for peak season; and remaining well-positioned for continued growth.
Forward-looking statements concerning pricing · Dépôt 22/04/2026
In addition to all other rights available, we reserve the right, in our sole discretion, to terminate your account, refuse service to you, or cancel orders or services.
Section 7, Your Account · Consulté 19/10/2026
15. Inaccuracy Disclaimer
From time to time there may be information on our Website that contains typographical errors, inaccuracies, or omissions that may relate to product or service descriptions, pricing, and availability.
Section 15, Inaccuracy Disclaimer · Consulté 19/10/2026
We reserve the right to correct any errors, inaccuracies or omissions and to change or update information at any time without prior notice (including after you have submitted your order).
Section 15, Inaccuracy Disclaimer · Consulté 19/10/2026
If you do not wish to continue your purchase or service after pricing or other information has been corrected, please contact us right away and we will work with you to cancel your service or return your order.
Section 15, Inaccuracy Disclaimer · Consulté 19/10/2026
These Terms do not modify, revise or amend the terms of any other agreements you may have with us.
Separate agreements provision · Consulté 19/10/2026
