Rollins' Second Quarter Revenue up 7.9% YOY

ATLANTA — During Rollins’ second quarter earnings call on Wednesday, the company announced revenues were $1.1 billion, an increase of 7.9% over the second quarter of 2025 with organic revenues increasing 5.7%.

The company reported a quarterly operating income of $201 million, an increase of 1.5% year over year, while quarterly operating margin was 18.7%, a decrease of more than 1%. Adjusted operating income rose 2% to $210 million, with adjusted operating margin slipping to 19.5%

Rollins said it spent $117 million in acquisitions, $6 million in capital expenditures and paid dividends totaling $88 million.

CEO and President Jerry Gahlhoff Jr. said second quarter results fell short of the companies expectations due to slower growth in parts of our residential pest control business, specifically brands more reliant on consumer-initiated demand through search, digital media and inbound calls, as lead volume declined in the quarter.

“Although we remain cautious regarding near-term demand trends, lead volume improved toward the end of June and has maintained this momentum through the first few weeks of July," he said.

Executive Vice President and Chief Financial Officer Will Harkins said demands trends softened during the quarter, while Rollins cost structure remained positioned for a stronger growth environment entering peak season.

“As a result, our margin performance was below our expectations,” he said. “We have implemented organizational and operational changes to improve local execution, strengthen accountability, and better align resources with current demand conditions, while continuing to invest in areas that will drive long-term growth.”

Harkins said despite near-term challenges Rollins’ balance sheet remains strong, cash flow generations is healthy and the company has significant flexibility to reinvest in its business.

Tim Mulrooney, of William Blair, said it is unclear whether this dynamic is due to changes to digital search from LLMs or from competitors spending more on digital lead flow. The slower organic growth in the quarter aligns with the results of recent pest indexes from William Blair, Mulrooney said.