Monitor the Q4 2026 call for updates on residential customer acquisition trends and whether marketing reallocation stabilizes organic growth. The sharp increase in insurance and claims costs ($11.9M in cost of services, $6.8M in SG&A) warrants attention as a margin headwind. Elevated share repurchases signal management's view of intrinsic value but do not offset the earnings decline.
Price Chart
Executive Summary
Rollins reported Q3 2026 results with revenue up 6.2% YoY to $1.09B, but operating income, net income, and EPS all declined YoY. Management cited continued pressure on residential customer acquisition and is reallocating marketing spend. The company increased share repurchases to $120M in the quarter.
Key Facts
- Q3 2026 revenue $1.09B, +6.2% YoY; organic revenue +4.4%
- Operating income $222.9M, -1.0% YoY; operating margin 20.5%, -140 bps
- Net income $157.9M, -3.4% YoY; EPS $0.33, -2.9% YoY
- Adjusted EBITDA $256.6M, -0.7% YoY; adjusted EBITDA margin 23.5%, -170 bps
- Residential organic revenue growth slowed to 2.3% YoY
- Company repurchased $120M of stock in Q3, up from $3.7M in Q3 2025
- Operating cash flow $241.9M, +26.4% YoY, boosted by $63M tax refund timing
- Insurance and claims costs rose sharply: cost of services +$11.9M, SG&A +$6.8M YoY
Financial Impact
Revenue grew $63.6M YoY but net income fell $5.6M; operating margin contracted 140 bps; EPS declined $0.01
Risk Factors
- Residential organic revenue growth decelerated to 2.3%, indicating sustained customer acquisition pressure
- Insurance and claims costs rose significantly YoY, compressing margins
- Operating margin contracted 140 bps despite revenue growth, suggesting cost structure issues
- Forward-looking statements about marketing strategy and long-term growth are unquantified and aspirational
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000084839-26-000042 |
| Document: 0000084839-26-000042-index.html | 0000084839-26-000042 |
| Document: 0000084839-26-000042.txt | 0000084839-26-000042 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | Institutional Cluster | $34.82 $34.55 | ▼ −0.78% | ▼ −1.49% | $34.01 (−2.33%) |
Oct 21, 2026 6d ago | 8-K | $35.31 $34.82 | ▲ +1.39% | ▲ +0.87% | $34.01 (+3.68%) |
Oct 21, 2026 6d ago | Press Release | $35.31 $34.82 | ▲ +1.39% | ▲ +0.87% | $34.01 (+3.68%) |
Oct 20, 2026 7d ago | Press Release | $33.45 $35.31 | ▲ +5.56% | ▲ +6.74% | $34.01 (+1.67%) |
Jul 22, 2026 13w ago | Press Release | $39.44 $38.56 | ▲ +2.23% | ▲ +2.33% | $34.01 (+13.77%) |
Jul 8, 2026 15w ago | Press Release | $44.77 $44.44 | ▼ −0.74% | ▼ −1.16% | $34.01 (−24.03%) |
May 27, 2026 21w ago | 8-K | $50.34 $49.40 | ▼ −1.87% | ▼ −2.42% | $34.01 (−32.44%) |
Apr 22, 2026 26w ago | 8-K | $56.98 $56.60 | ▼ −0.67% | ▼ −1.45% | $34.01 (−40.31%) |
Mar 17, 2026 32w ago | DEFA14A | $53.90 $54.08 | ▲ +0.33% | ▲ +0.60% | $34.01 (−36.90%) |
Feb 28, 2026 34w ago | Institutional Cluster | $60.85 $60.17 | ▼ −1.12% | ▼ −0.20% | $34.01 (−44.11%) |
US Market Status
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