Financial Data and Key Metrics Changes - Rollins achieved a milestone of $3.8 billion in revenue for fiscal 2025, reflecting an 11% growth for the year, with organic growth at 6.9% [5][12] - Adjusted EBITDA grew by 10.8% to $854 million, while operating cash flow reached $678 million, and free cash flow was $650 million, up 11.6% and 12.1% respectively [12][13] - Fourth quarter revenue increased by 9.7%, with organic growth at 5.7% compared to the previous year [12][14] Business Line Data and Key Metrics Changes - Revenue from one-time business in the fourth quarter declined by almost 3%, contrasting with a year-to-date growth of 4% [5][14] - Recurring revenue and ancillary services, which represent over 80% of total revenue, grew at over 7% organically for both the quarter and the year [6][14] - In the fourth quarter, residential revenue increased by 9.7%, commercial pest control grew by 8.7%, and termite and ancillary services rose by 11.9% [12][14] Market Data and Key Metrics Changes - Erratic weather patterns negatively impacted demand for one-time projects, particularly in the Midwest and Northeast [5][15] - The company noted that the stability of growth in recurring and ancillary areas provides confidence in the outlook, which is anchored to 7%-8% organic growth [15][22] Company Strategy and Development Direction - Rollins is focused on enhancing customer experience and investing in team development to drive organic growth and acquisitions [10][11] - The company is committed to maintaining healthy staffing levels ahead of peak seasons to optimize customer service [7][9] - A robust M&A pipeline is in place, with expectations of contributing 2%-3% growth from acquisitions in 2026 [10][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of underlying markets and customer retention rates, despite challenges from weather [6][30] - The company anticipates continued organic growth in the range of 7%-8% and is focused on improving incremental margin profiles while investing in growth opportunities [22][23] - Management acknowledged the impact of weather on business operations but remains optimistic about the team's engagement and ability to deliver results [88] Other Important Information - The company closed the acquisition of Saela and completed 26 additional tuck-in deals, with Saela's performance exceeding expectations [10][78] - Free cash flow conversion was 137% for the quarter, with significant investments in share repurchases and dividends [20][21] Q&A Session Summary Question: Can you expand on the 7% growth in recurring and ancillary business? - Management highlighted strong customer retention and low rollback percentages, indicating a healthy consumer base, and noted that Orkin had its best customer growth performance since the COVID era [30][31] Question: How did weather disruptions impact different segments? - Management explained that the one-time business was significantly affected by weather, particularly in the residential and commercial sectors, while recurring revenue remained strong [38][39] Question: What is the margin profile of the one-time business? - The one-time business typically has a better margin profile than recurring services, contributing positively to overall results despite being a smaller portion of the business [47] Question: What are the expectations for Q1 relative to the rest of the year? - Management expects a slower start to the year due to weather impacts but remains confident in achieving the annual growth target of 7%-8% [50] Question: What are the competitive dynamics in the industry? - Management noted no significant changes in the competitive environment and emphasized ongoing investments to maintain a strong market position [56][58] Question: Can you provide details on Saela's performance and M&A pipeline? - Saela contributed $16 million in revenue for the quarter and $55 million year-to-date, with expectations of continued M&A growth contributing 2%-3% in 2026 [78][80]

Financial Data and Key Metrics Changes - The company achieved a milestone of $3.8 billion in revenue for fiscal 2025, reflecting an 11% growth for the year, with organic growth at 6.9% [5][12] - Adjusted EBITDA grew by 10.8% to $854 million, while operating cash flow reached $678 million, and free cash flow was $650 million, up 11.6% and 12.1% respectively [12][13] - In the fourth quarter, revenue increased by 9.7%, with organic growth at 5.7% compared to the previous year [12][14] Business Line Data and Key Metrics Changes - Revenue from residential services increased by 9.7%, commercial pest control grew by 8.7%, and termite and ancillary services rose by 11.9% [14] - Organic growth in recurring revenue and ancillary services, which represent over 80% of total revenue, was above 7% for both the quarter and the year [6][14] - One-time business revenue declined by almost 3% in the fourth quarter, contrasting with a year-to-date growth of 4% through the first nine months [5][14] Market Data and Key Metrics Changes - Erratic weather patterns negatively impacted demand for one-time services, particularly in the Midwest and Northeast, leading to lower profitability [5][15] - The company noted that the stability of growth in recurring and ancillary areas provides confidence in the outlook, which is anchored to 7%-8% organic growth [15][22] Company Strategy and Development Direction - The company is focused on improving customer experience and investing in team development to drive organic growth and acquisitions [10][11] - A robust M&A pipeline is in place, with expectations of contributing 2%-3% growth from acquisitions in 2026 [10][80] - The company is committed to maintaining a strong investment-grade rating and a balanced capital allocation strategy, including dividends and share repurchases [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying health of the consumer and the stability of customer retention rates [30] - The company anticipates that cash flow will continue to convert at a rate above 100% in 2026, despite potential weather impacts [23][88] - Management acknowledged the challenges posed by weather but emphasized the team's commitment to delivering results [66][88] Other Important Information - The company closed the acquisition of Saela and completed 26 additional tuck-in deals, with Saela's performance exceeding expectations [10] - The effective tax rate for the fourth quarter was 24.7%, down from 27.3% the previous year, due to improvements made by the tax team [18] Q&A Session Summary Question: Can you expand on the 7% growth in recurring and ancillary business? - Management highlighted strong customer retention and low rollback percentages, indicating a healthy consumer base [30][32] Question: How did weather disruptions impact different segments? - Management noted that the one-time business was significantly affected, particularly in residential and commercial sectors, while recurring revenue remained strong [38][42] Question: What is the margin profile of the one-time business? - The one-time business typically has a better margin profile than recurring services, contributing positively to overall results [47] Question: What are the expectations for Q1 relative to the rest of the year? - Management expects a slower start to the year due to weather impacts but remains confident in achieving 7%-8% organic growth for the year [50] Question: Any comments on the competitive environment? - Management stated that there have been no significant shifts in the competitive landscape, maintaining focus on internal improvements [57] Question: What are the opportunities in ancillary services? - Management emphasized the low penetration rate of ancillary services among customers and the potential for growth through cross-brand collaboration [68][71]

Financial Data and Key Metrics Changes - Rollins achieved a milestone of $3.8 billion in revenue for fiscal 2025, reflecting an 11% growth year-over-year [3][10] - Adjusted EBITDA grew by 10.8% to $854 million, with operating cash flow of $678 million and free cash flow of $650 million, up 11.6% and 12.1% respectively compared to the previous year [10][11] - Fourth quarter revenue increased by 9.7%, with organic growth at 5.7% [11][12] - Gross margin for the fourth quarter was 51%, a decrease of 30 basis points year-over-year [13] Business Line Data and Key Metrics Changes - Revenue from one-time business in the fourth quarter declined by almost 3%, contrasting with a year-to-date growth of 4% [3][12] - Organic growth in the recurring portion of the business and ancillary services, which represent over 80% of total revenue, was above 7% for both the quarter and the year [4][12] - Residential revenue increased by 9.7%, commercial pest control grew by 8.7%, and termite and ancillary services were up 11.9% in the fourth quarter [12] Market Data and Key Metrics Changes - Erratic weather patterns negatively impacted demand for one-time projects, particularly in the Midwest and Northeast [3][12] - The recurring revenue and ancillary services grew at over 7% organically, while the one-time business saw a decline [12][13] Company Strategy and Development Direction - The company is focused on improving its operational efficiency and customer experience through significant investments in talent development and leadership programs [5][7] - Rollins aims to maintain a strong investment-grade rating with leverage well under 2x, while pursuing disciplined acquisitions to drive growth [19][20] - The company is optimistic about achieving 7%-8% organic growth in 2026, with additional growth from M&A of at least 2%-3% [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer and the stability of growth in recurring and ancillary services, despite challenges from weather [4][30] - The company remains committed to investing in its workforce and enhancing customer service, which is seen as critical for long-term growth [5][9] - Management acknowledged the impact of weather on business performance but emphasized the strength of the underlying business [38][92] Other Important Information - The company closed the acquisition of Saela and completed 26 additional tuck-in deals, with Saela's performance exceeding expectations [8] - The company has a robust M&A pipeline and plans to continue investing in growth opportunities [8][82] Q&A Session Summary Question: Can you expand on the 7% growth in recurring and ancillary business? - Management highlighted strong customer retention rates and low price sensitivity among customers, indicating confidence in sustaining growth [26][30] Question: How did weather disruptions impact different segments? - Management noted that the one-time business was significantly affected by weather, particularly in the residential and commercial sectors, while recurring revenue remained strong [36][38] Question: What is the margin profile of the one-time business? - The margin profile for one-time business is often better than recurring business, contributing positively to overall margins despite being a smaller portion of total revenue [47][48] Question: What are the expectations for Q1 relative to the rest of the year? - Management anticipates a slower start to the year due to weather impacts but remains confident in achieving the full-year growth target of 7%-8% [50][51] Question: Any comments on the competitive environment? - Management indicated no significant changes in the competitive landscape, focusing on internal improvements and maintaining a strong market position [59][60]

1 © 2026 Rollins, Inc. All rights reserved. Cautionary Statement Regarding Forward-Looking Statements This presentation as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating resul ...

Core Insights - Rollins (ROL) reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.27 per share, but showing an increase from $0.23 per share a year ago [1] - The company posted revenues of $912.91 million for the quarter, which was 1% below the Zacks Consensus Estimate, compared to $832.17 million in the same quarter last year [3] - Rollins has outperformed the S&P 500 with an 8.3% increase in share price since the beginning of the year, while the S&P 500 gained 1.4% [4] Earnings Performance - The earnings surprise for the quarter was -7.99%, contrasting with a previous quarter where the company exceeded expectations by +9.38% [2] - Over the last four quarters, Rollins has surpassed consensus EPS estimates two times and revenue estimates three times [2][3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $908.45 million, and for the current fiscal year, it is $1.26 on revenues of $4.12 billion [8] - The estimate revisions trend for Rollins was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - Rollins operates within the Zacks Building Products - Maintenance Service industry, which is currently ranked in the top 36% of over 250 Zacks industries [9] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Revenue Performance - Revenues for Q4 2025 were $913 million, a 9.7% increase year-over-year, with organic revenues up 5.7% and acquisition-related revenues up 4.0%[3] - Full year revenues reached $3.8 billion, an 11.0% increase compared to 2024, with organic revenues increasing by 6.9% and acquisition-related revenues by 4.1%[3] - Rollins, Inc. reported Q4 2025 revenues of $912.9 million, a 9.7% increase from $832.2 million in Q4 2024[18] - For the full year 2025, total revenues reached $3.76 billion, up 11% from $3.39 billion in 2024[18] - Revenues for Q4 2025 reached $912.9 million, a 9.7% increase from $832.2 million in Q4 2024[35] - Total revenues for the year 2025 were $3.76 billion, up 11% from $3.39 billion in 2024[38] Income and Profitability - Operating income for Q4 2025 was $160 million, a 6.3% increase year-over-year, while full year operating income was $726 million, up 10.5%[3] - Net income for Q4 2025 was $116 million, a 10.2% increase year-over-year, while full year net income was $527 million, up 12.9%[3] - GAAP EPS for Q4 2025 was $0.24, a 9.1% increase year-over-year, and for the full year, it was $1.09, an increase of 13.5%[3] - Operating income for Q4 2025 was $160.1 million, compared to $150.6 million in Q4 2024, reflecting a 6.5% increase[18] - Net income for Q4 2025 was $116.4 million, a 10.6% increase from $105.7 million in Q4 2024[18] - Net income for Q4 2025 was $526.7 million, compared to $466.4 million in Q4 2024, reflecting a 12.9% increase[38] Cash Flow and Liquidity - Operating cash flow for Q4 2025 was $165 million, a decrease of 12.4% year-over-year, while full year operating cash flow was $678 million, an increase of 11.6%[3] - Rollins, Inc. reported a net cash provided by operating activities of $164.7 million for Q4 2025, compared to $188.2 million in Q4 2024[20] - The company emphasizes the importance of free cash flow and adjusted free cash flow as measures of liquidity, despite limitations in their definitions[29] - Free cash flow for Q4 2025 was $159.0 million, a decrease of 13.6% from $184.0 million in Q4 2024, while adjusted free cash flow was $159.0 million, down 2.0% from $162.3 million[36] Assets and Liabilities - The company’s total assets increased to $3.14 billion as of December 31, 2025, up from $2.82 billion in 2024[16] - The company’s total liabilities rose to $1.77 billion in 2025, up from $1.49 billion in 2024[16] - Adjusted net debt increased to $961.9 million in 2025 from $733.6 million in 2024[38] - Operating lease liabilities were $428.2 million in 2025, compared to $417.2 million in 2024[42] Strategic Focus and Future Outlook - The company plans to continue investing in its business and anticipates organic growth supported by a disciplined approach to acquisitions in 2026[7] - The company is focused on pricing, modernization efforts, and continuous improvement to enhance its margin profile moving forward[7] - Rollins, Inc. plans to continue its strategic and disciplined approach to acquisitions and operational execution to support future growth[10] Margins and Expenses - Adjusted EBITDA for Q4 2025 was $194 million, a 7.0% increase year-over-year, and for the full year, it was $855 million, an increase of 10.8%[3] - Adjusted EBITDA for Q4 2025 was $193.8 million, up 7.0% from $181.2 million in Q4 2024, with an adjusted EBITDA margin of 21.2%[37] - The company reported an operating margin of 17.5% for Q4 2025, slightly down from 18.1% in Q4 2024, while the adjusted operating margin was 18.3%[37] - Adjusted SG&A as a percentage of revenues was 29.9% in Q4 2025, slightly higher than 29.5% in Q4 2024[38] - The company incurred acquisition-related expenses of $1.1 million in Q4 2025, with total adjusted SG&A at $272.6 million[38] - Depreciation and amortization expenses for 2025 were $124.7 million, up from $113.2 million in 2024[38] - Stock-based compensation expense increased to $39.7 million in 2025 from $30.0 million in 2024[38] Financial Ratios - The leverage ratio, a measure of financial flexibility, is calculated using adjusted net debt and adjusted EBITDAR, indicating the company's overall liquidity[31][32] - The leverage ratio improved to 0.9x in 2025 from 0.8x in 2024[38] - Incremental EBITDA margin for Q4 2025 was 15.9%, compared to 22.3% in Q4 2024, reflecting changes in revenue performance[37]

Core Viewpoint - Rollins, Inc. reported strong financial results for the fourth quarter and full year of 2025, achieving double-digit growth in revenue, earnings, and cash flow, despite challenges from erratic weather patterns affecting seasonal business [1][2]. Fourth Quarter Highlights - Operating cash flow was $165 million, down 12.4% from the previous year - GAAP EPS increased by 9.1% to $0.24 per diluted share, while adjusted EPS rose by 8.7% to $0.25 - Net income reached $116 million, a 10.2% increase year-over-year - Revenues totaled $913 million, reflecting a 9.7% increase, with organic revenues up 5.7% and acquisition-related revenues up 4.0% [1][2]. Full Year Highlights - Operating cash flow for the year was $678 million, an increase of 11.6% - GAAP EPS rose by 13.5% to $1.09, and adjusted EPS increased by 13.1% to $1.12 - Net income for the year was $527 million, up 12.9%, with adjusted net income at $544 million, a 13.6% increase - Total revenues reached $3.8 billion, an 11.0% increase, with organic revenues up 6.9% and acquisition-related revenues up 4.1% [1][2]. Financial Outlook for 2026 - The company anticipates continued cash flow growth and a strong balance sheet to support a balanced capital allocation strategy - Focus on pricing, modernization efforts, and a culture of continuous improvement is expected to enhance margin profiles - The health of core pest control markets and commitment to operational execution should drive organic growth, supplemented by disciplined acquisitions [1][2]. Management Commentary - Management expressed confidence in the company's performance and market stability, highlighting strong customer and employee retention rates - The recurring business, which constitutes over 80% of total revenue, grew over 7% organically for both the quarter and the year, despite declines in one-time business due to weather impacts [1][2].

Core Viewpoint - Rollins, Inc. is a leading player in the pest and wildlife control industry, with significant growth driven by its subsidiary, Orkin, and faces competition from companies like Terminix and Rentokil [1] Group 1: Price Targets and Analyst Sentiment - The average price target for Rollins increased to $69.75, reflecting a more optimistic outlook from analysts due to positive earnings reports and strategic business moves [3] - A year ago, the average price target was $64.3, indicating a slight upward trend and growing confidence in the company's performance [4] - Last month, the average price target was $65, suggesting stable performance attributed to consistent demand for pest control services [2] Group 2: Earnings Expectations - Analysts expect a 17.4% increase in earnings per share (EPS) and a 10.8% rise in revenue for the upcoming fourth-quarter earnings announcement on February 11, driven by strong demand for Orkin's services [2] - Rollins has a strong track record of surpassing earnings expectations, positioning the company to potentially exceed estimates in its upcoming quarterly report [3] Group 3: Company Performance and Growth Drivers - Rollins shares have risen by 30% over the past year, attributed to accelerated earnings and revenue growth, supported by Orkin's expansion, strategic technology investments, and key acquisitions [4] - Despite a lower price target set by RBC Capital analyst Ashish Sabadra at $52, the company's strong performance and strategic initiatives indicate continued potential for growth [5]

Core Viewpoint - Rollins, Inc. has demonstrated strong financial performance and stock growth, outperforming broader market indices and showing positive earnings results, indicating a favorable investment outlook. Group 1: Company Overview - Founded in 1901, Rollins, Inc. is based in Atlanta, Georgia, and provides pest and wildlife control services to both residential and commercial customers in the U.S. and internationally. The company has a market capitalization of $31.2 billion [1]. Group 2: Stock Performance - Rollins, Inc. shares have outperformed the broader market over the past year, with a stock price increase of 28.4% over the last 52 weeks and 7.2% year-to-date. In comparison, the S&P 500 Index has returned 15.6% over the past year and risen 1.7% in 2026 [2]. - The stock has also outperformed the Consumer Discretionary Select Sector SPDR ETF, which saw a 4.2% rise over the past 52 weeks and a 1.5% decline this year [3]. Group 3: Earnings Performance - On October 29, Rollins, Inc. stock rose by 7.3% following the release of its Q3 2025 earnings, which showed a 12% year-over-year revenue increase to $1 billion, surpassing analysts' estimates. The adjusted EPS was $0.35, beating Wall Street estimates by 9.4% [5]. - For the current year ending December 2025, analysts project a 15.2% year-over-year growth in EPS to $1.14 on a diluted basis. The company has a strong earnings surprise history, having surpassed or matched consensus estimates in each of the last four quarters [6]. Group 4: Analyst Ratings - Among the 15 analysts covering Rollins, Inc. stock, the consensus rating is a "Moderate Buy," consisting of nine "Strong Buy" ratings, two "Moderate Buys," and four "Holds," with this configuration remaining largely unchanged in recent months [6]. - UBS analyst Joshua Chan maintained a "Neutral" rating for Rollins stock and raised its price target from $61 to $65. The mean price target of $66.68 suggests a potential upside of 3.7% from current market prices, while the Street-high target of $72 indicates a possible rally of up to 12% [7].

Core Insights - Rollins, Inc. (ROL) is scheduled to report its fourth-quarter 2025 results on February 11, with a strong earnings surprise history, surpassing the Zacks Consensus Estimate in two of the last four quarters and matching twice, averaging a 3.2% earnings surprise [1] Revenue Expectations - The Zacks Consensus Estimate for revenues in the upcoming quarter is $922.1 million, reflecting a year-over-year increase of 10.8% [2] - Residential revenues are estimated at $407 million, indicating a 10.3% increase from the previous year, while commercial revenues are expected to rise 11.4% year over year to $312.4 million [3] - Termite and ancillary revenues are projected at $195.5 million, suggesting a 13.4% growth year over year, with franchise revenues estimated at $4.3 million, showing a marginal rise [3] - U.S. revenues are pegged at $858.3 million, indicating an 11.3% increase from the year-ago quarter, while revenues from other countries are anticipated to grow 9.6% year over year to $66.9 million [5] Growth Drivers - The anticipated revenue growth is attributed to Orkin's expansion, which has the highest customer retention rate among the company's service lines, and the utilization of advanced digital tools such as BOSS, VRM, Orkin 2.0, BizSuite, and InSite [4] - Recent acquisitions of Saela Holdings and FPC Holdings are expected to enhance geographical exposure to favorable regions, while increased media engagement through social media platforms like TikTok and Facebook is likely to boost brand popularity [6] Earnings Outlook - The consensus estimate for earnings is set at 27 cents per share, indicating a year-over-year growth of 17.4% [6] - The bottom line is expected to benefit from the company's CPI-plus focused pricing strategies, which aim to keep prices above the general Consumer Price Index (CPI) rate to mitigate inflation effects [7] Earnings Prediction Model - The current model does not predict a definitive earnings beat for ROL, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [8]