Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% ...

Question-and-Answer SessionKen, maybe, obviously, since you guys just reported last week and the stock had quite the reaction, maybe let's just start there in terms of the results. There was the weather-related surprises. Can you just talk through that? Like when did you notice that weather was an impact and how you quantify that, I guess?Kenneth KrauseExecutive VP & CFO Sure. Well, thanks for having us again, Manav, and great to be here, and thank you all for your interest in Rollins. And It's, again, grea ...

Rollins (NYSE: ROL) FY Conference Summary Company Overview - Rollins is a portfolio of pest control brands, demonstrating strong performance with a focus on recurring revenue streams. [5][9] Key Financial Performance - Achieved double-digit revenue and earnings growth for three consecutive years, marking the 24th consecutive year of annual revenue growth and the 97th consecutive quarter of revenue growth. [5][6] - 75% of the business is under contract, indicating a strong recurring revenue model. [5] - The ancillary business grew at 15-16% year-over-year, while the one-time business faced challenges due to adverse weather conditions. [6][9] Weather Impact - Weather conditions negatively impacted the one-time business, particularly in the Midwest and Northeast, leading to a decline in growth during Q4. [6][7] - The company anticipates a recovery in Q1, with expectations of making up for lost revenue as the peak season approaches. [12][13] Growth Opportunities - Rollins is focusing on cross-brand collaboration to enhance growth, particularly in the ancillary services segment. [20][21] - There is significant potential to reduce customer churn by redirecting customers from one brand to another within the portfolio. [22] Operational Improvements - The company is investing in modernization initiatives, including process improvements and technology upgrades, to enhance operational efficiency. [24][42] - A new EPM system is being implemented to improve data synthesis and decision-making capabilities. [43][50] Margin Profile - The one-time business has a gross margin of over 70%, indicating strong profitability potential. [16] - The company is addressing high turnover rates among field staff, which has significant cost implications. [27][31] Capital Allocation and M&A Strategy - Rollins aims for 2-3% growth through M&A, with a pipeline of potential deals. [56][62] - The company has successfully completed over 100 acquisitions in the past few years, with a focus on maintaining a long-term approach to business integration. [61][63] Shareholder Engagement - The Rollins family remains supportive of modernization efforts and is aligned with the interests of other shareholders. [77][79] - The company has increased its dividend by 85% over the past few years, reflecting strong financial performance. [73] Conclusion - Rollins is positioned for continued growth through its strong recurring revenue model, operational improvements, and strategic M&A initiatives. The company remains optimistic about its future performance despite recent weather-related challenges. [9][63]

SenesTech Reports Significant Reductions in Rodent Activity Following Evolve® Deployments in Urban Field Studies [Accessibility Statement] Skip NavigationSURPRISE, Ariz., Feb. 18, 2026 /PRNewswire/ -- SenesTech, Inc. (NASDAQ: SNES) ("SenesTech" or the "Company"), a leader in birth control solutions for managing rodent populations, today reported significant reductions in rodent activity following multi-month deployments of Evolve® Rat Birth Control in two urban locations. Results were measured using standar ...

Core Insights - Miami has been ranked as the most termite-infested city in the U.S. for the fourth consecutive year, followed by Los Angeles and Tampa, Florida [1] - The list highlights the ongoing termite pressure in warm-weather cities, with Florida cities occupying six spots in the top 20 [1] - New York made a significant jump, reentering the top 10 at No. 9, climbing seven spots from the previous year [1] Rankings and Data - The ranking is based on data from residential termite treatments performed by Orkin from January 15, 2025, to January 16, 2026 [1] - The top 10 cities for termite infestations are: 1. Miami 2. Los Angeles 3. Tampa, Fla. 4. Washington, D.C. 5. Orlando, Fla. 6. Houston 7. West Palm Beach, Fla. 8. Dallas 9. New York 10. Atlanta [1] Termite Damage and Prevention - Termites cause an estimated billions of dollars in damage to U.S. homes annually, often going unnoticed until significant damage occurs [1] - A mature termite colony can contain between 60,000 to 1 million termites, with some Formosan colonies exceeding 2 million [1] - Common signs of termite activity include bubbling or cracked paint, hollow-sounding wood, and mud tubes along walls [1] Prevention Strategies - Homeowners are encouraged to take preventive measures such as installing baiting systems, regular inspections, and sealing cracks near foundations [1] - Orkin offers free termite inspections to help identify risks early and recommend tailored solutions [1]

Company Performance - Cisco (CSCO) reported solid earnings and guidance but saw its stock decline due to concerns over rising memory costs, which analysts believe are manageable given Cisco's strength in AI-related areas [5] - AppLovin (APP) also experienced a stock drop despite beating revenue and earnings estimates, guiding for Q1 revenue between $1.745 billion and $1.775 billion, exceeding the $1.7 billion estimate [5] - Rollins (ROL) was the largest decliner in the S&P 500 after missing both revenue and adjusted earnings estimates, attributing the shortfall to erratic weather patterns affecting seasonal work [6] Economic Indicators - Existing home sales fell by 8.4% in January to a seasonally adjusted annual rate of 3.91 million, below the consensus estimate of 4.2 million and down from 4.27 million in December [7] - The decline in home sales is being compared to lows seen during the Great Recession, with some analysts suggesting that the drop may be temporary and could reverse if mortgage rates decrease in the coming quarters [8] Market Trends - The S&P 500 has not shown significant gains this year, but there is a rotation away from last year's leading sectors, benefiting less trendy areas of the market [9] - The S&P 500 Machinery Index has increased by over 20% year to date, with companies like Cummins (CMI), Nordson (NDSN), PACCAR (PCAR), Caterpillar (CAT), and Parker-Hannifin (PH) receiving strong ratings [10]

Core Insights - Rollins, Inc. (ROL) reported disappointing fourth-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate, leading to a significant decline in stock price during after-hours trading [1] Financial Performance - Adjusted earnings per share were 25 cents, missing the consensus by 7.4% but showing an 8.7% increase year over year [2] - Total revenues reached $912.9 million, slightly below the consensus estimate but up 9.7% from the previous year [2] - Residential revenues increased by 9.7% year over year to $405 million, missing the consensus estimate of $407 million [3] - Commercial revenues rose 8.7% year over year to $304.9 million, falling short of the consensus estimate of $312.4 million [3] - Termite and ancillary revenues were $192.9 million, an 11.9% year-over-year increase, but also missed the consensus estimate of $195.5 million [3] Operating Metrics - Adjusted operating income was $167 million, reflecting an 8.1% year-over-year increase, while the adjusted operating margin decreased by 30 basis points to 18.3% [4] - Adjusted EBITDA was $194 million, a 7% increase year over year, with the adjusted EBITDA margin decreasing by 60 basis points to 21.2% [4] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $100 million, up from $89.6 million in the fourth quarter of 2024 [5] - Long-term debt increased to $486.1 million from $395.3 million at the end of the previous year [5] - Cash generated from operating activities was $164.7 million, with capital expenditures of $5.7 million, resulting in free cash flow of $159 million [6] - Dividends paid during the quarter amounted to $88.5 million [6]

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 - 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 ...