Description

Rollins, Inc.: How Much Upside Is Still Untapped in Its Low-Penetration Add-On Services?

Rollins, Inc. reported significant financial growth for fiscal 2025, achieving double-digit revenue, earnings, and cash flow growth. The company announced a milestone $3.8 billion in revenue, with an 11% annual increase, driven by healthy growth across its service lines. However, the fourth quarter experienced a slowdown, with revenue from one-time business declining nearly 3% due to erratic weather patterns that particularly affected the Midwest and Northeast regions. Despite this challenge, the company’s recurring revenue and ancillary services, which account for more than 80% of total revenue, demonstrated a strong organic growth of over 7% for the year and fourth quarter. Rollins continues to see a healthy underlying market environment, marked by stable customer retention rates and improved performance in customer net gains, particularly noteworthy in the Orkin division. The company’s proactive pricing strategies have shown resilience, allowing it to maintain organic growth despite these setbacks.