Key Takeaways Adobe, Disney, Intuit, Rollins and JNJ all offer wide moat business models with strong potential in 2H2025.Each company shows solid earnings and revenue growth expectations with estimate revisions trending upward.Unique assets like AI tools, strong brands, and strategic acquisitions reinforce long-term market dominance.The wide moat strategy involves investing in companies that not only lead their industries but are also strategically fortified to maintain dominance in the future. The business ...

I wrote about Rollins (NYSE: ROL ) previously with a buy rating as everything was moving in the right direction: pricing, execution, retention, and margin expansion. My conviction has strengthened after looking at this quarter’s results. The commercial strategy isI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental inv ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-4422 ROLLINS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Key Takeaways ROL reported Q2 EPS of $0.30, up 11% YoY and 3.5% above consensus, revenues rose 12.1% to $999.5M.Commercial and termite revenues grew 11.4% and 13.9%, offsetting softer residential performance.Adjusted EBITDA rose 10% to $231M, though margin dipped 50 bps to 23.1% amid rising costs.Rollins, Inc. (ROL) reported better-than-expected second-quarter 2025 results.Adjusted earnings of 30 cents per share beat the consensus estimate by 3.5% and increased 11% year over year. Revenues of $999.5 million ...

Financial Data and Key Metrics Changes - The company reported total revenue growth of 12.1% year-over-year and organic growth of 7.3% [5][12] - Gross margin was reported at 53.8%, slightly down by 20 basis points compared to the previous year [14] - GAAP earnings per share were $0.29, with adjusted earnings per share at $0.30, reflecting an 11.1% increase from the same period last year [13][18] - Operating cash flow increased by 21% to $175 million, while free cash flow rose over 23% to $168 million [18][19] Business Line Data and Key Metrics Changes - Residential revenues increased by 11.6%, commercial pest control rose by 11.4%, and termite and ancillary services grew by 13.9% [13] - Organic growth in residential was 4.9%, in commercial it was 8.4%, and in termite and ancillary it was 10.3% [14] Market Data and Key Metrics Changes - The company experienced a strong demand recovery in June, leading to a robust backlog entering July [5][6] - The impact of weather was noted, particularly in May, which affected productivity in various regions [10][97] Company Strategy and Development Direction - The company is focused on strategic M&A opportunities and organic growth investments, with the recent acquisition of Saila enhancing competitive advantages [8][20] - The company aims to maintain organic growth in the range of 7% to 8% for the year, with M&A contributing an additional 3% to 4% [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of markets and the company's recession-resilient business model, despite macroeconomic uncertainties [20] - The company anticipates improving margin profiles in the second half of the year, with a focus on maintaining double-digit earnings growth [21][88] Other Important Information - The company has a healthy leverage ratio of 0.9 times and continues to prioritize capital allocation while maintaining a disciplined approach to debt [20][75] - The company has seen improvements in employee retention, which positively impacts customer service and operational efficiency [113] Q&A Session Summary Question: Can you unpack the residential performance a little bit in the quarter? - Management noted that residential organic growth was 4.9%, with a strong backlog exiting June, indicating robust demand [26][28] Question: What are the impacts of generative AI on your business? - Management acknowledged adjustments in marketing strategies due to generative AI, leading to higher quality leads and improved closing rates [36][39] Question: Can you provide context on contributions from pricing and volume? - The pricing strategy targets a CPI plus level of 3% to 4%, with volume growth outpacing the underlying market [44][46] Question: What was the impact of legacy auto claims on margins? - Management indicated that legacy auto claims are difficult to predict and can impact margins, but they are actively working on improving safety to reduce claims [61][64] Question: How is the commercial segment performing? - The commercial segment continues to show strong growth, with ongoing investments in staffing and marketing to capture opportunities [70] Question: How are you balancing debt repayment and capital return? - The company maintains a disciplined approach to managing debt while investing in growth and returning capital to shareholders [75] Question: What are the trends in ancillary services? - The ancillary business has performed well, with strong organic growth and no signs of consumer slowdown [90][91]

Rollins (ROL) Q2 2025 Earnings Call July 24, 2025 08:30 AM ET Speaker0Greetings and welcome to the Rollins Inc. Second Quarter twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.It's now my pleasure to turn the call over to your host, Lindsay Burton, Vice President, Investor Relations. Lindsay, please go ahead.Speaker1Thank you, and good morning, ...

Second Quarter 2025 Earnings Webcast Presentation Rollins, Inc. July 24, 2025 1 © 2024 Rollins, Inc. All rights reserved. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law. 2 © 2024 Rollins, Inc. All ...

Rollins (ROL) came out with quarterly earnings of $0.3 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.45%. A quarter ago, it was expected that this operator of Orkin and other pest and termine control services would post earnings of $0.22 per share when it actually produced earnings of $0.22, delivering no surprise.Over t ...

Exhibit 99.1 For Further Information Contact Lyndsey Burton (404) 888-2348 FOR IMMEDIATE RELEASE ROLLINS, INC. REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS Strong Revenue Growth Drives Healthy Improvements in Earnings and Cash Flow ATLANTA, GEORGIA, July 23, 2025: Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the second quarter of 2025. Key Highlights *Amounts are non-GAAP financial measures. See th ...

Core Insights - Rollins, Inc. reported strong financial results for Q2 2025, with double-digit revenue growth across all major service lines, indicating a healthy demand environment [4][8] - The company achieved a revenue of $999.5 million, a 12.1% increase from Q2 2024, with organic revenues rising by 7.3% [8][31] - Adjusted net income for the quarter was $146.9 million, reflecting an 11.1% increase year-over-year, while adjusted EPS rose to $0.30, a 11.1% increase [8][32] Financial Performance - Revenues for the first six months of 2025 reached $1.82 billion, up 11.1% from $1.64 billion in the same period of 2024 [6][8] - Operating income for Q2 2025 was $198.3 million, an 8.7% increase from the previous year, with an operating margin of 19.8%, down 60 basis points [8][32] - Net cash provided by operating activities was $175.1 million for the quarter, a 20.7% increase compared to the prior year [8][19] Cost and Expenses - Total cost of services provided for Q2 2025 was $461.9 million, representing 46.2% of revenues, compared to 46.0% in Q2 2024 [7][18] - Sales, general, and administrative expenses were $307.6 million, accounting for 30.8% of revenues, slightly up from 30.4% in the previous year [9][18] Cash Flow and Investments - The company invested $226 million in acquisitions during the quarter, alongside $7 million in capital expenditures [8][19] - Free cash flow for Q2 2025 was $168 million, a 23.2% increase from the previous year [8][27] Market Position and Outlook - Management expressed confidence in the company's ability to drive growth and improve profitability in the second half of 2025 and beyond [4][5] - Rollins, Inc. continues to maintain a strong balance sheet and access to investment-grade credit markets, supporting its balanced capital allocation strategy [5][8]