Rollins Q1 Revenues Beat Estimates and Increase Year Over Year

Core Insights - Rollins, Inc. (ROL) reported first-quarter 2025 earnings that met the Zacks Consensus Estimate, with revenues exceeding expectations, indicating a strong performance in a healthy demand environment for its services [1] Financial Performance - Adjusted earnings per share were 22 cents, reflecting a 10% year-over-year increase, while revenues reached $822.5 million, surpassing the consensus by 0.8% and improving 9.9% year over year [1] - Organic revenues amounted to $804 million, marking a 7.4% year-over-year increase [1] - Adjusted EBITDA was $171.9 million, a 6.9% increase year over year, but fell short of the expected $182.9 million [4] - The adjusted EBITDA margin decreased by 60 basis points year over year to 20.9%, compared to the expected margin of 22.7% [4] Revenue Breakdown - Residential revenues increased by 8.2% year over year to $356.3 million, though this was below the estimate of $365.3 million [3] - Commercial revenues rose by 10.2% year over year to $284.4 million, exceeding the estimate of $274.7 million [3] - Termite and ancillary revenues grew by 13.2% year over year to $172.1 million, surpassing the estimate of $156.4 million [3] Cash Flow and Debt - Rollins ended the quarter with cash and cash equivalents of $201.2 million, up from $113 million in the prior year [5] - Long-term debt increased to $485.5 million from $395.3 million at the end of the previous quarter [5] - The company generated $147 million in cash from operating activities, with capital expenditures of $6.8 million and free cash flow of $140.1 million [5] - Rollins paid dividends totaling $80 million during the quarter [5] Stock Performance - Rollins shares have increased by 23.5% over the past year, slightly underperforming the industry growth of 24.4% [2]