Rollins Q2 Earnings Beat Estimates and Increase Year Over Year

Core Insights - Rollins, Inc. (ROL) reported better-than-expected second-quarter 2025 results with adjusted earnings of 30 cents per share, beating consensus estimates by 3.5% and increasing 11% year over year [1] - Revenues reached $999.5 million, surpassing consensus by 2.1% and improving 12.1% year over year, with organic revenues of $956.9 million rising 7.3% year over year [1] Financial Performance - Residential revenues increased 4.9% year over year to $428.5 million, missing the estimate of $431.6 million [3] - Commercial revenues rose 11.4% year over year to $320.5 million, exceeding the estimate of $310.3 million [3] - Termite and ancillary revenues increased 13.9% year over year to $211.9 million, beating the estimate of $211.6 million [3] - Adjusted EBITDA was $231 million, a 10% increase year over year, compared to the expectation of $227.5 million [4] - The adjusted EBITDA margin was 23.1%, a decrease of 50 basis points year over year, compared to the expected margin of 23.6% [4] Cash Flow and Debt - Rollins ended the quarter with cash and cash equivalents of $123.04 million, up from $89.6 million in the previous quarter [5] - Long-term debt increased to $485.3 million from $395.3 million at the end of the previous quarter [5] - The company generated $175.22 million in cash from operating activities, with capital expenditures of $7.08 million, resulting in free cash flow of $168.01 million [5] - Rollins paid dividends totaling $79 million during the quarter [5] Stock Performance - Rollins shares have risen 23.5% over the past year, slightly underperforming the industry growth of 24.4% [2]