Rollins (NYSE: ROL) revenue climbs 6.2% as operating income slips
by Tristan Rich · The Markets DailyWhat happened
Rollins, Inc. (NYSE: ROL) reported unaudited third-quarter 2026 results on October 21, 2026. Revenue rose 6.2% to $1.1 billion. Organic revenue rose 4.4% from a year earlier, which excludes acquisition effects. Operating margin was 20.5%, down 140 basis points.
Gross profit rose 4.3% to $583 million, but gross margin slipped to 53.5%. Operating income was $223 million, down 1.0%. Adjusted operating income was $231 million, down 0.6%. Net income fell 3.4% to $158 million. Adjusted EPS slipped to $0.34. Adjusted EBITDA eased 0.7% to $257 million. Operating cash flow rose 26.4% to $242 million.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Third-quarter revenue | $1.09 billion | from $1.03 billion, +6.2% | SEC 8-K exhibit 99.1 |
| Quarterly operating income | $222.86 million | from $225.02 million, -1.0% | SEC 8-K exhibit 99.1 |
| Adjusted operating income | $230.68 million | from $232.06 million, -0.6% | SEC 8-K exhibit 99.1 |
| Adjusted EBITDA | $256.57 million | from $258.33 million, -0.7% | SEC 8-K exhibit 99.1 |
| Operating cash flow | $241.86 million | from $191.35 million, +26.4% | SEC 8-K exhibit 99.1 |
| Free cash flow | $235.50 million | from $182.85 million, +28.8% | SEC 8-K exhibit 99.1 |
Read more: Rollins (ROL) stock analysis and investment case
Why it matters
The quarter shows growth, but not across every line. Revenue rose, yet profit did not keep pace. Operating margin fell to 20.5% from 21.9%. Adjusted EBITDA margin also fell, to 23.5% from 25.2%. That points to weaker conversion from sales to earnings.
Cash flow improved, but one item helped. Operating cash flow rose 26.4% to $242 million, and free cash flow rose 28.8% to $235 million. The company said cash flow was helped by $63 million from the timing of a tax refund tied to its tax credit planning strategy. That makes the quarter harder to read as a guide to ongoing cash generation.
Rollins also invested $27 million in acquisitions, $6 million in capital expenditures, $120 million in share repurchases and paid $87 million in dividends.
For the first nine months, revenue rose 8.0% to $3.07 billion, while net income was little changed at $410 million. Rollins said residential customer acquisition remained under pressure. It is shifting marketing resources away from its traditional digital playbook and toward the channels and capabilities that generate the highest returns.
Management also said the company has logged 100 consecutive quarters of revenue growth.
Stock perps: every US stock that trades as a perpetual future, by leverage, live
What's next
Rollins will host a conference call on Thursday, October 22, 2026 at 8:30 a.m. Eastern Time to discuss the third-quarter results. Investors will look for more detail on the tax refund timing item and on customer acquisition pressure.
More from OptimistFi
- ROL stock: the Rollins thesis, its status and the next test to watch
- Stock research on every company OptimistFi covers
From OptimistFi Perps
- Open interest live: crypto and stock perps by exchange
- All perp markets: price, open interest and funding by venue
- Futures calculator: liquidation price, PnL and fees by exchange
- Perp funding rates live: what longs and shorts pay on every venue
- Stock perps vs tokenized stocks: how US shares trade around the clock
- Weekend market prices: US stock indexes, gold and oil now
Sources
- SEC 8-K Exhibit 99.1 — Third-quarter 2026 financial results press release.
- SEC Form 8-K — Current report announcing the press release.
Read the full OptimistFi thesis on Rollins, Inc.: https://optimistfi.com/stocks/ROL
See what would break the Rollins, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Rollins, Inc. investment case, its status and the next test to watch live on the Rollins, Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.