rol-20260331

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 March 31, 2026

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)


Delaware						51-0068479
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2170 Piedmont Road, N.E., Atlanta, Georgia

(Address of principal executive offices)

30324

(Zip Code)

(404) 888-2000

(Registrant’s telephone number, including area code)

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ROL	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No x

Rollins, Inc. had 481,463,663 shares of its $1 par value Common Stock outstanding as of April 13, 2026.

Table of Contents

ROLLINS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


		Pages

PART I	FINANCIAL INFORMATION	3

ITEM 1.	FINANCIAL STATEMENTS	3
	CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	3
	CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5
	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	6
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	7
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35
ITEM 4.	CONTROLS AND PROCEDURES	35

PART II	OTHER INFORMATION	36

ITEM 1.	LEGAL PROCEEDINGS	36
ITEM 1A.	RISK FACTORS	36
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	37
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	37
ITEM 4.	MINE SAFETY DISCLOSURES	37
ITEM 5.	OTHER INFORMATION	38
ITEM 6.	EXHIBITS	39

SIGNATURES		40

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ROLLINS, INC. AND SUBSIDIARIES

PART 1 FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF MARCH 31, 2026 AND DECEMBER 31, 2025

(in thousands except share data)

(unaudited)


	March 31, 2026		December 31, 2025
ASSETS
Cash and cash equivalents	$	116,543	$	100,004
Trade receivables, net of allowance for expected credit losses of $22,008 and $23,528, respectively	210,721		202,518
Financed receivables, short-term, net of allowance for expected credit losses of $2,944 and $3,112, respectively	44,243		44,723
Materials and supplies	44,128		42,982
Other current assets	98,043		82,455
Total current assets	513,678		472,682
Equipment and property, net of accumulated depreciation of $244,373 and $237,815, respectively	124,910		126,187
Goodwill	1,384,591		1,374,664
Customer contracts, net	392,044		407,516
Trademarks & tradenames, net	166,193		166,779
Other intangible assets, net	7,486		8,089
Operating lease right-of-use assets	412,690		424,528
Financed receivables, long-term, net of allowance for expected credit losses of $8,704 and $7,922, respectively	110,879		110,057
Other assets	47,763		50,021
Total assets	$	3,160,234	$	3,140,523
LIABILITIES
Short-term debt	$	163,926	$	123,683
Accounts payable	61,188		44,361
Accrued insurance - current	45,204		44,123
Accrued compensation and related liabilities	102,461		128,259
Unearned revenues	194,273		187,670
Operating lease liabilities - current	136,714		137,410
Other current liabilities	90,897		120,019
Total current liabilities	794,663		785,525
Accrued insurance, less current portion	88,274		79,157
Operating lease liabilities, less current portion	279,873		290,765
Long-term debt	486,627		486,147
Other long-term accrued liabilities	129,109		124,608
Total liabilities	1,778,546		1,766,202
Commitments and contingencies (see Note 9)
STOCKHOLDERS’ EQUITY
Preferred stock, without par value; 500,000 shares authorized, zero shares issued	—		—
Common stock, par value $1 per share; 800,000,000 shares authorized, 481,461,825 and 481,193,751 shares issued and outstanding, respectively	481,462		481,194
Additional paid in capital	167,767		179,406
Accumulated other comprehensive (loss) income	(26,324)		(25,194)
Retained earnings	758,783		738,915
Total stockholders’ equity	1,381,688		1,374,321
Total liabilities and stockholders’ equity	$	3,160,234	$	3,140,523

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(in thousands except per share data)

(unaudited)


	Three Months Ended March 31,
	2026		2025
REVENUES
Customer services	$	906,424	$	822,504
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)	445,522		400,134
Sales, general and administrative	282,918		250,513

Depreciation and amortization	32,498		29,209
Total operating expenses	760,938		679,856
OPERATING INCOME	145,486		142,648
Interest expense, net	8,851		5,796
Other (income) expense, net	(463)		(692)
CONSOLIDATED INCOME BEFORE INCOME TAXES	137,098		137,544
PROVISION FOR INCOME TAXES	29,260		32,296
NET INCOME	$	107,838	$	105,248
NET INCOME PER SHARE - BASIC AND DILUTED	$	0.22	$	0.22
Weighted average shares outstanding – basic	481,385		484,414
Weighted average shares outstanding – diluted	481,398		484,434
DIVIDENDS PAID PER SHARE	$	0.1825	$	0.1650

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2026		2025
NET INCOME	$	107,838	$	105,248
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(1,111)		5,231
Pension settlement	—		493
Unrealized gain (loss) on available for sale securities	(19)		(31)

Other comprehensive (loss) income, net of tax	(1,130)		5,693
Comprehensive income	$	106,708	$	110,941

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(in thousands)

(unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
	Shares	Amount
Balance at December 31, 2025	481,194	$	481,194	$	179,406	$	(25,194)	$	738,915	$	1,374,321
Net income	—	—		—		—		107,838		107,838
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—	—		—		(1,111)		—		(1,111)

Unrealized loss on available for sale securities	—	—		—		(19)		—		(19)
Cash dividends	—	—		—		—		(87,970)		(87,970)
Stock compensation	626	626		10,353		—		—		10,979
Shares withheld for payment of employee taxes	(358)	(358)		(21,992)		—		—		(22,350)

Balance at March 31, 2026	481,462	$	481,462	$	167,767	$	(26,324)	$	758,783	$	1,381,688


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Retained Earnings		Total
	Shares	Amount
Balance at December 31, 2024	484,372	$	484,372	$	155,205	$	(43,634)	$	734,650	$	1,330,593
Net income	—	—		—		—		105,248		105,248
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	—	—		—		5,231		—		5,231
Pension settlement	—	—		—		493		—		493
Unrealized loss on available for sale securities	—	—		—		(31)		—		(31)
Cash dividends	—	—		—		—		(79,910)		(79,910)
Stock compensation	541	541		8,258		—		—		8,799
Shares withheld for payment of employee taxes	(294)	(294)		(14,377)		—		—		(14,671)

Balance at March 31, 2025	484,619	$	484,619	$	149,086	$	(37,941)	$	759,988	$	1,355,752

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2026		2025
OPERATING ACTIVITIES
Net income	$	107,838	$	105,248
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,498		29,209
Stock-based compensation expense	10,822		8,799
Provision for expected credit losses	7,822		10,730
Gain on sale of assets, net	(61)		(692)
Provision for deferred income taxes	2,053		12,470
Other operating activities, net	160		358
Changes in operating assets and liabilities:
Trade accounts receivable	(15,974)		(7,766)
Financing receivables	(92)		(506)
Materials and supplies	(1,110)		(1,117)
Other current assets	(14,317)		(3,069)
Accounts payable and accrued expenses	(33,494)		(25,292)
Unearned revenue	6,567		10,202
Other long-term assets and liabilities	15,655		8,318
Net cash provided by operating activities	118,367		146,892
INVESTING ACTIVITIES
Acquisitions, net of cash acquired	(18,488)		(27,191)
Capital expenditures	(7,139)		(6,781)
Proceeds from sale of assets	624		1,405
Other investing activities, net	436		—
Net cash used in investing activities	(24,567)		(32,567)
FINANCING ACTIVITIES
Payment of contingent consideration	(6,104)		(1,193)
Issuance of senior notes	—		492,215

Borrowings under revolving commitment	—		11,000
Borrowings under commercial paper, net	49,496		—
Repayments of revolving commitment	—		(408,000)
Payment of debt issuance costs	—		(5,428)
Payment of dividends	(87,849)		(79,910)
Cash paid for common stock purchased	(22,350)		(14,671)
Other financing activities, net	(9,385)		1,375
Net cash used in financing activities	(76,192)		(4,612)
Effect of exchange rate changes on cash	(1,069)		1,834
Net increase in cash and cash equivalents	16,539		111,547
Cash and cash equivalents at beginning of period	100,004		89,630
Cash and cash equivalents at end of period	$	116,543	$	201,177
Supplemental disclosure of cash flow information:
Cash paid for interest	$	15,083	$	4,107
Cash paid for income taxes, net	$	42,531	$	5,853
Non-cash additions to operating lease right-of-use assets	$	25,277	$	41,751

The accompanying notes are an integral part of these condensed consolidated financial statements.

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ROLLINS, INC. AND SUBSIDIARIES

NOTE 1. BASIS OF PREPARATION

Basis of Preparation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, the instructions to Form 10-Q and applicable sections of Securities and Exchange Commission ("SEC") regulation S-X, and therefore do not include all information and footnotes required by U.S. GAAP for complete financial statements. There have been no material changes in the Company’s significant accounting policies or the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Rollins, Inc. (including its subsidiaries unless the context otherwise requires, “Rollins,” “we,” “us,” “our,” or the “Company”) for the year ended December 31, 2025. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2025 Annual Report on Form 10-K.

The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements. The Company considered the impact of economic trends on the assumptions and estimates used in preparing the condensed consolidated financial statements. In the opinion of management, all material adjustments necessary for a fair presentation of the Company’s financial results for the quarter have been made. These adjustments are of a normal recurring nature but complicated by the continued uncertainty surrounding economic trends. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of results for the entire year. The severity, magnitude and duration of certain economic trends continue to be uncertain and are difficult to predict. Therefore, our accounting estimates and assumptions may change over time in response to economic trends and may change materially in future periods.

NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

Recently adopted accounting standards

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The guidance provides an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. The Company adopted the ASU effective January 1, 2026 on a prospective basis and elected the practical expedient for the calculation of current expected credit losses. The adoption did not have a material impact on the Company’s condensed consolidated financial statements.

Accounting standards issued but not yet adopted

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification ("ASC"). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company does not expect that the application of this standard will have a material impact on its condensed consolidated financial statements or disclosures.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which requires additional disclosure of the nature of expenses included in the income statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The guidance will be effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its disclosures.

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ROLLINS, INC. AND SUBSIDIARIES

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The requirements will be applied prospectively with the option for a modified or retrospective application. Early adoption is permitted as of the beginning of an annual reporting period. The Company does not expect that the application of this standard will have a material impact on its condensed consolidated financial statements or disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The update improves the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements (Evergreen). This evergreen project facilitates Codification updates for a broad range of Topics arising from technical corrections, the unintended application of the Codification, clarifications, and other minor improvements. The Company is currently evaluating the impact that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures.

NOTE 3. ACQUISITIONS

2026 Acquisitions

The Company made three acquisitions during the three months ended March 31, 2026. The aggregate preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition are summarized as follows:


(in thousands)	2026
Cash	$	—
Accounts receivable	492
Materials and supplies	107
Other current assets	—
Equipment and property	681
Goodwill	9,417
Customer contracts	7,212
Trademarks & tradenames	339
Other intangible assets	—
Current liabilities	(120)
Unearned revenue	(82)
Other assets and liabilities, net	2,485
Assets acquired and liabilities assumed

SEC Form 10-Q filed by Rollins Inc.