Rollins (ROL) Q4 2025 earnings summary

Executive summary

• Achieved 11.0% revenue growth to $3.8B in FY 2025, with organic growth at 6.9% and acquisitions contributing 4.1%.

• Recurring and ancillary services, representing over 80% of revenue, grew organically by over 7% for both Q4 and the year.

• Q4 revenue rose 9.7% year-over-year, with organic growth of 5.7% and acquisitions adding 4.0%.

• 26 acquisitions completed, including Saela, which exceeded expectations and contributed $55M in revenue year-to-date.

• Customer and employee retention remained strong, with improved first-year teammate retention and ongoing investments in leadership and collaboration.

Financial highlights

• Adjusted EBITDA for FY 2025 was $855M, up 10.8%; Q4 adjusted EBITDA was $194M, up 7.0%.

• Adjusted EPS for FY 2025 was $1.12, up 13.1%; Q4 adjusted EPS was $0.25, up 8.7%.

• Operating cash flow for FY 2025 was $678M, up 11.6%; free cash flow was $650M, up 12.1%.

• Q4 GAAP operating income was $160M (+6.3% YoY); adjusted operating income was $167M (+8.1% YoY).

• Dividend grew 11% YoY and has increased over 80% since 2022.

Outlook and guidance

• 2026 outlook targets 7%-8% organic growth and 2%-3% from M&A, with double-digit growth in revenue, earnings, and cash flow.

• Free cash flow conversion expected to remain above 100% in 2026.

• Focus on pricing, modernization, and continuous improvement to enhance margins.

• Healthy balance sheet and strong customer retention support continued growth.