Rollins stock price plummeted after missing Q4 expectations

LootboxPhobia · 2026-02-11T22:27:39+00:00

Rollins, Inc.'s Q4 earnings fell short of expectations, with the stock plummeting 16.8%. Despite consecutive revenue growth, adjusted EPS and revenue both missed market expectations. The company emphasized that its core business remains solid and expects sustained growth in the pest control market by 2026.

LootboxPhobia

2026-02-11 22:27:39

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Investing.com – Global consumer and business services company Rollins, Inc. (NYSE: ROL) saw its stock plummet 16.8% in after-hours trading Wednesday after releasing fourth-quarter results that missed analyst expectations, despite the company achieving 24 consecutive years of revenue growth.

The pest control giant reported adjusted earnings per share of $0.25 for the quarter, below analyst estimates of $0.26. Revenue was $913.3 million, below the consensus of $926.8 million, but still up 9.7% year-over-year. Organic revenue grew 5.7%, while acquisitions contributed 4.0% to this quarter’s growth. The company’s stock fell sharply after the earnings release, indicating investor disappointment with the results.

“We delivered solid financial performance in 2025 and made significant progress on several key initiatives,” said President and CEO Jerry Gahlhoff. “Our core markets remain healthy, customer and team member retention are strong, and we believe there have been no fundamental changes to the underlying fundamentals for our consumers.”

Executive Vice President and CFO Kenneth Krause attributed some of the challenges this quarter to “unstable weather patterns,” which negatively impacted one-time business and seasonal work. Krause noted, “Our recurring business base and ancillary services, which account for over 80% of total revenue, achieved more than 7% organic growth both this quarter and for the full year.”

For the full year 2025, Rollins reported revenue of $3.8 billion, an 11.0% increase year-over-year, with organic revenue growth of 6.9%. Adjusted net income rose 13.6% to $544 million, and adjusted earnings per share increased 13.1% to $1.12 on a diluted basis.

Looking ahead to 2026, the company expects to continue organic growth supported by core pest control markets and strategic acquisitions. Management anticipates profit margins will improve driven by pricing strategies and ongoing modernization efforts.

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