AI English summary of an SEC filing — figures as filed
Rollins ROLRollins said its revenue for Q3 2026 was $1.1 billion, up 6.2% from a year earlier, with organic revenue growth of 4.4%. Operating income was $222.9 million, down 1.0%, and operating margin was 20.5%, down 140 basis points.
Key points
AI summaryRollins said its revenue for Q3 2026 was $1.1 billion, up 6.2% from a year earlier, with organic revenue growth of 4.4%. Operating income was $222.9 million, down 1.0%, and operating margin was 20.5%, down 140 basis points.
The company said gross margin for Q3 fell 90 basis points to 53.5% and the SG&A ratio rose 60 basis points to 30.0%. It cited higher insurance and claims costs from a less favorable claims experience, and higher fleet expenses from higher fuel costs, as the factors.
Rollins said operating cash flow for Q3 was $241.9 million, up 26.4%, and free cash flow was $235.5 million, up 28.8%. It said cash flow benefited by $63.0 million from the timing of a tax refund. During the same quarter, it repurchased shares for $120.1 million, paid dividends of $87.2 million and invested $27.4 million in acquisitions.
Rollins said residential customer acquisition remained under pressure in Q3. It updated its full-year outlook, now expecting organic revenue growth of 4% to 6% and adjusted incremental EBITDA margin ranging from slightly positive to 10%. The company said its expectations for acquisition-related growth of 2% to 3% and free cash flow conversion above 100% remain unchanged.
Summary
AI-writtenAnalysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.
Third-quarter revenue up 6.2%, operating income down 1.0%
Rollins said its revenue for Q3 2026 was $1.1 billion, up 6.2% from a year earlier, with organic revenue growth of 4.4%. Operating income was $222.9 million, down 1.0%, and operating margin was 20.5%, down 140 basis points.
Source · Based on the MD&A text of the filing
Company explains gross margin and SG&A ratio changes
The company said gross margin for Q3 fell 90 basis points to 53.5% and the SG&A ratio rose 60 basis points to 30.0%. It cited higher insurance and claims costs from a less favorable claims experience, and higher fleet expenses from higher fuel costs, as the factors.
Source · Based on the MD&A text of the filing
Q3 cash flow and use of funds
Rollins said operating cash flow for Q3 was $241.9 million, up 26.4%, and free cash flow was $235.5 million, up 28.8%. It said cash flow benefited by $63.0 million from the timing of a tax refund. During the same quarter, it repurchased shares for $120.1 million, paid dividends of $87.2 million and invested $27.4 million in acquisitions.
Source · Based on the MD&A text of the filing
Full-year outlook updated amid customer acquisition pressure
Rollins said residential customer acquisition remained under pressure in Q3. It updated its full-year outlook, now expecting organic revenue growth of 4% to 6% and adjusted incremental EBITDA margin ranging from slightly positive to 10%. The company said its expectations for acquisition-related growth of 2% to 3% and free cash flow conversion above 100% remain unchanged.
Source · Based on the MD&A text of the filing
Structured SEC financial data for this filing is not available yet. Please check the figures in the SEC filing.
AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.
Original filing
The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.
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