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Mar 31
Rollins Q1 2025 Earnings Report
Rollins delivered strong top-line growth and double-digit increases in earnings and cash flow in Q1 2025.
Key Takeaways
Rollins reported solid performance for Q1 2025, with revenues growing nearly 10%, net income rising over 11%, and free cash flow up by more than 16%. The company saw continued momentum across residential, commercial, and termite service lines.
Revenue rose to $822,504,000, up 9.9% from Q1 2024.
Net income reached $105,248,000, an 11.5% increase year-over-year.
EPS increased to $0.22 per diluted share, with adjusted EPS matching at $0.22.
Free cash flow improved by 16.5%, totaling $140,111,000.
Rollins
Rollins
Rollins Revenue by Segment
Revenue by Segment
Residential Revenue
CapyFin.comCommercial Revenue
CapyFin.comTermite & Ancillary Revenue
CapyFin.com Forward Guidance
Management remains confident in the company’s growth prospects due to organic demand generation and strategic M&A activity, despite minor pressure from fewer business days in the quarter.
Positive Outlook
- Organic revenue growth of 7.4% despite fewer business days
- Strong contribution from recent Saela acquisition
- Double-digit net income growth
- 15.3% increase in operating cash flow
- Healthy market conditions expected to support continued strength
Challenges Ahead
- Operating margin declined by 40 basis points
- Adjusted EBITDA margin decreased by 60 basis points
- Impact from a stronger U.S. dollar reduced revenues slightly
- One less business day in the quarter impacted reported growth
- Modest decline in adjusted operating margin year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income