Rollins — Income Statement, Cash Flows & Balance Sheet
Is Rollins profitable?
Rollins has delivered consistent, compounding profit growth, with revenue and net income both rising meaningfully in 2025.
| Metric | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Revenue ($M) | $3,073 | $3,389 | $3,761 | +11.0% |
| Operating Income ($M) | $583 | $657 | $726 | +10.5% |
| Net Income ($M) | $435 | $466 | $527 | +13.0% |
| Operating Margin | 19.0% | 19.4% | 19.3% | ~flat |
| EPS (basic & diluted) | $0.89 | $0.96 | $1.09 | +13.5% |
Revenue has grown at a healthy double-digit clip for three straight years, and net income has followed in lockstep. Operating margins have held steady in the 19% range, suggesting Rollins is growing without sacrificing profitability. There were no one-time charges distorting 2025 results; a small restructuring charge in 2023 is the only noise across the three-year window.
Where does Rollins's revenue come from?
Rollins generates revenue across three service lines — residential pest control is the largest, but all three are growing at a similar pace.
| Service Line | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Residential ($M) | $1,410 | $1,535 | $1,693 | +10.3% |
| Commercial ($M) | $1,024 | $1,126 | $1,245 | +10.6% |
| Termite & Ancillary ($M) | $606 | $688 | $782 | +13.7% |
| Other (franchise + misc.) ($M) | $33 | $40 | $41 | +3.1% |
All three core service lines are growing, with termite and ancillary services leading the way. The U.S. accounts for roughly 93% of total revenue, with international operations making a small but growing contribution. The 2025 acquisition of Saela Pest Control added approximately $55 million of revenue during the year, so some of the growth reflects bolt-on deals rather than purely organic expansion.
Does Rollins generate cash?
Rollins is an excellent cash generator — operating cash flow comfortably covers dividends, acquisitions, and shareholder returns.
| Metric | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Operating Cash Flow ($M) | $528 | $608 | $678 | +11.5% |
| Capital Expenditures ($M) | $(32) | $(28) | $(28) | ~flat |
| Free Cash Flow (GAAP operating CF minus capex) ($M) | $496 | $580 | $650 | +12.1% |
| Dividends Paid ($M) | $(264) | $(298) | $(328) | +10.1% |
| Acquisitions ($M) | $(367) | $(157) | $(310) | +97.5% |
Rollins converts the vast majority of its net income into real cash, a hallmark of a service business with low capital intensity (capex is just under 1% of revenue). Free cash flow more than covered dividends in every year shown, with plenty left over for acquisitions. The step-up in acquisition spending in 2025 — driven primarily by the Saela deal — was funded partly by the issuance of $500 million in ten-year senior notes.
How strong is Rollins's balance sheet?
Rollins added debt in 2025 to fund acquisitions, but leverage remains manageable relative to its cash generation.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total Debt ($M) | $395 | $610 | +$215 |
| Cash ($M) | $90 | $100 | +$10 |
| Net Debt ($M) | $305 | $510 | +$205 |
| Total Stockholders' Equity ($M) | $1,331 | $1,374 | +$43 |
| Goodwill + Intangibles ($M) | $1,702 | $1,957 | +$255 |
The balance sheet is heavier on intangibles than tangible assets, which is typical for a company that grows through acquisitions — goodwill and customer contracts make up the bulk of total assets. Net debt of roughly $510 million sits well below one year's operating cash flow, so the debt load is not alarming. The primary covenant requires net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) to stay below 3.5x; management confirmed compliance as of year-end.