Rollins, Inc. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $3.99 billion, which rose 8.3% on the year before. That growth rate was down 1.6 percentage points on the rate a quarter earlier.
What stands out
Sales are rising faster than profit. Revenue grew 8.3% but the operating margin fell 1.2 percentage points.
Growth and profit
The trailing operating margin was 18.3%, down 1.2 percentage points from a year earlier. The trailing net margin was 13.2%. Net income over the twelve months was $526.1 million, which rose 2.0% on the year before.
Cash flow
Operating cash flow over the twelve months was $697.5 million, down 0.6% on the year before. Capital spending was $25.7 million, or 0.6% of revenue. Free cash flow, operating cash flow less capital spending, was $671.8 million, down 0.5% on the year before. Free cash flow was 16.8% of revenue (the free-cash-flow margin), down 1.5 percentage points from a year earlier. The average diluted share count fell 0.7% over the year.
In context
Today’s free-cash-flow margin of 16.8% is higher than 71% of the company’s own past quarterly readings, which have ranged from 12.4% to 19.9%. Today’s operating margin of 18.3% is higher than 16% of the company’s own past quarterly readings, which have ranged from 17.8% to 19.5%. Today’s twelve-month revenue growth rate of 8.3% is higher than 13% of the company’s own past quarterly readings, which have ranged from 6.5% to 14.5%.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 25.7%, and 5 percentage points higher would raise it by 33.4%. A free-cash-flow margin 1 percentage point lower would lower it by 5.9%.
What to watch
The next filing will show whether the recent decline in operating margin continues or reverses. It will also reveal if the gap between revenue growth and net income growth widens. Finally, it will indicate if the free-cash-flow margin stabilizes after its recent drop.
