Rollins Inc: Q2 Initial: Growth Disappoints Again as Search/Digital Traffic Slows

Research evidence excerpt

Rollins Inc: Q2 Initial: Growth Disappoints Again as Search/Digital Traffic Slows

Global Research

22 July 2026ab

First Read

EquitiesRollins Inc

Q2 Initial: Growth Disappoints Again as Search/ Americas

Digital Traffic Slows Industrial Services

12-month rating Neutral

12m price target US$50.00

Initial Overview

ROL shares likely trade materially lower tomorrow after Q2 results disappointed even

reduced expectations. Organic growth came in at +5.7%, below Street of +7.1% and Price (22 Jul 2026) US$43.32

buyside likely around the high-6% range. The growth slowdown was primarily in RIC: ROL.N BBG: ROL US

residential, with management highlighting that brands tied to search/digital traffic had

Trading data and key metrics

lower leads during the quarter. This will likely elevate questions surrounding competition

which have already come to the forefront leading into the quarter. ROL indicated traffic 52-wk range US$65.60-41.74

somewhat improved exiting June and into July, but with growth off the algorithm, it may Market cap. US$21.3b

take some time to regain operating momentum. Shares o/s 492m (COM)

Free float 58%

Key Q2-26 Metrics Avg. daily volume ('000) 1,300

Adjusted EPS was $0.32, below consensus of $0.34 and UBSe of $0.35. Avg. daily value (m) US$61.9

Operations were -$0.03 versus our estimate. Common s/h equity (12/26E) US$1.61b

P/BV (12/26E) 13.0x

Revenue was $1.079B, below consensus of $1.094B and UBSe of $1.092B.

Net debt to EBITDA (12/26E) 0.3x

Revenue was +8% yoy with organic revenue +5.7% (vs. our estimate of +6.9%

and Street of +7.1%). EPS (UBS, diluted) (USD)

12/26E

Adjusted EBITDA was $236m, below consensus and UBSe of $257m. Adjusted UBS Cons.

EBITDA margin was 21.9%, below our estimate of 23.5% and down 120bps yoy. Q1 0.24 0.24

Incremental EBITDA margin was 7%.