stockrowWhat it does
Rollins is an international pest-management services company headquartered in Atlanta, Georgia. Jerry Gahlhoff, Jr. is its President and Chief Executive Officer. Through brands including Orkin, HomeTeam Pest Defense, Fox Pest Control, Critter Control and Northwest Exterminating, it provides pest and wildlife control, termite protection, and related services to residential and commercial customers.
A typical pest-control service starts with an assessment of conditions that attract pests, treatment of an existing infestation, and work intended to prevent future infestations. Its residential offering covers common household pests, rodents, insects and wildlife. Its commercial offering serves workplaces in sectors including healthcare, food service and logistics. Termite and ancillary services include liquid, foam and bait treatments, wood treatments, pest and wildlife exclusion, crawlspace encapsulation, moisture remediation and insulation.
Rollins delivers services from more than 800 company-owned and franchised locations in approximately 70 countries. It had 21,946 employees at December 31, 2025. The company operates one reportable segment covering its three service offerings.
Management says AI- and large-language-model-driven search has changed how residential customers find service providers. It is expanding local content, business listings, customer reviews, pricing transparency and paid advertising on ChatGPT and Google Gemini to improve how its brands are found in those channels.
How it makes money
Rollins earns service revenue under customer contracts that specify the pricing arrangement. Its principal revenue streams are residential pest control, commercial pest control, and termite and ancillary services. Residential revenue was $1.7 billion in FY2025, or 45.0% of revenue; commercial revenue was $1.2 billion, or 33.1%; and termite and ancillary revenue was $781.5 million, or 20.8%. Franchise revenue was $16.0 million in FY2025.
The economic model is principally recurring. Scheduled service agreements provide ongoing preventive treatment and may extend across multiple years, while one-time services address particular problems such as bed bugs, wildlife removal, termite treatments or infestations. Approximately 75% of the business was recurring services at December 31, 2025; ancillary services were approximately 10%, and one-time services approximately 15%.
Recurring contracts create repeat service visits and give the company visibility into a significant portion of future revenue. Ancillary work is a separate opportunity to deepen an existing customer relationship through services such as exclusion, remediation or insulation. The company also receives initial franchise fees and royalties from franchisees; transactions can include sales of territories and customer contracts.
FY2025 total revenue was $3.8 billion; third-quarter 2025 consolidated net revenue was $1,026,106 (in thousands).
Management says pricing is regularly evaluated across the portfolio and describes the company as a CPI-plus business. It said pricing is weighted more heavily toward commercial than residential services and that it had not seen meaningful evidence of customers cancelling or seeking price rollbacks.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Residential revenues | $1.7 billion | 45.0% | 10.3% |
| Commercial revenues | $1.2 billion | 33.1% | 10.5% |
| Termite and ancillary revenues | $781.5 million | 20.8% | 13.6% |
| Other revenues | $25.5 million | 0.68% | 13.2% |
| Franchise revenues | $16.0 million | 0.43% | −5.33% |
Customers and how it sells
Rollins serves more than two million residential and commercial customers. Residential customers use recurring prevention, one-time treatment, wildlife control and related property services. Commercial customers span end markets including healthcare, food service and logistics. The company states that its operating results and financial condition are not reliant on any single customer.
The United States generated $3.5 billion of FY2025 revenue, or 92.8% of revenue. Other countries generated $269.7 million, or 7.17%. Company-owned operations are present in the United States, Canada, Australia, Europe and Asia, while international franchises extend across Canada, Central and South America, the Caribbean, Europe, the Middle East, Asia, Africa and Australia.
Customers can be reached through branches, company-owned and franchised brands, direct sales, door-to-door marketing, homebuilder partnerships, inbound calls and digital channels. Management says brands using relationship-driven channels, including direct sales, door-to-door marketing and homebuilder partnerships, delivered stronger organic growth in the third quarter of 2026. It also says the recurring residential customer count continued to grow and retention remained strong.
The company had 131 domestic franchise agreements and 66 international franchise agreements at December 31, 2025.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $3.5 billion | 92.8% | 11.1% |
| Other countries | $269.7 million | 7.17% | 9.94% |
Suppliers and costs
Rollins buys pest and termite treatment products, materials and supplies from a network of national distributors, manufacturers and other suppliers. It maintains supplies for immediate service needs and has qualified comparable products and materials in key categories. The company says a supply disruption lasting more than the short term could affect product and material availability.
The business is service-led rather than manufacturing-led. Its operating cost base includes frontline labor, training, vehicles and fleet operations, treatment materials, marketing, insurance and claims, and the costs of operating branches and technology. Route density is intended to help manage variable costs, while proprietary routing and scheduling tools are used to improve route efficiency, reduce miles driven and support on-time service.
It was reported on 22 October 2026 that insurance and claims expenses within service costs more than doubled to $23 million in the third quarter. Management also said that staffing and capacity constraints in certain markets limited the company’s ability to convert available termite and ancillary demand.
- Revenue$3.8B
- Cost of revenue−$1.8B
- Selling, general and administrative−$1.1B
- Other operating costs−$124.7M
- Operating income$726.1M
Competitive position
Rollins operates in fragmented pest and termite control markets with low barriers to entry. Competition is based on service quality and speed, proximity to customers, satisfaction, brand awareness and reputation, guarantees, safety, technical proficiency and price. The company identifies Rentokil, Ecolab, Anticimex, and numerous regional and local companies as competitors in pest and termite control.
The company’s cited competitive resources include a portfolio of brands, a broad service network, route density, financial flexibility, proprietary branch, routing and scheduling systems, commercial customer reporting through InSite, employee training, and direct relationships with manufacturers and distributors. BOSS is its back-end system for service tracking, payment processing and virtual route management. The company also has a global portfolio of more than 450 trademarks; it says loss of the Orkin trademark could be material to the business.
Our reading: Brand recognition and recurring customer relationships are a moderate moat because the company operates across many locations and customers often retain service for multiple years, but local competitors can enter the market with relatively low barriers. [item1]
Our reading: Route density, BOSS and the operating network are moderate operational advantages because they can lower travel-related costs and support service responsiveness, though competitors can use other technologies. [item1]
Our reading: Scale and financial flexibility are moderate advantages for acquisitions, training and marketing adaptation, but they do not remove competitive pressure on customer acquisition. [item1]
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Rentokil | Pest and termite control | High |
| Ecolab | Pest and termite control | High |
| Anticimex | Pest and termite control | High |
Growth opportunities
Rollins’ growth plan combines organic customer growth, pricing, cross-selling ancillary services, commercial expansion, international expansion, franchising and acquisitions. Its ancillary offerings are intended to expand its relationship with existing customers. Management says the company has a large existing customer base that provides scope for continued cross-selling in termite and ancillary categories.
Acquisitions are a material part of the strategy. The company completed 94 acquisitions over the three years through 2025, including 26 acquisitions in 2025. It targets profitable businesses with leadership, brand awareness and customer loyalty that it believes can benefit from growth capital and potentially achieve organic growth and margin expansion. During the third quarter of 2026, it completed seven acquisitions.
The company is also expanding internationally through organic growth, acquisitions and franchise programs. It reported revenue growth in company-owned operations in Canada, Australia, the United Kingdom and Singapore during 2025. It expects geographic diversity to support global-customer demand, brand recognition and access to new markets.
For 2026, the company expects 7% to 8% organic revenue growth. It says recurring revenue and ancillary services support that outlook, while it anticipated a slower start in the first quarter. More recently, management says it has not yet stabilized residential customer acquisition amid changing search behavior, despite early signs of progress. It is reallocating marketing resources toward channels and tactics that generate qualified leads and convert them into new customers.
- $2.4BFY2021
- $2.7BFY2022
- $3.1BFY2023
- $3.4BFY2024
- $3.8BFY2025
Bottom line
Our reading
Our reading: Rollins is a route-based, service business whose recurring pest-control agreements provide a substantial base of repeat revenue, supplemented by termite, wildlife and ancillary work. [item1]
Our reading: Its scale, brands, network, proprietary operating tools and acquisition program support expansion, while its predominantly U.S. revenue base and low industry entry barriers leave execution and local customer acquisition important. [item1]
Our reading: The current operating issue is residential digital lead flow as AI-driven discovery changes, although management reports continued customer-base growth and strong retention. [call_prepared]