Rollins Q3 revenue slightly misses estimates as customer acquisition pressures persist
ROL•Rollins reported Q3 revenue of $1.10 billion, up 6.2% year over year and slightly below estimates. Adjusted EPS of $0.34 met consensus, while adjusted EBITDA of $257 million missed estimates.
1. Quarterly results
Rollins reported Q3 revenue of $1.10 billion, up 6.2% year over year and slightly below the $1.11 billion analyst estimate. Adjusted EPS was $0.34, in line with consensus, while adjusted EBITDA of $257 million missed the $260.52 million estimate. Net income was $158 million and EPS was $0.33.
2. Customer acquisition pressure
Residential customer acquisition remained under pressure in Q3, prompting changes to the company’s marketing strategy. Operating margin declined year over year. Rollins said the evolving customer acquisition landscape requires ongoing adaptation and plans continued investment in M&A, dividends and share repurchases.
