Strong Revenue Growth: Rollins, Inc. reported total revenue growth of 12.1% and organic growth of 7.3% in Q2 2025 compared to the same quarter last year. This includes a 4.9% growth in residential pest control, 8.4% in commercial, and 10.3% in termite and ancillary services, indicating solid demand across all major service lines.

Operational Efficiency and Margin Challenge: Despite delivering a gross margin of 53.8%, there were headwinds affecting margins due to increased insurance claims and reduced vehicle gains. Incremental margins were approximately 25%, influenced by these factors, and management is aiming for a mid-20% margin range moving forward.

Acquisition Impact: The integration of Saela, acquired in April 2025, is proceeding well, with positive impacts on both revenue and margins. Saela has shown strong double-digit organic growth and has been accretive to Rollins¡¯ overall margin profile, highlighting the strategic importance of M&A activity in fueling growth.