Rollins Inc. (ROL) shares plummeted 14.31% in after-hours trading on Thursday, as the pest control company reported disappointing second-quarter financial results that fell short of Wall Street expectations.

The stock decline was triggered by Rollins announcing adjusted earnings per share of $0.32 for the quarter, missing the analyst consensus estimate of $0.34. Revenue of approximately $1.08 billion also trailed the expected $1.09 billion, while adjusted EBITDA of $236 million significantly underperformed the $256.4 million estimate. The company's adjusted operating margin contracted to 19.5% from 20.6% a year earlier.

Company executives attributed the weaker performance to slower growth in residential pest control services, particularly in brands reliant on consumer-initiated demand through digital channels. The company cited ongoing macroeconomic uncertainty, with sticky inflation and high interest rates causing both residential and commercial customers to scale back spending on routine services. Rollins noted that while relationship-based channels delivered solid growth, overall demand trends softened during the quarter while its cost structure remained positioned for a stronger growth environment.