Rollins Inc. (ROL) shares plummeted 9.50% in after-hours trading on Wednesday, following the release of the company's second-quarter 2026 financial results.
The pest control firm reported adjusted earnings per share of $0.32, missing the analyst consensus estimate of $0.34. Quarterly sales of $1.079 billion also fell short of the $1.092 billion estimate. Furthermore, adjusted EBITDA came in at $236 million, significantly below the expected $256.4 million.
Company management attributed the disappointing results to slower growth in residential pest control, particularly in brands reliant on consumer-initiated digital channels. The firm also cited margin pressure, as its cost structure was set for stronger growth while demand softened. Despite noting a late-quarter improvement in leads, Rollins remains cautious on near-term demand trends.