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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
ROLLINS INC generated $3.76B of revenue in fiscal 2025, with net income of $526.71M and an operating cash inflow of $678.11M. At $3.76B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $3.39B in fiscal 2024, revenue recorded a 11.0% year-over-year increase. Diluted earnings per share were $1.09, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $0.96 in fiscal 2024, the current result was 13.5% higher. The revenue-to-assets relationship was 1.2x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
After reported cost of revenue, the company retained $1.98B as gross profit before recognizing operating expenses and other items. Gross margin was 52.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $726.07M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 19.3%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $526.71M for the fiscal year. Measured against reported revenue, net income produced a 14.0% margin after operating costs and the remaining recognized items. Pretax income was $700.93M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 18.6% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $174.22M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 24.9% of pretax income, showing the tax burden absorbed by the year’s earnings.Liquidity and Capital Structure
At period end, the $3.14B asset base was financed through $1.77B of liabilities and $1.37B of equity. At period end, current assets of $472.68M compared with current liabilities of $785.52M, defining the company’s short-term resource position. At 0.6x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Reported cash and equivalents were $100.00M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 12.7% of current liabilities, showing how much near-term coverage came from cash alone. The company carried $609.83M of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.44x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 19.4%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 56.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 3.2%, a balance-sheet composition measure rather than a liquidity forecast.Cash Flow and Earnings Quality
Cash flow from operations was $678.11M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.29x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $28.09M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 4.1% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $650.02M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 17.3%, showing how much sales converted into cash after investment. Free cash flow equaled 20.7% of total assets, relating post-investment cash generation to the company’s resource base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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