Rollins Inc. reported second-quarter 2026 results showing continued revenue growth but weaker margins, and the pest-control company also lowered or refined its full-year operating expectations in light of softer residential demand. For the quarter ended June 30, 2026, Rollins posted revenue of $1.08 billion, up 7.9% from $999.5 million in the second quarter of 2025. Organic revenue increased 5.7%, while acquisitions contributed 2.2%. Management said the quarter marked Rollins’ 99th consecutive quarter of revenue growth. Profit growth was more muted. Operating income rose 1.5% to $201.4 million from $198.3 million a year earlier, while operating margin fell 110 basis points to 18.7%. Net income increased 1.7% to $143.9 million, and diluted earnings per share rose to $0.30 from $0.29. On an adjusted basis, Rollins reported adjusted operating income of $209.9 million, adjusted net income of $151.9 million, adjusted EPS of $0.32, and adjusted EBITDA of $236.3 million. Adjusted EBITDA margin declined to 21.9% from 23.1% a year earlier. The company said second-quarter results fell short of expectations, primarily because organic revenue growth was hurt by slower growth in parts of its residential service offering. Rollins cited weaker lead volume, particularly at brands more dependent on consumer-initiated demand through search, digital media and inbound calls. Management said other channels, including home-builder relationships and door-to-door sales, produced solid growth, and noted that lead volume improved toward the end of June and remained stronger through the first weeks of July. By service line, second-quarter residential pest control revenue increased 6.6%, commercial pest control revenue rose 8.6%, and termite and ancillary services grew 10.5%. Organic growth was 3.6% in residential pest control, 7.2% in commercial pest control, and 8.9% in termite and ancillary services. Foreign operations accounted for about 7% of total revenue in both the 2026 and 2025 second quarters. Cost pressure weighed on margins. Gross profit rose 6.0% to $569.9 million, but gross margin declined to 52.8% from 53.8%. Rollins attributed the margin decline mainly to higher employee expenses, including medical costs and service salaries, as well as higher materials and supplies and fleet costs. Selling, general and administrative expenses increased 8.9% to $335.0 million, or 31.1% of revenue, compared with 30.8% a year earlier. Depreciation and amortization increased 5.9%, driven by higher amortization of acquired intangible assets, especially from the Romex acquisition. For the first six months of 2026, Rollins reported revenue of approximately $2.0 billion, up 8.9% from $1.82 billion in the prior-year period. Organic revenue grew 6.1%, with acquisitions adding 2.8%. Operating income increased 1.7% to $346.8 million, while operating margin declined to 17.5% from 18.7%. Net income was $251.7 million, up 2.0%, and EPS was $0.52, compared with $0.51 in the first half of 2025. Adjusted EPS was $0.55, compared with $0.53. Rollins also disclosed capital allocation activity during the quarter. The company generated $172.5 million of operating cash flow and $166.1 million of free cash flow, both slightly below the prior-year quarter. It invested $116.8 million in acquisitions, spent $6.4 million on capital expenditures, and paid dividends totaling $88.1 million. The filing also references common stock repurchases and retirements, shares withheld for employee tax payments, and stock-based compensation activity in the equity statement, but the excerpt does not provide share counts, prices, or dollar amounts for those equity transactions. Management updated its 2026 outlook, saying it now expects at least 6% organic revenue growth, 2% to 3% inorganic revenue growth, adjusted incremental EBITDA margin of at least 10%, and free cash flow conversion above 100%. The company said it remains confident in the medium-term financial targets presented at its May Investor & Analyst Conference, while acknowledging near-term demand uncertainty. The filing does not report any insider purchase or sale transaction, option exercise, transaction code, or individual officer or director ownership change. Instead, the key corporate action is Rollins’ quarterly financial update, including its revised full-year outlook, acquisition spending, dividend payments, and discussion of demand trends affecting its residential pest-control business.