Question · Q3 2025
Ananya Das asked about cost inflation across materials, equipment, and labor, and expectations for 2026. She also inquired about plans for sales and marketing investment in Q4 and 2026, and if there's further room for leverage given 10 basis points of leverage for two consecutive quarters.
Answer
Ken Krause (EVP and CFO) reported no significant changes in inflation for cost inputs, with the 3-4% pricing (CPI-plus) strategy effectively offsetting costs and driving margin improvement. Jerry Gahlhoff (President and CEO) noted fleet as the most volatile cost. Ken Krause added that Rollins will continue to evaluate and make sales and marketing investments to acquire customers and grow market share, leveraging past investments for productivity gains, while Jerry Gahlhoff emphasized that marketing spend is consistent, with leverage primarily found in sales productivity.