Total Revenue

+10% (from $748.3M to $822.5M)

Strong overall demand drove Q1 2025 revenue upward by $74.2M; this increase is attributed to robust organic revenue growth (approx. 7.4%) combined with acquisition-related contributions (approx. 2.5%), even as pricing adjustments offset inflation and a 40 basis point foreign currency headwind partially moderated gains. " "

Residential Revenue

+8% (from $329.3M to $356.3M)

Residential performance improved due to a blend of organic revenue growth (5.7%) and acquisitions (2.5%), reflecting strong customer demand and effective pricing strategies that translated into an increase from $329.3M to $356.3M. " "

Commercial Revenue

+10% (from $258.1M to $284.4M)

Commercial services benefited from robust organic growth supported by strategic acquisitions; this mix of a rising demand and targeted expansion efforts moved revenue up from $258.1M to $284.4M. " "

Termite Completions, Bait Monitoring & Renewals

+13% (from $152.1M to $172.1M)

Termite-related services surged due to strong organic demand and additional revenue from acquisitions, along with seasonal factors promoting higher pest control activity, leading to an increase from $152.1M to $172.1M. " "

Franchise Revenues

-5% (from $4.0M to $3.8M)

Franchise revenue declined modestly, likely reflecting a lower intake of franchise fees and royalties relative to the prior quarter. Given that franchise contributions represent less than 1% of overall revenue, the slight decrease to $3.8M from $4.0M was not a major revenue driver. " "

Other Revenues

+20% (from $4.9M to $5.9M)

Other revenues grew significantly by 20%, potentially due to increased performance in ancillary services and a favorable revenue mix, though the documents do not provide detailed breakdowns for this category. " "

U.S. Revenue

+10% (from $693.86M to $763.35M)

U.S. revenue increased robustly driven by demand across service lines, enhanced by effective pricing adjustments and both organic and acquisition contributions, lifting revenue from $693.86M to $763.35M. " "

Revenue from Other Countries

+8.6% (from $54.49M to $59.15M)

International growth was solid with revenue rising from $54.49M to $59.15M, benefiting from similar growth drivers as domestic markets, though partially offset by a 40 basis point negative foreign currency impact. " "

Operating Income

+7.7% (from $132,424K to $142,648K)

Operating income improved thanks to increased sales volumes, cost efficiencies, and margin expansion through better gross profit performance, moving from $132,424K to $142,648K despite higher acquisition-related amortization expenses. " "

Net Income

+11% (from $94,394K to $105,248K)

Net income rose significantly due to strong revenue growth, operational efficiencies, and disciplined cost management, which helped push net income from $94,394K to $105,248K, even though acquisition and related expenses also increased. " "

Operating Cash Flow

+15% (from $127,433K to $146,892K)

Operating cash flow benefited from higher net income, improved working capital management, and favorable non-cash adjustments, resulting in an increase from $127,433K to $146,892K. " "

Cash and Cash Equivalents

+78% (from $112,971K to $201,177K)

A robust cash position emerged as operating cash inflows surged while investing outflows moderated and financing activities, including net borrowings and exchange rate effects, further boosted liquidity from $112,971K to $201,177K. " "

Organic Growth

FY 2025

7% to 8% "

7% to 8% "

no change

Growth from M&A

FY 2025

2% to 3% "

3% to 4% "

raised

Incremental Margins

FY 2025

Aiming to improve incremental margins "

Expected to improve as the year progresses "

no change

Effective Tax Rate

FY 2025

Approximately 26% "

Approximately 26% (26% in Q2 2025 and for the remainder of FY 2025) "

no change

Cash Flow Conversion

FY 2025

Anticipated to remain above 100% "

Anticipated to continue converting above 100% "

no change

Revenue Contribution from Saela Acquisition

FY 2025

no prior guidance

$45 million to $50 million in FY 2025 (with ~$15M in Q2 2025) "

no prior guidance

EBITDA Margin

FY 2025

no prior guidance

Saela’s margin profile expected to be neutral and accretive in the first full year "

no prior guidance

Interest Expense

Q2 2025

no prior guidance

$8 million to $10 million in Q2 2025 "

no prior guidance

Organic growth

Q4 2024 earnings emphasized robust organic growth (8.5% overall, strong residential and termite performance) with no specific vulnerabilities. " " Q3 2024 called out consistent high‐end growth with some residential onetime sales challenges and a hurricane impact. " " " Q2 2024 reported healthy overall organic growth across segments with minor softness in onetime business. "

Q1 2025 reported 7.4% organic growth but noted emerging vulnerabilities in the residential (5.7%) and termite (11.1%) segments, largely due to operational factors like fewer business days and reduced one‐time activities. " "

Emerging vulnerabilities in key service segments (a shift from uniformly robust performance to observed operational challenges).

M&A strategy

Across Q4, Q3, and Q2, the focus was on a disciplined acquisition approach, a strong and attractive pipeline, and cautious integration (with explicit discussion of integration and execution risks, particularly in Q4 and Q2). " " " "

Q1 2025 maintained the recurring focus on M&A with a healthy pipeline. It highlighted the acquisition of Saela as a strategic addition, while reaffirming a pragmatic integration approach and careful pace due to integration considerations. " " "

Consistent focus with portfolio expansion (reinforcing a long-term acquisition strategy with continued attention to integration risks).

Margin dynamics

Q4 2024 discussed operational efficiencies contributing to margin expansion, albeit offset by increased sales, marketing expenses, and auto claims. " " Q3 2024 similarly showed gross margin improvements tempered by heavy investments, while Q2 2024 reflected strong profitability with improved percentages after similar investments. " " " "

Q1 2025 continued to see operational efficiencies (improving gross margins to 51.4%) but noted compression from heavy sales, marketing, and advertising investments that affected EBITDA margins. " "

Mixed sentiment persists with heightened investment impact (operational gains coexist with pressure from continued high growth investments).

Pricing power

Previous periods (Q4, Q3, and Q2) repeatedly highlighted Rollins’ ability to command pricing at or above CPI levels (with 3% to 4% increases), contributing to margin leverage and healthy top-line growth. " " " "

In Q1 2025, the company continued to leverage its pricing power by implementing CPI-plus price increases (3%-4%), reinforcing its role as a key revenue driver. "

Stable and consistent (pricing power remains a reliable driver across periods with no significant change in sentiment).

External cost pressures

Q4 2024 outlined rising fleet costs and volatile auto insurance claims, though FX headwinds were not highlighted; Q3 provided no mention; Q2 discussed favorable claims activity and fleet safety initiatives, with overall positive cost leverage. " " "

Q1 2025 introduced concerns over FX headwinds (a 40 basis point impact), along with continued emphasis on rising fleet costs and auto insurance claims, highlighting more prominent external cost pressures. " " "

Emerging and heightened cost pressures (new FX concerns coupled with ongoing fleet and auto insurance issues suggest a more challenging external cost environment).

Commercial segment

Q4 2024 reported healthy organic growth (7.2% organic in a 9.2% revenue increase) but noted signals of deceleration due to the absence of large one-off jobs. " " Q3 and Q2 consistently showed robust commercial performance with organic growth in the 8%-9% range. " " " "

Q1 2025 described the commercial segment as performing strongly with recurring organic growth near 10% and double-digit recurring revenue growth, with no deceleration signals observed. " " "

Stable with improved sentiment (the commercial segment now has a more uniformly positive outlook compared to signals of deceleration seen earlier).

Strategic investments

Earlier calls (Q4, Q3, and Q2) detailed active investments in sales force expansion and marketing. In Q4, investments led to temporary margin pressure, though the company saw these as critical for long-term growth, a sentiment echoed in Q3 with significant advertising spend and Q2 with balanced investments despite healthy margins. " " " " "

Q1 2025 continued the trend of active spending in expanding the sales force (notably within the commercial division) and in marketing initiatives such as television ads, which are affecting margins now but are expected to yield long-term benefits. " " "

Consistent with ongoing investments (sustained investment in growth initiatives remains a key strategic focus even as margin pressures are traded off for long-term profitability).