Rollins (ROL) risk factors, FY2025 10-K

Rollins's FY2025 10-K, filed Feb 12, 2026, lists 126 risk factors. Against the prior year's 114: 34 new, 22 dropped, 73 substantially reworded.

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Risk factors listed
1261 groups
New this year
34vs 114 last year
Dropped
22since the prior 10-K
Substantially reworded
73of those kept
Section length
30k wordsItem 1A

What the changes say

  • Rollins highlights increased fleet and acquisition costs, interest expense growth from new notes, and a Form S-3 shelf registration.

What changed since the prior 10-K

New

  • New

    Revenue $ 3,761,050 100.0 % $ 3,388,708 100.0 %

    Employee expenses and fleet costs make up significant portions of the cost of services provided.

  • New

    Revenue growth was healthy throughout the year, but we did see weaker volumes in the fourth quarter due to weakness in one-time services associated with less favorable weather conditions

    Fourth-quarter revenue growth slowed due to weaker volumes in one-time services driven by less favorable weather conditions.

  • New

    Gross profit for the twelve months ended December 31, 2025 was $2.0 billion, an increase of $198.5 million, or 11.1%, compared to $1.8 billion for the year ended December 31, 2024

    Gross profit increased to $2.0 billion in 2025, driven by 30 basis points of leverage in materials and supplies.

  • New

    For the twelve months ended December 31, 2025, sales, general and administrative ("SG&A") expenses increased $118.2 million, or 11.6%, compared to the twelve months ended December 31, 2024

    SG&A expenses increased by $118.2 million in 2025 due to lower volumes impacting leverage across several categories.

  • New

    For the twelve months ended December 31, 2025, operating income increased $68.8 million or 10.5% compared to the prior year

    Interest expense is expected to reach approximately $30 million in 2026 due to borrowings under the 2035 Senior Notes and commercial paper program.

  • New

    Our outlook reflects current expectations and is subject to significant uncertainty, including factors described under "Risk Factors," many of which are outside the Company's control

    The company's outlook is subject to significant uncertainty from factors outside of management's control.

  • New

    Active Shelf Registration

    A Form S-3 shelf registration statement registers up to $1.5 billion of common stock, debt securities, and other instruments.

  • NewMarket Risk

    Net income — — — — 434,957 434,957

  • NewMarket Risk

    Net income — — — — 466,379 466,379

  • NewMarket Risk

    Net income — — — — 526,705 526,705

  • NewMarket Risk

    Other operating activities, net (758) — —

  • NewMarket Risk

    revenue as the services are rendered. The Company classifies discounts related to the advance payments as a reduction in revenues

    Termite control services include liquid treatments, foam applications, baiting, and wood treatments recognized as services are provided.

  • NewMarket Risk

    Combined domestic and international revenues from our franchises were $16.0 million, $16.9 million and $16.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total franchising revenues were less than 1.0% of the Company’s annual revenues for each of the three years

  • NewMarket Risk

    The Saela acquisition has been accounted for as a business combination, and Saela's results of operations are included in the Company's operations from the acquisition date. During the year ended December 31, 2025, Saela contributed revenues and net earnings of $54.9 million and $5.0 million, respectively

  • NewMarket Risk

    Assets acquired and liabilities assumed $ 207,133 $ 94 $ 207,227

  • NewMarket Risk

    Net income 523,632 470,369

  • NewMarket Risk

    The Company also made payments of $2.8 million for prior year acquisitions during the year ended December 31, 2025

  • NewMarket Risk

    Balance at December 31, 2025 $ 23,528 $ 11,034 $ 34,562

  • NewMarket Risk

    Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill was $1.4 billion as of December 31, 2025 and $1.2 billion as of December 31, 2024

  • NewMarket Risk

    Customer contracts are amortized on a straight-line basis as this best approximates the ratio that current revenues bear to the total of current and anticipated revenues based on the estimated lives of the assets. The Company has determined that customer contracts should be amortized over a life of 7 to 20 years

  • NewMarket Risk

    Other Fair Value Disclosures

  • NewMarket Risk

    2035 Senior Notes and Exchange Offer

  • NewMarket Risk

    The Company repurchases shares from employees for the payment of their taxes on equity awards that have vested. The Company repurchased $16.2 million, $11.6 million and $10.8 million during the years ended December 31, 2025, 2024 and 2023 respectively

  • NewMarket Risk

    Time-lapsed restricted share awards and restricted stock units (“restricted shares”), as well as performance share units ("PSUs"), have been issued to officers and other employees, and annual share awards are made to non-employee directors, under the Company’s Employee Stock Incentive Plan

  • NewMarket Risk

    Balance at December 31, 2024 (537) (42,513) (584) (43,634)

  • NewMarket Risk

    Effect of cross-border tax laws (883) (0.1) % 384 0.1 % 505 0.1 %

  • NewMarket Risk

    (1) State taxes in California, Florida, Georgia, Illinois, and New Jersey make up the majority (greater than 50 percent) of the tax effect in this category

  • NewMarket Risk

    As of December 31, 2025, the Company has no net operating loss carryforwards in any federal, state, or foreign jurisdictions. The Company has state tax credit carryforwards of $0.4 million which will begin to expire in 2035 if not fully utilized

  • NewMarket Risk

    Unrecognized tax benefits at end of year $ 126 $ 1,584 $ 1,784

  • NewMarket Risk

    (1) 2025 amount includes $56.2 million paid to third parties to purchase federal investment tax credits

  • NewMarket Risk

    Canada $ 11,149 $ 11,397 *

  • NewMarket Risk

    Basic earnings per share $ 1.09 $ 0.96 $ 0.89

  • NewMarket Risk

    8-K February 24, 2025 4.1

  • NewMarket Risk

    10-Q October 27, 2022 10.19

Dropped

  • Dropped

    We saw healthy margins in 2024, with gross margin improving 50 basis points to 52.7% in 2024 compared to 52.2% in 2023. Operating margin was 19.4% of revenue, an increase of 40 basis points over 2023 and adjusted operating income margin* was 19.9%, an increase of 20 basis points over the prior year

  • Dropped

    However, the Company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future

    2024 gross margin improvements and adjusted operating income metrics.

  • Dropped

    Tax Legislation Developments

  • Dropped

    (2) Amounts are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure

    Management estimates and assumptions regarding economic trends and disruptors.

  • Dropped

    For the twelve months ended December 31, 2024, sales, general and administrative (SG&A) expenses increased $99.8 million, or 10.9%, compared to the twelve months ended December 31, 2023. The increase is driven by expenses associated with growth initiatives aimed at capitalizing on the health of our underlying markets

    OECD Pillar Two global minimum tax proposals of 15%.

  • Dropped

    Gain on sale of businesses (4)

    Non-GAAP financial measures reconciliation tables for 2024 and 2023.

  • Dropped

    Loss (gain) on sale of assets, net (3)

  • DroppedMarket Risk

    (Benefit) provision for deferred income taxes (10,336) (7,644) 1,595

  • DroppedMarket Risk

    Balance at December 31, 2024 $ 19,770 $ 8,686 $ 28,456

  • DroppedMarket Risk

    8. CUSTOMER CONTRACTS, TRADENAMES AND TRADEMARKS, AND OTHER INTANGIBLE ASSETS

    2024 SG&A expense increases and restructuring costs.

  • DroppedMarket Risk

    Defined Benefit Pension Plans

  • DroppedMarket Risk

    During the year ended December 31, 2024, the Company paid $298.1 million, or $0.615 per share, in cash and stock dividends compared to $264.3 million, or $0.540 per share, during the same period in 2023

  • DroppedMarket Risk

    The Company did not repurchase shares on the open market during the years ended December 31, 2024 and 2023

  • DroppedMarket Risk

    Time-Lapsed Restricted Shares and Performance Share Unit Awards

  • DroppedMarket Risk

    pool. At December 31, 2024, approximately 4.6 million shares of the Company’s common stock were reserved for issuance

  • DroppedMarket Risk

    Balance at December 31, 2021 $ (322) $ (16,089) $ — $ (16,411)

  • DroppedMarket Risk

    Deferred tax assets are included in "Other assets" and deferred tax liabilities are included in "Other long-term accrued liabilities" on the balance sheet

  • DroppedMarket Risk

    December 31, 2024 $ 7,792

    Fox acquisition-related expenses and gain on sale of businesses.

  • DroppedMarket Risk

    The Company’s policy is to record interest and penalties related to income tax matters in income tax expense. Accrued interest and penalties were $0.6 million, $0.6 million and $0.2 million as of December 31, 2024, 2023 and 2022, respectively

    Weighted average shares and EBITDA reconciliations.

  • DroppedMarket Risk

    Revenue $ 3,388,708 $ 3,073,278 $ 2,695,823

  • DroppedMarket Risk

    Item 9B. Other Information

  • DroppedMarket Risk

    3.Amended and Restated Deferred Compensation Plan

Reworded

  • 100% rewrittenMarket Risk

    Recently adopted accounting standards

    Updated from the 2024 adoption of ASU 2023-07 on segment reporting to the 2025 adoption of ASU 2023-09 on income tax disclosures.

  • 100% rewrittenMarket Risk

    the repurchase of 8,724,100 of the shares of Common Stock offered in the 2023 Offering for approximately $300 million at $34.39 per share

    Replaced details of the 2023 LOR registration rights agreement with accounting policy details for common stock repurchases and par value reductions.

    Was: LOR of 8,724,100 of the shares of Common Stock offered in the Offering for approximately $300 million at the same per share price paid by the Underwriters to LOR in the Offering, or $34.39 per share

  • 100% rewrittenMarket Risk

    Total current tax expense 155,069 174,187 158,944

    Updated deferred tax expense figures and disaggregated federal, state, and foreign tax components for the current reporting period.

    Was: Total current tax expense 174,187 158,944 128,723

  • 100% rewrittenMarket Risk

    Registration Rights Agreement

    Shifted focus from the 2023 Offering details back to the original LOR Registration Rights Agreement terms and workforce restructuring.

    Was: Registration Rights Agreement and Secondary Offering

  • 98% rewrittenMarket Risk

    Net deferred tax assets $ 182,074 $ 194,959

    Updated deferred tax asset and liability balances, noting a $0.9 million valuation allowance increase for intangible assets in Australia.

    Was: Net deferred tax assets $ 194,959 $ 159,031

  • 98% rewritten

    (1) Exclusive of depreciation and amortization

    Swapped 2024 versus 2023 gross margin commentary for 2025 versus 2024 financial expense tables and non-GAAP disclosures.

    Was: Gross Profit (exclusive of Depreciation and Amortization)

  • 97% rewritten

    Depreciation and Amortization

    Replaced amortization comparisons driven by Fox Pest Control with higher intangible asset amortization resulting from the Saela acquisition.

  • 96% rewrittenMarket Risk

    Undistributed earnings for the period $ 198,804 $ 168,248 $ 170,609

    Updated undistributed earnings allocations for common stock and time-lapse restricted awards for the current reporting period.

    Was: Undistributed earnings for the period $ 168,248 $ 170,609 $ 156,981

  • 95% rewrittenMarket Risk

    Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,278

    Was: Total Revenues $ 3,388,708 $ 3,073,278 $ 2,695,823

  • 94% rewrittenMarket Risk

    Net income available to stockholders $ 526,705 $ 466,379 $ 434,957

    Was: Net income available to stockholders $ 466,379 $ 434,957 $ 368,599

  • 90% rewrittenMarket Risk

    Total cost of services provided (exclusive of depreciation and amortization below) 1,777,006 1,603,197 1,469,871

    Was: Total cost of services provided (exclusive of depreciation and amortization below) 1,603,197 47.3 % 1,469,871 47.8 %

  • 90% rewrittenMarket Risk

    9. FAIR VALUE MEASUREMENT

  • 90% rewrittenMarket Risk

    Total income tax provision $ 174,221 $ 163,851 $ 151,300

    Was: Total income tax provision $ 163,851 $ 151,300 $ 130,318

  • 89% rewritten

    The Company’s $100.0 million of total cash at December 31, 2025 is held at various banking institutions. Approximately $50.5 million is held in cash by foreign subsidiaries and the remaining $49.5 million is held at domestic banks and also includes cash-in-transit

    Was: The Company’s $89.6 million of total cash at December 31, 2024 is held at various banking institutions. Approximately $48.5 million is held in cash by foreign subsidiaries and the remaining $41.1 million is held at domestic banks

  • 89% rewritten

    Total cost of services provided (exclusive of depreciation and amortization below) 1,777,006 47.2 % 1,603,197 47.3 %

    Was: Total cost of services provided (exclusive of depreciation and amortization below) 1,603,197 1,469,871 1,308,399

  • 89% rewrittenMarket Risk

    Revenue $ 3,761,050 $ 3,388,708 $ 3,073,278

    Was: Revenue $ 3,388,708 100.0 % $ 3,073,278 100.0 %

  • 88% rewrittenMarket Risk

    5. EQUIPMENT AND PROPERTY, NET

  • 88% rewrittenMarket Risk

    Sales to occur on or after February 25, 2026, if certain limit prices are met and if restricted stock has vested

    Was: Sales to occur on or after February 21, 2025, if certain limit prices are met and if restricted stock has vested

  • 88% rewrittenMarket Risk

    Total weighted-average shares outstanding – diluted 484,147 484,295 490,130

    Was: Total weighted-average shares outstanding – diluted 484,295 490,130 492,413

  • 87% rewritten

    Cash Used in Financing Activities

  • 87% rewritten

    Impact of Economic Trends

  • 87% rewrittenMarket Risk

    Related Party Franchise Agreement

  • 87% rewritten

    Adjusted sales, general and administrative ("SG&A")

  • 86% rewrittenMarket Risk

    NET INCOME $ 526,705 $ 466,379 $ 434,957

    Was: NET INCOME $ 466,379 $ 434,957 $ 368,599

  • 86% rewrittenMarket Risk

    Cash and Cash Equivalents—The Company considers all investments with an original maturity of three months or less when purchased to be cash equivalents

  • 86% rewritten

    Cash Used in Investing Activities

  • 83% rewritten

    (4) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding

    Was: (6) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding

  • 82% rewrittenMarket Risk

    Total income from continuing operations before income taxes $ 700,926 $ 630,230 $ 586,257

    Was: Total income from continuing operations before income taxes $ 630,230 $ 586,257 $ 498,917

  • 81% rewrittenMarket Risk

    Weighted-average outstanding common shares 482,322 482,117 487,480

    Was: Weighted-average outstanding common shares 482,117 487,480 489,719

  • 81% rewrittenMarket Risk

    Other intangible assets include non-compete agreements and patents. Non-compete agreements are amortized on a straight-line basis over periods ranging from 3 to 20 years and patents are amortized on a straight-line basis over 15 years

  • 80% rewrittenMarket Risk

    Comprehensive Income (Loss)—Other Comprehensive Income (Loss) results from foreign currency translations, pension settlement and unrealized gains and losses on available for sale securities

    Was: Comprehensive Income (Loss)—Other Comprehensive Income (Loss) results from foreign currency translations, minimum pension liability adjustments, and unrealized gains and losses on available for sale securities

  • 78% rewrittenMarket Risk

    Nature of Goods and Services and Performance Obligations

  • 77% rewrittenMarket Risk

    Total future minimum lease payments, net of interest $ 428,175

    Was: Total future minimum lease payments, net of interest $ 417,218

  • 73% rewrittenMarket Risk

    Accounting standards issued but not yet adopted

  • 72% rewrittenMarket Risk

    Balance at December 31, 2023 (537) (25,488) (730) (26,755)

  • 71% rewrittenMarket Risk

    Cash and cash equivalents at end of period $ 100,004 $ 89,630 $ 103,825

    Was: Cash and cash equivalents at end of period $ 89,630 $ 103,825 $ 95,346

  • 70% rewritten

    In February 2023, the Company entered into a credit agreement (the "Credit Agreement") with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”)

    Was: On February 24, 2023, the Company entered into a revolving credit agreement with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”), which refinanced its previous credit facility

  • 68% rewrittenMarket Risk

    Total amortization expense was approximately $90.4 million in 2025, $79.2 million in 2024 and $66.5 million in 2023

    Was: Total amortization expense was approximately $79.2 million in 2024, $66.5 million in 2023 and $55.7 million in 2022

  • 68% rewrittenMarket Risk

    Item 14. Principal Accounting Fees and Services

  • 67% rewrittenMarket Risk

    Opinion on the Financial Statements

  • 65% rewritten

    Cash Provided by Operating Activities

  • 63% rewrittenMarket Risk

    Customer contracts, net $ 407,516 $ 383,092

    Was: Customer contracts, net $ 383,092 $ 386,152

  • 62% rewrittenMarket Risk

    Cash and cash equivalents, which are used to pay benefits and deferred compensation plan administrative expenses, are held in money market funds

  • 61% rewrittenMarket Risk

    Ending balance $ 232,986 $ 223,872

    Was: Ending balance $ 223,872 $ 210,059

  • 59% rewrittenMarket Risk

    12. COMMITMENTS AND CONTINGENCIES

  • 58% rewrittenMarket Risk

    Compensation expense $ 38,835 $ 28,795 $ 24,222

    Was: Compensation expense $ 28,795 $ 24,222 $ 20,816

  • 56% rewritten

    Adjusted operating income and adjusted operating margin

  • 54% rewrittenMarket Risk

    Item 13. Certain Relationships and Related Party Transactions, and Director Independence

  • 52% rewrittenMarket Risk

    Equipment and property, net $ 126,187 $ 124,839

    Was: Equipment and property, net $ 124,839 $ 126,661

  • 52% rewrittenMarket Risk

    On February 24, 2023, the Company entered into a revolving credit agreement ("the Credit Agreement") with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”), which refinanced its previous credit facility described below

  • 45% rewritten

    ” of Part I, Item 7 “Management’s Discussion and Analysis of Financial condition and Results of Operations” of Part II, and elsewhere in this Annual Report on Form 10-K for our fiscal year ended December 31, 2025 and may also be described from time to time in our future reports filed with the SEC

    Was: ” of Part I, Item 7 “Management’s Discussion and Analysis of Financial condition and Results of Operations” of Part II, and elsewhere in this Annual Report on Form 10-K for our fiscal year ended December 31, 2024 and may also be described from time to time in our future reports filed with the SEC

  • 45% rewrittenMarket Risk

    See the consolidated financial statements for other financial information regarding the Company’s reportable segment. See Note 3, Revenue for further information on revenue

  • 43% rewrittenMarket Risk

    The Company also made payments of $0.4 million related to prior year acquisitions during the year ended December 31, 2024

  • 42% rewrittenMarket Risk

    Pro Forma Financial Information

  • 40% rewrittenMarket Risk

    Item 10. Directors, Executive Officers and Corporate Governance

  • 39% rewrittenMarket Risk

    Defined Contribution 401(k) Savings Plan

  • 38% rewritten

    Adjusted net income and adjusted EPS

  • 37% rewrittenMarket Risk

    Marketable Securities—From time to time, the Company maintains investments held by various financial institutions. The Company’s investment policy does not allow investment in any securities rated less than “investment grade” by national rating services

  • 34% rewrittenMarket Risk

    Nonqualified Deferred Compensation Plan

  • 34% rewrittenMarket Risk

    of Certain Beneficial Owners and Management and Related Stockholder Matters

  • 34% rewrittenMarket Risk

    Assets acquired and liabilities assumed $ 339,514

  • 33% rewrittenMarket Risk

    Balance at December 31, 2022 $ (322) $ (30,304) $ (936) $ (31,562)

  • 33% rewritten

    Free cash flow, free cash flow conversion, adjusted free cash flow, and adjusted free cash flow conversion

    Was: Free cash flow and free cash flow conversion

  • 32% rewrittenMarket Risk

    Item 11. Executive Compensation

  • 32% rewrittenMarket Risk

    Aircraft and Administrative Arrangements

  • 31% rewrittenMarket Risk

    The carrying amount of notes receivable approximates fair value as the interest rates approximate market rates for these types of contracts

  • 29% rewrittenMarket Risk

    Assets acquired and liabilities assumed $ 182,753

  • 29% rewrittenMarket Risk

    104 Cover Page Interactive Data File (embedded with the Inline XBRL document) X

  • 28% rewrittenMarket Risk

    Included in the total consideration of $76.7 million were acquisition holdback liabilities of $7.8 million

  • 25% rewrittenMarket Risk

    Securities Trading Plans of Directors and Executive Officers

  • 23% rewritten

    EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and adjusted incremental EBITDA margin

  • 22% rewrittenMarket Risk

    4. ALLOWANCE FOR EXPECTED CREDIT LOSSES

  • 21% rewrittenMarket Risk

    Evaluation of Disclosure Controls and Procedures

All 126 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01” of Part I, Item 7 “Management’s Discussion and Analysis of Financial condition and Results of Operations” of Part II, and elsewhere in this Annual Report on Form 10-K for our fiscal year ended December 31, 2025 and may also be described from time to time in our future reports filed with the SEC45% rewritten
  2. 02Impact of Economic Trends87% rewritten
  3. 03(1) Exclusive of depreciation and amortization98% rewritten
  4. 04Revenue $ 3,761,050 100.0 % $ 3,388,708 100.0 %New
  5. 05Total cost of services provided (exclusive of depreciation and amortization below) 1,777,006 47.2 % 1,603,197 47.3 %89% rewritten
  6. 06Revenue growth was healthy throughout the year, but we did see weaker volumes in the fourth quarter due to weakness in one-time services associated with less favorable weather conditionsNew
  7. 07Gross profit for the twelve months ended December 31, 2025 was $2.0 billion, an increase of $198.5 million, or 11.1%, compared to $1.8 billion for the year ended December 31, 2024New
  8. 08For the twelve months ended December 31, 2025, sales, general and administrative ("SG&A") expenses increased $118.2 million, or 11.6%, compared to the twelve months ended December 31, 2024New
  9. 09Depreciation and Amortization97% rewritten
  10. 10For the twelve months ended December 31, 2025, operating income increased $68.8 million or 10.5% compared to the prior yearNew
  11. 11Our outlook reflects current expectations and is subject to significant uncertainty, including factors described under "Risk Factors," many of which are outside the Company's controlNew
  12. 12Reconciliation of GAAP and non-GAAP Financial Measures
  13. 13Adjusted operating income and adjusted operating margin56% rewritten
  14. 14Adjusted net income and adjusted EPS38% rewritten
  15. 15EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and adjusted incremental EBITDA margin23% rewritten
  16. 16Free cash flow, free cash flow conversion, adjusted free cash flow, and adjusted free cash flow conversion33% rewritten
  17. 17Adjusted sales, general and administrative ("SG&A")87% rewritten
  18. 18(4) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding83% rewritten
  19. 19The Company’s $100.0 million of total cash at December 31, 2025 is held at various banking institutions. Approximately $50.5 million is held in cash by foreign subsidiaries and the remaining $49.5 million is held at domestic banks and also includes cash-in-transit89% rewritten
  20. 20In February 2023, the Company entered into a credit agreement (the "Credit Agreement") with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”)70% rewritten
  21. 21Cash Provided by Operating Activities65% rewritten
  22. 22Cash Used in Investing Activities86% rewritten
  23. 23Cash Used in Financing Activities87% rewritten
  24. 24Active Shelf RegistrationNew
  25. 25Critical Accounting Estimates

Market Risk

  1. 26MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
  2. 27Opinion on Internal Control over Financial Reporting
  3. 28Definition and Limitations of Internal Control over Financial Reporting
  4. 29Opinion on the Financial Statements67% rewritten
  5. 30NET INCOME $ 526,705 $ 466,379 $ 434,95786% rewritten
  6. 31Net income — — — — 434,957 434,957New
  7. 32Net income — — — — 466,379 466,379New
  8. 33Net income — — — — 526,705 526,705New
  9. 34Other operating activities, net (758) — —New
  10. 35Cash and cash equivalents at end of period $ 100,004 $ 89,630 $ 103,82571% rewritten
  11. 361. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  12. 37Subsequent Events—The Company evaluates its financial statements through the date the financial statements are issued. Refer to Note 20, Subsequent Events for further details
  13. 38Nature of Goods and Services and Performance Obligations78% rewritten
  14. 39revenue as the services are rendered. The Company classifies discounts related to the advance payments as a reduction in revenuesNew
  15. 40The Company extends terms to certain customers on higher dollar termite and ancillary work, as well as to certain franchisees for initial funding on the sale of franchises. These financed receivables are segregated from our trade receivables
  16. 41Incremental Costs of Obtaining a Contract with a Customer
  17. 42We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed
  18. 43Cash and Cash Equivalents—The Company considers all investments with an original maturity of three months or less when purchased to be cash equivalents86% rewritten
  19. 44Marketable Securities—From time to time, the Company maintains investments held by various financial institutions. The Company’s investment policy does not allow investment in any securities rated less than “investment grade” by national rating services37% rewritten
  20. 45Other Current Assets—Other current assets include prepaid expenses, the current portion of capitalized costs to obtain a contract and an international bond investment
  21. 46depreciable lives assigned to long-lived assets, including customer contracts and assets that may be subject to a management plan for disposition
  22. 47Other Assets—Other assets is mostly comprised of deferred compensation plan assets, the non-current portion of capitalized costs to obtain a contract, deferred implementation costs associated with cloud hosting arrangements that are service contracts, deferred tax assets, and an international bond investment
  23. 48Other Long-term Accrued Liabilities—Other long-term accrued liabilities include long-term balances for deferred compensation plan liabilities, acquisition holdback and earnout liabilities, deferred tax liabilities, contingency accruals, and the long-term portion of unearned revenue
  24. 49Comprehensive Income (Loss)—Other Comprehensive Income (Loss) results from foreign currency translations, pension settlement and unrealized gains and losses on available for sale securities80% rewritten
  25. 50Combined domestic and international revenues from our franchises were $16.0 million, $16.9 million and $16.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total franchising revenues were less than 1.0% of the Company’s annual revenues for each of the three yearsNew
  26. 51Recently adopted accounting standards100% rewritten
  27. 52Accounting standards issued but not yet adopted73% rewritten
  28. 53The Saela acquisition has been accounted for as a business combination, and Saela's results of operations are included in the Company's operations from the acquisition date. During the year ended December 31, 2025, Saela contributed revenues and net earnings of $54.9 million and $5.0 million, respectivelyNew
  29. 54Assets acquired and liabilities assumed $ 207,133 $ 94 $ 207,227New
  30. 55Pro Forma Financial Information42% rewritten
  31. 56Net income 523,632 470,369New
  32. 57The Company also made payments of $2.8 million for prior year acquisitions during the year ended December 31, 2025New
  33. 58Assets acquired and liabilities assumed $ 182,75329% rewritten
  34. 59The Company also made payments of $0.4 million related to prior year acquisitions during the year ended December 31, 202443% rewritten
  35. 60Fox Pest Control Acquisition
  36. 61Assets acquired and liabilities assumed $ 339,51434% rewritten
  37. 62Net income 424,735 358,930
  38. 63Included in the total consideration of $76.7 million were acquisition holdback liabilities of $7.8 million28% rewritten
  39. 64Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,27895% rewritten
  40. 65Ending balance $ 232,986 $ 223,87261% rewritten
  41. 664. ALLOWANCE FOR EXPECTED CREDIT LOSSES22% rewritten
  42. 67The carrying amount of notes receivable approximates fair value as the interest rates approximate market rates for these types of contracts31% rewritten
  43. 68Balance at December 31, 2025 $ 23,528 $ 11,034 $ 34,562New
  44. 695. EQUIPMENT AND PROPERTY, NET88% rewritten
  45. 70Equipment and property, net $ 126,187 $ 124,83952% rewritten
  46. 71Total future minimum lease payments, net of interest $ 428,17577% rewritten
  47. 72Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill was $1.4 billion as of December 31, 2025 and $1.2 billion as of December 31, 2024New
  48. 73Customer contracts are amortized on a straight-line basis as this best approximates the ratio that current revenues bear to the total of current and anticipated revenues based on the estimated lives of the assets. The Company has determined that customer contracts should be amortized over a life of 7 to 20 yearsNew
  49. 74Customer contracts, net $ 407,516 $ 383,09263% rewritten
  50. 75Other intangible assets include non-compete agreements and patents. Non-compete agreements are amortized on a straight-line basis over periods ranging from 3 to 20 years and patents are amortized on a straight-line basis over 15 years81% rewritten
  51. 76Total amortization expense was approximately $90.4 million in 2025, $79.2 million in 2024 and $66.5 million in 202368% rewritten
  52. 779. FAIR VALUE MEASUREMENT90% rewritten
  53. 78Other Fair Value DisclosuresNew
  54. 792035 Senior Notes and Exchange OfferNew
  55. 80On February 24, 2023, the Company entered into a revolving credit agreement ("the Credit Agreement") with, among others, JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent (in such capacity, the “Administrative Agent”), which refinanced its previous credit facility described below52% rewritten
  56. 81Defined Contribution 401(k) Savings Plan39% rewritten
  57. 82Nonqualified Deferred Compensation Plan34% rewritten
  58. 83Cash and cash equivalents, which are used to pay benefits and deferred compensation plan administrative expenses, are held in money market funds62% rewritten
  59. 8412. COMMITMENTS AND CONTINGENCIES59% rewritten
  60. 85the repurchase of 8,724,100 of the shares of Common Stock offered in the 2023 Offering for approximately $300 million at $34.39 per share100% rewritten
  61. 86The Company repurchases shares from employees for the payment of their taxes on equity awards that have vested. The Company repurchased $16.2 million, $11.6 million and $10.8 million during the years ended December 31, 2025, 2024 and 2023 respectivelyNew
  62. 87Time-lapsed restricted share awards and restricted stock units (“restricted shares”), as well as performance share units ("PSUs"), have been issued to officers and other employees, and annual share awards are made to non-employee directors, under the Company’s Employee Stock Incentive PlanNew
  63. 88Compensation expense $ 38,835 $ 28,795 $ 24,22258% rewritten
  64. 89Employee Stock Purchase Plan
  65. 9014. ACCUMULATED OTHER COMPREHENSIVE LOSS
  66. 91Balance at December 31, 2022 $ (322) $ (30,304) $ (936) $ (31,562)33% rewritten
  67. 92Balance at December 31, 2023 (537) (25,488) (730) (26,755)72% rewritten
  68. 93Balance at December 31, 2024 (537) (42,513) (584) (43,634)New
  69. 94Total income from continuing operations before income taxes $ 700,926 $ 630,230 $ 586,25782% rewritten
  70. 95Total current tax expense 155,069 174,187 158,944100% rewritten
  71. 96Total income tax provision $ 174,221 $ 163,851 $ 151,30090% rewritten
  72. 97Effect of cross-border tax laws (883) (0.1) % 384 0.1 % 505 0.1 %New
  73. 98(1) State taxes in California, Florida, Georgia, Illinois, and New Jersey make up the majority (greater than 50 percent) of the tax effect in this categoryNew
  74. 99Net deferred tax assets $ 182,074 $ 194,95998% rewritten
  75. 100As of December 31, 2025, the Company has no net operating loss carryforwards in any federal, state, or foreign jurisdictions. The Company has state tax credit carryforwards of $0.4 million which will begin to expire in 2035 if not fully utilizedNew
  76. 101Unrecognized tax benefits at end of year $ 126 $ 1,584 $ 1,784New
  77. 102(1) 2025 amount includes $56.2 million paid to third parties to purchase federal investment tax creditsNew
  78. 103Canada $ 11,149 $ 11,397 *New
  79. 104Aircraft and Administrative Arrangements32% rewritten
  80. 105Related Party Franchise Agreement87% rewritten
  81. 106Registration Rights Agreement100% rewritten
  82. 107Net income available to stockholders $ 526,705 $ 466,379 $ 434,95794% rewritten
  83. 108Undistributed earnings for the period $ 198,804 $ 168,248 $ 170,60996% rewritten
  84. 109Weighted-average outstanding common shares 482,322 482,117 487,48081% rewritten
  85. 110Total weighted-average shares outstanding – diluted 484,147 484,295 490,13088% rewritten
  86. 111Basic earnings per share $ 1.09 $ 0.96 $ 0.89New
  87. 11219. SEGMENT AND GEOGRAPHIC INFORMATION
  88. 113Revenue $ 3,761,050 $ 3,388,708 $ 3,073,27889% rewritten
  89. 114Total cost of services provided (exclusive of depreciation and amortization below) 1,777,006 1,603,197 1,469,87190% rewritten
  90. 115See the consolidated financial statements for other financial information regarding the Company’s reportable segment. See Note 3, Revenue for further information on revenue45% rewritten
  91. 116Evaluation of Disclosure Controls and Procedures21% rewritten
  92. 117Securities Trading Plans of Directors and Executive Officers25% rewritten
  93. 118Sales to occur on or after February 25, 2026, if certain limit prices are met and if restricted stock has vested88% rewritten
  94. 119Item 10. Directors, Executive Officers and Corporate Governance40% rewritten
  95. 120Item 11. Executive Compensation32% rewritten
  96. 121of Certain Beneficial Owners and Management and Related Stockholder Matters34% rewritten
  97. 122Item 13. Certain Relationships and Related Party Transactions, and Director Independence54% rewritten
  98. 123Item 14. Principal Accounting Fees and Services68% rewritten
  99. 1248-K February 24, 2025 4.1New
  100. 12510-Q October 27, 2022 10.19New
  101. 126104 Cover Page Interactive Data File (embedded with the Inline XBRL document) X29% rewritten

Other Rollins 10-Ks

  • FY2024 10-K risk factors
    114 risks

    Rollins faces economic uncertainties including inflation, tariffs, and currency fluctuations across international operations in the US, Canada, Australia, Europe, and Asia. The company navigates tax developments like the OECD global minimum tax and manages debt via a $1.0 billion revolving credit facility.

    Filed Feb 13, 2025

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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.