On July 23, Rollins fell 9.47% in regular trading, trading at $39.37/share, with turnover of $336 million. The decline was triggered by the company's Q2 earnings report, which missed Wall Street estimates on both top and bottom lines.

Specifically, Q2 revenue came in at $1.079 billion versus the consensus estimate of $1.092 billion, while adjusted EPS was $0.32, missing the expected $0.34. Adjusted operating margin contracted to 19.5% from 20.6% a year earlier. CEO Jerry Gahlhoff attributed the shortfall primarily to a slowdown in residential pest control business growth, citing softer demand within consumer-initiated lead channels. This marks the second consecutive quarter of misses, following a similar disappointment in Q4 that sent shares down roughly 15%.

RBC Capital Markets downgraded Rollins to Sector Perform from Outperform, cutting its price target to $40 from $52, noting organic growth has underperformed mid-term guidance for three consecutive quarters. BofA Securities flagged decreased demand visibility around a recovery in organic growth.

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