Rollins Inc. (ROL) shares plunged 13.00% in extended trading on Wednesday, as the pest control company reported disappointing second-quarter financial results that fell short of Wall Street expectations.

The stock decline came after Rollins announced adjusted earnings per share of $0.32 for the quarter, missing the analyst consensus estimate of $0.34. Revenue of $1.079 billion also trailed the expected $1.092 billion, while adjusted EBITDA of $236 million significantly underperformed the $256.4 million estimate.

Company executives attributed the weaker performance to slower growth in residential pest control services, particularly in brands reliant on consumer-initiated demand through digital channels. The company cited ongoing macroeconomic uncertainty, with sticky inflation and high interest rates causing both residential and commercial customers to scale back spending on routine services. Rollins also noted margin pressure as its cost structure remained positioned for a stronger growth environment while demand softened during the quarter.