Shares of Rollins Inc. (ROL) are soaring 5.22% in pre-market trading on Thursday, following the company's announcement of impressive third-quarter results for 2025 and a positive medium-term outlook.

The pest control services provider reported a robust 12.0% increase in revenue for Q3 2025, with organic growth contributing 7.2% and mergers and acquisitions (M&A) adding 4.8%. Rollins maintains an optimistic medium-term outlook, projecting organic growth of approximately 7% to 8% and an additional 3% to 4% growth from M&A activities.

Investors appear encouraged by Rollins' strong financial performance and future prospects. The company's adjusted incremental EBITDA margin reached 24.0% over the last three years and is expected to be between 25% and 30% in 2025, with a medium-term target of 30% to 35%. Additionally, Rollins reported an impressive free cash flow conversion of 119.0%, which it expects to maintain above 100%. The company's commitment to shareholder returns is evident in its dividend increase of over 80% since 2022, representing approximately 50% of free cash flow. These factors, combined with ongoing modernization initiatives and a focus on pricing, productivity, and cost leverage, seem to be driving the positive sentiment among investors.