Pest Control Services NAICS 561710

Jan 22, 2026 - NPMA Study Shows Strong Growth for Pest Control Firms

• With industry revenue rising 9.5% year over year, the 2025 Pest Control Industry Cost Study from NPMA and PCO Bookkeepers points to continued growth and solid profitability across the US pest control industry, according to a report in Pest Control Technology. Based on data from 246 firms representing $584 million in annual revenue, the study reports an average gross margin of 58% and an operating profit margin of 15%. Recurring revenue made up 74% of total income, supporting more predictable cash flow and stronger financial performance. Cost pressures remain concentrated in labor, which averaged 25.8% of revenue, the industry’s largest expense category. Materials accounted for 7.8% of revenue, while marketing and advertising represented 6.6%. Regionally, the Southwest posted the fastest growth at 15.8%, while the Northeast achieved the strongest gross margins. Overall, the data shows that operators with disciplined cost management and strong recurring revenue models are best positioned for sustained performance.
• The US William Blair/PCO M&A Specialists Pest Index increased 10% in November 2025 year over year, according to Pest Management Professional. November’s increase is in line with the long-term average index growth rate of 10%. Once adjusted for one less workday in November, the index rose about 14% year over year. Segments with the highest year-over-year growth in November 2025 were mosquito (16%), residential pest (11%), commercial pest (10%), and termite (5%), while the bed bug segment declined 12%. The pest index is a proprietary index of the monthly sales for approximately 150 US pest control firms, focused on residential, commercial, and termite markets.

• Los Angeles has overtaken Chicago as the nation’s “rattiest city,” a shift that signals rising demand for pest control services across urban markets, according to an Orkin report in Pest Control Technology. Orkin’s 2025 Top 50 Rattiest Cities list crowned Los Angeles No. 1 for the first time, ending Chicago’s decade long reign. The rankings, based on new rodent service requests from August 2024 to August 2025, highlight shifting infestation patterns driven by urban density, year round warm weather, and expanding food access points. Chicago ranks second, followed by New York City, and San Francisco. 4. California is notably overrepresented, with four cities in the top 10. For pest control providers, the trend underscores rising service volumes and the need for proactive prevention strategies. For pest service providers, the shake up highlights expanding service volumes and the need for proactive prevention strategies as infestations pose risks ranging from structural damage to disease transmission.
• US consumer confidence declined for a fifth straight month in December 2025, but the shift in spending toward essential services may support relative stability for the pest control services industry. The Conference Board Consumer Confidence Index fell 3.8 points to 89.1, while the Present Situation Index dropped sharply by 9.5 points to 116.8, reflecting weaker views of jobs and income. Importantly for pest control operators, consumer spending continues to move away from discretionary purchases and toward necessary services, even as confidence softens. While big-ticket buying plans and homebuying expectations declined, planned spending on services remained healthy, and utilities and household-related services ranked among top priorities. Although consumers’ views of their current financial situation turned negative for the first time in nearly four years, expectations for future finances improved. This environment suggests continued price sensitivity but resilient baseline demand for essential pest management services in 2026.