Spruce Point Capital Management has issued a short report on Rollins, Inc. (ROL), predicting a 30-40% long-term downside risk for the company. The report cites changing industry dynamics, increased pressures such as rising customer churn and acquisition costs, and consumer resistance to recent price increases. It also warns that nearly 40% of Rollins' annual revenue growth has come from its acquisition strategy, which is facing challenges due to new private equity money backing pest control acquisition platforms. The report also questions Rollins' recent claims of improving gross margins and highlights the company's increasing leverage to repurchase shares while the Rollins family is accelerating stock sales.