NPMA, PCO Bookkeepers release 2025 Pest Control Industry Cost Study

The National Pest Management Association (NPMA) and PCO Bookkeepers and M&A Specialists today announced the release of the 2025 Pest Control Industry Cost Study, a comprehensive analysis of operating costs and financial performance across the U.S. pest management industry. The study aggregates data from 246 firms with combined annual revenue of $584 million, providing the most detailed financial benchmarking available to pest management professionals.

The study offers critical insights into profitability metrics, cost structures and operational efficiency across six geographic regions.

Key study findings:

The study revealed critical benchmarks across multiple financial categories:

• Average gross margin of 58% across all regions
• Direct labor averaging 25.8% of revenue, the single largest cost category
• Industry revenue growth of 9.5% year-over-year
• Recurring revenue representing 74% of total income
• Materials costs averaging 7.8% of revenue
• Marketing and advertising investment at 6.6% of revenue
• Average operating profit margin of 15%

The report also introduces the proprietary PCOB Competitive Index, a composite performance metric that evaluates companies based on growth, profitability and revenue quality.

Dominique Stumpf, NPMA CEO, said in a news release, “Financial benchmarking is critical to building stronger, more profitable and sustainable businesses. This study provides NPMA Members with a way to evaluate how their companies are doing compared to the broader industry. It connects directly to our key initiatives, building off the strategic plan from P3, including our Workforce Development Program and Sustainability initiative, giving members not just data, but actionable strategies to improve performance.”

The partnership between PCO Bookkeepers and NPMA brings together financial expertise with industry leadership. PCO Bookkeepers manages financial operations for pest management companies representing more than $1.5 billion in annual revenue and has brokered over $2 billion in M&A transactions. NPMA, with over 4,000 members worldwide, provides the industry reach and commitment to professional development necessary to make the study broadly accessible.

“The pest control industry has experienced dramatic changes since our last cost study in 2019, including the COVID-19 pandemic, significant labor market shifts and evolving customer expectations,” said Dan Gordon, founder of PCO Bookkeepers & M&A Specialists. “This updated study provides operators with the empirical data they need to make informed decisions about pricing, staffing and growth strategies. What we are seeing is that companies with strong recurring revenue models and disciplined cost management are significantly outperforming their peers.”

Regional analysis and new insights:

For the first time, the study provides detailed regional breakdowns across the Northeast, Mid-Atlantic, Southeast, Midwest, Southwest and West. While the fundamental business model remains consistent across geographies, the data reveals nuanced differences in cost structures and growth rates. The Southwest region showed the highest revenue growth at 15.8%, while the Northeast demonstrated the strongest gross margins.

Study availability:

The executive summary of the 2025 Pest Control Industry Cost Study is available for download at www.npmapestworld.org/coststudy or www.pcobookkeepers.com. PCO Bookkeepers clients receive access to the complete detailed dataset, including comprehensive profit and loss breakdowns, team member activity ratios, debt and liquidity benchmarks and detailed expense category comparisons.

The study complements NPMA’s suite of member resources, including the Workforce Development Program, which addresses the industry’s largest cost category through improved recruitment and retention strategies and the Sustainability initiative, which helps companies capitalize on growing demand for environmentally responsible pest management services.