Financial Analysis

"ACQUISITIONS Saela Pest Control Acquisition On April 1, 2025, the Company acquired 100% of Saela Holdings, LLC (""Saela"") for $207.2 million. The Company funded this acquisition using cash on hand and borrowings under the commercial paper program. The acquisition expands the Rollins family of brands, and management believes the acquisition will drive long-term value given Saela's attractive financial profile and complementary end market exposure. The Saela acquisition has been accounted for as a business combination, and Saela's results of operations are included in the Company's operations from the acquisition date. During the year ended December 31, 2025, Saela contributed revenues and net earnings of $54.9 million and $5.0 million, respectively. The valuation of the Saela acquisition was performed by a third-party valuation specialist under managements supervision. The estimated purchase price allocation disclosed as of June 30, 2025 was revised during the measurement period as new information was received and analyzed resulting in an increase in customer contracts, a decrease in goodwill, and other immaterial changes, as presented in the table below. The initial and updated preliminary values of identified assets acquired and liabilities assumed for Saela are summarized as follows: (in thousands) Initial Preliminary Allocation as of 4/1/2025 Measurement Period Adjustments Updated Preliminary Allocation as of 4/1/2025 Cash $ 1,506 $ 16 $ 1,522 Accounts receivable 832 (27 …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company and its subsidiaries are involved in, and will continue to be involved in, various claims, arbitrations, contractual disputes, inquiries, investigations, litigation, and tax and other regulatory matters relating to, and arising out of, our businesses and our operations. These matters may involve, but are not limited to, allegations that our services or vehicles caused damage or injury, claims that our services did not achieve the desired results, claims related to acquisitions and allegations by federal, state or local authorities, including taxing authorities, of violations of regulations or statutes. In addition, we are parties to employment-related investigations, cases, and claims from time to time, which may include claims on a representative or class action basis alleging wage and hour law violations, claims filed under California's Private Attorneys General Act and claims and investigations related to our enforcement of post-employment restrictive covenants. We are also involved from time to time in certain environmental matters primarily arising in the normal course of business. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable in accordance with ASC 450. The Company retains, up to specified limits, certain risks related to general liability, workers compensation and auto liability. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Long-term Debt Components of long-term debt were as follows: (in thousands) Years Ended December 31, 2025 2024 2035 Senior Notes $ 500,000 $ Revolving Credit Facility 397,000 Total long-term debt $ 500,000 $ 397,000 Less: unamortized debt discount (7,125) Less: unamortized debt issuance costs (6,728) (1,690) Total long-term debt, net $ 486,147 $ 395,310 2035 Senior Notes and Exchange Offer In February 2025, we issued ten-year notes with an aggregate principal amount of $500 million due on February 24, 2035 (the 2035 Senior Notes) in a private placement to qualified institutional buyers pursuant to Section 4(a)(2) and Rule 144A under the Securities Act. We issued the 2035 Senior Notes at 98.443% of par, representing a discount of $7.8 million and paid approximately $6.1 million for debt issuance costs. The interest is payable semi-annually in arrears on February 24 and August 24 of each year at 5.25% per annum, beginning on August 24, 2025, and the entire principal amount is due at the time of maturity. We used the net proceeds from this offering primarily to repay outstanding borrowings under the Revolving Credit Facility, as defined below, as well as for general corporate purposes. The 2035 Senior Notes are senior unsecured obligations of the Company and, at the time of issuance, were guaranteed by the Companys subsidiaries that were guarantors under its Revolving Credit Facility, provided for by the Credit Agreement defined below. Subsequent to the issuance of the 203 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or in a country other than the United States accounted for 10% or more of the sales for the periods listed in the following tables. Revenue, classified by the major geographic areas in which our customers are located, was as follows: 2025 2024 2023 (in thousands) United States $ 3,491,325 $ 3,143,372 $ 2,853,321 Other countries 269,725 245,336 219,957 Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,278 Revenue from external customers, classified by significant service offering, was as follows: (in thousands) 2025 2024 2023 Residential revenues $ 1,693,244 $ 1,535,104 $ 1,409,872 Commercial revenues 1,244,733 1,125,964 1,024,176 Termite and ancillary revenues 781,542 688,186 605,533 Franchise revenues 16,034 16,935 16,475 Other revenues 25,497 22,519 17,222 Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,278

DisaggregationOfRevenueTableTextBlock

FAIR VALUE MEASUREMENT Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are: Level 1: observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices in active markets in Level 1 that are either directly or indirectly observable; and Level 3: unobservable inputs for which little or no market data exists. Assets and Liabilities Measured at Fair Value on a Recurring Basis Debt Securities As of December 31, 2025 and 2024, we had investments in international bonds of $6.2 million and $8.2 million, respectively. These bonds are accounted for as available for sale securities and are Level 2 assets under the fair value hierarchy. The bonds are recorded at their fair market values and reported within other current assets and other assets on our consolidated statements of financial position. The unrealized gain or loss activity during the twelve months ended December 31, 2025, 2024 and 2023 was not significant. Contingent Consideration As of December 31, 2025 and 2024, the Company had $37.1 million and $21.0 million of acquisition holdback and earnout liabilities payable to former owners of acquired companies, respectively. Holdback and earnout liabilities are considered Level 3 liabilities under the fair value hierarchy. The earnout liabilities were adjusted to refle …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES For the years ended December 31, income from continuing operations before income taxes consisted of the following: (in thousands) 2025 2024 2023 Income before income taxes Domestic $ 664,780 $ 592,704 $ 548,428 Foreign 36,146 37,526 37,829 Total income from continuing operations before income taxes $ 700,926 $ 630,230 $ 586,257 For the years ended December 31, the Companys income tax provision consisted of the following: 2025 2024 2023 (in thousands) Current: Federal $ 105,940 $ 126,246 $ 112,647 State 35,326 36,328 33,516 Foreign 13,803 11,613 12,781 Total current tax expense 155,069 174,187 158,944 Deferred: Federal 17,541 (6,848) (2,349) State 5,253 (2,336) (2,925) Foreign (3,642) (1,152) (2,370) Total deferred tax expense (benefit) 19,152 (10,336) (7,644) Total income tax provision $ 174,221 $ 163,851 $ 151,300 The following table presents the principal components of the difference between the effective tax rate and the U.S. federal statutory income tax rate for the years ended December 31: 2025 2024 2023 (in thousands) $ % $ % $ % Income tax at statutory rate $ 147,210 21.0 % $ 132,361 21.0 % $ 123,114 21.0 % State and local income taxes, net of federal income tax effect (1) 32,485 4.6 % 26,647 4.2 % 23,653 4.0 % Foreign tax effects 3,330 0.5 % 3,303 0.5 % 841 0.1 % Effect of changes in tax laws or rates enacted in the current period % % % Effect of cross-border tax laws (883) (0.1) % 384 0.1 % 505 0.1 % Tax credits: Investment tax credits (7,687) (1.1) % % …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company leases certain buildings, vehicles, and equipment in order to reduce the risk associated with ownership. The Company elected the practical expedient approach permitted under ASC Topic 842, Leases not to include short-term leases with a duration of 12 months or less on the consolidated statements of financial position. As of December 31, 2025 and 2024, all leases were classified as operating leases. Building leases generally carry terms of 5 to 10 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 7 years depending on the class of vehicle. The exercise of renewal options is at the Companys sole discretion. It is reasonably certain that the Company will exercise the renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants. The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement. (in t …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Guidance Recently adopted accounting standards In 2025, the Company adopted the Accounting Standard Update (""ASU"") 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures which is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). The company has applied this update retrospectively across all periods presented to allow for greater comparability. Refer to Note 15, Income Taxes for further details. Accounting standards issued but not yet adopted In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative, to amend certain disclosure and presentation requirements for a variety of top …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Defined Contribution 401(k) Savings Plan The Company sponsors a defined contribution 401(k) Savings Plan (the Plan) that is available to a majority of the Companys full-time employees the first day of the calendar month following completion of 90 days of service. The Plan is available to non-full-time employees the first day of the calendar quarter following one year of service upon completion of 1,000 hours in that year. The Plan provides for a matching contribution of one dollar ($1.00) for each one dollar ($1.00) of a participants contributions to the Plan that do not exceed 3 percent of his or her eligible compensation (which includes commissions, overtime, and bonuses) and fifty cents ($0.50) for each one dollar ($1.00) of a participants contributions to the Plan over the initial 3 percent that do not exceed 6 percent of his or her eligible compensation (which includes commissions, overtime and bonuses). The charge to expense for the Company match was approximately $38.7 million, $35.8 million and $32.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, 2024, and 2023 approximately 29.1%, 28.4%, and 30.4%, respectively, of the fair value of plan assets consisted of Rollins, Inc. common stock. Total administrative fees paid by the Company for the Plan were insignificant for each of the years ended December 31, 2025, 2024 and 2023. Nonqualified Deferred Compensation Plan The Deferred Compensation Plan pr …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS Aircraft and Administrative Arrangements In 2014, P.I.A. LLC, a company then owned by our late Chairman of the Board of Directors, R. Randall Rollins, purchased a Lear Model 35A jet and entered into a lease arrangement with the Company for company use of the aircraft for business purposes. P.I.A. LLC is now owned by a trust for the benefit of the late Mr. Rollins family. The Company terminated the lease in 2024. The Company paid $100 per month in rent for the leased aircraft, and all variable costs and expenses associated with the leased aircraft, such as the costs for fuel, maintenance, storage and pilots. The Company had the priority right to use of the aircraft on business days, and Rollins family members and guests had the right to use the aircraft for personal use through the terms of an Aircraft Time Sharing Agreement with the Company. During the year ended December 31, 2023, the Company paid or incurred approximately $0.6 million in rent and operating costs under the Aircraft Time Sharing Agreement. The Company made $500 in rent payments in 2024 and no payments in 2025. In August 2023, GWRG450, LLC (GWR LLC), a company wholly-owned by Mr. Gary W. Rollins, purchased a Gulfstream 450 aircraft (the G450). In connection with the G450 purchase, the Company entered into a lease arrangement with GWR LLC to lease the G450 for corporate purposes from time to time. That lease arrangement was superseded and replaced effective January 1, 2024 with a Non- …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

RESTRUCTURING COSTS During 2023, the Company executed a restructuring program to modernize its workforce. These changes were primarily across corporate-related functions and enabled us to make more strategic improvements in our support functions. As a result of this program, the Company incurred $5.2 million in restructuring costs, consisting mainly of one-time termination benefits, including severance and outplacement services, stock-based compensation, and other benefits-related costs. These costs are recorded within restructuring costs in our consolidated statements of income. No such costs were incurred during 2025 or 2024 and as of December 31, 2025 and 2024 we had no remaining obligation associated with this program.

RestructuringAndRelatedActivitiesDisclosureTextBlock

REVENUE Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or in a country other than the United States accounted for 10% or more of the sales for the periods listed in the following tables. Revenue, classified by the major geographic areas in which our customers are located, was as follows: 2025 2024 2023 (in thousands) United States $ 3,491,325 $ 3,143,372 $ 2,853,321 Other countries 269,725 245,336 219,957 Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,278 Revenue from external customers, classified by significant service offering, was as follows: (in thousands) 2025 2024 2023 Residential revenues $ 1,693,244 $ 1,535,104 $ 1,409,872 Commercial revenues 1,244,733 1,125,964 1,024,176 Termite and ancillary revenues 781,542 688,186 605,533 Franchise revenues 16,034 16,935 16,475 Other revenues 25,497 22,519 17,222 Total revenues $ 3,761,050 $ 3,388,708 $ 3,073,278 The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Unearned revenue recognized in the twelve months ended December 31, 2025 and 2024 was $279.0 million and $253.3 million, respectively. Changes in unearned revenue were as follows: Year Ended December 31, 2025 2024 (in thousands) Beginning balance $ 223,872 $ 210,059 Deferral of unearned revenue 288,145 267,100 Recognition of unearned revenue (279,031) (253,287) Ending balance $ 232,9 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT AND GEOGRAPHIC INFORMATION The Company operates under one reportable segment which contains our residential, commercial, and termite service offerings. The Company's chief operating decision maker (""CODM"") is the chief executive officer. The CODM uses net income to assess financial performance and allocate resources. This financial metric is used by the CODM to make key operating decisions, such as the determination of the rate of growth investments and the allocation of budget between cost categories. The measure of segment assets is reported on the consolidated statements of financial position as total consolidated assets. The following table presents selected financial information with respect to the Companys single reportable segment for the years ended December 31: (in thousands) 2025 2024 2023 Revenue $ 3,761,050 $ 3,388,708 $ 3,073,278 Less: Cost of services provided (exclusive of depreciation and amortization below): Employee expenses 1,166,044 1,048,992 953,600 Materials and supplies 225,462 212,296 197,825 Insurance and claims 66,897 68,326 60,390 Fleet expenses 157,461 131,898 127,390 Other cost of services provided (1) 161,142 141,685 130,666 Total cost of services provided (exclusive of depreciation and amortization below) 1,777,006 1,603,197 1,469,871 Sales, general and administrative: Selling and marketing expenses 484,859 427,916 375,805 Administrative employee expenses 345,643 313,814 291,772 Insurance and claims 40,816 41,434 37,946 Fleet expenses …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description Rollins, Inc. (Rollins, we, us, our, or the Company), is an international services company headquartered in Atlanta, Georgia that provides pest and termite control services to both residential and commercial customers through its wholly-owned subsidiaries and independent franchises in the United States (""U.S.""), Canada, Australia, Europe, and Asia with international franchises in Canada, Central and South America, the Caribbean, Europe, the Middle East, Asia, Africa, and Australia. Principles of Consolidation The Companys consolidated financial statements include the accounts of Rollins, Inc. and the Companys wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP). The Company does not consolidate the financial statements of any company in which it does not have a controlling financial interest. The Company is not the primary beneficiary of, nor does it have a controlling financial interest in, any variable interest entity. Accordingly, the Company has not consolidated any variable interest entity. All material intercompany accounts and transactions have been eliminated. Segment Reporting We evaluated our segment reporting and determined that we have three operating segments and three goodwill reporting units. We continue to operate under one reportable segment which contains our residential, commercial, and termite service offerings. Subs …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"STOCKHOLDERS' EQUITY During the year ended December 31, 2025, the Company paid $327.9 million, or $0.6775 per share, in cash and stock dividends compared to $298.1 million, or $0.6150 per share and $264.3 million or $0.5400 per share, during the same period in 2024 and 2023. 2025 Secondary Offering On November 10, 2025, the Company entered into an underwriting agreement (the 2025 Underwriting Agreement) with LOR, Inc. (LOR) (a company controlled by Mr. Gary W. Rollins and certain members of his family) and Rollins Holding Company, Inc. (together, the Selling Stockholders), and Morgan Stanley & Co. LLC, as sole underwriter (the Underwriter), relating to the sale by the Selling Stockholders of 17,391,305 shares of the Companys common stock, par value $1.00 per share (the Common Stock), at a public offering price of $57.50 per share (the 2025 Offering). In connection with the 2025 Offering, the Selling Stockholders granted the Underwriter an option to purchase up to an additional 2,608,695 shares of Common Stock (the 2025 Optional Shares). The 2025 Offering, including the sale of the 2025 Optional Shares, closed on November 12, 2025. The Company did not sell any shares in the 2025 Offering and did not receive any proceeds from the 2025 Offering. In addition, the Company completed the repurchase of 3,478,260 of the shares of Common Stock offered in the 2025 Offering for approximately $200 million at the same per share price paid by the Underwriter to the Selling Stockholders …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Quarterly Dividend On January 22, 2026, the Companys Board of Directors declared a regular quarterly cash dividend on its common stock of $0.1825 per share payable March 10, 2026 to stockholders of record at the close of business February 25, 2026. The Company expects to continue to pay cash dividends to the common stockholders, subject to the earnings and financial condition of the Company and other relevant factors. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

"ACQUISITIONS Romex Pest Control Acquisition On April 1, 2026, the Company acquired 100% of Romex Pest Control, LLC (""Romex"") for $95.7 million. The Company funded this acquisition using cash on hand and borrowings under the commercial paper program. The acquisition expanded the Rollins family of brands, and management believes the acquisition will drive long-term value given Romex's attractive financial profile and complementary end market exposure. The Romex acquisition has been accounted for as a business combination, and Romex's results of operations are included in the Company's operations from the acquisition date. During the three months ended June 30, 2026, Romex contributed revenues and net earnings of $10.2 million and $0.8 million, respectively. The valuation of the Romex acquisition was performed by a third party valuation specialist under managements supervision. The preliminary values of identified assets acquired and liabilities assumed as of June 30, 2026 are summarized as follows: (in thousands) April 1, 2026 Cash $ 1,412 Accounts receivable 806 Materials and supplies 345 Other current assets 276 Equipment and property 3,131 Goodwill 46,223 Customer contracts 38,600 Trademarks & tradenames 7,300 Operating lease right-of-use assets 851 Accounts payable (117) Accrued compensation and related liabilities (608) Other current liabilities (1,364) Operating lease liabilities (851) Unearned revenue (287) Assets acquired and liabilities assumed $ 95,717 Included …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

CONTINGENCIES In the normal course of business, the Company and its subsidiaries are involved in, and will continue to be involved in, various claims, arbitrations, contractual disputes, inquiries, investigations, litigation, and tax and other regulatory matters relating to, and arising out of, our businesses and our operations. These matters may involve, but are not limited to, allegations that our services or vehicles caused damage or injury, claims that our services did not achieve the desired results, claims related to acquisitions and allegations by federal, state or local authorities, including taxing and pest control regulatory authorities, of violations of regulations or statutes. In addition, we are parties to employment-related investigations, cases, and claims from time to time, which may include claims on a representative or class action basis alleging wage and hour law violations, claims filed under California's Private Attorneys General Act, and claims and investigations related to our enforcement of post-employment restrictive covenants. We are also involved from time to time in certain environmental matters primarily arising in the normal course of business. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable in accordance with ASC 450. The Company retains, up to specified limits, certain risks related to general liability, workers compensation and au …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Short-term Debt Commercial Paper Program In March 2025, we established a commercial paper program under which we may issue unsecured commercial paper up to a total of $1 billion outstanding at any time, with maturities of up to 397 days from the date of issue. Borrowings under this program are generally outstanding for 30 days or less. The net proceeds from the issuance of commercial paper are used for various purposes, including general corporate purposes and funding for acquisitions. Information with respect to our outstanding commercial paper borrowings is as follows: (in thousands) June 30, 2026 December 31, 2025 Outstanding borrowings (1) $ 215,918 $ 114,430 Weighted average annual interest rate 3.97 % 3.94 % Weighted average remaining term 4.4 days 6.3 days (1) Outstanding commercial paper borrowings are net of unamortized discount and are presented under the short-term debt caption of our condensed consolidated statements of financial position. Bank Overdrafts As of June 30, 2026, we had no bank overdrafts. As of December 31, 2025, we had $9.3 million of bank overdrafts. Long-term Debt Components of long-term debt were as follows: (in thousands) June 30, 2026 December 31, 2025 2035 Senior Notes $ 500,000 $ 500,000 Revolving Credit Facility Total long-term debt $ 500,000 $ 500,000 Less: unamortized debt discount (6,736) (7,125) Less: unamortized debt issuance costs (6,157) (6,728) Total long-term debt, net $ 487,107 $ 486,147 2035 Senior Notes and Exchange Offer I …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue, classified by the major geographic areas in which our customers are located, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 United States $ 1,002,793 $ 927,682 $ 1,842,667 $ 1,691,251 Other countries 75,783 71,845 142,333 130,780 Total revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031 Revenue from external customers, classified by significant service offering, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Residential revenues $ 485,845 $ 455,665 $ 875,349 $ 811,978 Commercial revenues 347,913 320,490 659,639 604,847 Termite and ancillary revenues 234,151 211,855 429,574 383,985 Franchise revenues 4,528 3,908 8,181 7,678 Other revenues 6,139 7,609 12,257 13,543 Total revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031

DisaggregationOfRevenueTableTextBlock

FAIR VALUE MEASUREMENT Assets and liabilities recorded at fair value are measured using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are: Level 1: observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices in active markets in Level 1 that are either directly or indirectly observable; and Level 3: unobservable inputs for which little or no market data exists. Assets and Liabilities Measured at Fair Value on a Recurring Basis Debt Securities As of June 30, 2026 and December 31, 2025, we had investments in international bonds of $4.7 million and $6.2 million, respectively. These bonds are accounted for as available for sale securities and are Level 2 assets under the fair value hierarchy. The bonds are recorded at their fair market values and reported within other current assets and other assets on our condensed consolidated statements of financial position. The unrealized gain or loss activity during the three and six months ended June 30, 2026 and 2025 was not significant. Contingent Consideration As of June 30, 2026 and December 31, 2025, the Company had $44.9 million and $37.1 million of acquisition holdback and earnout liabilities payable to former owners of acquired companies, respectively. Holdback and earnout liabilities are considered Level 3 liabilities under the fair value hierarchy. The earnout liabiliti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS The following table summarizes changes in goodwill during the six months ended June 30, 2026: (in thousands) Balance at December 31, 2025 $ 1,374,664 Additions 74,822 Measurement period adjustments 807 Adjustments due to currency translation and other (911) Balance at June 30, 2026 $ 1,449,382 The following table sets forth the components of indefinite-lived and amortizable intangible assets as of June 30, 2026 and December 31, 2025. June 30, 2026 December 31, 2025 (in thousands) Gross Accumulated Amortization Carrying Value Gross Accumulated Amortization Carrying Value Useful Life in Years Amortizable intangible assets: Customer contracts $ 780,500 $ (359,116) $ 421,384 $ 741,568 $ (334,052) $ 407,516 3-20 Trademarks and tradenames 27,083 (18,163) 8,920 26,136 (16,388) 9,748 7-20 Other intangible assets 28,165 (21,264) 6,901 28,240 (20,151) 8,089 3-20 Total amortizable intangible assets $ 835,748 $ (398,543) $ 437,205 $ 795,944 $ (370,591) $ 425,353 Indefinite-lived intangible assets 164,327 157,031 Total intangible assets, excluding goodwill $ 601,532 $ 582,384 Amortization expense related to intangible assets was $24.9 million and $22.9 million for the three months ended June 30, 2026 and 2025, respectively. Amortization expense related to intangible assets was $48.7 million and $43.7 million for the six months ended June 30, 2026 and 2025, respectively. Amortizable intangible assets are amortized on a straight-line basis over their economic …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The Companys provision for income taxes is recorded on an interim basis based upon the Companys estimate of the annual effective income tax rate for the full year applied to ordinary income or loss, adjusted each quarter for discrete items. The Company recorded a provision for income taxes of $45.8 million and $49.8 million for the three months ended June 30, 2026 and 2025, and $75.1 million and $82.1 million for the six months ended June 30, 2026 and 2025, respectively. The Companys effective tax rate decreased to 24.2% in the second quarter of 2026 compared with 26.0% in the second quarter of 2025. During the six months ended June 30, 2026, the Company's effective tax rate decreased to 23.0% compared to 25.0% in the six months ended June 30, 2025. The reduced rate for both periods was primarily due to the purchase of transferable federal income tax credits during the three and six months ended June 30, 2026. Cash paid for taxes, net of refunds, during the six months ended June 30, 2026 was $134.8 million, inclusive of cash paid to taxing authorities and third parties for purchases of investment tax credits. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently adopted accounting standards In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (""ASU"") 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The guidance provides an optional practical expedient when applying the guidance related to the estimation of expected credit losses for current accounts receivable and current contract assets resulting from transactions arising from contracts with customers. The Company adopted the ASU effective January 1, 2026 on a prospective basis and elected the practical expedient for the calculation of current expected credit losses. The adoption did not have a material impact on the Companys condensed consolidated financial statements. Accounting standards issued but not yet adopted In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SECs Disclosure Update and Simplification Initiative, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (""ASC""). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SECs removal of the related disclosure requirement from Regulation S-X or Regulati …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE Revenue, classified by the major geographic areas in which our customers are located, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 United States $ 1,002,793 $ 927,682 $ 1,842,667 $ 1,691,251 Other countries 75,783 71,845 142,333 130,780 Total revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031 Revenue from external customers, classified by significant service offering, was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Residential revenues $ 485,845 $ 455,665 $ 875,349 $ 811,978 Commercial revenues 347,913 320,490 659,639 604,847 Termite and ancillary revenues 234,151 211,855 429,574 383,985 Franchise revenues 4,528 3,908 8,181 7,678 Other revenues 6,139 7,609 12,257 13,543 Total revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031 The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Unearned revenue recognized as revenues in the three months ended June 30, 2026 and 2025 was $75.7 million and $68.9 million, respectively. Unearned revenue recognized in the six months ended June 30, 2026 and 2025 was $148.9 million and $135.9 million, respectively. Changes in unearned revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Beginning balance $ 243,118 $ 2 …

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"SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company operates under one reportable segment which contains our residential, commercial, and termite and ancillary service offerings. The Company's chief operating decision maker (""CODM"") is the chief executive officer. The CODM uses net income to assess financial performance and allocate resources. This financial metric is used by the CODM to make key operating decisions, such as the determination of the rate of growth investments and the allocation of budget between cost categories. The measure of segment assets is reported on the condensed consolidated statements of financial position as total consolidated assets. The following table presents selected financial information with respect to the Companys single reportable segment: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Revenue $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031 Less: Cost of services provided (exclusive of depreciation and amortization below): Employee expenses 328,787 298,354 618,509 560,077 Materials and supplies 66,339 59,500 119,556 107,991 Insurance and claims 21,932 20,734 43,079 37,258 Fleet expenses 46,959 41,834 89,131 78,691 Other cost of services provided (1) 44,613 41,439 83,877 77,978 Total cost of services provided (exclusive of depreciation and amortization below) $ 508,630 $ 461,861 $ 954,152 $ 861,995 Sales, general and administrative: Selling and marketing expenses 151,967 140,177 263,9 …

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STOCKHOLDERS' EQUITY During the three months ended June 30, 2026, the Company paid $88.1 million, or $0.1825 per share, in cash and stock dividends compared to $79.5 million, or $0.165 per share, during the same period in 2025. During the six months ended June 30, 2026, the Company paid $176.1 million, or $0.3650 per share, in cash and stock dividends compared to $159.4 million, or $0.330 per share, during the same period in 2025. The Company withholds shares from employees for the payment of their taxes on equity awards that have vested. The Company withheld $0.5 million and $0.3 million in connection with employee tax obligations during the three month periods ended June 30, 2026 and 2025, respectively. The Company withheld $22.8 million and $14.9 million in connection with employee tax obligations during the six month periods ended June 30, 2026 and 2025, respectively. Share Repurchases During the three months ended June 30, 2026, the Company paid $20.0 million in open market share repurchases. The Company did not repurchase shares on the open market in 2025. As we repurchase our common stock, we reduce common stock for par value of the shares repurchased, with the excess of the purchase price over par value recorded as a reduction to additional paid-in capital and retained earnings. Stock Compensation The following table summarizes the components of the Companys stock-based compensation programs, including time-lapsed restricted share awards, performance share unit awards …

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SUBSEQUENT EVENTS Quarterly Dividend On July 21, 2026, the Companys Board of Directors declared a regular quarterly cash dividend on its common stock of $0.1825 per share payable on September 10, 2026 to shareholde rs of record at the close of business on August 10, 2026. …

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