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REVENUE
9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue, classified by the major geographic areas in which our customers are located, was as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2025202420252024
United States$952,677 $850,253 $2,643,928 $2,371,952 
Other countries73,429 66,017 204,209 184,587 
Total revenues$1,026,106 $916,270 $2,848,137 $2,556,539 
Revenue from external customers, classified by significant service offering, was as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2025202420252024
Residential revenues$476,271 $428,290 $1,288,249 $1,166,042 
Commercial revenues334,956 299,633 939,803 845,517 
Termite and ancillary revenues204,670 177,674 588,655 515,758 
Franchise revenues4,312 4,282 11,990 12,688 
Other revenues5,897 6,391 19,440 16,534 
Total revenues$1,026,106 $916,270 $2,848,137 $2,556,539 
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 three months ended September 30, 2025 and 2024 was $69.9 million and $63.8 million, respectively. Unearned revenue recognized in the nine months ended September 30, 2025 and 2024 was $205.8 million and $189.1 million, respectively. Changes in unearned revenue were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2025202420252024
Beginning balance$243,459 $233,899 $223,872 $210,059 
Deferral of unearned revenue71,100 69,980 226,581 219,145 
Recognition of unearned revenue(69,881)(63,819)(205,775)(189,144)
Ending balance$244,678 $240,060 $244,678 $240,060 
As of September 30, 2025 and December 31, 2024, the Company had long-term unearned revenue of $44.5 million and $43.0 million, respectively, recorded in other long-term accrued liabilities on our condensed consolidated statements of financial position. Unearned short-term revenue is recognized over the next 12-month period. During the three and nine months ended September 30, 2025, we recognized $45.2 million and $135.6 million of revenue that was included in the balance of unearned revenue at December 31, 2024. During the three and nine months ended September 30, 2024, we recognized $43.1 million and $129.3 million of revenue that was included in the balance of unearned revenue at December 31, 2023. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2035.
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, primarily sales commissions. These costs are recorded as an asset and amortized to expense over the life of the contract to the extent such costs are expected to be recovered. As of September 30, 2025, we have $23.5 million of unamortized capitalized costs to obtain a contract, of which $11.2 million is recorded within other current assets and $12.3 million is recorded within other assets on our condensed consolidated statements of financial position. As of December 31, 2024, we had $23.4 million of unamortized capitalized costs to obtain a contract, of which $19.3 million was recorded within other current assets and $4.1 million was recorded within other assets on our condensed consolidated statements of financial position. Amortization of capitalized costs is recorded within sales, general and administrative expense on our condensed consolidated statements of income. During the three and nine months ended September 30, 2025, we recorded approximately $9.4 million and $24.4 million, respectively, of amortization of capitalized costs. During the three and nine months ended September 30, 2024, we recorded $6.7 million and $14.7 million of amortization of capitalized costs.