REVENUE

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE

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	$	232,986	$	223,872

As of December 31, 2025 and December 31, 2024, the Company had long-term unearned revenue of $45.3 million and $43.0 million, respectively, recorded in other long-term accrued liabilities on our consolidated statements of financial position. Unearned short-term revenue is recognized over the next 12-month period. We recognized $180.9 million and $172.4 million of revenue in the years ended December 31, 2025 and December 31, 2024, respectively, that was included in the balance of unearned revenue at the beginning of each respective fiscal year. 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 December 31, 2025, we have $39.1 million of unamortized capitalized costs to obtain a contract, of which $28.9 million is recorded within other current assets and $10.2 million is recorded within other assets on our consolidated statements of financial position. During the year ended December 31, 2025, we recorded approximately $34.1 million in amortization of capitalized costs, which is recorded within sales, general and administrative expense on our consolidated statements of income. 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 consolidated statements of financial position. During the years ended December 31, 2024 and 2023, we recorded approximately $22.1 million and $8.6 million in amortization of capitalized costs, respectively.