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FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS

24th consecutive year of revenue growth; FY 2025 Delivered Double-Digit Revenue, Earnings, and Cash Flow Growth
ATLANTA, GEORGIA, February 11, 2026: Rollins, Inc. (NYSE:ROL) (“Rollins” or the “Company”), a premier global consumer and commercial services company, reported financial results for the fourth quarter and full year of 2025.
2025 Fourth Quarter Highlights
(All comparisons against the fourth quarter of 2024 unless otherwise noted)

•Revenues were $913 million, an increase of 9.7% over the prior year with organic revenues* increasing 5.7% and acquisition-related revenues* increasing 4.0%.
•Operating income was $160 million, an increase of 6.3% over the prior year. Operating margin was 17.5%, a decrease of 60 basis points versus the prior year. Adjusted operating income* was $167 million, an increase of 8.1% over the prior year. Adjusted operating margin* was 18.3%, a decrease of 30 basis points compared to the prior year.
•Adjusted EBITDA* was $194 million, an increase of 7.0% over the prior year. Adjusted EBITDA margin* was 21.2%, a decrease of 60 basis points compared to the prior year.
•Net income was $116 million, an increase of 10.2% over the prior year. Adjusted net income* was $121 million, an increase of 11.1% over the prior year.
•GAAP EPS was $0.24 per diluted share, an increase of 9.1% compared to the prior year. Adjusted EPS* was $0.25 per diluted share, an increase of 8.7% over the prior year.
•Operating cash flow was $165 million, a decrease of 12.4% over the prior year. The Company invested $21 million in acquisitions, $6 million in capital expenditures, and paid dividends totaling $88 million.
2025 Full Year Highlights
(All comparisons against the full year 2024 unless otherwise noted)

•Revenues were $3.8 billion, an increase of 11.0% over the prior year with organic revenues* increasing 6.9% and acquisition-related revenues* increasing 4.1%.
•Operating income was $726 million, an increase of 10.5% over the prior year. Operating margin was 19.3%, a decrease of 10 basis points versus the prior year. Adjusted operating income* was $752 million, an increase of 11.4% over the prior year. Adjusted operating margin* was 20.0%, an increase of 10 basis points over the prior year.
•Adjusted EBITDA* was $855 million, an increase of 10.8% over the prior year. Adjusted EBITDA margin* was 22.7%, a decrease of 10 basis points versus the prior year.
•Net income was $527 million, an increase of 12.9% over the prior year. Adjusted net income* was $544 million, an increase of 13.6% over the prior year.
•GAAP EPS was $1.09 per diluted share, an increase of 13.5% over the prior year. Adjusted EPS* was $1.12 per diluted share, an increase of 13.1% over the prior year.
•Operating cash flow was $678 million, an increase of 11.6% over the prior year. The Company invested $310 million in acquisitions, $28 million in capital expenditures, and paid dividends totaling $328 million.

*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
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2026 Financial Outlook
For 2026, the Company anticipates:
•The underlying health of core pest control markets, as well as Rollins’ ongoing commitment to operational execution, should support another year of organic growth, further complemented by a strategic and disciplined approach to acquisitions.

•A focus on pricing, ongoing modernization efforts, and a culture of continuous improvement should support an improving margin profile.

•Compounding cash flow and strong balance sheet should continue to enable a balanced capital allocation strategy.


Management Commentary

“We delivered solid financial results in 2025 and made important progress on a number of key initiatives. Our underlying markets remain healthy, customer and teammate retention rates are strong, and we are confident that nothing has fundamentally changed with respect to our consumer. We continue to invest meaningfully in our business and are well-positioned as we begin 2026. I’d like to thank our teammates for their hard work and dedication to our customers, as well as each other,” said Jerry Gahlhoff, President and CEO.

“We are pleased with the double-digit revenue, earnings, and cash flow growth we delivered for the year, despite the negative impact that erratic weather patterns had on our business in the fourth quarter, specifically on one-time business and seasonal work across all three service offerings in certain pockets of the country. Our recurring base of business and ancillary service line, which represents over 80 percent of total revenue, grew over 7 percent organically for both the quarter and the year. This growth was partially offset by declines in one-time business during the fourth quarter versus last year, which we view as transitory. We believe that the stability of growth in our recurring and ancillary businesses, coupled with ongoing modernization efforts, position us to deliver on our financial outlook for 2026 and beyond. We continue to execute a balanced capital allocation program enabled by compounding cash flow and a strong balance sheet,” said Kenneth Krause, Executive Vice President and CFO.
Three and Twelve Months Ended Financial Highlights

Three Months Ended December 31,Twelve Months Ended December 31,
VarianceVariance
(unaudited, in thousands, except per share data and margins)20252024$%20252024$%
GAAP Metrics
Revenues$912,913 $832,169 $80,744 9.7 %$3,761,050 $3,388,708 $372,342 11.0 %
Gross profit (1)
$465,352 $426,707 $38,645 9.1 %$1,984,044 $1,785,511 $198,533 11.1 %
Gross profit margin (1)
51.0 %51.3 %-30 bps52.8 %52.7 %10 bps
Operating income$160,066 $150,627 $9,439 6.3 %$726,068 $657,224 $68,844 10.5 %
Operating margin17.5 %18.1 %-60 bps19.3 %19.4 %-10 bps
Net income$116,441 $105,675 $10,766 10.2 %$526,705 $466,379 $60,326 12.9 %
EPS$0.24 $0.22 $0.02 9.1 %$1.09 $0.96 $0.13 13.5 %
Net cash provided by operating activities$164,744 $188,158 $(23,414)(12.4)%$678,107 $607,653 $70,454 11.6 %
Non-GAAP Metrics
Adjusted operating income (2)
$167,374 $154,839 $12,535 8.1 %$752,200 $675,126 $77,074 11.4 %
Adjusted operating margin (2)
18.3 %18.6 %-30 bps20.0 %19.9 %10 bps
Adjusted net income (2)
$121,136 $108,995 $12,141 11.1 %$544,412 $479,190 $65,222 13.6 %
Adjusted EPS (2)
$0.25 $0.23 $0.02 8.7 %$1.12 $0.99 $0.13 13.1 %
Adjusted EBITDA (2)
$193,801 $181,162 $12,639 7.0 %$855,144 $771,493 $83,651 10.8 %
Adjusted EBITDA margin (2)
21.2 %21.8 %-60 bps22.7 %22.8 %-10 bps
Free cash flow (2)
$159,018 $183,975 $(24,957)(13.6)%$650,021 $580,081 $69,940 12.1 %
(1) Exclusive of depreciation and amortization
(2) Amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
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The following table presents financial information, including our significant expense categories, for the three and twelve months ended December 31, 2025 and 2024:

Three Months Ended December 31,Twelve Months Ended December 31,
(unaudited, in thousands)2025202420252024
$% of Revenue$% of Revenue$% of Revenue$% of Revenue
Revenue$912,913 100.0 %$832,169 100.0 %$3,761,050 100.0 %$3,388,708 100.0 %
Less:
Cost of services provided (exclusive of depreciation and amortization below):
Employee expenses293,718 32.2 %264,063 31.7 %1,166,044 31.0 %1,048,992 31.0 %
Materials and supplies54,538 6.0 %53,794 6.5 %225,462 6.0 %212,296 6.3 %
Insurance and claims18,511 2.0 %18,998 2.3 %66,897 1.8 %68,326 2.0 %
Fleet expenses39,773 4.4 %32,898 4.0 %157,461 4.2 %131,898 3.9 %
Other cost of services provided (1)
41,021 4.5 %35,709 4.3 %161,142 4.3 %141,685 4.2 %
Total cost of services provided (exclusive of depreciation and amortization below)447,561 49.0 %405,462 48.7 %1,777,006 47.2 %1,603,197 47.3 %
Sales, general and administrative:
Selling and marketing expenses107,549 11.8 %95,157 11.4 %484,859 12.9 %427,916 12.6 %
Administrative employee expenses86,260 9.4 %79,099 9.5 %345,643 9.2 %313,814 9.3 %
Insurance and claims10,944 1.2 %11,775 1.4 %40,816 1.1 %41,434 1.2 %
Fleet expenses10,259 1.1 %8,322 1.0 %39,608 1.1 %33,580 1.0 %
Other sales, general and administrative (2)
58,707 6.4 %51,192 6.2 %222,306 5.9 %198,323 5.9 %
Total sales, general and administrative273,719 30.0 %245,545 29.5 %1,133,232 30.1 %1,015,067 30.0 %
Depreciation and amortization31,567 3.5 %30,535 3.7 %124,744 3.3 %113,220 3.3 %
Interest expense, net7,440 0.8 %5,027 0.6 %28,558 0.8 %27,677 0.8 %
Other expense (income), net(2,082)(0.2)%250 — %(3,416)(0.1)%(683)— %
Income tax expense38,267 4.2 %39,675 4.8 %174,221 4.6 %163,851 4.8 %
Net income$116,441 12.8 %$105,675 12.7 %$526,705 14.0 %$466,379 13.8 %
1) Other cost of services provided includes facilities costs, professional services, maintenance & repairs, software license costs, and other expenses directly related to providing services.
2) Other sales, general and administrative includes facilities costs, professional services, maintenance & repairs, software license costs, bad debt expense, and other administrative expenses.

About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with approximately 22,000 employees from more than 850 locations. Rollins is parent to Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, McCall Service, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Safeguard, Saela Pest Control, Trutech, Waltham Services, Western Pest Services, and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release as well as other written or oral statements by the Company may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “should,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance; the underlying health of core pest control markets; Rollins’ ongoing commitment to operational execution; a strategic and disciplined approach to acquisitions; a focus on pricing; ongoing modernization efforts; a culture of continuous improvement supporting an improving margin profile; compounding cash flow and strong balance sheet continuing to enable a balanced capital allocation strategy; strong customer and teammate retention rates; investing
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meaningfully in our business; the stability of growth in our recurring and ancillary businesses; and remaining well-positioned for continued growth.

These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may also be described from time to time in our future reports filed with the SEC.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.
Conference Call
Rollins will host a conference call on Thursday, February 12, 2026, at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2025 results. The conference call will also broadcast live over the internet via a link provided on the Rollins, Inc. website at www.rollins.com. Interested parties can also dial into the call at 1-877-869-3839 (domestic) or +1-201-689-8265 (internationally) with conference ID of 13758137. For interested individuals unable to join the call, a replay will be available on the website for 180 days.

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ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
December 31,
2025		December 31,
2024
ASSETS
Cash and cash equivalents$100,004 $89,630 
Trade receivables, net202,518 196,081 
Financed receivables, short-term, net44,723 40,301 
Materials and supplies42,982 39,531 
Other current assets82,455 77,080 
Total current assets472,682 442,623 
Equipment and property, net126,187 124,839 
Goodwill1,374,664 1,161,085 
Intangibles, net582,384 541,589 
Operating lease right-of-use assets424,528 414,474 
Financed receivables, long-term, net110,057 89,932 
Other assets50,021 45,153 
Total assets$3,140,523 $2,819,695 
LIABILITIES
Short-term debt$123,683 $— 
Accounts payable44,361 49,625 
Accrued insurance – current44,123 54,840 
Accrued compensation and related liabilities128,259 122,869 
Unearned revenues187,670 180,851 
Operating lease liabilities – current137,410 121,319 
Other current liabilities120,019 115,658 
Total current liabilities785,525 645,162 
Accrued insurance, less current portion79,157 61,946 
Operating lease liabilities, less current portion290,765 295,899 
Long-term debt486,147 395,310 
Other long-term accrued liabilities124,608 90,785 
Total liabilities1,766,202 1,489,102 
STOCKHOLDERS’ EQUITY
Common stock481,194 484,372 
Retained earnings and other equity893,127 846,221 
Total stockholders’ equity1,374,321 1,330,593 
Total liabilities and stockholders’ equity$3,140,523 $2,819,695 

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ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2025202420252024
REVENUES
Customer services$912,913 $832,169 $3,761,050 $3,388,708 
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)447,561 405,462 1,777,006 1,603,197 
Sales, general and administrative273,719 245,545 1,133,232 1,015,067 
Depreciation and amortization31,567 30,535 124,744 113,220 
Total operating expenses752,847 681,542 3,034,982 2,731,484 
OPERATING INCOME160,066 150,627 726,068 657,224 
Interest expense, net7,440 5,027 28,558 27,677 
Other (income) expense, net(2,082)250 (3,416)(683)
CONSOLIDATED INCOME BEFORE INCOME TAXES154,708 145,350 700,926 630,230 
PROVISION FOR INCOME TAXES38,267 39,675 174,221 163,851 
NET INCOME$116,441 $105,675 $526,705 $466,379 
NET INCOME PER SHARE - BASIC AND DILUTED$0.24 $0.22 $1.09 $0.96 
Weighted average shares outstanding - basic482,738484,304484,105484,249
Weighted average shares outstanding - diluted482,781484,351484,147484,295
DIVIDENDS PAID PER SHARE$0.1825 $0.1650 $0.6775 $0.6150 

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ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW INFORMATION
(in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2025202420252024
OPERATING ACTIVITIES
Net income$116,441 $105,675 $526,705 $466,379 
Depreciation and amortization31,567 30,535 124,744 113,220 
Change in working capital and other operating activities16,736 51,948 26,658 28,054 
Net cash provided by operating activities164,744 188,158 678,107 607,653 
INVESTING ACTIVITIES
Acquisitions, net of cash acquired(21,210)(51,942)(309,518)(157,471)
Capital expenditures(5,726)(4,183)(28,086)(27,572)
Other investing activities, net3,052 3,453 10,905 8,811 
Net cash used in investing activities(23,884)(52,672)(326,699)(176,232)
FINANCING ACTIVITIES
Net debt borrowings (repayments)114,430 (50,000)209,645 (96,000)
Payment of dividends(88,451)(80,025)(327,901)(297,989)
Cash paid for common stock purchased(198,282)(72)(216,855)(11,606)
Other financing activities, net3,869 (5,105)(8,468)(35,113)
Net cash used in financing activities(168,434)(135,202)(343,579)(440,708)
Effect of exchange rate changes on cash and cash equivalents221 (5,936)2,545 (4,908)
Net (decrease) increase in cash and cash equivalents$(27,353)$(5,652)$10,374 $(14,195)

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APPENDIX
Reconciliation of GAAP and non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

These measures should not be considered in isolation or as a substitute for revenues, net income, earnings per share or other performance measures prepared in accordance with GAAP. Management believes all of these non-GAAP financial measures are useful to provide investors with information about current trends in, and period-over-period comparisons of, the Company's results of operations. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.

The Company has used the following non-GAAP financial measures in this earnings release:

Organic revenues

Organic revenues are calculated as revenues less the revenues from acquisitions completed within the prior 12 months and excluding the revenues from divested businesses. Acquisition revenues are based on the trailing 12-month revenue of our acquired entities. Management uses organic revenues, and organic revenues by type to compare revenues over various periods excluding the impact of acquisitions and divestitures.

Adjusted operating income and adjusted operating margin

Adjusted operating income and adjusted operating margin are calculated by adding back to operating income those expenses associated with the amortization of intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control. Adjusted operating margin is calculated as adjusted operating income divided by revenues. Management uses adjusted operating income and adjusted operating margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods.

Adjusted net income and adjusted EPS

Adjusted net income and adjusted EPS are calculated by adding back to the GAAP measures amortization of intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control, excluding gains and losses on the sale of non-operational assets and gains on the sale of businesses, and by further subtracting the tax impact of those expenses, gains, or losses. Management uses adjusted net income and adjusted EPS as measures of operating performance because these measures allow the Company to compare performance consistently over various periods.

EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and adjusted incremental EBITDA margin

EBITDA is calculated by adding back to net income depreciation and amortization, interest expense, net, and provision for income taxes. EBITDA margin is calculated as EBITDA divided by revenues. Adjusted EBITDA and adjusted EBITDA margin are calculated by further adding back those expenses associated with the adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control, and excluding gains and losses on the sale of non-operational assets and gains on the sale of businesses. Management uses EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods. Incremental EBITDA margin is calculated as the change in EBITDA divided by the change in revenue. Management uses incremental EBITDA margin as a measure of operating performance because this measure allows the Company to compare performance consistently over various periods. Adjusted incremental EBITDA margin is calculated as the change in adjusted EBITDA divided by the change in revenue. Management uses adjusted incremental EBITDA margin as a measure of operating performance because this measure allows the Company to compare performance consistently over various periods.

Free cash flow, free cash flow conversion, adjusted free cash flow, and adjusted free cash flow conversion

Free cash flow is calculated by subtracting capital expenditures from cash provided by operating activities. Management uses free cash flow to demonstrate the Company’s ability to maintain its asset base and generate future cash flows from operations. Free cash flow conversion is calculated as free cash flow divided by net income. Adjusted free cash flow is calculated by adding back to cash provided by operating activities the impact of certain delayed income tax payments. Adjusted free cash flow conversion is calculated as adjusted free cash flow divided by net income.

Management uses free cash flow conversion and adjusted free cash flow conversion to demonstrate how much net income is converted into cash. Management believes that free cash flow and adjusted free cash flow are important financial measures for use in evaluating the Company’s liquidity. Free cash flow and adjusted free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities as a measure of our liquidity. Additionally, the Company’s definition of free cash flow and adjusted free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view free cash flow and adjusted free cash flow as measures that provide supplemental information to our consolidated statements of cash flows.

Adjusted sales, general and administrative (“SG&A”)

Adjusted SG&A is calculated by removing the adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control. Management uses adjusted SG&A to compare SG&A expenses consistently over various periods.

Leverage ratio

Leverage ratio, a financial valuation measure, is calculated by dividing adjusted net debt by adjusted EBITDAR. Adjusted net debt is calculated by adding short-term debt and operating lease liabilities to total long-term debt less a cash adjustment of 90% of total
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consolidated cash. Adjusted EBITDAR is calculated by adding back to net income depreciation and amortization, interest expense, net, provision for income taxes, operating lease cost, and stock-based compensation expense. Management uses leverage ratio as an assessment of overall liquidity, financial flexibility, and leverage.

Set forth below is a reconciliation of the non-GAAP financial measures contained in this release with their most directly comparable GAAP measures.

(unaudited, in thousands, except per share data and margins)

Three Months Ended December 31,Twelve Months Ended December 31,
VarianceVariance
20252024$%20252024$%
Reconciliation of Revenues to Organic Revenues
Revenues$912,913 $832,169 80,744 9.7 $3,761,050 $3,388,708 372,342 11.0 
Revenues from acquisitions(33,449)— (33,449)4.0 (138,587)— (138,587)4.1 
Organic revenues$879,464 $832,169 47,295 5.7 $3,622,463 $3,388,708 233,755 6.9 
Reconciliation of Residential Revenues to Organic Residential Revenues
Residential revenues$404,995 $369,062 35,933 9.7 $1,693,244 $1,535,104 158,140 10.3 
Residential revenues from acquisitions(19,584)— (19,584)5.3 (80,778)— (80,778)5.3 
Residential organic revenues$385,411 $369,062 16,349 4.4 $1,612,466 $1,535,104 77,362 5.0 
Reconciliation of Commercial Revenues to Organic Commercial Revenues
Commercial revenues$304,930 $280,446 24,484 8.7 $1,244,733 $1,125,964 118,769 10.5 
Commercial revenues from acquisitions(6,442)— (6,442)2.3 (32,686)— (32,686)2.9 
Commercial organic revenues$298,488 $280,446 18,042 6.4 $1,212,047 $1,125,964 86,083 7.6 
Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues
Termite and ancillary revenues$192,887 $172,428 20,459 11.9 $781,542 $688,186 93,356 13.6 
Termite and ancillary revenues from acquisitions(7,423)— (7,423)4.3 (25,123)— (25,123)3.7 
Termite and ancillary organic revenues$185,464 $172,428 13,036 7.6 $756,419 $688,186 68,233 9.9 
Reconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues
Franchise and other revenues$10,101 $10,233 (132)(1.3)$41,531 $39,454 2,077 5.3 
Franchise and other revenues from acquisitions— — — — — — — — 
Franchise and other organic revenues$10,101 $10,233 (132)(1.3)$41,531 $39,454 2,077 5.3 



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Three Months Ended December 31,Twelve Months Ended December 31,
VarianceVariance
20252024$%20252024$%
Reconciliation of Operating Income and Operating Margin to Adjusted Operating Income and Adjusted Operating Margin
Operating income$160,066 $150,627 $726,068 $657,224 
Acquisition-related expenses (1)
7,308 4,212 26,132 17,902 
Adjusted operating income$167,374 $154,839 12,535 8.1 $752,200 $675,126 77,074 11.4 
Revenues$912,913 $832,169 $3,761,050 $3,388,708 
Operating margin17.5 %18.1 %19.3 %19.4 %
Adjusted operating margin18.3 %18.6 %20.0 %19.9 %
Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS
Net income$116,441 $105,675 $526,705 $466,379 
Acquisition-related expenses (1)
7,308 4,212 26,132 17,902 
(Gain) loss on sale of assets, net (2)
(998)250 (2,332)(683)
Tax impact of adjustments (3)
(1,615)(1,142)(6,093)(4,408)
Adjusted net income$121,136 $108,995 12,141 11.1 $544,412 $479,190 65,222 13.6 
EPS - basic and diluted$0.24 $0.22 $1.09 $0.96 
Acquisition-related expenses (1)
0.02 0.01 0.05 0.04 
(Gain) loss on sale of assets, net (2)
— — — — 
Tax impact of adjustments (3)
— — (0.01)(0.01)
Adjusted EPS - basic and diluted (4)
$0.25 $0.23 0.02 8.7 $1.12 $0.99 0.13 13.1 
Weighted average shares outstanding - basic482,738 484,304 484,105 484,249 
Weighted average shares outstanding - diluted482,781 484,351 484,147 484,295 
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin
Net income$116,441 $105,675 $526,705 $466,379 
Depreciation and amortization31,567 30,535 124,744 113,220 
Interest expense, net7,440 5,027 28,558 27,677 
Provision for income taxes38,267 39,675 174,221 163,851 
EBITDA$193,715 $180,912 12,803 7.1 $854,228 $771,127 83,101 10.8 
Acquisition-related expenses (1)
1,084 — 3,248 1,049 
(Gain) loss on sale of assets, net (2)
(998)250 (2,332)(683)
Adjusted EBITDA$193,801 $181,162 12,639 7.0 $855,144 $771,493 83,651 10.8 
Revenues$912,913 $832,169 80,744 $3,761,050 $3,388,708 372,342 
EBITDA margin21.2 %21.7 %22.7 %22.8 %
Incremental EBITDA margin15.9 %22.3 %
Adjusted EBITDA margin21.2 %21.8 %22.7 %22.8 %
Adjusted incremental EBITDA margin15.7 %22.5 %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow, Free Cash Flow Conversion, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Conversion
Net cash provided by operating activities$164,744 $188,158 $678,107 $607,653 
Capital expenditures(5,726)(4,183)(28,086)(27,572)
Free cash flow$159,018 $183,975 (24,957)(13.6)$650,021 $580,081 69,940 12.1 
Delayed income tax payments (5)
— (21,710)21,710 (21,710)
Adjusted free cash flow$159,018 $162,265 (3,247)(2.0)$671,731 $558,371 113,360 20.3 
Free cash flow conversion136.6 %174.1 %123.4 %124.4 %
Adjusted free cash flow conversion136.6 %153.6 %127.5 %119.7 %

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Three Months Ended December 31,Twelve Months Ended December 31,
2025202420252024
Reconciliation of SG&A to Adjusted SG&A
SG&A$273,719 $245,545 $1,133,232 $1,015,067 
Acquisition-related expenses (1)
1,084 — 3,248 1,049 
Adjusted SG&A$272,635 $245,545 $1,129,984 $1,014,018 
Revenues$912,913 $832,169 $3,761,050 $3,388,708 
Adjusted SG&A as a % of revenues29.9 %29.5 %30.0 %29.9 %
Twelve Months Ended December 31,
20252024
Reconciliation of Long-term Debt and Net Income to Leverage Ratio
Short-term debt (6)
$123,683 $— 
Long-term debt (7)
500,000 397,000 
Operating lease liabilities (8)
428,175 417,218 
Cash adjustment (9)
(90,004)(80,667)
Adjusted net debt$961,854 $733,551 
Net income$526,705 $466,379 
Depreciation and amortization124,744 113,220 
Interest expense, net28,558 27,677 
Provision for income taxes174,221 163,851 
Operating lease cost (10)
159,924 133,420 
Stock-based compensation expense39,707 29,984 
Adjusted EBITDAR$1,053,859 $934,531 
Leverage ratio0.9x0.8x
(1) Consists of expenses associated with the amortization of intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired company is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.
(2) Consists of the gain or loss on the sale of non-operational assets.
(3) The tax effect of the adjustments is calculated using the applicable statutory tax rates for the respective periods.
(4) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
(5) The U.S. Internal Revenue Service provided disaster relief to all State of Georgia taxpayers due to the impact of Hurricane Helene. Therefore, we did not make an estimated payment for U.S. federal income tax purposes in the fourth quarter of 2024. That tax payment was made during the second quarter of 2025.
(6) As of December 31, 2025, the Company had outstanding borrowings of $114.4 million under our commercial paper program and $9.3 million in bank overdrafts. The Company's short-term borrowings are presented under the short-term debt caption of our consolidated statements of financial position, net of unamortized discounts.
(7) As of December 31, 2025, the Company had outstanding borrowings of $500.0 million from the issuance of our 2035 Senior Notes and no outstanding borrowings under the Revolving Credit Facility. These borrowings are presented under the long-term debt caption of our consolidated statements of financial position, net of a $7.1 million unamortized discount and $6.7 million in unamortized debt issuance costs as of December 31, 2025. As of December 31, 2024, the Company had outstanding borrowings of $397.0 million, under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility are presented under the long-term debt caption of our consolidated statements of financial position, net of $1.7 million in unamortized debt issuance costs as of December 31, 2024.
(8) Operating lease liabilities are presented under the operating lease liabilities - current and operating lease liabilities, less current portion captions of our consolidated statements of financial position.
(9) Represents 90% of cash and cash equivalents per our consolidated statements of financial position as of both periods presented.
(10) Operating lease cost excludes short-term lease cost associated with leases that have a duration of 12 months or less.
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