Form 8-K

8-K — ROLLINS INC

Accession: 0000084839-26-000038

Filed: 2026-07-22

Period: 2026-07-22

CIK: 0000084839

SIC: 7340 (SERVICES-TO DWELLINGS & OTHER BUILDINGS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — rol-20260722.htm (Primary)

EX-99.1 (rol-20260722xex991.htm)

GRAPHIC (imagea.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: rol-20260722.htm · Sequence: 1

rol-20260722

0000084839false00000848392026-07-222026-07-22

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 22, 2026

ROLLINS, INC.

(Exact name of registrant as specified in its charter)

Delaware 1-4422 51-0068479

(State or other jurisdiction of incorporation)

(Commission File Number) (I.R.S. Employer Identification No.)

2170 Piedmont Road, N.E., Atlanta, Georgia 30324

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (404) 888-2000

Not Applicable

(Former name of former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, $1.00 Par Value Per Share ROL NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2026, Rollins, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the second quarter ended June 30, 2026. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing or document.

Item 9.01. Financial Statements and Exhibits.

Exhibit No. Description

99.1

Press Release Dated July 22, 2026

104 Cover Page Interactive Data File (embedded with the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Rollins, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ROLLINS, INC.

Date: July 22, 2026

By: /s/ William W. Harkins

Name: William W. Harkins

Title: Principal Financial Officer

EX-99.1

Filename: rol-20260722xex991.htm · Sequence: 2

Document

Exhibit 99.1

For Further Information Contact

Lyndsey Burton (404) 888-2348

FOR IMMEDIATE RELEASE

ROLLINS, INC. REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

99th Consecutive Quarter of Revenue Growth

ATLANTA, GEORGIA, July 22, 2026: Rollins, Inc. (NYSE:ROL) (“Rollins” or the “Company”), a premier global consumer and commercial services company, reported unaudited financial results for the second quarter of 2026.

Key Highlights

•Second quarter revenues were $1.1 billion, an increase of 7.9% over the second quarter of 2025 with organic revenues* increasing 5.7%.

•Quarterly operating income was $201 million, an increase of 1.5% over the second quarter of 2025. Quarterly operating margin was 18.7%, a decrease of 110 basis points compared to the second quarter of 2025. Adjusted operating income* was $210 million, an increase of 2.0% over the prior year. Adjusted operating margin* was 19.5%, a decrease of 110 basis points compared to the prior year.

•Quarterly net income was $144 million, an increase of 1.7% over the prior year. Adjusted net income* was $152 million, an increase of 3.4% over the prior year.

•Adjusted EBITDA* was $236 million, an increase of 2.2% over the prior year. Adjusted EBITDA margin* was 21.9%, a decrease of 120 basis points versus the second quarter of 2025.

•Quarterly EPS was $0.30 per diluted share, a 3.4% increase over the prior year EPS of $0.29. Adjusted EPS* was $0.32 per diluted share, an increase of 6.7% over the prior year.

•Operating cash flow was $173 million for the quarter, a decrease of 1.5% compared to the prior year. Free cash flow* was $166 million for the quarter, a decrease of 1.2% compared to the prior year. The Company invested $117 million in acquisitions, $6 million in capital expenditures, and paid dividends totaling $88 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.

Management Commentary

"Our second quarter results fell short of our expectations due to slower growth in parts of our residential pest control business, specifically brands more reliant on consumer-initiated demand through search, digital media and inbound calls, as lead volume declined in the quarter. Meanwhile, areas of the business that leverage relationship-based channels, such as home builders and door-to-door sales, delivered solid organic growth in the quarter, reinforcing the importance of our diversified, multi-brand approach. Although we remain cautious regarding near-term demand trends, lead volume improved toward the end of June and has maintained this momentum through the first few weeks of July,” said Jerry Gahlhoff, Jr., President and Chief Executive Officer.

"Demand trends softened during the quarter, while our cost structure remained positioned for a stronger growth environment entering peak season. As a result, our margin performance was below our expectations. We have implemented organizational and operational changes to improve local execution, strengthen accountability, and better align resources with current demand conditions, while continuing to invest in areas that will drive long-term growth. Despite near-term challenges, our balance sheet remains strong, cash flow generation is healthy, and we have significant flexibility to reinvest in our business through our disciplined and balanced approach to capital allocation,” said Will Harkins, Executive Vice President and Chief Financial Officer.

Three and Six Months Ended Financial Highlights

Three Months Ended June 30, Six Months Ended June 30,

Variance Variance

(unaudited, in thousands, except per share data and margins) 2026 2025 $ % 2026 2025 $ %

GAAP Metrics

Revenues $ 1,078,576 $ 999,527 $ 79,049 7.9 % $ 1,985,000 $ 1,822,031 $ 162,969 8.9 %

Gross profit (1)

$ 569,946 $ 537,666 $ 32,280 6.0 % $ 1,030,848 $ 960,036 $ 70,812 7.4 %

Gross profit margin (1)

52.8 % 53.8 % (100) bps 51.9 % 52.7 % (80) bps

Operating income $ 201,359 $ 198,333 $ 3,026 1.5 % $ 346,845 $ 340,981 $ 5,864 1.7 %

Operating margin 18.7 % 19.8 % (110) bps 17.5 % 18.7 % (120) bps

Net income $ 143,910 $ 141,489 $ 2,421 1.7 % $ 251,748 $ 246,737 $ 5,011 2.0 %

EPS $ 0.30 $ 0.29 $ 0.01 3.4 % $ 0.52 $ 0.51 $ 0.01 2.0 %

Net cash provided by operating activities $ 172,506 $ 175,122 $ (2,616) (1.5) % $ 290,873 $ 322,014 $ (31,141) (9.7) %

Non-GAAP Metrics

Adjusted operating income (2)

$ 209,939 $ 205,900 $ 4,039 2.0 % $ 362,732 $ 352,769 $ 9,963 2.8 %

Adjusted operating margin (2)

19.5 % 20.6 % (110) bps 18.3 % 19.4 % (110) bps

Adjusted net income (2)

$ 151,927 $ 146,902 $ 5,025 3.4 % $ 265,156 $ 254,775 $ 10,381 4.1 %

Adjusted EPS (2)

$ 0.32 $ 0.30 $ 0.02 6.7 % $ 0.55 $ 0.53 $ 0.02 3.8 %

Adjusted EBITDA (2)

$ 236,292 $ 231,152 $ 5,140 2.2 % $ 415,761 $ 403,009 $ 12,752 3.2 %

Adjusted EBITDA margin (2)

21.9 % 23.1 % (120) bps 20.9 % 22.1 % (120) bps

Free cash flow (2)

$ 166,077 $ 168,046 $ (1,969) (1.2) % 7.5 $ 277,305 $ 308,157 $ (30,852) (10.0) %

(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.

The following table presents financial information, including our significant expense categories, for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, Six Months Ended June 30,

(unaudited, in thousands) 2026 2025 2026 2025

$ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue

Revenue $ 1,078,576 100.0 % $ 999,527 100.0 % $ 1,985,000 100.0 % $ 1,822,031 100.0 %

Less:

Cost of services provided (exclusive of depreciation and amortization below):

Employee expenses 328,787 30.5 % 298,354 29.8 % 618,509 31.2 % 560,077 30.7 %

Materials and supplies 66,339 6.2 % 59,500 6.0 % 119,556 6.0 % 107,991 5.9 %

Insurance and claims 21,932 2.0 % 20,734 2.1 % 43,079 2.2 % 37,258 2.0 %

Fleet expenses 46,959 4.4 % 41,834 4.2 % 89,131 4.5 % 78,691 4.3 %

Other cost of services provided (1)

44,613 4.1 % 41,439 4.1 % 83,877 4.2 % 77,978 4.3 %

Total cost of services provided (exclusive of depreciation and amortization below) 508,630 47.2 % 461,861 46.2 % 954,152 48.1 % 861,995 47.3 %

Sales, general and administrative:

Selling and marketing expenses 151,967 14.1 % 140,177 14.0 % 263,966 13.3 % 238,428 13.1 %

Administrative employee expenses 95,733 8.9 % 89,303 8.9 % 185,482 9.3 % 170,783 9.4 %

Insurance and claims 13,239 1.2 % 12,939 1.3 % 25,822 1.3 % 22,943 1.3 %

Fleet expenses 11,775 1.1 % 10,443 1.0 % 22,037 1.1 % 19,846 1.1 %

Other sales, general and administrative (2)

62,263 5.8 % 54,734 5.5 % 120,588 6.1 % 106,109 5.8 %

Total sales, general and administrative 334,977 31.1 % 307,596 30.8 % 617,895 31.1 % 558,109 30.6 %

Depreciation and amortization 33,610 3.1 % 31,737 3.2 % 66,108 3.3 % 60,946 3.3 %

Interest expense, net 9,391 0.9 % 7,380 0.7 % 18,242 0.9 % 13,176 0.7 %

Other (income) expense, net 2,214 0.2 % (292) — % 1,751 0.1 % (984) (0.1) %

Income tax expense 45,844 4.3 % 49,756 5.0 % 75,104 3.8 % 82,052 4.5 %

Net income $ 143,910 13.3 % $ 141,489 14.2 % $ 251,748 12.7 % $ 246,737 13.5 %

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 numerous brands, including Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, Orkin UK, Safeguard, Romex Pest Control, Saela Pest Control, Trutech, Waltham Services, and Western Pest Services. 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: the Company’s expectations with respect to financial and business performance; near-term demand trends; lead volumes and consumer-initiated demand through search, digital media, inbound calls, and other channels; the sustainability of any improvement in lead volumes or demand trends experienced toward the end of the second quarter of 2026 or during the first weeks of July 2026; the performance and growth of relationship-based channels, including home builder and door-to-door sales channels; the benefits of the Company’s diversified, multi-brand approach; seasonal profitability, margin performance, margin trends, and the alignment of the Company’s cost structure with demand conditions; the expected effects of organizational and operational changes, including efforts to improve local execution, strengthen accountability, and align resources with demand conditions; investments intended to support long-term growth; the strength of the Company’s balance sheet; cash flow generation; financial flexibility; capital allocation, including reinvestment in the business, acquisitions, capital expenditures, dividends, and share repurchases; and the Company’s ability to execute its strategy and continue to grow.

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, 2025 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, July 23, 2026 at 8:30 a.m. Eastern Time to discuss the second quarter 2026 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 13761216. For interested individuals unable to join the call, a replay will be available on the website for 180 days.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

(unaudited)

June 30,

2026 December 31,

2025

ASSETS

Cash and cash equivalents $ 109,085 $ 100,004

Trade receivables, net 238,989 202,518

Financed receivables, short-term, net 49,261 44,723

Materials and supplies 42,807 42,982

Other current assets 150,259 82,455

Total current assets 590,401 472,682

Equipment and property, net 126,689 126,187

Goodwill 1,449,382 1,374,664

Intangibles, net 601,532 582,384

Operating lease right-of-use assets 408,136 424,528

Financed receivables, long-term, net 118,181 110,057

Other assets 60,611 50,021

Total assets $ 3,354,932 $ 3,140,523

LIABILITIES

Short-term debt $ 215,918 $ 123,683

Accounts payable 79,759 44,361

Accrued insurance – current 48,706 44,123

Accrued compensation and related liabilities 132,197 128,259

Unearned revenues 196,468 187,670

Operating lease liabilities – current 138,677 137,410

Other current liabilities 126,376 120,019

Total current liabilities 938,101 785,525

Accrued insurance, less current portion 92,394 79,157

Operating lease liabilities, less current portion 273,601 290,765

Long-term debt 487,107 486,147

Other long-term accrued liabilities 134,132 124,608

Total liabilities 1,925,335 1,766,202

STOCKHOLDERS’ EQUITY

Common stock 481,124 481,194

Retained earnings and other equity 948,473 893,127

Total stockholders’ equity 1,429,597 1,374,321

Total liabilities and stockholders’ equity $ 3,354,932 $ 3,140,523

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

REVENUES

Customer services $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031

COSTS AND EXPENSES

Cost of services provided (exclusive of depreciation and amortization below) 508,630 461,861 954,152 861,995

Sales, general and administrative 334,977 307,596 617,895 558,109

Depreciation and amortization 33,610 31,737 66,108 60,946

Total operating expenses 877,217 801,194 1,638,155 1,481,050

OPERATING INCOME 201,359 198,333 346,845 340,981

Interest expense, net 9,391 7,380 18,242 13,176

Other (income) expense, net 2,214 (292) 1,751 (984)

CONSOLIDATED INCOME BEFORE INCOME TAXES 189,754 191,245 326,852 328,789

PROVISION FOR INCOME TAXES 45,844 49,756 75,104 82,052

NET INCOME $ 143,910 $ 141,489 $ 251,748 $ 246,737

NET INCOME PER SHARE - BASIC AND DILUTED $ 0.30 $ 0.29 $ 0.52 $ 0.51

Weighted average shares outstanding - basic 481,375 484,643 481,380 484,530

Weighted average shares outstanding - diluted 481,389 484,674 481,397 484,559

DIVIDENDS PAID PER SHARE $ 0.1825 $ 0.1650 $ 0.3650 $ 0.3300

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW INFORMATION

(in thousands)

(unaudited)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

OPERATING ACTIVITIES

Net income $ 143,910 $ 141,489 $ 251,748 $ 246,737

Depreciation and amortization 33,610 31,737 66,108 60,946

Change in working capital and other operating activities (5,014) 1,896 (26,983) 14,331

Net cash provided by operating activities 172,506 175,122 290,873 322,014

INVESTING ACTIVITIES

Acquisitions, net of cash acquired (116,767) (226,387) (135,255) (253,578)

Capital expenditures (6,429) (7,076) (13,568) (13,857)

Other investing activities, net 1,554 2,939 2,614 4,344

Net cash used in investing activities (121,642) (230,524) (146,209) (263,091)

FINANCING ACTIVITIES

Net borrowings (repayments) 51,992 59,989 101,488 155,204

Payment of dividends (88,092) (79,463) (175,941) (159,373)

Cash paid for common stock purchased (20,476) (251) (42,826) (14,922)

Other financing activities, net (1,954) (4,233) (17,443) (9,479)

Net cash used in financing activities (58,530) (23,958) (134,722) (28,570)

Effect of exchange rate changes on cash and cash equivalents 208 1,218 (861) 3,052

Net increase (decrease) in cash and cash equivalents $ (7,458) $ (78,142) $ 9,081 $ 33,405

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, Saela Pest Control and Romex 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, Saela Pest Control and Romex 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, Saela Pest Control and Romex 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 and 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.

Management uses free cash flow conversion to demonstrate how much net income is converted into cash. Management believes that free cash flow is an important financial measure for use in evaluating the Company’s liquidity. 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 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 as a measure that provides supplemental information to our condensed 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, Saela Pest Control and Romex 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 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 to their most directly comparable GAAP measures.

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

Three Months Ended June 30, Six Months Ended June 30,

Variance Variance

2026 2025 $ % 2026 2025 $ %

Reconciliation of Revenues to Organic Revenues

Revenues $ 1,078,576 $ 999,527 79,049 7.9 $ 1,985,000 $ 1,822,031 162,969 8.9

Revenues from acquisitions (21,817) — (21,817) 2.2 (51,675) — (51,675) 2.8

Organic revenues $ 1,056,759 $ 999,527 57,232 5.7 $ 1,933,325 $ 1,822,031 111,294 6.1

Reconciliation of Residential Revenues to Organic Residential Revenues

Residential revenues $ 485,845 $ 455,665 30,180 6.6 $ 875,349 $ 811,978 63,371 7.8

Residential revenues from acquisitions (13,950) — (13,950) 3.0 (32,095) — (32,095) 3.9

Residential organic revenues $ 471,895 $ 455,665 16,230 3.6 $ 843,254 $ 811,978 31,276 3.9

Reconciliation of Commercial Revenues to Organic Commercial Revenues

Commercial revenues $ 347,913 $ 320,490 27,423 8.6 $ 659,639 $ 604,847 54,792 9.1

Commercial revenues from acquisitions (4,467) — (4,467) 1.4 (9,838) — (9,838) 1.7

Commercial organic revenues $ 343,446 $ 320,490 22,956 7.2 $ 649,801 $ 604,847 44,954 7.4

Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues

Termite and ancillary revenues $ 234,151 $ 211,855 22,296 10.5 $ 429,574 $ 383,985 45,589 11.9

Termite and ancillary revenues from acquisitions (3,400) — (3,400) 1.6 (9,742) — (9,742) 2.6

Termite and ancillary organic revenues $ 230,751 $ 211,855 18,896 8.9 $ 419,832 $ 383,985 35,847 9.3

Reconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues

Franchise and other revenues $ 10,667 $ 11,517 (850) (7.4) $ 20,438 $ 21,221 (783) (3.7)

Franchise and other revenues from acquisitions — — — — — — — —

Franchise and other organic revenues $ 10,667 $ 11,517 (850) (7.4) $ 20,438 $ 21,221 (783) (3.7)

Three Months Ended June 30, Six Months Ended June 30,

Variance Variance

2026 2025 $ % 2026 2025 $ %

Reconciliation of Operating Income and Operating Income Margin to Adjusted Operating Income and Adjusted Operating Margin

Operating income $ 201,359 $ 198,333 $ 346,845 $ 340,981

Acquisition-related expenses (1)

8,580 7,567 15,887 11,788

Adjusted operating income $ 209,939 $ 205,900 4,039 2.0 $ 362,732 $ 352,769 9,963 2.8

Revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031

Operating margin 18.7 % 19.8 % 17.5 % 18.7 %

Adjusted operating margin 19.5 % 20.6 % 18.3 % 19.4 %

Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS

Net income $ 143,910 $ 141,489 $ 251,748 $ 246,737

Acquisition-related expenses (1)

8,580 7,567 15,887 11,788

Loss (gain) on sale of assets, net (2)

2,196 (292) 2,135 (984)

Tax impact of adjustments (3)

(2,759) (1,862) (4,614) (2,766)

Adjusted net income $ 151,927 $ 146,902 5,025 3.4 $ 265,156 $ 254,775 10,381 4.1

EPS - basic and diluted $ 0.30 $ 0.29 $ 0.52 $ 0.51

Acquisition-related expenses (1)

0.02 0.02 0.03 0.02

Loss (gain) on sale of assets, net (2)

— — — —

Tax impact of adjustments (3)

(0.01) — (0.01) (0.01)

Adjusted EPS - basic and diluted (4)

$ 0.32 $ 0.30 0.02 6.7 $ 0.55 $ 0.53 0.02 3.8

Weighted average shares outstanding – basic 481,375 484,643 481,380 484,530

Weighted average shares outstanding – diluted 481,389 484,674 481,397 484,559

Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin

Net income $ 143,910 $ 141,489 $ 251,748 $ 246,737

Depreciation and amortization 33,610 31,737 66,108 60,946

Interest expense, net 9,391 7,380 18,242 13,176

Provision for income taxes 45,844 49,756 75,104 82,052

EBITDA $ 232,755 $ 230,362 2,393 1.0 $ 411,202 $ 402,911 8,291 2.1

Acquisition-related expenses (1)

1,341 1,082 2,424 1,082

Loss (gain) on sale of assets, net (2)

2,196 (292) 2,135 (984)

Adjusted EBITDA $ 236,292 $ 231,152 5,140 2.2 $ 415,761 $ 403,009 12,752 3.2

Revenues $ 1,078,576 $ 999,527 79,049 $ 1,985,000 $ 1,822,031 162,969

EBITDA margin 21.6 % 23.0 % 20.7 % 22.1 %

Incremental EBITDA margin 3.0 % 5.1 %

Adjusted EBITDA margin 21.9 % 23.1 % 20.9 % 22.1 %

Adjusted incremental EBITDA margin 6.5 % 7.8 %

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Conversion

Net cash provided by operating activities $ 172,506 $ 175,122 $ 290,873 $ 322,014

Capital expenditures (6,429) (7,076) (13,568) (13,857)

Free cash flow $ 166,077 $ 168,046 (1,969) (1.2) $ 277,305 $ 308,157 (30,852) (10.0)

Free cash flow conversion 115.4 % 118.8 % 110.2 % 124.9 %

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Reconciliation of SG&A to Adjusted SG&A

SG&A $ 334,977 $ 307,596 $ 617,895 $ 558,109

Acquisition-related expenses (1)

1,341 1,082 2,424 1,082

Adjusted SG&A $ 333,636 $ 306,514 $ 615,471 $ 557,027

Revenues $ 1,078,576 $ 999,527 $ 1,985,000 $ 1,822,031

Adjusted SG&A as a % of revenues 30.9 % 30.7 % 31.0 % 30.6 %

Period Ended June 30, 2026

Period Ended December 31, 2025

Reconciliation of Debt and Net Income to Leverage Ratio

Short-term debt (5)

$ 215,918 $ 123,683

Long-term debt (6)

500,000 500,000

Operating lease liabilities (7)

412,278 428,175

Cash adjustment (8)

(98,177) (90,004)

Adjusted net debt $ 1,030,019 $ 961,854

Net income $ 531,716 $ 526,705

Depreciation and amortization 129,906 124,744

Interest expense, net 33,624 28,558

Provision for income taxes 167,273 174,221

Operating lease cost (9)

167,888 159,924

Stock-based compensation expense 41,393 39,707

Adjusted EBITDAR $ 1,071,800 $ 1,053,859

Leverage ratio 1.0x 0.9x

(1) Consists of expenses resulting from the amortization of intangible assets and adjustments to the fair value of contingent consideration associated with the acquisitions of Fox Pest Control, Saela Pest Control and Romex Pest Control. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired companies 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 adjusted EPS calculations due to rounding.

(5) The Company's short-term borrowings are presented under the short-term debt caption of our condensed consolidated statement of financial position, net of unamortized discounts.

(6) As of June 30, 2026 and December 31, 2025, the Company had outstanding borrowings of $500 million from the issuance of our 2035 Senior Notes. These borrowings are presented under the long-term debt caption of our condensed consolidated statement of financial position, net of unamortized discount and unamortized debt issuance costs. As of June 30, 2026 and December 31, 2025, the Company had no outstanding borrowings under the Revolving Credit Facility.

(7) Operating lease liabilities are presented under the operating lease liabilities - current and operating lease liabilities, less current portion captions of our condensed consolidated statement of financial position.

(8) Represents 90% of cash and cash equivalents per our condensed consolidated statement of financial position as of both periods presented.

(9) Operating lease cost excludes short-term lease cost associated with leases that have a duration of 12 months or less.

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