Quarterly report [Sections 13 or 15(d)]

REVENUE

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REVENUE
 6 Months Ended
Jun. 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
June 30,		 Six Months Ended
June 30,
(in thousands) 2025 2024 2025 2024
United States $ 927,682  $ 827,839  $ 1,691,251  $ 1,521,699 
Other countries 71,845  64,081  130,780  118,570 
Total revenues $ 999,527  $ 891,920  $ 1,822,031  $ 1,640,269 
Revenue from external customers, classified by significant product and service offerings, was as follows:
Three Months Ended
June 30,		 Six Months Ended
June 30,
(in thousands) 2025 2024 2025 2024
Residential revenues $ 455,665  $ 408,414  $ 811,978  $ 737,752 
Commercial revenues 320,490  287,770  604,847  545,884 
Termite and ancillary revenues 211,855  186,024  383,985  338,084 
Franchise revenues 3,908  4,445  7,678  8,406 
Other revenues 7,609  5,267  13,543  10,143 
Total revenues $ 999,527  $ 891,920  $ 1,822,031  $ 1,640,269 
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 June 30, 2025 and 2024 was $68.9 million and $63.4 million, respectively. Unearned revenue recognized in the six months ended June 30, 2025 and 2024 was $135.9 million and $125.3 million, respectively. Changes in unearned revenue were as follows:
Three Months Ended
June 30,		 Six Months Ended
June 30,
(in thousands) 2025 2024 2025 2024
Beginning balance $ 233,365  $ 222,967  $ 223,872  $ 210,059 
Deferral of unearned revenue 78,975  74,369  155,481  149,165 
Recognition of unearned revenue (68,881) (63,437) (135,894) (125,325)
Ending balance $ 243,459  $ 233,899  $ 243,459  $ 233,899 
As of June 30, 2025 and December 31, 2024, the Company had long-term unearned revenue of $43.3 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 six months ended June 30, 2025, we recognized $45.2 million and $90.4 million of revenue that was included in the balance of unearned revenue at December 31, 2024. During the three and six months ended June 30, 2024, we recognized $43.1 million and $86.2 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 June 30, 2025, we have $36.3 million of unamortized capitalized costs to obtain a contract, of which $23.9 million is recorded within other current assets and $12.4 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. During the three and six months ended June 30, 2025, we recorded approximately $7.9 million and $15.0 million, respectively, of amortization of capitalized costs, which is recorded within sales, general and administrative expense on our condensed consolidated statement of income. During the three and six months ended June 30, 2024, we recorded $4.2 million and $8.0 million of amortization of capitalized costs.