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REVENUE
9 Months Ended
Sep. 30, 2026
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)2026202520262025
United States$1,013,033 $952,677 $2,855,700 $2,643,928 
Other countries76,637 73,429 218,970 204,209 
Total revenues$1,089,670 $1,026,106 $3,074,670 $2,848,137 
Revenue from external customers, classified by significant service offering, was as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2026202520262025
Residential revenues$499,682 $476,271 $1,375,031 $1,288,249 
Commercial revenues360,685 334,956 1,020,324 939,803 
Termite and ancillary revenues217,930 204,670 647,504 588,655 
Franchise revenues4,647 4,312 12,828 11,990 
Other revenues6,726 5,897 18,983 19,440 
Total revenues$1,089,670 $1,026,106 $3,074,670 $2,848,137 
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 as revenues in the three months ended September 30, 2026 and 2025 was $76.5 million and $69.9 million, respectively. Unearned revenue recognized in the nine months ended September 30, 2026 and 2025 was $225.3 million and $205.8 million, respectively. Changes in unearned revenue were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2026202520262025
Beginning balance$249,242 $243,459 $232,986 $223,872 
Deferral of unearned revenue75,064 71,100 240,171 226,581 
Recognition of unearned revenue(76,488)(69,881)(225,339)(205,775)
Ending balance$247,818 $244,678 $247,818 $244,678 
As of September 30, 2026 and December 31, 2025, the Company had long-term unearned revenue of $55.0 million and $45.3 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, 2026, we recognized approximately $46.9 million and $140.8 million of revenue that was included in the balance of unearned revenue at December 31, 2025. During the three and nine months ended September 30, 2025, we recognized approximately $45.2 million and $135.6 million of revenue that was included in the balance of unearned revenue at December 31, 2024. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2036.
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, 2026 and December 31, 2025 we have $67.6 million and $39.1 million of unamortized capitalized costs to obtain a contract, respectively, of which $50.1 million and $28.9 million, respectively, is recorded within other current assets and $17.5 million and $10.2 million, respectively, is 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, 2026, we recorded approximately $12.4 million and $32.4 million in amortization of capitalized costs, respectively. During the three and nine months ended September 30, 2025, we recorded approximately $9.4 million and $24.4 million in amortization of capitalized costs, respectively.