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Third Quarter 2025 Earnings Webcast PresentationRollins, Inc.October 30, 2025© 2025 Rollins, Inc. All rights reserved.1
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© 2025 Rollins, Inc. All rights reserved.2 Cautionary Statement Regarding Forward-Looking StatementsThis presentation 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 havebased these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affectingthe 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 theseplans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events orresults 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 presentation include, but are not limited to, statements regarding: expectations with respect to our financial and business performance; future benefits fromgrowth initiatives; our healthy pipeline of acquisitions; expectations related to acquisitions; our recession-resilient business model; our expected growth; the impacts of modernization, includinghiring key talent, upgrading technology and executing continuous improvement across key processes, and investing in leaders through Co-Lab; essential nature of our services providing consistencyin business growth across all cycles; focus on margins as well as pricing and productivity; healthy balance sheet provides flexibility and positions us well to execute on capital allocation priorities; abalanced capital allocation strategy; and healthy dividend.These forward-looking statements are based on information available as of the date of this presentation, 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 inthe 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 theSEC.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-lookingstatements 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.
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© 2025 Rollins, Inc. All rights reserved.3 Reconciliation of GAAP and Non-GAAP Financial MeasuresA 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 excludingamounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, statement of financial position 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 believesall 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 ofany 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 presentation:Organic revenuesOrganic 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 basedon 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 acquisitionsand divestitures.Adjusted operating income and adjusted operating marginAdjusted operating income and adjusted operating margin are calculated by adding back to net income those expenses resulting from the amortization of intangible assets and adjustments to the fair value ofcontingent 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. Managementuses 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 EPSAdjusted 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 theacquisitions 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 thoseexpenses, 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 consistentlyover various periods.EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin and adjusted incremental EBITDA marginEBITDA 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. AdjustedEBITDA and adjusted EBITDA margin are calculated by further adding back those expenses resulting from the adjustments to the fair value of contingent consideration resulting from the acquisitions of FoxPest 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 andadjusted EBITDA margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods. Incremental EBITDA margin iscalculated 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 tocompare 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 adjustedincremental 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 conversionFree 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 baseand 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 netincome 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 residualcash 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 businessacquisitions. Therefore, management believes it is important to view free cash flow as a measure that provides 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 adjustedSG&A to compare SG&A expenses consistently over various periods.Leverage ratioLeverage 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 totallong-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 forincome taxes, operating lease cost, and stock-based compensation expense. Management uses leverage ratio as an assessment of overall liquidity, financial flexibility, and leverage.
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Strong Revenue Growth Drives Double-Digit Increase in EPS and Cash Flow 2025 Results © 2025 Rollins, Inc. All rights reserved.4 Third QuarterRevenue$1,026MAdjusted EPS1$0.35up12.0%up20.7%Free Cash Flow1$182.8Mup31.1%OtherQ3 Highlights•Double-digitgrowth across all major service lines•Organic growth1remains strong at7.2%, acquisitions drove remaining 4.8%growth•Adjusted EBITDA Margin1increased 120 bps to25.2%•Free cash flow1conversion of112%Full quarter comparisons are against Q3 2024 unless otherwise noted.1 These amounts are non-GAAP numbers (see Appendix).
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$916.3 $48.0 $35.3 $27.0 ($0.5)$1,026.1 Q3 2024Residential Commercial TermiteOtherQ3 2025© 2025 Rollins, Inc. All rights reserved.5 Q3 Revenue Growth Double-Digit Growth Rate in Q3 Across All Service LinesNote: Figures may not foot due to rounding.1 These amounts are non-GAAP numbers (See Appendix). +7.2% organic1+4.8% acquisition1+12.0% total$25M organic1$11M acquisition1$22M organic1$26M acquisition1$19M organic1$8M acquisition1+8.3% organic1+3.5% acquisition1+11.8% total+10.8% organic1+4.4% acquisition1+15.2% total+5.2% organic1+6.0% acquisition1+11.2% total(in millions)
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24.0%0.4%0.7%0.1%25.2%Q3 Adjusted EBITDA Margin1 © 2025 Rollins, Inc. All rights reserved.6 HIGHLIGHTS Gross Profit•Improvements in margins associated with claims and materials & supplies, partially offset by lower vehicle gains and otherAdj. SG&A1•Leverage across all key SG&A categoriesAdj. EBITDA1•Third quarter Adj. EBITDA1was $258 million, up 17.7% Leverage Across a Number of Categories Drives Improvement in Adj. EBITDA1Margin +120 bps Q3 2024 Adj. EBITDA Margin1 Q3 2025 Adj. EBITDA Margin1Other Note: Figures may not foot due to rounding.1 These amounts are non-GAAP numbers (See Appendix). Adjusted SG&A1Gross Margin
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© 2025 Rollins, Inc. All rights reserved.7 Free Cash Flow and Capital AllocationYTD 2025 Uses of Cash Flow Cash Flow & Balance Sheet•Q3 Free Cash Flow Conversion1was 112% •Strong balance sheet with modest levels of debt•Leverage1 of 0.8xAcquisitions•Completed 20 acquisitions YTDDividends•Dividend +10% YoYSolid Cash Flow Generation and Balanced Capital Allocation StrategyQ3 2024 Q3 2025$139M$183M+31.1%+31.1%102%112% Q3 2025 Free Cash Flow1 1 These amounts are Non-GAAP numbers (See Appendix). Cash Generation •YTD Free Cash Flow Conversion1was 120% YTD 2024 YTD 2025$396M$491M+24.0%+24.0%110%120% YTD 2025 Free Cash Flow1Dividends$239MM&A$288MCapex$22M
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© 2025 Rollins, Inc. All rights reserved.8 Capital Allocation and Dividend Growth 5%Dividend Growth Since 2022 Capital Allocation•$2.2B of free cash flow1 since 2022, enabling a balanced capital allocation with a focus on acquisitions and dividends$353$932$1,013$113Share RepurchasesM&ADividendsCapex42%Dividend Rate•Dividend rate increased by over 80% since March 2022, from $0.10 per share to $0.1825Dividends as a Percentage of Free Cash Flow1•Dividends as a percentage of free cash flow1remain balanced at an average of 49% in 2022 and for the YTD periodDividend Has Grown 80% Since 2022 and Represents a Sustainable Percentage of Free Cash Flow1 Uses of Operating Cash Flow Since 2022 1 These amounts are Non-GAAP numbers (See Appendix). $0.08$0.10$0.12$0.14$0.16$0.180%25%50%75%100%Dividends as a % of Free Cash FlowDividends Per Share39%15%
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Unabated Long-Term Financial Performance © 2025 Rollins, Inc. All rights reserved.9 $3,389$3,68020+ Years of Consecutive GrowthHigh Recurring Revenue 90+% Domestic RevenueFinancial Consistency Across Cycles Recession-Resilient Business Model Yields Consistently Strong Financial Performance$647 $650 $665 $677 $751 $802 $859 $895 $1,021 $1,075 $1,137$1,205 $1,271 $1,337 $1,412 $1,485 $1,573 $1,674 $1,822 $2,015 $2,161 $2,424 $2,696 $33 $47 $66 $78 $97 $106 $120 $130 $147 $167$181 $200 $215 $231 $262 $286 $311 $351 $384 $411 $454$546$593$691$772$843$0$500$1,000$1,500$2,000$2,500$3,000$3,5002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 LTM2025RevenueAdj. EBITDA 23% 23%22%23%21%20%21%21%20%19%19%17%17%17%16%16%14%15%14%13%13%12%10%7%5%Adj. EBITDA Margin1: 124%114%118%105%155%144%118%118%116%103%120%117%110%135%123%113%110%112%115%97%110%139%160%124%NMFCF Conversion1: 6% Revenue Growth11% Adj. EBITDA1GrowthGreat Financial CrisisIndustrial SlowdownCOVID Pandemic12% Revenue Growth14% Adj. EBITDA1 Growth($M)6% Revenue Growth8% Adj. EBITDA1Growth$3,07323%131%1 These amounts are Non-GAAP numbers (See Appendix).
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Key Takeaways © 2025 Rollins, Inc. All rights reserved.10 Focus on ModernizationHiring key talent across the organization to accelerate modernization efforts Focus on upgrading technology and executing continuous improvement across key processes Investment in leaders across the organization through roll-out of Co-Lab Leadership Development ProgramExceptional PerformanceRobust Q3 revenue growth of 12.0%; organic growth1of 7.2% and 4.8% from M&AHealthy pipeline of acquisitions supports 3-4% growth from M&A in 2025Essential nature of services provides consistency in business growth across all cyclesDividend has grown by over 80% since 2022, while remaining ~50% of free cash flow1Margins Remain a FocusFocus on pricing and productivity has resulted in increased margins across several key income statement categories Leveraged costs across all key SG&A categoriesIncremental Adj. EBITDA margin1of 35.4% for the quarterBalance Sheet Provides FlexibilityHealthy balance sheet positions us well to execute on capital allocation priorities Q3 operating cash flow and free cash flow1grew 30% and 31%, respectively; YTD operating cash flow and free cash flow1grew 22% and 24%, respectivelyQ3 free cash flow1conversion of ~112%; YTD free cash flow1conversion of ~120%Our leverage ratio1stands at 0.8x 1 These amounts are non-GAAP numbers (See Appendix).
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Last 3 Years 2025E Medium-Term OutlookGrowth Algorithm © 2025 Rollins, Inc. All rights reserved.1124%25-30%~30-35%12%~7% to 8% Organic ~3% to 4% M&A Above-Market Organic Growth + M&A119%>100%>100%Revenue GrowthAdj. Incremental EBITDA Margin1FCF Conversion11 These amounts are non-GAAP numbers (See Appendix).
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© 2025 Rollins, Inc. All rights reserved.12
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© 2025 Rollins, Inc. All rights reserved.13 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.(1) Consists of expensesresulting from theamortization of intangibleassets and adjustments tothe fair value of contingentconsideration resulting fromthe acquisitions of Fox PestControl and Saela PestControl. While we excludesuch expenses in this non-GAAP measure, the revenuefrom the acquiredcompanies is reflected in thisnon-GAAP measure and theacquired assets contributeto revenue generation.(2) Consists of the gain orloss on the sale of non-operational assets.(3) The tax effect of theadjustments is calculatedusing the applicablestatutory tax rates for therespective periods.(4) In some cases, the sum ofthe individual EPS amountsmay not equal total adjustedEPS calculations due torounding. Nine Months Ended September 30,Three Months Ended September 30,VarianceVariance%$20242025%$20242025(unaudited, in thousands, except per share data)Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS$ 360,704$ 410,264$ 136,913$ 163,527Net income13,68918,8244,2167,036Acquisition-related expenses (1)(933)(1,334)(582)(350)Gain on sale of assets, net (2)(3,266)(4,477)(930)(1,712)Tax impact of adjustments (3) 14.353,083$ 370,194$ 423,27720.728,884$ 139,617$ 168,501Adjusted net income$ 0.74$ 0.85$ 0.28$ 0.34EPS - basic and diluted0.030.040.010.01Acquisition-related expenses (1)————Gain on sale of assets, net (2)(0.01)(0.01)——Tax impact of adjustments (3) 14.50.11$ 0.76$ 0.8720.70.06$ 0.29$ 0.35Adjusted EPS - basic and diluted (4)484,231484,565484,317484,635Weighted average shares outstanding -basic484,270484,598484,359484,670Weighted average shares outstanding -diluted
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© 2025 Rollins, Inc. All rights reserved.14 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.(1) Consists ofexpenses resultingfrom theamortization ofintangible assets andadjustments to thefair value ofcontingentconsiderationresulting from theacquisitions of FoxPest Control andSaela Pest Control.While we excludesuch expenses in thisnon-GAAP measure,the revenue from theacquired companiesis reflected in thisnon-GAAP measureand the acquiredassets contribute torevenue generation.(2) Consists of thegain or loss on thesale of non-operational assets. Nine Months Ended September 30,Three Months Ended September 30,VarianceVariance%$20242025%$20242025(unaudited, in thousands, except margins)Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin$ 360,704$ 410,264$ 136,913$ 163,527Net income82,68593,17727,66432,231Depreciation and amortization22,65021,1187,1507,942Interest expense, net124,176135,95448,31553,902Provision for income taxes11.970,298$ 590,215$ 660,51317.137,560$ 220,042$ 257,602EBITDA1,0492,164—1,082Acquisition-related expenses (1)(933)(1,334)(582)(350)Gain on sale of assets, net (2) 12.071,012$ 590,331$ 661,34317.738,874$ 219,460$ 258,334Adjusted EBITDA291,598$2,556,539$2,848,137109,836$ 916,270$ 1,026,106Revenues23.1%23.2%24.0%25.1%EBITDA margin24.1%34.2%Incremental EBITDA margin23.1%23.2%24.0%25.2%Adjusted EBITDA margin24.4%35.4%Adjusted incremental EBITDA margin
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© 2025 Rollins, Inc. All rights reserved.15 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.Nine Months Ended September 30,Three Months Ended September 30,VarianceVariance%$20242025%$20242025(unaudited, in thousands, except margins)Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Conversion$ 419,495$ 513,363$ 146,947$ 191,349Net cash provided by operating activities(23,389)(22,360)(7,522)(8,503)Capital expenditures24.094,897$ 396,106$ 491,00331.143,421$ 139,425$ 182,846Free cash flow109.8%119.7%101.8%111.8%Free cash flow conversion
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© 2025 Rollins, Inc. All rights reserved.16 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.Nine Months Ended September 30,Three Months Ended September 30,VarianceVariance%$20242025%$20242025(unaudited, in thousands)Reconciliation of Revenues to Organic Revenues11.4291,598$ 2,556,539$ 2,848,13712.0109,836$ 916,270$ 1,026,106Revenues4.1(105,138)—(105,138)4.8(43,986)—(43,986)Revenues from acquisitions7.3186,460$ 2,556,539$ 2,742,9997.265,850$ 916,270$ 982,120Organic revenuesReconciliation of Residential Revenues to Organic Residential Revenues10.5122,207$ 1,166,042$ 1,288,24911.247,981$ 428,290$ 476,271Residential revenues5.3(61,194)—(61,194)6.0(25,620)—(25,620)Residential revenues from acquisitions5.261,013$ 1,166,042$ 1,227,0555.222,361$ 428,290$ 450,651Residential organic revenuesReconciliation of Commercial Revenues to Organic Commercial Revenues11.294,286$ 845,517$ 939,80311.835,323$ 299,633$ 334,956Commercial revenues3.2(26,244)—(26,244)3.5(10,523)—(10,523)Commercial revenues from acquisitions8.068,042$ 845,517$ 913,5598.324,800$ 299,633$ 324,433Commercial organic revenuesReconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues14.172,897$ 515,758$ 588,65515.226,996$ 177,674$ 204,670Termite and ancillary revenues3.4(17,700)—(17,700)4.4(7,843)—(7,843)Termite and ancillary revenues from acquisitions10.755,197$ 515,758$ 570,95510.819,153$ 177,674$ 196,827Termite and ancillary organic revenuesReconciliation of Franchise and Other Revenues to Organic Franchise and Other Revenues7.62,208$ 29,222$ 31,430(4.3)(464)$ 10,673$ 10,209Franchise and other revenues————————Franchise and other revenues from acquisitions7.62,208$ 29,222$ 31,430(4.3)(464)$ 10,673$ 10,209Franchise and other organic revenues
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© 2025 Rollins, Inc. All rights reserved.17 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.(1) As of September 30, 2025 and December 31, 2024, the Company had no outstanding borrowings under our commercial paper program. The Company's short-term borrowings are presented under the short-term debt caption of our condensed consolidated statements of financial position, net of unamortized discounts.(2) As of September 30, 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 condensed consolidated statement of financial position, net of a $7.3 million unamortized discount and $7.0 million in unamortized debt issuance costs as of September 30, 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 condensed consolidated statement of financial position, net of $1.7 million in unamortized debt issuance costs as of December 31, 2024.(3) Operating lease liabilities are presented under the operating lease liabilities - current and operating lease liabilities, less current portion captions of our condensed consolidated statement of financial position.(4) Represents 90% of cash and cash equivalents per our condensed consolidated statement of financial position as of both periods presented.(5) Operating lease cost excludes short-term lease cost associated with leases that have a duration of 12 months or less. Period EndedDecember 31, 2024Period EndedSeptember 30, 2025(unaudited, in thousands)Reconciliation of Debt and Net Income to Leverage Ratio$ —$ —Short-term debt (1) 397,000500,000Long-term debt (2) 417,218426,423Operating lease liabilities (3)(80,667)(114,621)Cash adjustment (4)$ 733,551$ 811,802Adjusted net debt$ 466,379$ 515,939Net income113,220123,712Depreciation and amortization27,67726,145Interest expense, net163,851175,629Provision for income taxes133,420154,191Operating lease cost (5)29,98437,086Stock-based compensation expense$ 934,531$ 1,032,702Adjusted EBITDAR0.8x0.8xLeverage ratio
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© 2025 Rollins, Inc. All rights reserved.18 Reconciliation of GAAP and Non-GAAP Financial MeasuresSet below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call to their most directly comparable GAAP measures.Nine Months Ended September 30,Three Months Ended September 30,2024202520242025(unaudited, in thousands)Reconciliation of SG&A to Adjusted SG&A$ 769,522$ 859,513$ 274,918$ 301,404SG&A1,0492,164—1,082Acquisition-related expenses (1)$ 768,473$ 857,349$ 274,918$ 300,322Adjusted SG&A$ 2,556,539$ 2,848,137$ 916,270$ 1,026,106Revenues30.1%30.1%30.0%29.3%Adjusted SG&A as a % of revenues(1) Consists of expenses resulting from the amortization of intangible assets and adjustments to the fair value of contingentconsideration resulting from the acquisitions of Fox Pest Control and Saela Pest Control. While we exclude such expenses in thisnon-GAAP measure, the revenue from the acquired companies is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.