Market Signal Briefing

Increased Q4 monthly recurring revenue (MRR) 10% year over year on both an as-reported and a normalized and constant currency basis; increased full-year MRR 7% on an as-reported basis and 8% on a normalized and constant currency basis Delivered record annualized gross bookings of $474 million in Q4, up 42% over the previous year; delivered $1.6 billion of annualized gross bookings in 2025, up 27% for the full year Surpassed 500,000 interconnections globally, the most in the industry, as enterprises depend on Equinix to connect their AI, cloud and network ecosystems Increased quarterly cash dividend by 10% to $5.16 per share, marking the 11th consecutive year of dividend growth , /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today reported results for the quarter and full year ended December 31, 2025.

"Our team executed exceptionally well in Q4, marking a very strong close to a pivotal year for Equinix. Demand for our solutions has never been higher, as demonstrated by accelerated growth in both bookings and recurring revenue, and we are confident in our plan to deliver robust revenue and AFFO per share growth in 2026," said Adaire Fox-Martin, CEO and President, Equinix. "Equinix plays an essential role helping businesses connect and manage increasingly distributed AI, cloud and networking infrastructure. This is a source of long-term competitive advantage that positions us well to meet our customers' greatest needs and create shareholder value."

2025 Results Summary

Revenues $9.217 billion, a 5% increase over the previous year on an as-reported basis, or a 6% increase on a normalized and constant currency basis Operating Income $1.848 billion, a 39% increase from the previous year, primarily from strong underlying operating performance and lower impairment charges and transaction costs Net Income Attributable to Common Stockholders and Net Income per Share Attributable to Common Stockholders $1.350 billion, a 66% increase from the previous year, primarily from higher income from operations $13.76 per share, a 62% increase from the previous year Adjusted EBITDA $4.530 billion, an adjusted EBITDA margin of 49%, an 11% increase over the previous year on an as-reported basis, or a 10% increase on a normalized and constant currency basis AFFO and AFFO per Share $3.761 billion, a 12% increase over the previous year on both an as-reported and a normalized and constant currency basis driven by strong operating performance and lower net interest expense from disciplined balance sheet management $38.33 per share, a 9% increase over the previous year on both an as-reported and a normalized and constant currency basis Q4 results were modestly impacted by the timing of the xScale® Hampton lease transaction, which is now expected to close in early 2026.

Equinix uses certain non-GAAP financial measures, which are described further below and reconciled to the most comparable GAAP financial measures after the presentation of our GAAP financial statements.

All per-share results are presented on a fully diluted basis.

2026 Annual Guidance Summary

(in millions, except per share data)

 FY 2026 Guidance

Q1 2026 Guidance

Revenues

$10,123 - 10,223

$2,496 - 2,536

Adjusted EBITDA

Adjusted EBITDA Margin %

$5,141 - 5,221

~51%

$1,283 - 1,323

51 - 52%

Recurring Capital Expenditures

% of Revenues

$270 - 290

~3%

$28 - 48

1 - 2%

Non-recurring Capital Expenditures

(Excludes xScale)

$3,385 - 3,865

AFFO

$4,158 - 4,238

AFFO per Share (Diluted)

$41.93 - 42.74

Expected Cash Dividends

~$2,036

Equinix does not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, stock-based compensation and other components of net income or loss from operations, and as a result, is not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward-looking data without unreasonable effort. The impact of such adjustments could be significant. Equinix intends to calculate the various non-GAAP financial measures in future periods consistent with how they were calculated for the periods presented within this press release.

For the first quarter of 2026, the company expects revenues to range between $2.496 and $2.536 billion, an increase of 4% at the midpoint over the previous quarter, on both an as-reported and a normalized and constant currency basis. This guidance includes a $20 million foreign currency benefit when compared to the average FX rates in Q4 2025. Adjusted EBITDA is expected to range between $1.283 and $1.323 billion. This guidance includes an $11 million foreign currency benefit when compared to the average FX rates in Q4 2025. Recurring capital expenditures are expected to range between $28 and $48 million.

For the full year of 2026, total revenues are expected to range between $10.123 and $10.223 billion, an as-reported increase of approximately 10 - 11% over the previous year, or 9 - 10% on a normalized and constant currency basis. This guidance includes a $36 million foreign currency benefit when compared to the prior guidance rates. Adjusted EBITDA is expected to range between $5.141 and $5.221 billion, reflecting an adjusted EBITDA margin of 51%, an approximate 200 basis-point expansion over the previous year. This guidance also includes a $17 million foreign currency benefit when compared to prior guidance. AFFO is expected to range between $4.158 and $4.238 billion, an increase of 11 - 13% over the previous year on an as-reported basis, or 9 - 11% on a normalized and constant currency basis. This guidance also includes a $13 million foreign currency benefit when compared to prior guidance rates. AFFO per share is expected to range between $41.93 and $42.74, a 9 - 12% as-reported increase over the previous year, or 8 - 10% on a normalized and constant currency basis. Total capital expenditures are expected to range between $3.655 and $4.155 billion. Non-recurring capital expenditures, excluding on-balance sheet xScale-related spend, are expected to range between $3.385 and $3.865 billion. Recurring capital expenditures are expected to range between $270 and $290 million.

The U.S. dollar exchange rates used for 2026 guidance, taking into consideration the impact of our current foreign currency hedges, have been updated to $1.14 to the Euro, $1.31 to the British Pound, S$1.27 to the U.S. Dollar, ¥157 to the U.S. Dollar, A$1.43 to the U.S. Dollar, HK$7.81 to the U.S. Dollar, R$5.22 to the U.S. Dollar and C$1.37 to the U.S. Dollar. The Q4 2025 global revenue breakdown by currency for the Euro, British Pound, Singapore Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Brazilian Real and Canadian Dollar is 21%, 10%, 8%, 5%, 3%, 3%, 3% and 2%, respectively.

Business Highlights

Capitalized on strong customer demand to close more than 4,500 deals in Q4, with approximately 60% of the largest deals driven by AI workloads. Salesforce has deepened its partnership with Equinix to build a private network for Data 360 – the activation engine inside Salesforce's data and AI foundation. By using Equinix Fabric Cloud Router across 14 countries, Salesforce can privately connect its systems across AWS, Azure, and other clouds – enabling real‑time data analysis and stronger, lower‑latency AI performance. More than 60% of existing customers added new services in 2025, reflecting the importance of the company's neutral global footprint as an essential layer of connectivity across increasingly complex and distributed technology workloads. Delivered record capacity in 2025, with 23,250 retail cabinets and 90+ MW of xScale capacity, while continuing to expand capacity to meet growing demand across the business. Opened 16 projects in 14 metros globally and added 10 new expansion projects since October, bringing the company's current number of major expansion projects underway to 52. Also closed on a number of strategic land acquisitions in 2025, adding approximately 1 GW to Equinix's powered land-under-control balance. In January, Equinix contributed the Hampton, Georgia asset to its xScale joint venture in the United States, an important first step to deploying $15 billion of capital with its JV partners in major metros, and enabling the JV to enter a lease arrangement with a customer. FY 2025 Results Conference Call and Replay Information

Equinix will discuss its quarterly results for the period ended December 31, 2025, along with its future outlook, in its quarterly conference call on Wednesday, February 11, 2026, at 5:30 p.m. ET (2:30 p.m. PT). A simultaneous live webcast of the call will be available on the company's Investor Relations website at www.equinix.com/investors. To hear the conference call live, please dial 1-517-308-9482 (domestic and international) and reference the passcode EQIX.

A replay of the call will be available one hour after the call through Tuesday, March 31, 2026, by dialing 1-866-360-7719 and referencing the passcode 2026. In addition, the webcast will be available at www.equinix.com/investors (no password required).

Investor Presentation and Supplemental Financial Information

Equinix has made available on its website a presentation designed to accompany the discussion of Equinix's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Equinix Investor Relations website at www.equinix.com/investors.

Additional Resources

Equinix Investor Relations Resources About Equinix

Equinix, Inc. (Nasdaq: EQIX) shortens the path to boundless connectivity anywhere in the world. Its digital infrastructure, data center footprint and interconnected ecosystems empower innovations that enhance our work, life and planet. Equinix connects economies, countries, organizations and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently and everywhere.

Non-GAAP Financial Measures

Equinix provides all information required in accordance with generally accepted accounting principles ("GAAP"), but it believes that evaluating its ongoing results of operations may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Equinix also uses non-GAAP financial measures to evaluate its operations.

Non-GAAP financial measures are not a substitute for financial information prepared in accordance with GAAP. Non-GAAP financial measures should not be considered in isolation, but should be considered together with the most directly comparable GAAP financial measures. As such, Equinix provides a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Investors should note that the non-GAAP financial measures used by Equinix may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as those of other companies. Investors should therefore exercise caution when comparing non-GAAP financial measures used by Equinix to similarly titled non-GAAP financial measures of other companies.

Equinix's primary non-GAAP financial measures include Adjusted EBITDA and Adjusted Funds from Operations ("AFFO") as described below. Equinix presents these measures to provide investors with additional tools to evaluate its results in a manner that focuses on what management believes to be its core, ongoing business operations. These measures exclude items which Equinix believes are generally not relevant to assessing its long-term performance. Both measures eliminate the impacts of depreciation and amortization, which are derived from historical costs and which Equinix believes are not indicative of current or future expenditures, and other items for which the frequency and amount of charges can vary based on the timing and significance of individual transactions. Equinix believes that presenting these non-GAAP financial measures provides consistency and comparability with past reports and that if it did not provide such non-GAAP financial information, investors would not have all the necessary data to analyze the company effectively.

Adjusted EBITDA is used by management to evaluate the operating strength and performance of its core, ongoing business, without regard to its capital or tax structures. It also aids in assessing the performance of, making operating decisions for, and allocating resources to its operating segments. In addition to the uses described above, Equinix believes this measure provides investors with a better understanding of the operating performance of the business and its ability to perform in subsequent periods.

Equinix defines adjusted EBITDA as net income excluding:

income tax expense interest income interest expense other income or expense gain or loss on debt extinguishment depreciation, amortization and accretion expense stock-based compensation expense restructuring and other exit charges, which primarily include employee severance, facility closure costs, lease or other contract termination costs and advisory fees related to the realignment of our management structure, operations or products and other exit activities impairment charges transaction costs gain or loss on asset sales AFFO is derived from Funds from Operations ("FFO") calculated in accordance with the standards established by the National Association of Real Estate Investment Trusts. Both FFO and AFFO are non-GAAP measures commonly used in the REIT industry. Although these measures may not be directly comparable to similar measures used by other companies, Equinix believes that the presentation of these measures provides investors with an additional tool for comparing its performance with the performance of other companies in the REIT industry. Additionally, AFFO is a performance measure used in certain of the company's employee incentive programs, and Equinix believes it is a useful measure in assessing its dividend-paying capacity, as it isolates the cash impact of certain income and expense items and considers the impact of recurring capital expenditures.

Equinix defines FFO as net income attributable to common stockholders excluding:

gain or loss from the disposition of real estate assets depreciation and amortization expense on real estate assets adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items Equinix defines AFFO as FFO adjusted for:

depreciation and amortization expense on non-real estate assets accretion expense stock-based compensation expense stock-based charitable contributions restructuring and other exit charges, as described above impairment charges transaction costs an adjustment to remove the impacts of straight-lining installation revenue an adjustment to remove the impacts of straight-lining rent expense an adjustment to remove the impacts of straight-lining contract costs amortization of deferred financing costs and debt discounts and premiums gain or loss from the disposition of non-real estate assets gain or loss on debt extinguishment an income tax expense adjustment, which represents the non-cash tax impact due to changes in valuation allowances, uncertain tax positions and deferred taxes recurring capital expenditures, which represent expenditures to extend the useful life of data centers or other assets that are required to support current revenues net income or loss from discontinued operations, net of tax adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items Equinix provides normalized and constant currency growth rates for revenues, adjusted EBITDA, AFFO and AFFO per share. These growth rates assume foreign currency rates remain consistent across comparative periods. Revenue growth rates exclude the impact of net power pass-through, acquisitions, divestitures and the Equinix Metal® wind-down. Adjusted EBITDA growth rates exclude the impact of acquisitions, divestitures and integration costs. AFFO growth rates exclude the impact of acquisitions and related financing costs, divestitures, integration costs and balance sheet remeasurements. AFFO per share growth rates exclude the impact of integration costs and balance sheet remeasurements.

Equinix presents cash cost of revenues and cash operating expenses (also known as cash selling, general and administrative expenses or cash SG&A). These measures exclude depreciation, amortization, accretion and stock-based compensation, which are not good indicators of Equinix's current or future operating performance, as described above.

Equinix also presents free cash flow and adjusted free cash flow. Free cash flow is defined as net cash provided by (used in) operating activities plus net cash provided by (used in) investing activities excluding the net purchases of and distributions from equity investments. Adjusted free cash flow is defined as free cash flow excluding any real estate and business acquisitions, net of cash and restricted cash acquired. These measures are presented in order for lenders, investors and the industry analysts who review and report on Equinix to better evaluate Equinix's cash spending levels relative to its industry sector and competitors.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of building and operating IBX® and xScale® data centers, including those related to sourcing suitable power and land, and any supply chain constraints or increased costs of supplies; the challenges of developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; risks related to regulatory inquiries or litigation; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

EQUINIX, INC.

Condensed Consolidated Statements of Operations

(in millions, except share and per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December
31, 2025

September
30, 2025

December
31, 2024

December
31, 2025

December
31, 2024

Recurring revenues

$       2,294

$       2,215

$       2,091

$       8,739

$       8,184

Non-recurring revenues

126

101

170

478

564

    Revenues

2,420

2,316

2,261

9,217

8,748

Cost of revenues

1,198

1,142

1,196

4,508

4,467

           Gross profit

1,222

1,174

1,065

4,709

4,281

Operating expenses:

Sales and marketing

234

219

209

903

891

General and administrative

481

470

451

1,840

1,766

Restructuring and other exit charges

16

5

31

33

31

Transaction costs

6

3

38

18

50

Impairment charges

63

4

233

68

233

(Gain) loss on asset sales

—

(1)

—

(1)

(18)

         Total operating expenses

800

700

962

2,861

2,953

Income from operations

422

474

103

1,848

1,328

Interest and other income (expense):

Interest income

41

53

49

193

137

Interest expense

(142)

(128)

(126)

(527)

(457)

Other income (expense)

(9)

—

(11)

(7)

(17)

Gain (loss) on debt extinguishment

—

—

(15)

1

(16)

         Total interest and other, net

(110)

(75)

(103)

(340)

(353)

Income before income taxes

312

399

—

1,508

975

Income tax expense

(48)

(25)

(14)

(160)

(161)

Net income from continuing operations

264

374

(14)

1,348

814

Net (income) loss attributable to non-controlling interests

1

—

—

2

1

Net income (loss) attributable to common stockholders

$           265

$          374

$           (14)

$       1,350

$           815

Earnings (loss) per share ("EPS") attributable to common stockholders:

Basic EPS

$         2.70

$         3.82

$        (0.14)

$       13.79

$         8.54

Diluted EPS

$         2.69

$         3.81

$        (0.14)

$       13.76

$         8.50

Weighted-average shares for basic EPS (in thousands)

98,200

97,982

96,849

97,883

95,457

Weighted-average shares for diluted EPS (in thousands)

98,378

98,174

96,849

98,123

95,827

EQUINIX, INC.

Condensed Consolidated Balance Sheets

(in millions, except headcount)

(unaudited)

December
31, 2025

December
31, 2024

Assets

Cash and cash equivalents

$       1,727

$       3,081

Short-term investments

1,500

527

Accounts receivable, net

1,001

949

Other current assets

897

890

          Total current assets

5,125

5,447

Property, plant and equipment, net

23,584

19,249

Operating lease right-of-use assets

1,392

1,419

Goodwill

5,984

5,504

Intangible assets, net

1,316

1,417

Other assets

2,740

2,049

          Total assets

$     40,141

$     35,085

Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity

Accounts payable and accrued expenses

$       1,350

$       1,193

Accrued property, plant and equipment

564

387

Current portion of operating lease liabilities

155

144

Current portion of finance lease liabilities

168

189

Current portion of mortgage and loans payable

17

5

Current portion of senior notes

1,299

1,199

Other current liabilities

340

232

          Total current liabilities

3,893

3,349

Operating lease liabilities, less current portion

1,304

1,331

Finance lease liabilities, less current portion

2,187

2,086

Mortgage and loans payable, less current portion

686

644

Senior notes, less current portion

16,910

13,363

Other liabilities

983

760

          Total liabilities

25,963

21,533

Redeemable non-controlling interest

25

25

Common stockholders' equity:

Common stock

—

—

Additional paid-in capital

21,642

20,895

Treasury stock

(24)

(39)

Accumulated dividends

(12,202)

(10,342)

Accumulated other comprehensive loss

(1,359)

(1,735)

Retained earnings

6,099

4,749

          Total common stockholders' equity

14,156

13,528

Non-controlling interests

(3)

(1)

          Total stockholders' equity

14,153

13,527

Total liabilities, redeemable non-controlling interest and stockholders' equity

$     40,141

$     35,085

Ending headcount by geographic region is as follows:

          Americas headcount

5,917

5,952

          EMEA headcount

4,706

4,653

          Asia-Pacific headcount

3,093

3,001

                    Total headcount

13,716

13,606

EQUINIX, INC.

Summary of Debt Principal Outstanding

(in millions)

(unaudited)

December
31, 2025

December
31, 2024

Finance lease liabilities

$       2,355

$       2,275

Term loans

673

628

Mortgage payable and other loans payable

30

21

           Total mortgage and loans payable principal

703

649

Senior notes

18,209

14,562

Plus: debt issuance costs and debt discounts

150

123

          Total senior notes principal

18,359

14,685

Total debt principal outstanding

$     21,417

$     17,609

EQUINIX, INC.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Twelve Months Ended

December
31, 2025

December
31, 2024

Cash flows from operating activities:

Net income

$       1,348

$           814

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

2,066

2,011

Stock-based compensation

498

462

Impairment charges

68

233

(Gain) loss on asset sales

(1)

(18)

Other operating activities

33

87

Changes in operating assets and liabilities:

Accounts receivable

(40)

27

Income taxes, net

(78)

(9)

Operating lease right-of-use assets

161

150

Operating lease liabilities

(156)

(153)

Accounts payable and accrued expenses

25

95

Other assets and liabilities

(13)

(450)

Net cash provided by operating activities

3,911

3,249

Cash flows from investing activities:

Purchases of equity investments

(60)

(98)

Distributions from equity investments

59

11

Purchases of short-term investments

(1,967)

(520)

Maturity of short-term investments

1,005

—

Business acquisitions, net of cash acquired

(251)

—

Real estate acquisitions

(994)

(337)

Purchases of other property, plant and equipment

(4,311)

(3,066)

Proceeds from sale of assets, net of cash transferred

—

247

Settlement of foreign currency hedges

104

83

Investment in loan receivable

(69)

(261)

Loan receivable upfront fee

—

4

Net cash used in investing activities

(6,484)

(3,937)

Cash flows from financing activities:

Proceeds from employee equity programs

95

91

Payment of dividends

(1,856)

(1,643)

Proceeds from public offering of common stock, net of issuance costs

99

1,673

Proceeds from senior notes, net of debt discounts

4,311

2,768

Repayment of finance lease liabilities

(155)

(140)

Contribution from non-controlling interest

4

4

Repayment of senior notes

(1,200)

(1,000)

Other financing activities

(26)

(30)

Net cash provided by financing activities

1,272

1,723

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

43

(49)

Net increase (decrease) in cash, cash equivalents and restricted cash

(1,258)

986

Cash, cash equivalents and restricted cash at beginning of period

3,082

2,096

Cash, cash equivalents and restricted cash at end of period

$       1,824

$       3,082

Free cash flow (1)

$     (2,572)

$         (601)

Adjusted free cash flow (2)

$     (1,327)

$         (264)

(1)

We define free cash flow as net cash provided by operating activities plus net cash used in investing activities (excluding the net purchases of and distributions from equity investments) as presented below:

Net cash provided by operating activities as presented above

$       3,911

$       3,249

Net cash used in investing activities as presented above

(6,484)

(3,937)

Less purchases of equity investments, net of distributions

1

87

Free cash flow

$     (2,572)

$         (601)

(2)

We define adjusted free cash flow as free cash flow as defined above, excluding any real estate and business acquisitions, net of cash and restricted cash acquired as presented below:

Free cash flow (as defined above)

$     (2,572)

$         (601)

Less business acquisitions, net of cash and restricted cash acquired

251

—

Less real estate acquisitions

994

337

Adjusted free cash flow

$     (1,327)

$         (264)

EQUINIX, INC.

Non-GAAP Measures and Other Supplemental Data

($ in millions, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December
31, 2025

September
30, 2025

December
31, 2024

December
31, 2025

December
31, 2024

Recurring revenues

$      2,294

$      2,215

$      2,091

$        8,739

$        8,184

Non-recurring revenues

126

101

170

478

564

Revenues (1)

2,420

2,316

2,261

9,217

8,748

Cash cost of revenues (2)

773

752

821

2,959

2,983

Cash gross profit (3)

1,647

1,564

1,440

6,258

5,765

Cash operating expenses (4):

Cash sales and marketing expenses

160

144

136

610

596

Cash general and administrative expenses

301

272

283

1,118

1,072

Total cash operating expenses (4)

461

416

419

1,728

1,668

Adjusted EBITDA (5)

$      1,186

$      1,148

$      1,021

$        4,530

$        4,097

Cash gross margins (6)

68 %

68 %

64 %

68 %

66 %

Adjusted EBITDA margins (7)

49 %

50 %

45 %

49 %

47 %

FFO (8)

$         625

$         707

$         302

$        2,668

$        2,061

AFFO (9)(10)

$         877

$         965

$         770

$        3,761

$        3,356

Basic FFO per share (11)

$        6.36

$        7.22

$        3.12

$        27.26

$        21.59

Diluted FFO per share (11)

$        6.35

$        7.20

$        3.11

$        27.19

$        21.51

Basic AFFO per share (11)

$        8.93

$        9.85

$        7.95

$        38.42

$        35.16

Diluted AFFO per share (11)

$        8.91

$        9.83

$        7.92

$        38.33

$        35.02

(1)

The geographic split of our revenues on a services basis is presented below:

Americas Revenues:

Colocation

$         711

$         682

$         626

$        2,683

$        2,474

Interconnection

245

239

227

944

885

Managed infrastructure

59

61

63

245

261

Other

5

5

7

17

27

Recurring revenues

1,020

987

923

3,889

3,647

Non-recurring revenues

51

48

76

222

215

Revenues

$      1,071

$      1,035

$         999

$        4,111

$        3,862

EMEA Revenues:

Colocation

$         619

$         588

$         577

$        2,346

$        2,235

Interconnection

102

100

87

385

340

Managed infrastructure

40

39

34

152

138

Other

28

29

25

110

99

Recurring revenues

789

756

723

2,993

2,812

Non-recurring revenues

47

28

53

137

155

Revenues

$         836

$         784

$         776

$        3,130

$        2,967

Asia-Pacific Revenues:

Colocation

$         378

$         367

$         345

$        1,446

$        1,349

Interconnection

86

83

79

326

294

Managed infrastructure

17

18

18

69

68

Other

4

4

3

16

14

Recurring revenues

485

472

445

1,857

1,725

Non-recurring revenues

28

25

41

119

194

Revenues

$         513

$         497

$         486

$        1,976

$        1,919

Worldwide Revenues:

Colocation

$      1,708

$      1,637

$      1,548

$        6,475

$        6,058

Interconnection

433

422

393

1,655

1,519

Managed infrastructure

116

118

115

466

467

Other

37

38

35

143

140

Recurring revenues

2,294

2,215

2,091

8,739

8,184

Non-recurring revenues

126

101

170

478

564

Revenues

$      2,420

$      2,316

$      2,261

$        9,217

$        8,748

(2)

We define cash cost of revenues as cost of revenues less depreciation, amortization, accretion and stock-based compensation as presented below:

Cost of revenues

$      1,198

$      1,142

$      1,196

$        4,508

$        4,467

Depreciation, amortization and accretion expense

(409)

(375)

(360)

(1,488)

(1,426)

Stock-based compensation expense

(16)

(15)

(15)

(61)

(58)

Cash cost of revenues

$         773

$         752

$         821

$        2,959

$        2,983

(3)

We define cash gross profit as revenues less cash cost of revenues (as defined above).

(4)

We define cash sales and marketing expense as sales and marketing expense less depreciation, amortization and stock-based compensation as presented below. We define cash general and administrative expense as general and administrative expense less depreciation, amortization and stock-based compensation as presented below. We define cash operating expense as selling, general, and administrative expense less depreciation, amortization, and stock-based compensation. We also refer to cash operating expense as cash selling, general and administrative expense or "cash SG&A".

Sales and marketing expense

$         234

$         219

$         209

$           903

$           891

Depreciation and amortization expense

(50)

(50)

(50)

(197)

(201)

Stock-based compensation expense

(24)

(25)

(23)

(96)

(94)

Cash sales and marketing expense

160

144

136

610

596

General and administrative expense

481

470

451

1,840

1,766

Depreciation and amortization expense

(92)

(108)

(92)

(381)

(384)

Stock-based compensation expense

(88)

(90)

(76)

(341)

(310)

Cash general and administrative expenses

301

272

283

1,118

1,072

Cash operating expense

$         461

$         416

$         419

$        1,728

$        1,668

(5)

We define adjusted EBITDA as net income excluding income tax expense or benefit, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring and other exit charges, impairment charges, transaction costs, and gain or loss on asset sales as presented below:

Net income (loss)

$         264

$         374

$        (14)

$        1,348

$           814

Income tax expense (benefit)

48

25

14

160

161

Interest income

(41)

(53)

(49)

(193)

(137)

Interest expense

142

128

126

527

457

Other (income) expense

9

—

11

7

17

(Gain) loss on debt extinguishment

—

—

15

(1)

16

Depreciation, amortization and accretion expense

551

533

502

2,066

2,011

Stock-based compensation expense

128

130

114

498

462

Restructuring and other exit charges

16

5

31

33

31

Impairment charges

63

4

233

68

233

Transaction costs

6

3

38

18

50

(Gain) loss on asset sales

—

(1)

—

(1)

(18)

Adjusted EBITDA

$      1,186

$      1,148

$      1,021

$        4,530

$        4,097

Americas

492

489

422

1,890

1,709

EMEA

413

384

354

1,561

1,378

Asia-Pacific

281

275

245

1,079

1,010

Adjusted EBITDA

$      1,186

$      1,148

$      1,021

$        4,530

$        4,097

(6)

We define cash gross margins as cash gross profit divided by revenues.

(7)

We define adjusted EBITDA margins as adjusted EBITDA divided by revenues.

(8)

FFO is defined as net income or loss attributable to common stockholders, excluding gain or loss from the disposition of real estate assets, depreciation and amortization expense on real estate assets and adjustments for unconsolidated joint ventures' and non-controlling interests' share of these items.

Net income (loss)

$         264

$         374

$        (14)

$        1,348

$           814

Net (income) loss attributable to non-controlling interests

1

—

—

2

1

Net income (loss) attributable to common stockholders

265

374

(14)

1,350

815

Adjustments:

Real estate depreciation

349

324

309

1,282

1,239

(Gain) loss on disposition of real estate assets

—

(1)

(1)

—

(20)

Adjustments for FFO from unconsolidated joint ventures

11

10

8

36

27

FFO attributable to common stockholders

$         625

$         707

$         302

$        2,668

$        2,061

(9)

AFFO is defined as FFO adjusted for depreciation and amortization expense on non-real estate assets, accretion, stock-based compensation, stock-based charitable contributions, restructuring and other exit charges, impairment charges, transaction costs, an installation revenue adjustment, a straight-line rent expense adjustment, a contract cost adjustment, amortization of deferred financing costs and debt discounts and premiums, gain or loss from the disposition of non-real estate assets, gain or loss on debt extinguishment, an income tax expense adjustment, recurring capital expenditures, net income or loss from discontinued operations, net of tax, and adjustments from FFO to AFFO for unconsolidated joint ventures' and non-controlling interests' share of these items.

FFO attributable to common stockholders

$         625

$         707

$         302

$        2,668

$        2,061

Adjustments:

Installation revenue adjustment

4

6

(1)

20

(4)

Straight-line rent expense adjustment

(4)

1

(18)

5

(3)

Contract cost adjustment

(27)

(8)

(11)

(52)

(27)

Amortization of deferred financing costs and debt discounts

6

6

5

23

20

Stock-based compensation expense

128

130

114

498

462

Stock-based charitable contributions

—

—

—

3

3

Non-real estate depreciation expense

142

155

136

568

562

(Gain) loss on disposition of non-real estate assets

—

(3)

—

(1)

—

Amortization expense

51

51

53

200

208

Accretion expense adjustment

9

3

4

16

2

Recurring capital expenditures

(139)

(64)

(115)

(284)

(250)

(Gain) loss on debt extinguishment

—

—

15

(1)

16

Restructuring and other exit charges

16

5

31

33

31

Transaction costs

6

3

38

18

50

Impairment charges

63

4

233

68

233

Income tax expense adjustment

(5)

(29)

(16)

(24)

(2)

Adjustments for AFFO from unconsolidated joint ventures

2

(2)

—

3

(6)

AFFO attributable to common stockholders

$         877

$         965

$         770

$        3,761

$        3,356

(10)

 Following is how we reconcile from adjusted EBITDA to AFFO:

Adjusted EBITDA

$      1,186

$      1,148

$      1,021

$        4,530

$        4,097

Adjustments:

Interest expense, net of interest income

(101)

(75)

(77)

(334)

(320)

Amortization of deferred financing costs and debt discounts

6

6

5

23

20

Income tax expense

(48)

(25)

(14)

(160)

(161)

Income tax expense adjustment

(5)

(29)

(16)

(24)

(2)

Straight-line rent expense adjustment

(4)

1

(18)

5

(3)

Stock-based charitable contributions

—

—

—

3

3

Contract cost adjustment

(27)

(8)

(11)

(52)

(27)

Installation revenue adjustment

4

6

(1)

20

(4)

Recurring capital expenditures

(139)

(64)

(115)

(284)

(250)

Other income (expense)

(9)

—

(11)

(7)

(17)

Adjustments for (gain) loss on asset dispositions

—

(3)

(1)

—

(2)

Adjustments for unconsolidated JVs and non-controlling interests

14

8

8

41

22

AFFO attributable to common stockholders

$         877

$         965

$         770

$        3,761

$        3,356

(11)

The shares used in the computation of basic and diluted FFO and AFFO per share attributable to common stockholders is presented below:

Shares used in computing basic net income per share, FFO per share and AFFO per share (in thousands)

98,200

97,982

96,849

97,883

95,457

Effect of dilutive securities:

Employee equity awards (in thousands)

178

192

404

240

370

Shares used in computing diluted net income per share, FFO per share and AFFO per share (in thousands)

98,378

98,174

97,253

98,123

95,827

Basic FFO per share

$        6.36

$        7.22

$        3.12

$        27.26

$        21.59

Diluted FFO per share

$        6.35

$        7.20

$        3.11

$        27.19

$        21.51

Basic AFFO per share

$        8.93

$        9.85

$        7.95

$        38.42

$        35.16

Diluted AFFO per share

$        8.91

$        9.83

$        7.92

$        38.33

$        35.02

SOURCE Equinix, Inc.

, /PRNewswire/ -- MDJM LTD (Nasdaq: UOKA) (the "Company" or "MDJM"), an integrated global culture innovation company, today announced the closing of its upsized public offering of 4,280,000 units at a public offering price of $1.40 per unit. Each unit consists of one Class A ordinary share and one Series A warrant to purchase one Class A ordinary share.

Each Series A warrant will expire one year from the issuance, will be immediately exercisable upon issuance at an initial exercise price equal to 100% of the public offering price, subject to adjustment on the fourth and eighth trading days following the closing of the offering to 70% and 50%, respectively, of the initial exercise price, and the number of Class A ordinary shares underlying the Series A warrants will be proportionally increased. The Series A warrants may also be exercised on a zero cash exercise option, pursuant to which the holder may exchange each warrant for 1.5 Class A ordinary shares that are issuable on a cash exercise of the Series A warrants.

The Company has granted the underwriter a 45-day option to purchase up to 642,000 additional Class A ordinary shares and/or 642,000 additional Series A warrants, at its respective public offering price less underwriting discounts, to cover any over-allotment. On February 10, 2026, the underwriter partially exercised such option with respect to 642,000 Series A warrants.

The Company received total gross proceeds of approximately US$6.0 million, before deducting underwriting discounts and other offering expenses.

Maxim Group LLC acted as sole book-running manager in connection with the offering.

A registration statement on Form F-1 (File No. 333-292953) was filed with the U.S. Securities and Exchange Commission (the "SEC") and was declared effective by the SEC on February 9, 2026 and a registration statement on Form F-1 was filed with the SEC pursuant to Rule 462(b) of the Securities Act of 1933, as amended, and became effective on February 10, 2026. The offering was made only by means of a prospectus forming part of the effective registration statements. A final prospectus relating to the offering was filed with the SEC and is available on the SEC's website at www.sec.gov.

This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and no sale of these securities may be made in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About MDJM LTD

MDJM LTD is a global culture innovation company focused on cultural IP development, animation production, international licensing, and cultural venue operations. The Company has been expanding its operations in the UK, where it is developing projects such as Fernie Castle in Scotland and the Robin Hill Property in England. These properties are being remodeled into multi-functional cultural venues that will feature fine dining, hospitality services, art exhibitions, and cultural exchange events. Fernie Castle is undergoing comprehensive architectural and landscape renovation planning in design collaboration with renowned architectural firm Kengo Kuma & Associates. As part of its broader strategy, MDJM is collaborating with select European animation studios to develop animated short films that blend Eastern themes with Western artistry. The Company aims to integrate Eastern philosophy with international artistic practices, creating a global cultural ecosystem built on storytelling and immersive experience. This initiative reflects the Company's commitment to furthering its global market expansion and enhancing its cultural business footprint. For more information regarding the Company, please visit https://www.ir-uoka.com/. 

Forward-Looking Statements

This announcement contains forward-looking statements. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, among other things: the Company's future operating or financial results; the Company's liquidity; and other factors listed from time to time in the Company's filings with the SEC. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's annual report on Form 20-F and its other filings with the U.S. Securities and Exchange Commission.

Investor Contact

Sherry Zheng
WAVECREST GROUP INC.
Phone: +1 718-213-7386
Email: [email protected] 

SOURCE MDJM LTD

, /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) reported results for the fourth quarter and fiscal year ended December 31, 2025.

SAFE published a presentation detailing these results which can be found on its website, www.safeholdinc.com in the "Investors" section.

Highlights from the earnings announcement include:

Q4'25 revenue was $97.9 million, and FY'25 was $385.6 million Q4'25 net income attributable to common shareholders was $27.9 million, or $30.1 million excluding non-recurring losses, and FY'25 net income attributable to common shareholders was $114.5 million, or $118.6 million excluding non-recurring losses1 Q4'25 earnings per share was $0.39, or $0.42 excluding non-recurring losses, and FY'25 earnings per share was $1.59, or $1.65 excluding non-recurring losses1 Estimated Unrealized Capital Appreciation increased to $9.3 billion 2025 Highlights Include: Investments: $429 million2,3 of new originations in 2025, including 17 new ground leases for $277 million2 and four leasehold loans for $152 million3, bringing total aggregate ground lease portfolio to $7.1 billion Credit: Received credit ratings upgrade to A- with stable outlook from S&P Ratings. Safehold now rated A- / A3 / A- by S&P, Moody's and Fitch, respectively, all with stable outlook Capital: Closed $400 million 5-year unsecured term loan and repaid $227 million secured debt maturing 2027 "Safehold had a productive 2025 and is well positioned for 2026," said Jay Sugarman, Chairman and Chief Executive Officer. "Customer dialogue and closings have been active, our affordable housing business has good momentum, and our cost of capital has significantly improved following a third credit ratings upgrade to A-. With the addition of Michael Trachtenberg as President strengthening our leadership team, we look forward to putting our capital to work to serve our customers and create value for our shareholders."   

The Company will host an earnings conference call reviewing this presentation beginning at 9:00 a.m. ET on Thursday, February 12, 2026. This conference call will be broadcast live and can be accessed by all interested parties through Safehold's website in the "Investors" section, and by using the dial-in information listed below:

Dial-In:

877.545.0523

International:

973.528.0016

Access Code:

239703

A replay of the call will be archived on the Company's website. Alternatively, the replay can be accessed via dial-in from 2:00 p.m. ET on February 12, 2026 through 12:00 a.m. ET on February 26, 2026 by calling:

Replay:

877.481.4010

International:

919.882.2331

Access Code:

53587

Non-GAAP Financial Measures:

Net income attributable to Safehold Inc. common shareholders excluding non-recurring (gains) / losses, and EPS excluding non-recurring (gains) / losses, are non-GAAP measures used as supplemental performance measures to give management and investors a view of net income and EPS more directly derived from operating activities in the period in which they occur. Net income attributable to Safehold Inc. common shareholders excluding non-recurring (gains) / losses is calculated as net income (loss) attributable to common shareholders, prior to the effect of non-recurring gains and losses, as adjusted to exclude corresponding amounts allocable to noncontrolling interests. It should be examined in conjunction with net income attributable to common shareholders as shown in our consolidated statements of operations. EPS excluding non-recurring (gains) / losses is calculated as net income attributable to Safehold Inc. common shareholders excluding non-recurring (gains) / losses, divided by the weighted average number of diluted common shares. These metrics should not be considered as alternatives to net income attributable to common shareholders or EPS, respectively (in each case determined in accordance with generally accepted accounting principles in the United States of America ("GAAP")). These measures may differ from similarly-titled measures used by other companies. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are presented below.

Earnings Reconciliation (all figures in thousands except per share figures)1

          Q4'25                       FY'25

Net income attributable to Safehold Inc. common shareholders

$27,876

$114,469

Add: Non-recurring (gains) / losses2

2,224

4,170

Net income attributable to Safehold Inc. shareholders excluding non-recurring (gains) / losses

$30,100

$118,639

Weighted average number of common shares – basic

71,756

71,694

Weighted average number of common shares – diluted

71,866

71,786

EPS excluding non-recurring (gains) / losses (basic & diluted)

$0.42

$1.65

1 All numbers net of impact attributable to noncontrolling interests.

2 Non-recurring losses were $2.2m and $4.2m in Q4'25 and FY'25, respectively, for the $1.9m write-off of a preferred equity position in a leasehold joint venture in Q1'25 and the $2.2m loss on early extinguishment of debt in Q4'25. There were no non-recurring gains during these periods.

About Safehold:Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

Company Contact:
Pearse Hoffmann
Senior Vice President
Head of Corporate Finance 
T 212.930.9400
E [email protected]

1Non-recurring losses were $2.2m and $4.2m in Q4'25 and FY'25, respectively, for the $1.9m write-off of a preferred equity position in a leasehold joint venture in Q1'25 and the $2.2m loss on early extinguishment of debt in Q4'25. There were no non-recurring gains during these periods.

2Includes Safehold's $136 million forward commitments for the Ground Leases new originations in FY'25 that have not yet been funded as of 12/31/25 (such funding commitments are subject to certain conditions). There can be no assurance Safehold will fully fund these transactions.

3Includes Safehold's $107m forward commitments for the Leasehold Loans new originations in FY'25 that have not yet been funded as of 12/31/25 (such funding commitments are subject to certain conditions). Excludes $30m commitment regarding contingent-based loan allocation which is fully unfunded as of 12/31/25. There can be no assurance Safehold will fully fund these transactions.

SOURCE Safehold

24th consecutive year of revenue growth; FY 2025 Delivered Double-Digit Revenue, Earnings, and Cash Flow Growth

, /PRNewswire/ -- 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.

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,

Variance

Variance

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

2025

2024

$

%

2025

2024

$

%

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 bps

52.8 %

52.7 %

10 bps

Operating income

$  160,066

$  150,627

$     9,439

6.3 %

$     726,068

$    657,224

$    68,844

10.5 %

Operating margin

17.5 %

18.1 %

-60 bps

19.3 %

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 bps

20.0 %

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 bps

22.7 %

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.

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)

2025

2024

2025

2024

$

% 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 expenses

293,718

32.2 %

264,063

31.7 %

1,166,044

31.0 %

1,048,992

31.0 %

Materials and supplies

54,538

6.0 %

53,794

6.5 %

225,462

6.0 %

212,296

6.3 %

Insurance and claims

18,511

2.0 %

18,998

2.3 %

66,897

1.8 %

68,326

2.0 %

Fleet expenses

39,773

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 expenses

107,549

11.8 %

95,157

11.4 %

484,859

12.9 %

427,916

12.6 %

Administrative employee expenses

86,260

9.4 %

79,099

9.5 %

345,643

9.2 %

313,814

9.3 %

Insurance and claims

10,944

1.2 %

11,775

1.4 %

40,816

1.1 %

41,434

1.2 %

Fleet expenses

10,259

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 administrative

273,719

30.0 %

245,545

29.5 %

1,133,232

30.1 %

1,015,067

30.0 %

Depreciation and amortization

31,567

3.5 %

30,535

3.7 %

124,744

3.3 %

113,220

3.3 %

Interest expense, net

7,440

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 expense

38,267

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 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.

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, net

202,518

196,081

Financed receivables, short-term, net

44,723

40,301

Materials and supplies

42,982

39,531

Other current assets

82,455

77,080

Total current assets

472,682

442,623

Equipment and property, net

126,187

124,839

Goodwill

1,374,664

1,161,085

Intangibles, net

582,384

541,589

Operating lease right-of-use assets

424,528

414,474

Financed receivables, long-term, net

110,057

89,932

Other assets

50,021

45,153

Total assets

$         3,140,523

$         2,819,695

LIABILITIES

Short-term debt

$            123,683

$                     —

Accounts payable

44,361

49,625

Accrued insurance – current

44,123

54,840

Accrued compensation and related liabilities

128,259

122,869

Unearned revenues

187,670

180,851

Operating lease liabilities – current

137,410

121,319

Other current liabilities

120,019

115,658

Total current liabilities

785,525

645,162

Accrued insurance, less current portion

79,157

61,946

Operating lease liabilities, less current portion

290,765

295,899

Long-term debt

486,147

395,310

Other long-term accrued liabilities

124,608

90,785

Total liabilities

1,766,202

1,489,102

STOCKHOLDERS' EQUITY

Common stock

481,194

484,372

Retained earnings and other equity

893,127

846,221

Total stockholders' equity

1,374,321

1,330,593

Total liabilities and stockholders' equity

$         3,140,523

$         2,819,695

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,

2025

2024

2025

2024

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 administrative

273,719

245,545

1,133,232

1,015,067

Depreciation and amortization

31,567

30,535

124,744

113,220

Total operating expenses

752,847

681,542

3,034,982

2,731,484

OPERATING INCOME

160,066

150,627

726,068

657,224

Interest expense, net

7,440

5,027

28,558

27,677

Other (income) expense, net

(2,082)

250

(3,416)

(683)

CONSOLIDATED INCOME BEFORE INCOME TAXES

154,708

145,350

700,926

630,230

PROVISION FOR INCOME TAXES

38,267

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 - basic

482,738

484,304

484,105

484,249

Weighted average shares outstanding - diluted

482,781

484,351

484,147

484,295

DIVIDENDS PAID PER SHARE

$                0.1825

$                0.1650

$                0.6775

$                0.6150

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW INFORMATION

(in thousands)

(unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

OPERATING ACTIVITIES

Net income

$              116,441

$              105,675

$              526,705

$              466,379

Depreciation and amortization

31,567

30,535

124,744

113,220

Change in working capital and other operating activities

16,736

51,948

26,658

28,054

Net cash provided by operating activities

164,744

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, net

3,052

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, net

3,869

(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 equivalents

221

(5,936)

2,545

(4,908)

Net (decrease) increase in cash and cash equivalents

$              (27,353)

$                (5,652)

$                10,374

$              (14,195)

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 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,

Variance

Variance

2025

2024

$

%

2025

2024

$

%

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

Three Months Ended December 31,

Twelve Months Ended December 31,

Variance

Variance

2025

2024

$

%

2025

2024

$

%

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 margin

17.5 %

18.1 %

19.3 %

19.4 %

Adjusted operating margin

18.3 %

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 - basic

482,738

484,304

484,105

484,249

Weighted average shares outstanding - diluted

482,781

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 amortization

31,567

30,535

124,744

113,220

Interest expense, net

7,440

5,027

28,558

27,677

Provision for income taxes

38,267

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 margin

21.2 %

21.7 %

22.7 %

22.8 %

Incremental EBITDA margin

15.9 %

22.3 %

Adjusted EBITDA margin

21.2 %

21.8 %

22.7 %

22.8 %

Adjusted incremental EBITDA margin

15.7 %

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 conversion

136.6 %

174.1 %

123.4 %

124.4 %

Adjusted free cash flow conversion

136.6 %

153.6 %

127.5 %

119.7 %

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

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 revenues

29.9 %

29.5 %

30.0 %

29.9 %

Twelve Months Ended December 31,

2025

2024

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 amortization

124,744

113,220

Interest expense, net

28,558

27,677

Provision for income taxes

174,221

163,851

Operating lease cost (10)

159,924

133,420

Stock-based compensation expense

39,707

29,984

Adjusted EBITDAR

$               1,053,859

$                  934,531

Leverage ratio

0.9x

0.8x

(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.

For Further Information Contact
Lyndsey Burton (404) 888-2348

SOURCE Rollins, Inc.