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REVENUE
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue, classified by the major geographic areas in which our customers are located, was as follows:
Three Months Ended
March 31,
(in thousands)20262025
United States$839,875 $763,350 
Other countries66,549 59,154 
Total revenues$906,424 $822,504 
Revenue from external customers, classified by significant service offering, was as follows:
Three Months Ended
March 31,
(in thousands)20262025
Residential revenues$389,504 $356,313 
Commercial revenues311,726 284,357 
Termite and ancillary revenues195,423 172,130 
Franchise revenues3,653 3,770 
Other revenues6,118 5,934 
Total revenues$906,424 $822,504 
The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Unearned revenue recognized in the three months ended March 31, 2026 and 2025 was $73.1 million and $67.0 million, respectively. Changes in unearned revenue were as follows:
Three Months Ended
March 31,
(in thousands)20262025
Beginning balance$232,986 $223,872 
Deferral of unearned revenue83,266 76,506 
Recognition of unearned revenue(73,134)(67,013)
Ending balance$243,118 $233,365 
As of March 31, 2026 and December 31, 2025, the Company had long-term unearned revenue of $48.8 million and $45.3 million, respectively, recorded in other long-term accrued liabilities on our condensed consolidated statements of financial position. Unearned short-term revenue is recognized over the next 12-month period. During the three months ended March 31, 2026, we recognized approximately $46.9 million of revenue that was included in the balance of unearned revenue at December 31, 2025. During the three months ended March 31, 2025, we recognized approximately $45.2 million of revenue that was included in the balance of unearned revenue at December 31, 2024. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2036.
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, primarily sales commissions. These costs are recorded as an asset and amortized to expense over the life of the contract to the extent such costs are expected to be recovered. As of March 31, 2026, we have $34.2 million of unamortized capitalized costs to obtain a contract, of which $29.4 million is recorded within other current assets and $4.8 million is recorded within other assets on our condensed consolidated statements of financial position. As of December 31, 2025, we had $39.1 million of unamortized capitalized costs to obtain a contract, of which $28.9 million was recorded within other current assets and $10.2 million was recorded within other assets on our condensed consolidated statements of financial position. Amortization of capitalized costs is recorded within sales, general
and administrative expense on our condensed consolidated statements of income. During the three months ended March 31, 2026 and March 31, 2025, we recorded approximately $9.5 million and $7.1 million in amortization of capitalized costs, respectively.