Business & Consumer Services: Non-GAAP measures in MD&A

Set forth below is a reconciliation of pro forma and macro adjusted revenue and key performance metric by segment, used to calculate organic revenue growth, to the most directly comparable GAAP measure, revenues, net and key performance metric (in millions):*

Revenues, net	Key Performance Metric
Three Months Ended March 31, 2026	Three Months Ended March 31, 2026
(Unaudited)	2026	2025	2026	2025
CORPORATE PAYMENTS - SPEND
Pro forma and macro adjusted	481.8	416.8	81,850	57,371
Impact of acquisitions/dispositions	—	(71.7)	—	(9,525)
Impact of fuel prices/spread	0.5	—	—	—
Impact of foreign exchange rates	21.5	—	—	—
As reported	503.9	345.1	81,850	47,846
VEHICLE PAYMENTS - TRANSACTIONS
Pro forma and macro adjusted	523.6	477.6	208.4	199.8
Impact of acquisitions/dispositions	1.0	(3.4)	0.6	0.9
Impact of fuel prices/spread	1.3	—	—	—
Impact of foreign exchange rates	38.0	—	—	—
As reported	563.9	474.3	209.0	200.7
LODGING PAYMENTS - ROOM NIGHTS
Pro forma and macro adjusted	109.7	110.2	7.4	9.8
Impact of acquisitions/dispositions	—	—	—	—
Impact of fuel prices/spread	—	—	—	—
Impact of foreign exchange rates	1.3	—	—	—
As reported	111.0	110.2	7.4	9.8
OTHER 1 - TRANSACTIONS
Pro forma and macro adjusted	81.1	76.0	465.0	429.0
Impact of acquisitions/dispositions	—	—	—	—
Impact of fuel prices/spread	—	—	—	—

In the accompanying analysis of financial information, we sometimes refer to non-GAAP measures. Refer to the Non-GAAP Measures section of this discussion and analysis for the definitions of, and reasons we use, these non-GAAP measures and the reconciliations to their most directly comparable GAAP measures.

Unless otherwise indicated, all amounts in the following tables are in millions, except per share amounts.

Overview

For a complete overview of our business, refer to Part I, Item 1: Business of our Annual Report on Form 10-K for the year ended December 31, 2025.

The sectors discussed below are organized by asset class and include Automotive, Commercial, Construction and Transportation (“CC&T”), and Other. Automotive includes automobiles, including passenger vehicles and buses. CC&T includes equipment needed for earth moving, lift and material handling, as well as vocational and commercial trucks and trailers. Other primarily includes assets and equipment related to the agricultural, forestry and energy industries, government surplus assets, smaller consumer recreational transportation items and parts sold in our vehicle dismantling business 1 . Each respective sector includes salvage and non-salvage transactions.

Key Operating Metrics

We regularly review a number of metrics, including the following key operating metrics, to evaluate our business, measure our performance, identify trends affecting our business, and make operating decisions. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our operational strategies.

Gross Transaction Value ("GTV") : Represents total proceeds from all items sold on our auctions and online marketplaces, third-party online marketplaces, private brokerage services and other disposition channels. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in the Company’s condensed consolidated financial statements.

Inventory return: Inventory sales revenue less cost of inventory sold.

Inventory rate: Inventory return divided by inventory sales revenue.

Total lots sold: A single asset to be sold or a group of assets bundled for sale as one unit.

Financial Highlights

For the first quarter of 2026, as compared to the first quarter of 2025:

• Total GTV increased 13% to $4.3 billion

• Total revenue increased 11% to $1.2 billion

◦ Service revenue increased 5% to $897.7 million

◦ Inventory sales revenue increased 32% to $336.9 million

• Net income increased 20% to $135.6 million

• Net income available to common stockholders increased 21% to $124.6 million

(2) Amounts are non-GAAP financial measures. See "Non-GAAP Financial Measures" of this Form 10-Q for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.

ROLLINS, INC. AND SUBSIDIARIES

The following table presents financial information, including our significant expense categories, for the three months ended June 30, 2026 and 2025:

Three Months Ended June 30,
2026	2025
% of Revenue	% of Revenue
Revenue	1,078,576	100.0	999,527	100.0
Less:
Cost of services provided (exclusive of depreciation and amortization below):
Employee expenses	328,787	30.5	298,354	29.8
Materials and supplies	66,339	6.2	59,500	6.0
Insurance and claims	21,932	2.0	20,734	2.1
Fleet expenses	46,959	4.4	41,834	4.2
Other cost of services provided (1)	44,613	4.1	41,439	4.1
Total cost of services provided (exclusive of depreciation and amortization below)	508,630	47.2	461,861	46.2
Sales, general and administrative:
Selling and marketing expenses	151,967	14.1	140,177	14.0
Administrative employee expenses	95,733	8.9	89,303	8.9
Insurance and claims	13,239	1.2	12,939	1.3
Fleet expenses	11,775	1.1	10,443	1.0
Other sales, general and administrative (2)	62,263	5.8	54,734	5.5
Total sales, general and administrative	334,977	31.1	307,596	30.8
Depreciation and amortization	33,610	3.1	31,737	3.2
Interest expense, net	9,391	0.9	7,380	0.7
Other (income) expense, net	2,214	0.2	(292)	—
Income tax expense	45,844	4.3	49,756	5.0
Net income	143,910	13.3	141,489	14.2

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.

ROLLINS, INC. AND SUBSIDIARIES

Revenues

The following presents a summary of revenues by service offering for the three months ended June 30, 2026 and June 30, 2025, respectively: