Total Revenue

+9% " "

Strong organic demand across pest control services, combined with acquisition contributions from the prior year, drove revenue higher. Pricing improvements also helped offset inflation, reflecting momentum from the previous quarters’ growth initiatives. " "

Residential Segment

+6% " " "

Healthy demand for home-based services continued from previous periods, supported by cross-selling and ongoing marketing investments. Certain tuck-in acquisitions supplemented organic growth, although reduced business days in some months slightly tempered results. " " "

Commercial Segment

+10% " " "

Focused sales efforts and targeted verticals (e.g., logistics, healthcare) built upon last year’s recruiting and training enhancements. Combined with steady client retention and new commercial contracts, the segment’s growth also reflected favorable economic conditions. " " "

Termite & Related Services

+15% " " "

Robust consumer demand and cross-selling of higher-ticket ancillary services remained strong, continuing the upward trend from earlier quarters. Seasonality and acquisitions also contributed, as more homeowners invested in preventative termite treatments. " " "

Other Revenues

+42% " " "

Although smaller in absolute value, this category benefited from additional service lines and incremental acquisitions. Limited disclosures make it difficult to isolate exact drivers, but a consistent expansion of product offerings contributed to the strong increase. " " "

United States Region

+9% " "

Continuing last year’s momentum, the U.S. market benefited from steady demand in both residential and commercial pest control. Recent acquisitions in domestic markets further supported revenue growth, building on the prior period’s successful integration efforts. " "

Other Countries

+13% " "

International expansion and tuck-in acquisitions from previous quarters supported growth, despite periodic currency headwinds. The broad-based demand for pest control in various geographies carried over from earlier periods and contributed to this region’s solid performance. " "

Net Income

+7% " "

Improved operating margins, aided by revenue gains and cost management initiatives begun in prior quarters, lifted profitability. Lower effective tax rates and past acquisitions realized synergies that carried through, further boosting net income growth. " "

Organic Growth

FY 2024

7% to 8% "

no current guidance

no current guidance

Effective Tax Rate

FY 2024

26% "

no current guidance

no current guidance

Organic Growth

FY 2025

no prior guidance

7% to 8% "

no prior guidance

Incremental Margins

FY 2025

no prior guidance

30% "

no prior guidance

Effective Tax Rate

FY 2025

no prior guidance

26% "

no prior guidance

7%-8% organic growth range

Consistently referenced across Q2, Q1, Q4; achieved 7.7% in Q2, around 7%-8% in Q1, 7% in Q4 " " " " " " " " " "

Delivered 7.7% organic growth, still not committing beyond 7%-8% target " " "

Continues as a core growth benchmark

3%-4% annual price increases

Mentioned specifically in Q1 and Q4 as CPI-plus strategy; not an explicit focus in Q2 " " "

Cited as a driver of margin improvements; 20 bps gross margin upside noted this quarter "

Ongoing strategy, though less detail in some quarters

Investments in sales force and staffing expansions driving cross-selling

Highlighted in Q2 (commercial sales focus) and Q1 (offensive sales mobilization); also noted in Q4 " " " "

Double-digit increases in service/sales staff; boosts residential/commercial cross-sell " "

Continues to be a major lever for organic growth

Residential growth softness, consumer demand

A recurring mention in Q2, Q1, Q4; onetime services often weaker but no major demand concerns " " " " " " "

Residential at 4.9% vs. overall 7.7%; recurring revenue strong despite some softness " "

Consistent theme of stable recurring base with mild softness in onetime orders

Margin pressures/improvements (staffing, marketing, cost mgmt)

Q2, Q1, Q4 also detail similar dynamics of investing in growth while managing costs " " " " " " "

20 bps gross margin improvement, 100 bps SG&A headwind from staffing/advertising " " "

Ongoing cost discipline alongside growth investments

Back-office modernization for SG&A efficiency

Discussed in Q4 and Q1, not specifically in Q2 " "

Mentioned as ongoing effort with positive returns from restructuring "

Continues in background, less prominent in quarterly calls

Rising input costs and interest rates

Addressed in Q4 (fuel, supply, and rate concerns), with fewer mentions in Q2 and Q1 "

Not explicitly highlighted in Q3; only brief note on higher interest costs "

Less focus in later quarters beyond acknowledging interest cost

Accelerated acquisition activity

Q2 highlighted 26 deals in first half (labeled “accelerated”), also a focus in Q1 and Q4 " " " "

32 tuck-in deals YTD; healthy pipeline, but no explicit “accelerated” label this quarter " "

Continues at high pace, though emphasis shifted

Shift in sentiment about surpassing 7%-8% target

In Q2 and Q1, confidence in meeting that range; no strong push beyond it mentioned in Q4 " " " "

Executives remain satisfied with 7%-8%, unwilling to set higher expectations " " " "

Stable approach, no clear move above 7%-8%

Potential large impact of staffing & pricing on future growth

Q2, Q1, Q4 also stress staffing expansions and pricing as key growth drivers " " " " "

Belief that growth near 7%-8% is achievable without significantly higher costs " "

Consistent priority for sustaining growth