REPUBLIC SERVICES, INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS. REPUBLIC SERVICES, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) March 31, December 31, 2026 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 118 $ 76 Accounts receivable, less allowance for doubtful accounts and other of $ 60 and $ 66 , respectively 1,917 1,897 Prepaid expenses and other current assets 475 550 Total current assets 2,510 2,523 Restricted cash and marketable securities 292 259 Property and equipment, net 12,695 12,639 Goodwill 16,926 16,715 Other intangible assets, net 647 655 Other assets 1,530 1,575 Total assets $ 34,600 $ 34,366 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,196 $ 1,374 Notes payable and current maturities of long-term debt 547 596 Deferred revenue 480 496 Accrued landfill and environmental costs, current portion 159 148 Accrued interest 122 109 Other accrued liabilities 1,236 1,205 Total current liabilities 3,740 3,928 Long-term debt, net of current maturities 13,317 12,985 Accrued landfill and environmental costs, net of current portion 2,620 2,608 Deferred income taxes and other long-term tax liabilities, net 1,936 1,884 Insurance reserves, net of current portion 454 436 Other long-term liabilities 552 556 Commitments and contingencies Stockholders’ equity: Preferred stock, par value $ 0.01 per share; 50 shares authorized; none issued — — Common stock, par value $ 0.01 per share; 750 shares authorized; 314 and 313 issued including shares held in treasury, respectively 3 3 Additional paid-in capital 1,851 1,833 Retained earnings 11,493 11,161 Treasury stock, at cost; 6 and 5 shares, respectively ( 1,336 ) ( 1,000 ) Accumulated other comprehensive loss, net of tax ( 31 ) ( 29 ) Total Republic Services, Inc. stockholders’ equity 11,980 11,968 Non-controlling interests in consolidated subsidiary 1 1 Total stockholders’ equity 11,981 11,969 Total liabilities and stockholders’ equity $ 34,600 $ 34,366 The accompanying notes are an integral part of these statements. 3 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) Three Months Ended March 31, 2026 2025 Revenue $ 4,113 $ 4,009 Expenses: Cost of operations 2,366 2,314 Depreciation, depletion and amortization 461 434 Accretion 30 28 Selling, general and administrative 425 427 Restructuring charges 2 4 Gain on business divestitures and impairments, net ( 1 ) ( 2 ) Operating income 830 804 Interest expense ( 151 ) ( 140 ) Loss from unconsolidated equity method investments ( 52 ) ( 12 ) Interest income 2 2 Other income, net 27 11 Income before income taxes 656 665 Provision for income taxes 131 170 Net income 525 495 Net income attributable to non-controlling interests in consolidated subsidiary — — Net income attributable to Republic Services, Inc. $ 525 $ 495 Basic earnings per share attributable to Republic Services, Inc. stockholders: Basic earnings per share $ 1.70 $ 1.58 Weighted average common shares outstanding 309.1 313.0 Diluted earnings per share attributable to Republic Services, Inc. stockholders: Diluted earnings per share $ 1.70 $ 1.58 Weighted average common and common equivalent shares outstanding 309.3 313.3 Cash dividends per common share $ 0.625 $ 0.580 The accompanying notes are an integral part of these statements. 4 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Three Months Ended March 31, 2026 2025 Net income $ 525 $ 495 Other comprehensive loss, net of tax ( 2 ) ( 5 ) Comprehensive income 523 490 Comprehensive income attributable to non-controlling interests — — Comprehensive income attributable to Republic Services, Inc. $ 523 $ 490 The accompanying notes are an integral part of these statements. 5 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in millions) Republic Services, Inc. Stockholders’ Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling Interests In Consolidated Subsidiary Shares Amount Shares Amount Total Balance as of December 31, 2025 313 $ 3 $ 1,833 $ 11,161 ( 5 ) $ ( 1,000 ) $ ( 29 ) $ 1 $ 11,969 Net income — — — 525 — — — — 525 Other comprehensive loss — — — — — — ( 2 ) — ( 2 ) Cash dividends declared — — — ( 192 ) — — — — ( 192 ) Issuances of common stock 1 — 5 — — ( 19 ) — — ( 14 ) Stock-based compensation — — 13 ( 1 ) — — — — 12 Purchase of common stock for treasury — — — — ( 1 ) ( 317 ) — — ( 317 ) Balance as of March 31, 2026 314 3 1,851 11,493 ( 6 ) ( 1,336 ) ( 31 ) 1 11,981 Republic Services, Inc. Stockholders’ Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling Interests In Consolidated Subsidiary Shares Amount Shares Amount Total Balance as of December 31, 2024 313 $ 3 $ 1,767 $ 9,774 ( 1 ) $ ( 113 ) $ ( 26 ) $ 2 $ 11,407 Net income — — — 495 — — — — 495 Other comprehensive loss — — — — — — ( 5 ) — ( 5 ) Cash dividends declared — — — ( 181 ) — — — — ( 181 ) Issuances of common stock — — 3 — — ( 22 ) — — ( 19 ) Stock-based compensation — — 14 ( 1 ) — — — — 13 Purchase of common stock for treasury — — — — — ( 45 ) — — ( 45 ) Balance as of March 31, 2025 313 3 1,784 10,087 ( 1 ) ( 180 ) ( 31 ) 2 11,665 The accompanying notes are an integral part of these statements. 6 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Three Months Ended March 31 2026 2025 Cash provided by operating activities: Net income $ 525 $ 495 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion, amortization and accretion 491 462 Non-cash interest expense 21 18 Deferred tax provision 33 1 Loss from unconsolidated equity method investments 52 12 Other non-cash items 22 18 Change in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivable ( 25 ) ( 18 ) Prepaid expenses and other assets 49 90 Accounts payable 49 ( 42 ) Capping, closure and post-closure expenditures ( 9 ) ( 8 ) Remediation expenditures ( 11 ) ( 9 ) Other liabilities 30 6 Cash provided by operating activities 1,227 1,025 Cash used in investing activities: Purchases of property and equipment ( 476 ) ( 459 ) Proceeds from sales of property and equipment 3 3 Cash used in acquisitions and investments, net of cash and restricted cash acquired ( 437 ) ( 834 ) Cash received from business divestitures 1 3 Other ( 1 ) ( 1 ) Cash used in investing activities ( 910 ) ( 1,288 ) Cash (used in) provided by financing activities: Proceeds from credit facilities and notes payable, net of fees 15,310 11,372 Proceeds from issuance of senior notes, net of discount and fees — 1,186 Payments of credit facilities and notes payable ( 15,035 ) ( 12,018 ) Issuances of common stock, net ( 14 ) ( 19 ) Purchases of common stock for treasury ( 292 ) ( 55 ) Cash dividends paid ( 193 ) ( 181 ) Contingent consideration payments ( 14 ) ( 1 ) Cash (used in) provided by financing activities ( 238 ) 284 Effect of foreign exchange rate changes on cash ( 1 ) — Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 78 21 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 249 203 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 327 $ 224 The accompanying notes are an integral part of these statements. 7 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is one of the largest providers of environmental services in the United States, as measured by revenue. Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada. These groups represent our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling and disposal. The unaudited consolidated financial statements include the accounts of Republic Services, Inc. and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under the equity method of accounting or, for investments that do not meet the criteria to be accounted for under the equity method, we reflect these investments at their fair value when it is readily determinable. If fair value is not readily determinable, we use an alternative measurement approach. All material intercompany accounts and transactions have been eliminated in consolidation. We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation and are not material to our consolidated financial statements. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted. Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more significant and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs and final capping, closure and post-closure costs; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, deferred taxes, uncertain tax positions and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in acquisitions. For more detail on significant accounting policies, refer to Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Our actual results may differ significantly from our estimates. 8 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) New Accounting Pronouncements Accounting Standards Adopted Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2025‑05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025‑05), which simplifies the application of the current expected credit loss model for current accounts receivable and current contract assets under Topic 606. In developing reasonable and supportable forecasts as part of estimating expected credit losses, the amendments in this update provide entities with a practical expedient that assumes that the current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company adopted ASU 2025-05 and elected this practical expedient on January 1, 2026. The election of this practical expedient did not have a material impact on our consolidated financial statements. Accounting Standards Updates Issued but not yet Adopted Codification Improvements In December 2025, the FASB issued Accounting Standards Update 2025-12, Codification Improvements: The amendments from this ASU address a range of accounting topics and clarify or make minor improvements to the existing codification. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the effect this guidance may have on our consolidated financial statements. Narrow-Scope Improvements In December 2025, the FASB issued Accounting Standards Update 2025-11, Interim Reporting (Topic 270) : Narrow-Scope Improvements. This guidance clarifies interim disclosure requirements and the applicability of Topic 270, resulting in a comprehensive list of interim disclosures required by GAAP and a disclosure principle for disclosing material events since the last reporting period. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. We are currently assessing the effect this guidance may have on our consolidated financial statements. Accounting for Government Grants Received by Business Entities In December 2025, the FASB issued Accounting Standards Update 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This ASU adds guidance to Accounting Standards Codification (ASC) 832 on the recognition, measurement, and presentation of government grants. In the absence of such guidance, many for-profit entities historically have analogized to other GAAP, including International Accounting Standards (IAS) 20 or ASC 958-605, when accounting for government grants. This ASU will be effective for annual and interim periods in fiscal years beginning after December 15, 2028. We are currently assessing the effect this guidance may have on our consolidated financial statements. Targeted Improvements to the Accounting for Internal-Use Software In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This guidance removes references to prescriptive and sequential development stages, requiring companies to capitalize internal-use software costs when management commits to funding the software project and it is probable the project will be completed. The amendments are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. Entities may apply the guidance using a prospective, retrospective or modified transition approach. We are currently assessing the effect this guidance may have on our consolidated financial statements. Disaggregation of Income Statement Expenses In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 requires an entity to disclose the amount of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. It also requires an entity to include certain amounts that are already required to be disclosed under GAAP in the same disclosure. Additionally, it requires an entity to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. An 9 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. We are currently assessing the effect this guidance may have on our consolidated financial statements. Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative , to modify the disclosure or presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the SEC's requirements, and to align the requirements in the FASB accounting standard codification with the SEC's regulations. The effective date for each topic's amendment is the date on which the SEC's removal of the topic's related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. 2. BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES Acquisitions We acquired various environmental services businesses during the three months ended March 31, 2026 and 2025. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows: 2026 2025 Purchase price: Cash used in acquisitions, net of cash acquired of $ — and $ 7 , respectively $ 429 $ 819 Holdbacks 4 7 Total $ 433 $ 826 Allocated as follows: Accounts receivable $ 7 $ 27 Property and equipment 206 124 Other assets 1 14 Accounts payable ( 1 ) ( 5 ) Accrued landfill and environmental costs ( 10 ) ( 12 ) Other liabilities ( 6 ) ( 28 ) Fair value of tangible assets acquired and liabilities assumed 197 120 Excess purchase price to be allocated $ 236 $ 706 Excess purchase price allocated as follows: Other intangible assets $ 18 $ 108 Goodwill 218 598 Total allocated $ 236 $ 706 Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. For the acquisitions that closed during the three months ended March 31, 2026 , we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will be deductible for tax purposes. These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided. In February 2026, we acquired certain assets and assumed certain liabilities from Hamm, LLC, N.R. Hamm Quarry, LLC, N.R. Hamm Contractor, LLC, and Cornejo & Sons, LLC constituting a vertically-integrated recycling and waste business located in Kansas. The purchase price allocation is preliminary and remains subject to revision as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary allocation of purchase price, including the value assigned to certain tangible assets acquired as well as certain landfill and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations. We expect our valuations to be substantially complete by the end of 2026. In May 2026, we acquired the equity interests of Robinson Waste Holdings Group, LLC (Robinson). Robinson's vertically integrated recycling and waste services operations are located in Utah and complement Republic's existing core competencies and expertise in the environmental services industry. 10 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Investments We invest in non-controlling equity interests in certain limited liability companies that qualify for investment tax credits under Section 48 of the Internal Revenue Code. We account for these investments under the equity method of accounting utilizing the Hypothetical Liquidation at Book Value ("HLBV") method. During the three months ended March 31, 2026 and 2025 , we decreased the carrying value of these investments by $ 43 million and $ 8 million, respectively, as a result of our share of income and loss pursuant to the terms of the limited liability company agreements . Additionally, our tax provision reflects a benefit of approximately $ 37 million for the three months ended March 31, 2026, due to tax credits net of nondeductible items, related to these investments. No benefit was recognized in our tax provision for the three months ended March 31, 2025. For further discussion of the income tax benefits, refer to Note 11, Income Taxes, in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. In 2022 , we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct renewable natural gas projects at our landfills across the United States. Certain of these investments qualified for investment tax credits under Section 48 of the Internal Revenue Code. As of March 31, 2026 and December 31, 2025 , our carrying value in the joint venture was approximately $ 312 million and $ 314 million, respectively . The investment is accounted for under the equity method of accounting. In 2022 , we acquired a non-controlling equity interest in Blue Polymers, LLC, a joint venture with Ravago, intended to help create vertical integration in the recycling market, and to further advance circularity by acquiring all olefins produced by the Company's Polymer Centers and producing custom blended pellets for food-grade and non-food-grade packaging. As of March 31, 2026 and December 31, 2025 , our carrying value in the joint venture was $ 95 million and $ 101 million, respectively. This investment is an unconsolidated VIE for which we do not have the power to direct the significant activities of the business, and it is accounted for under the equity method of accounting. Our risk of loss is materially consistent with our contributions to date. These investments were recorded as other assets in our unaudited consolidated balance sheet as of March 31, 2026. Restructuring Charges During the three months ended March 31, 2026 and 2025 , we incurred restructuring charges of $ 2 million and $ 4 million, respectively . The charges related to the design and implementation of our new accounts receivable system. During the three months ended March 31, 2026 and 2025, we paid $ 4 million and $ 3 million , respectively, related to these restructuring efforts. 3. GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2025 Acquisitions Divestitures Adjustments and Other Balance as of March 31, 2026 Group 1 $ 7,573 $ 137 $ — $ — $ 7,710 Group 2 6,597 56 — ( 7 ) 6,646 Group 3 2,545 25 — — 2,570 Total $ 16,715 $ 218 $ — $ ( 7 ) $ 16,926 Other Intangible Assets, Net Other intangible assets, net, is primarily comprised of values assigned to customer relationships, which are amortized over periods ranging from 1 to 15 years. A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Balance as of December 31, 2025 Acquisitions Adjustments and Other Balance as of March 31, 2026 Balance as of December 31, 2025 Additions Charged to Expense Adjustments and Other Balance as of March 31, 2026 Other Intangible Assets, Net as of March 31, 2026 Customer relationships $ 881 $ 17 $ ( 3 ) $ 895 $ ( 289 ) $ ( 21 ) $ — $ ( 310 ) $ 585 Other intangible assets 84 1 — 85 ( 21 ) ( 2 ) — ( 23 ) 62 Total $ 965 $ 18 $ ( 3 ) $ 980 $ ( 310 ) $ ( 23 ) $ — $ ( 333 ) $ 647 11 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 4. OTHER ASSETS Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets as of March 31, 2026 and December 31, 2025 follows: 2026 2025 Parts and supplies $ 114 $ 106 Prepaid expenses 108 131 Income taxes receivable 89 146 Other non-trade receivables 77 94 Reinsurance receivable 31 32 Other 56 41 Total $ 475 $ 550 Other Assets A summary of other assets as of March 31, 2026 and December 31, 2025 follows: 2026 2025 Investments $ 769 $ 815 Operating right-of-use lease assets 207 208 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 164 159 Deferred compensation plan 140 143 Reinsurance receivable, net of current 89 90 Deferred contract costs and sales commissions 78 81 Derivative and hedging assets 36 32 Other 47 47 Total $ 1,530 $ 1,575 5. OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of March 31, 2026 and December 31, 2025 follows: 2026 2025 Accrued payroll and benefits $ 286 $ 313 Insurance reserves, current 253 251 Accrued fees and taxes 227 214 Accrued dividends 192 193 Operating right-of-use lease liabilities, current 49 48 Accrued professional fees and legal settlement reserves 34 32 Ceded insurance reserves, current 31 32 Contingent purchase price and acquisition holdbacks 14 25 Other 150 97 Total $ 1,236 $ 1,205 12 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Other Long-Term Liabilities A summary of other long-term liabilities as of March 31, 2026 and December 31, 2025 follows: 2026 2025 Operating right-of-use lease liabilities $ 174 $ 177 Deferred compensation plan liability 128 125 Ceded insurance reserves 89 90 Contingent purchase price and acquisition holdbacks 58 59 Derivative and hedging liabilities 49 46 Withdrawal liability - multiemployer pension funds 20 20 Other 34 39 Total $ 552 $ 556 6. LANDFILL AND ENVIRONMENTAL COSTS As of March 31, 2026, we owned or operated 209 active landfills, and we had post-closure responsibility for 124 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of March 31, 2026 and December 31, 2025 follows: 2026 2025 Landfill final capping, closure and post-closure liabilities $ 2,339 $ 2,313 Environmental remediation 440 443 Total accrued landfill and environmental costs 2,779 2,756 Less: current portion ( 159 ) ( 148 ) Long-term portion $ 2,620 $ 2,608 Final Capping, Closure and Post-Closure Costs The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the three months ended March 31, 2026 and 2025: 2026 2025 Asset retirement obligation liabilities, beginning of year $ 2,313 $ 2,144 Non-cash additions 15 17 Acquisitions, net of divestitures and other adjustments 7 — Asset retirement obligation adjustments ( 17 ) — Payments ( 9 ) ( 8 ) Accretion expense 30 28 Asset retirement obligation liabilities, end of period 2,339 2,181 Less: current portion ( 97 ) ( 97 ) Long-term portion $ 2,242 $ 2,084 We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate. Landfill Operating Expenses In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred. 13 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Environmental Remediation Liabilities We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of March 31, 2026 would be approximately $ 276 million higher than the amount recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations and cash flows. The following table summarizes the activity in our environmental remediation liabilities for the three months ended March 31, 2026 and 2025: 2026 2025 Environmental remediation liabilities, beginning of year $ 443 $ 447 Payments ( 11 ) ( 9 ) Accretion expense (non-cash interest expense) 4 5 Acquisitions, net of divestitures and other adjustments 4 12 Environmental remediation liabilities, end of period 440 455 Less: current portion ( 62 ) ( 62 ) Long-term portion $ 378 $ 393 West Lake Landfill Superfund Site . Our subsidiary Bridgeton Landfill, LLC is one of several currently designated Potentially Responsible Parties for the West Lake Landfill Superfund site (West Lake) in Missouri. On September 27, 2018, the United States Environmental Protection Agency (EPA) issued a Record of Decision Amendment for West Lake that includes a total undiscounted cost estimate of $ 229 million over a four to five year design and construction timeline. On March 11, 2019, the EPA issued special notice letters under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) to Bridgeton Landfill, LLC and the other currently designated Potentially Responsible Parties to initiate negotiations to implement the remedy. On January 17, 2025, the EPA issued an Explanation of Significant Differences (ESD) applying the prior Record of Decision Amendment to an increased number of acres at the site found to contain radiologically-impacted material. The ESD includes a revised undiscounted cost estimate of $ 392 million. At this time we are neither able to predict the final design of that remedy, nor estimate how much of the future response costs of the site our subsidiary may agree or be required to pay. During any subsequent administrative proceedings or litigation, our subsidiary will vigorously contest liability for the costs of remediating radiologically-impacted materials generated on behalf of the federal government during the Manhattan Project and delivered to the site by an Atomic Energy Commission licensee and its subcontractor. However, subsequent events related to remedy design, divisibility, or allocation may require us to modify our expected remediation liability. 14 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 7. DEBT The carrying value of our credit facilities, finance leases and long-term debt as of March 31, 2026 and December 31, 2025 is listed in the following table, and is adjusted for unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. March 31, 2026 December 31, 2025 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 50 $ — $ 50 $ — $ — $ — The Credit Facility Variable 188 — 188 425 — 425 Commercial Paper Variable 1,422 ( 1 ) 1,421 1,000 ( 1 ) 999 Senior notes: July 2026 2.900 500 — 500 500 — 500 November 2027 3.375 650 ( 1 ) 649 650 ( 1 ) 649 May 2028 3.950 800 ( 5 ) 795 800 ( 5 ) 795 April 2029 4.875 750 ( 4 ) 746 750 ( 5 ) 745 November 2029 5.000 400 ( 3 ) 397 400 ( 3 ) 397 March 2030 2.300 600 ( 3 ) 597 600 ( 3 ) 597 July 2030 4.750 500 ( 5 ) 495 500 ( 5 ) 495 February 2031 1.450 650 ( 4 ) 646 650 ( 5 ) 645 February 2032 1.750 750 ( 4 ) 746 750 ( 4 ) 746 March 2033 2.375 700 ( 5 ) 695 700 ( 5 ) 695 December 2033 5.000 650 ( 8 ) 642 650 ( 8 ) 642 April 2034 5.000 800 ( 9 ) 791 800 ( 9 ) 791 November 2034 5.200 500 ( 5 ) 495 500 ( 5 ) 495 March 2035 6.086 182 ( 10 ) 172 182 ( 10 ) 172 March 2035 5.150 700 ( 10 ) 690 700 ( 10 ) 690 March 2040 6.200 400 ( 3 ) 397 400 ( 3 ) 397 May 2041 5.700 386 ( 5 ) 381 386 ( 5 ) 381 March 2050 3.050 400 ( 6 ) 394 400 ( 7 ) 393 Debentures: September 2035 7.400 148 ( 26 ) 122 148 ( 26 ) 122 Tax-exempt: 2026 - 2056 2.550 - 3.450 1,422 ( 10 ) 1,412 1,378 ( 9 ) 1,369 Finance leases and other: 2026 - 2063 1.726 - 9.750 443 — 443 441 — 441 Total Debt $ 13,991 $ ( 127 ) 13,864 $ 13,710 $ ( 129 ) 13,581 Less: current portion ( 547 ) ( 596 ) Long-term portion $ 13,317 $ 12,985 15 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Credit Facilities Uncommitted Credit Facility In January 2022, we entered into a $ 200 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility). The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties. Borrowings under the Uncommitted Credit Facility can be used for working capital, letters of credit, and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants. The Uncommitted Credit Facility may be terminated by either party at any time. As of March 31, 2026, we had $ 50 million of borrowings outstanding under our Uncommitted Credit Facility. As of December 31, 2025, we had no borrowings outstanding under our Uncommitted Credit Facility. The Credit Facility In July 2024, we and our subsidiary, USE Canada Holdings, Inc. (the Canadian Borrower) entered into the Second Amended and Restated Credit Agreement (the Credit Facility) which amended and restated the unsecured revolving credit facility we entered into in August 2021. The total outstanding principal amount that we may borrow under the Credit Facility may not exceed the current aggregate lenders' commitments of $ 3.5 billion, and borrowings under the Credit Facility mature in July 2029. As permitted by the Credit Facility, we have the right to request two one-year extensions of the maturity date, but none of the lenders are committed to participate in such extensions. The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $ 1.0 billion through increased commitments from existing lenders or the addition of new lenders. All loans to the Canadian Borrower and all loans denominated in Canadian dollars cannot exceed $ 1.0 billion (the Canadian Sublimit). The Canadian Sublimit is part of, and not in addition to, the aggregate commitments under the Credit Facility. Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR, plus a current applicable margin of 0.805 % based on our Debt Ratings (all as defined in the Credit Facility agreement). The Canadian dollar-denominated loans bear interest based on the Canadian Prime Rate or the Canadian Dollar Offered Rate (all as defined in the Credit Facility agreement) plus a current applicable margin of 0.805 % based on our Debt Ratings. As of March 31, 2026 and December 31, 2025, C$ 261 million and C$ 204 million, respectively, were outstanding against the Canadian Sublimit. The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage. The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants. We had $ 188 million and $ 425 million outstanding under the Credit Facility as of March 31, 2026 and December 31, 2025, respectively. We had $ 315 million and $ 319 million of letters of credit outstanding under the Credit Facility as of March 31, 2026 and December 31, 2025, respectively. We also had $ 1.4 billion and $ 1.0 billion of principal borrowings outstanding under our commercial paper program as of March 31, 2026 and December 31, 2025, respectively. As a result, availability under the Credit Facility was $ 1.6 billion and $ 1.8 billion as of March 31, 2026 and December 31, 2025, respectively. Commercial Paper Program In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $ 500 million outstanding at any one time (the Commercial Paper Cap). In August 2022, the Commercial Paper Cap was increased to $ 1.0 billion, and in October 2023, was increased to $ 1.5 billion. The weighted average interest rate for borrowings outstanding as of March 31, 2026 was 4.069 %. The weighted average interest rate for borrowings outstanding as of December 31, 2025 was 4.044 %. We had $ 1.4 billion and $ 1.0 billion principal value of commercial paper issued and outstanding under the program as of March 31, 2026 and December 31, 2025, respectively. In the event of a failed re-borrowing, we currently have availability under our Credit Facility to fund amounts currently borrowed under the commercial paper program until they are re-borrowed successfully. Accordingly, we have classified these borrowings as long-term in our consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively. 16 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Senior Notes and Debentures In March 2025, we issued $ 500 million of 4.750 % senior notes due 2030 and $ 700 million of 5.150 % senior notes due 2035. We used the proceeds from the March 2025 notes issuance for general corporate purposes, including the repayment of a portion of amounts outstanding on our Credit Facility and a portion of outstanding borrowings under the Commercial Paper Program. Our senior notes and debentures are general unsecured and unsubordinated obligations and rank equally with our other unsecured obligations. Tax-Exempt Financings As of both March 31, 2026 and December 31, 2025, we had $ 1.4 billion of tax-exempt financings outstanding with maturities ranging from 2026 to 2056 and 2026 to 2054, respectively. In March 2026, the California Municipal Finance Authority issued, for our benefit, $ 100 million in principal amount of Solid Waste Disposal Revenue Bonds. The proceeds from the issuance, after deferred issuance costs, will be used to fund the acquisition, construction, improvement, installation, and/or equipping of certain solid waste disposal facilities located within California, of which $ 81 million had been incurred and reimbursed to us as of March 31, 2026. As of March 31, 2026, we had $ 292 million of restricted cash and marketable securities, of which $ 19 million represented proceeds from the issuance of the tax-exempt bonds. We have $ 250 million of tax-exempt financings that have an initial remarketing period of 10 years. Our remaining tax-exempt financings are remarketed either quarterly or semiannually by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. If the remarketing agents are unable to remarket our bonds, the remarketing agents can put the bonds to us. In the event of a failed remarketing, we currently have availability under our Credit Facility to fund these bonds until they are remarketed successfully. Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of March 31, 2026 and December 31, 2025. Finance Leases and Other As of March 31, 2026 and December 31, 2025, we had finance leases and other liabilities of $ 443 million and $ 441 million, respectively, with maturities ranging from 2026 to 2063 for both periods, respectively. As of March 31, 2026 and December 31, 2025, finance leases and other included $ 154 million and $ 148 million, respectively, related to construction costs for our corporate office building located in Phoenix, Arizona, which has been accounted for as a financing obligation. 8. INCOME TAXES Our effective tax rate, exclusive of non-controlling interests, for the three months ended March 31, 2026 and 2025 was 19.9 % and 25.6 %, respectively. Our effective tax rate for the three months ended March 31, 2026 reflects a benefit of $ 37 million due to our investments in renewable energy assets and $ 3 million due to investments in renewable natural gas projects and electric vehicle infrastructure. Our effective tax rate for the three months ended March 31, 2025 reflects a benefit of $ 2 million due to investments in renewable natural gas projects and commercial electric vehicles. For the three months ended March 31, 2026 and 2025, net cash paid for income taxes was $ 4 million and $ 2 million, respectively. We have deferred tax assets related to state net operating loss carryforwards with an estimated tax effect of $ 50 million available as of March 31, 2026. These state net operating loss carryforwards expire at various times between 2027 and 2046. We believe that it is more likely than not that the benefit from some of our state net operating loss carryforwards will not be realized due to limitations on these loss carryforwards in certain states. In recognition of this risk, as of March 31, 2026, we have provided a valuation allowance of $ 40 million. We are subject to income tax in the United States and Canada, as well as multiple state jurisdictions. Our compliance with income tax rules and regulations is periodically audited by taxing authorities. These authorities may challenge the positions taken in our tax filings. Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of these examinations. Our federal statute of limitations applicable to our federal tax returns is closed through 2021. In addition, we are currently under state examination or administrative review in various jurisdictions for tax years 2013 through 2024. 17 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statement of income. As of March 31, 2026, we accrued a liability for penalties of $ 3 million and a liability for interest (including interest on penalties) of $ 5 million related to our uncertain tax positions. We believe the recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows. 9. SHARE REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Available Shares We currently have approximately 10 million shares of common stock reserved for future grants under the Republic Services, Inc. 2021 Stock Incentive Plan. Share Repurchases In October 2023, our Board of Directors approved a $ 3.0 billion share repurchase authorization effective January 1, 2024 and extending through December 31, 2026. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. On a quarterly basis, our Board of Directors reviews the intrinsic value of our stock and the parameters around which we repurchase our shares. Share repurchase activity during the three months ended March 31, 2026 and 2025 follows (in millions, except per share amounts): Three Months Ended March 31, 2026 2025 Number of shares repurchased 1.3 0.3 Amount paid $ 292 $ 55 Weighted average cost per share $ 218.22 $ 201.40 The average price paid per share, total repurchase costs and approximate maximum dollar value of the shares that may yet be purchased under the plans or programs exclude a 1% excise tax. As of March 31, 2026, there were less than 1 million repurchased shares pending settlement, resulting in an associated $ 22 million of share repurchases unpaid and included within other accrued liabilities. As of March 31, 2025, there were no repurchased shares pending settlement. As of March 31, 2026, the remaining authorized purchase capacity under our October 2023 repurchase program was $ 1.4 billion. Dividends In February 2026, our Board of Directors approved a quarterly dividend of $ 0.625 per share. Cash dividends declared were $ 192 million for the three months ended March 31, 2026. As of March 31, 2026, we recorded a quarterly dividend payable of $ 192 million to shareholders of record at the close of business on April 2, 2026. 18 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Earnings per Share Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued restricted stock units and performance stock units) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the unvested restricted stock units (RSUs) and the unvested performance stock units (PSUs) at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share. Earnings per share for the three months ended March 31, 2026 and 2025 are calculated as follows (in thousands, except per share amounts): Three Months Ended March 31, 2026 2025 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 525,259 $ 494,996 Weighted average common shares outstanding 309,089 312,967 Basic earnings per share $ 1.70 $ 1.58 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 525,259 $ 494,996 Weighted average common shares outstanding 309,089 312,967 Effect of dilutive securities: Unvested RSU awards 46 108 Unvested PSU awards 138 202 Weighted average common and common equivalent shares outstanding 309,273 313,277 Diluted earnings per share $ 1.70 $ 1.58 10. FINANCIAL INSTRUMENTS Fair Value Measurements In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of our financial instruments, including cash, accounts receivable, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. 19 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) As of March 31, 2026 and December 31, 2025, our assets and liabilities that are measured at fair value on a recurring basis include the following: March 31, 2026 Fair Value Carrying Amount Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market mutual funds - restricted cash and marketable securities and other assets $ 77 $ 77 $ 77 $ — $ — Bonds and fixed income - restricted cash and marketable securities and other assets 94 94 — 94 — Derivative and hedging assets - other assets, prepaid expenses and other current assets 36 36 — 36 — Total assets $ 207 $ 207 $ 77 $ 130 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 49 $ 49 $ — $ 49 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 63 63 — — 63 Total liabilities $ 112 $ 112 $ — $ 49 $ 63 December 31, 2025 Fair Value Carrying Amount Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market mutual funds - restricted cash and marketable securities and other assets $ 75 $ 75 $ 75 $ — $ — Bonds and fixed income - restricted cash and marketable securities and other assets 97 97 — 97 — Derivative and hedging assets - other assets, prepaid expenses and other current assets 32 32 — 32 — Total assets $ 204 $ 204 $ 75 $ 129 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 46 $ 46 $ — $ 46 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 63 63 — — 63 Total liabilities $ 109 $ 109 $ — $ 46 $ 63 Total Debt As of March 31, 2026 and December 31, 2025, the carrying value of our total debt was $ 13.9 billion and $ 13.6 billion, respectively, and the fair value of our total debt was $ 13.6 billion and $ 13.5 billion, respectively. The estimated fair value of our fixed rate senior notes, debentures and certain tax-exempt financings is based on quoted market prices. The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable. The fair value estimates are based on Level 2 inputs of the fair value hierarchy as of March 31, 2026 and December 31, 2025. See Note 7, Debt , for further information related to our debt. 20 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 11. SEGMENT REPORTING Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling and disposal. Our chief operating decision maker (CODM) is Jon Vander Ark, President and Chief Executive Officer of Republic Services, Inc. Adjusted EBITDA is the single financial measure our CODM uses to evaluate segment profitability and returns, which informs resource allocation. For all segments, the CODM uses Adjusted EBITDA to evaluate income generated from segment assets (return on invested capital). The CODM considers budget-to-actual variances and year-over-year growth on a monthly basis to assess the performance of each segment. Cost of operations and selling, general and administrative expenses are significant segment expenses used in the evaluation. Summarized financial information concerning our reportable segments for the three months ended March 31, 2026 and 2025 follows: Group 1 Group 2 Recycling & Waste Subtotal (1) Group 3 (Environmental Solutions) Corporate entities and other Total Three Months Ended March 31, 2026 Gross revenue $ 2,202 $ 1,995 $ 4,197 $ 407 $ 95 $ 4,699 Intercompany revenue ( 318 ) ( 254 ) ( 572 ) ( 9 ) ( 5 ) ( 586 ) Revenue allocations 44 39 83 7 ( 90 ) — Net revenue 1,928 1,780 3,708 405 — 4,113 Cost of operations 1,068 1,032 2,100 266 — 2,366 Selling, general and administrative 191 173 364 61 — 425 Adjusted EBITDA $ 669 $ 575 $ 1,244 $ 78 $ — $ 1,322 Capital expenditures $ 276 $ 153 $ 429 $ 29 $ 18 $ 476 Total assets $ 14,716 $ 11,646 $ 26,362 $ 5,241 $ 2,997 $ 34,600 Three Months Ended March 31, 2025 Gross revenue $ 2,064 $ 1,977 $ 4,041 $ 454 $ 98 $ 4,593 Intercompany revenue ( 304 ) ( 249 ) ( 553 ) ( 13 ) ( 18 ) ( 584 ) Revenue allocations 37 35 72 8 ( 80 ) — Net revenue 1,797 1,763 3,560 449 — 4,009 Cost of operations 1,012 1,016 2,028 286 — 2,314 Selling, general and administrative 187 170 357 70 — 427 Adjusted EBITDA $ 598 $ 577 $ 1,175 $ 93 $ — $ 1,268 Capital expenditures $ 158 $ 96 $ 254 $ 35 $ 170 $ 459 Total assets $ 14,007 $ 11,301 $ 25,308 $ 5,129 $ 2,666 $ 33,103 (1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments. Corporate entities and other includes marketing, operations support, business development, legal, tax, treasury, information technology, risk management, human resources and other administrative functions. National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA. Intercompany revenue reflects transactions within and between segments. Capital expenditures for Corporate entities and other 21 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) for the three months ended March 31, 2026 largely included investments in our digital platforms. Capital expenditures for Corporate entities and other for the three months ended March 31, 2025 primarily included vehicle inventory acquired but not yet assigned to operating locations and facilities. As presented in the table below, Adjusted EBITDA reflects certain adjustments for loss from unconsolidated equity method investments, restructuring charges, and gain on business divestitures and impairments, net. This presentation is consistent with how our CODM reviews our results of operations to make resource allocation decisions. A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to income before income taxes in the Consolidated Statements of Net Income is as follows: Three Months Ended March 31 2026 2025 Group 1 Adjusted EBITDA $ 669 $ 598 Group 2 Adjusted EBITDA 575 577 Group 3 Adjusted EBITDA 78 93 Total Adjusted EBITDA 1,322 1,268 Other income, net ( 27 ) ( 11 ) Interest income ( 2 ) ( 2 ) Interest expense 151 140 Depreciation, depletion and amortization 461 434 Accretion 30 28 Loss from unconsolidated equity method investment 52 12 Restructuring charges 2 4 Gain on business divestitures and impairments, net ( 1 ) ( 2 ) Income before income taxes $ 656 $ 665 22 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 12. REVENUE AND CREDIT LOSSES Our operations primarily consist of providing environmental services. The following table disaggregates our revenue by service line for the three months ended March 31, 2026 and 2025 (in millions of dollars and as a percentage of revenue): Three Months Ended March 31, 2026 2025 Collection: Residential $ 747 18.2 % $ 743 18.6 % Small-container 1,306 31.8 1,243 31.0 Large-container 768 18.7 739 18.4 Other 17 0.4 18 0.4 Total collection 2,838 69.1 2,743 68.4 Transfer 440 424 Less: intercompany ( 240 ) ( 236 ) Transfer, net 200 4.9 188 4.7 Landfill 764 723 Less: intercompany ( 311 ) ( 302 ) Landfill, net 453 11.0 421 10.5 Environmental solutions 417 466 Less: intercompany ( 12 ) ( 17 ) Environmental solutions, net 405 9.8 449 11.2 Other: Recycling processing and commodity sales 112 2.7 108 2.7 Other non-core 105 2.5 100 2.5 Total other 217 5.2 208 5.2 Total revenue $ 4,113 100.0 % $ 4,009 100.0 % Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. Intercompany revenue reflects transactions within and between lines of business. See Note 11, Segment Reporting , for additional information regarding revenue by reportable segment. Revenue Recognition Our service obligations of a long-term nature, e.g., certain collection service contracts, are satisfied over time, and we recognize revenue based on the value provided to the customer during the period. The amount billed to the customer is based on variable elements such as the number of residential homes or businesses for which collection services are provided, the volume of material collected, treated, transported and disposed, and the nature of the material accepted. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. Additionally, certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity prices. The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period. Environmental solutions revenue is primarily generated from the fees we charge for the collection, treatment, consolidation, disposal and recycling of hazardous and non-hazardous waste, field and industrial services, equipment rental, emergency response and standby services and in-plant services, such as transportation and logistics, including at our treatment, storage and disposal facilities (TSDF). Activity for this service line varies across markets and reflects the regulatory environment, pricing and disposal alternatives available in any given market. Revenue recognized is variable in nature and primarily based on the 23 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) volume and type of waste accepted or processed during the period. For certain field and industrial services contracts, we have a right to consideration from our customers in an amount that corresponds directly with the value to the customer of the Company's performance completed to date. Therefore, we have applied the practical expedient to recognize revenue for the amount to which we have the right to invoice. Deferred Revenue The factors that impact the timing and amount of revenue recognized for each service line may vary based on the nature of the service performed. Generally, we recognize revenue at the time we perform a service. In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided. Depending on the nature of the contract, we may also generate revenue through the collection of fuel recovery fees and environmental fees which are designed to recover our internal costs of providing services to our customers. Substantially all of the deferred revenue recognized as of December 31, 2025 was recognized as revenue during the three months ended March 31, 2026 when the service was performed. Deferred Contract Costs We incur certain upfront payments to acquire customer contracts which are recognized as other assets in our consolidated balance sheet, and we amortize the asset over the respective contract life. In addition, we recognize sales commissions that represent an incremental cost of the contract as other assets in our consolidated balance sheet, and we amortize the asset over the average life of the customer relationship. For the periods ended March 31, 2026 and December 31, 2025, we recognized $ 78 million and $ 81 million, respectively, of deferred contract costs and capitalized sales commissions. Credit Losses Accounts receivable represent receivables from customers for environmental services, including collection and processing of recyclable materials, collection, transfer, and disposal of solid waste, and environmental solutions. Our receivables are recorded when billed or when the related revenue is earned and represent claims against third parties that will be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts and customer credits, represents their estimated net realizable value. We establish an allowance for doubtful accounts based on various factors including the age of receivables outstanding, historical trends, economic conditions and other information. We also review outstanding balances on an account-specific basis based on the credit risk of the customer. We determined that all of our accounts receivable share similar risk characteristics. We monitor our credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. We perform ongoing credit evaluations of our customers, but generally do not require collateral to support customer receivables. The following table reflects the activity in our allowance for doubtful accounts for the three months ended March 31, 2026 and 2025: 2026 2025 Balance at beginning of year $ 66 $ 74 Additions charged to expense 12 10 Accounts written-off ( 18 ) ( 17 ) Balance at end of period $ 60 $ 67 13. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, or settlements, which may impact earnings and cash flows for a particular period. Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 24 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 5, Other Liabilities; and (2) environmental remediation liabilities, which are discussed in Note 6, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses. Where we can reasonably estimate a range of losses we may incur regarding such a matter, we record an accrual for the amount within the range that constitutes our best estimate. If we can reasonably estimate a range but no amount within the range appears to be a better estimate than any other, we use the amount that is the low end of such range. As of March 31, 2026, we estimate that the probable and reasonably estimable outcomes of any such legal proceedings, as well as the aggregate potential liability using reasonably possible high ends of our ranges, are immaterial to the Company's consolidated financial statements. Multiemployer Pension Plans We participate in multiemployer pension plans that generally provide retirement benefits to participants of contributing employers. We do not administer these plans. Under current law regarding multiemployer pension plans, our withdrawal (which we consider from time to time) or the mass withdrawal from any under-funded multiemployer pension plan (each, a Withdrawal Event) could require us to make payments to the plan for our proportionate share of the plan’s unfunded vested liabilities. During the course of operating our business, we incur Withdrawal Events regarding certain of the multiemployer pension plans in which we participate. We accrue for such events when losses become probable and reasonably estimable. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows are reconciled as follows: March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024 Cash and cash equivalents $ 118 $ 76 $ 83 $ 74 Restricted cash and marketable securities 292 259 222 208 Less: restricted marketable securities ( 83 ) ( 86 ) ( 81 ) ( 79 ) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 327 $ 249 $ 224 $ 203 Our restricted cash and marketable securities include amounts pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits and relating to our final capping, closure and post-closure obligations at our landfills as well as restricted cash and marketable securities related to our insurance obligations. The following table summarizes our restricted cash and marketable securities: March 31, 2026 December 31, 2025 Financing proceeds $ 19 $ — Capping, closure and post-closure obligations 69 67 Insurance 204 192 Total restricted cash and marketable securities $ 292 $ 259 Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than short-term operating leases and financial assurances, which are not classified as debt. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations. We have not guaranteed any third-party debt. 25 Table of C ontents