Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 121

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 121
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)(22,143)— (22,143)Net (loss) income— (1,083)— (1,083)407 (676)Balance, September 30, 2024$743,304 $(231,464)$2,530 $514,370 $407 $514,777 

See Notes to Condensed Consolidated Financial Statements.

10

Legence Corp.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended September 30,20252024Cash flows from operating activities:Net loss$(22,629)$(9,443)Adjustments to reconcile net loss to cash provided by operating activities:Amortization of intangible assets61,888 59,506 Depreciation of property and equipment23,723 21,481 Amortization of debt issuance costs and discounts3,007 3,665 Stock-based compensation21,881 8,726 Deferred taxes6,378 (4,616)Equity in earnings of joint venture(848)(3,131)Return on investment in joint venture500 — Operating lease right-of-use asset lease expense12,959 9,332 Loss on debt extinguishment5,685 — Other148 3,320 Changes in operating assets and liabilities:Accounts receivable, net(139,448)14,518 Contract assets(46,182)(48,115)Prepaid expenses and other current assets1,198 (258)Accounts payable94,542 9,904 Accrued compensation and benefits34,355 21,183 Accrued and other current liabilities(4,110)(35,799)Contract liabilities120,027 (20,855)Operating lease liabilities, current and long-term(10,727)(7,527)Other long-term assets and liabilities(223)1,338 Cash provided by operating activities162,124 23,229 Cash flows from investing activities:Purchases of property and equipment(24,734)(12,776)Consideration paid for acquisitions, net of cash acquired(453)(220,115)Proceeds from sale of property and equipment226 191 Cash used in investing activities(24,961)(232,700)Cash flows from financing activities:Term loan borrowings (including $2,495 and $38,500 in 2025 and 2024, respectively, from related parties)2