Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 288

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 288
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ensed Consolidated Financial Statements - (Continued) (Unaudited)

| • |     | Series A Profits Interests - Exit Interests: The modification was determined to be a Type IV Modification under                                                                                                                       
 ASC 718. As such, the modification date fair value establishes a new measurement basis for the awards of $11.7 million. Compensation cost will be recognized based on this modified fair value when or if a change of control occurs. |

| • |     | Restricted Series C Common Interests: The Rollover Restricted Series C Interests will continue to be remeasured                                                                                 
 at fair value at each reporting date. As the modification did not result in a change to the fair value measurement approach, no incremental compensation cost was recognized during the period. |

The result of this modification established the new measurement basis for the Series A Interests and the Restricted Series C Interests. Modifications of Series A Interests On September 16, 2025, the Company modified the Series A Interests such that (i) the Time Interests shall be deemed vested solely for the purpose of distributions and (ii) the vesting conditions for the Performance and Exit Interests changed, including that the change of control exit condition is no longer required for the Exit Interests and vesting is now conditioned upon meeting modified conditions.

| • |     | Time Interests: The Time Interests will continue to be remeasured at fair value at each reporting date. As the                                     
 modification did not result in a change to the fair value measurement approach, no incremental compensation cost was recognized during the period. |

| • |     | Performance Interests: The modification was determined to be an improbable-to-improbable modification (“Type IV Modification”) under ASC 718. As such, the modification date fair value establishes a new measurement basis for the awards of $17.0 million. 
 Compensation cost will be recognized based on this modified fair value when or if certain liquidity events occur.                                                                                                                                            |

| • |     | Exit Interests: The modification was determined to be a Type IV Modification under ASC 718. As such, the                                                                                                            
 modification date fair value establishes a new measurement basis for the awards of $14.8 million. Compensation cost will be recognized based on this modified fair value when or if certain liquidity events occur. |

Since certain liquidity events have not occurred up to September 30, 2025, no compensation expense is recorded for equity-classified Performance Interests and Exit Interests for the three and nine months