Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 189

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 189
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 period. In addition, management believes these measures may be useful for investors in comparing our operating results with those of other companies. 

Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAP financial measures superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. Some of the limitations are that such measures: 

•may exclude the recurring expenses of depreciation and amortization of property and equipment and definite-lived intangible assets and the assets being depreciated and amortized may have to be replaced in the future; 

•do not reflect changes in our working capital needs; 

•do not reflect the interest (income) expense on our indebtedness; or 

•do not reflect the income tax (benefit) provision we are required to make. 

In order to evaluate our business, we encourage you to review the financial statements included elsewhere in this Quarterly Report, and not rely on a single financial measure to evaluate our business. 

56

The following table provides a reconciliation of our Net income (loss), the most directly comparable financial measure presented in accordance with GAAP, to Adjusted EBITDA, and a calculation of Adjusted EBITDA margin for the periods presented herein (dollars in thousands): 

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net income (loss)$379 $(676)$(22,629)$(9,443)Interest expense28,183 23,707 88,228 65,392 Interest income(1,069)(523)(2,588)(4,356)Income tax expense4,078 4,564 13,662 9,500 Depreciation and amortization27,490 28,666 85,611 80,987 Credit agreement amendment fees(1)64 — 2,990 4,119 Net loss (gain) on sale and disposition of property and equipment21 (118)(199)(299)Loss on debt extinguishment5,685 — 5,685 — Acquisition and integration costs(2)1,169 881 2,935 7,069 System deployment costs(3)— 1,393 2,140 3,909 Strategic