Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 342

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 342
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 |    — | % |     |     |    — | % |     |     |    — | % |
| Risk-free interest rate |     |                         |  4.4 | % |     |     |  4.2 | % |     |     |  4.0 | % |
| Expected volatility     |     |                         |   61 | % |     |     |   55 | % |     |     | 70.0 | % |
| Expected life (years)   |     |                         |  3.7 |   |     |     |  4.9 |   |     |     |  3.1 |   |

F-87

Since certain liquidity events (including Change of Control) have not occurred since the adoption of the Plan, no compensation expense is recorded for equity-classified Performance Interests and Exit Interests for the years ended December 31, 2024, 2023 or 2022. As of December 31, 2024, the unrecognized compensation expense related to Performance Interests and Exit Interests is approximately $5.0 million and $4.2 million, respectively. As a liquidity event (including Change of Control) is not considered probable until it occurs, the Company does not estimate the time period for the compensation expense to be recognized. Restricted Series C Common Interests In connection with an acquisition in 2023, Parent issued as compensation for future services Restricted Series C Common Intereststo certain of the acquiree’s former shareholders and employees who became Company employees in connection with the acquisition .These awards are liability-classified. The activity of the Restricted Series C Common Interests issued to employees of the Company was as follows:

| Outstanding as of December 31, 2022 |     | Restricted 
 Series C   
 Common     
 Interests  |     — |     | Weighted-       
 average Grant   
 Date Fair Value 
 Per Interest    |     — |
|:------------------------------------|:----|:-----------|------:|:----|:----------------|------:|
| Granted                             |     |            | 1,278 |     | $               | 1,571 |
| Outstanding as of December 31, 2023 |     |            | 1,278 |     | $               | 1,571 |
| Granted                             |     |            |     — |     | $               |     — |
| Outstanding as of December 31, 2024 |