Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 166

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 166
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$31,356 Right-of-use assets obtained in exchange for new finance lease liabilities$5,631 $3,743 Right-of-use asset modifications for operating leases$2,026 $2,727 Non-cash financing activities related to IPO and Corporate ReorganizationReclassification of Series A Interests and Restricted Series C Interests from liability to equity$36,358 $— TRA liability recognized$146,474 $— Deferred tax asset, net of valuation allowance, recognized in connection with the TRA liability$8,401 $— 

39

Legence Corp.Notes to Condensed Consolidated Financial Statements - (Continued)(Unaudited)

(1)The Company classifies the cash flows resulting from its interest rate swaps in Cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows consistent with the interest that is hedged. Refer to “Note 9—Derivatives” for additional information on the Company's interest rate swaps.(2)Includes right-of-use assets acquired. Refer to “Note 4—Acquisitions”. Refer to “Note 4—Acquisitions” for disclosure of non-cash financing of acquisitions through issuance of Common Interests.

Note 20 - Subsequent Events

Refer to "Note 4—Acquisitions" for subsequent acquisitions and "Note 7—Debt" for a subsequent amendment to the Company's term loan agreement and revolving line of credit agreement. Other than these items, the Company determined no subsequent events were required to be recognized or disclosed.

40

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 

AND RESULTS OF OPERATIONS 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and our Consolidated Financial Statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q (the "Quarterly Report") and in our final prospectus, dated September 11, 2025, filed with the U.S Securities and Exchange Commission (the “Commission”) pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended, on September 15, 2025 (the "Prospectus") and filed in connection with our initial public offering ("IPO"). In addition to historical consolidated financial information, the following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are subject to numerous