Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 343

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 343
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 |            | 1,278 |     | $               | 1,571 |

The fair value was estimated using the hybrid method as of December 31, 2024 and the OPM as of December 31, 2023 with the following assumptions:

|                         |     | December 31, |     |   |     |      |     |   |
|                         |     |         2024 |     |   |     | 2023 |     |   |
| Expected dividend yield |     |              |   — | % |     |      |   — | % |
| Risk-free interest rate |     |              | 4.3 | % |     |      | 3.8 | % |
| Expected volatility     |     |              |  75 | % |     |      |  55 | % |
| Expected life (years)   |     |              | 2.7 |   |     |      | 5.0 |   |

The hybrid method assumptions above for December 31, 2024 were based on the weighted average assumptions of potential future scenarios as follows:

|                         |     | Net Settle 
 at IPO (1) |     |   |     | Remain as      
 Restricted     
 Series C       
 Common         
 Interests post 
 IPO (2)        |     |   |     | Delayed  
 Exit (3) |     |   |
| Expected dividend yield |     |            |   — | % |     |                |   — | % |     |          |   — | % |
| Risk-free interest rate |     |            | 4.2 | % |     |                | 4.3 | % |     |          | 4.3 | % |
| Expected volatility     |     |            |  80 | % |     |                |  70 | % |     |          |  70 | % |
| Expected life (years)   |     |            | 0.5 |   |     |                | 3.5 |   |     |          | 5.0 |   |

| (1) | The Company completes an IPO, and Restricted Series C Common Interests are settled. |

| (2) | The Company completes an IPO, and Restricted Series C Common Interests remain outstanding. |

| (3) | The Company does not undergo a Change of Control in the foreseeable future. |

F-88

The compensation expense for liability