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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The income tax expense (benefit) consists of the following (in thousands):

			Year Ended December 31,
			2025						2024						2023
Current tax expense (benefit):
Federal			$	(499)					$	11,842					$	1,939
State			7,373						6,383						3,479
Total current tax expense			6,874						18,225						5,418
Deferred tax expense (benefit):
Federal			10,955						(5,608)						(7,299)
State			4,332						(8,096)						(6,037)
Total deferred tax expense (benefit)			15,287						(13,704)						(13,336)
Income tax expense (benefit)			$	22,161					$	4,521					$	(7,918)

Schedule of Cash Paid for Income Taxes, Net of Refunds

During the tax year 2025, cash paid for income taxes, net of refunds consisted of the following:

			Year Ended December 31, 2025
Federal			$	9,605
California			1,228
Pennsylvania			942
Other States			4,667
Foreign			—
Total			$	16,442

Additional cash flow information was as follows (in thousands):

			Year Ended December 31,
			2025						2024						2023
Cash paid for interest and taxes
Interest paid, net of interest rate swaps(a)			$	96,884					$	85,662					$	61,794
Income taxes paid, net of refunds			$	16,442					$	17,496					$	10,160
Non-cash investing activities
Property and equipment additions included in Accounts payable			$	4,906					$	429					$	579
Non-cash financing activities
Parent issuance of Parent interests for contingent consideration - related parties			$	—					$	—					$	9,325
Deferred offering costs included in Accounts payable			$	60					$	3,488					$	—
Contribution from Legence Parent for Series A Interests and Restricted Series C Interests			$	30,510					$	—					$	—
Contribution from Legence Parent II for Series A Interests			$	17,805					$	—					$	—
TRA liability - secondary offering exchanges			$	58,060					$	—					$	—

Deferred tax asset, net of valuation allowance, recognized in connection with TRA liability - secondary offering exchanges			$	4,552					$	—					$	—
Non-cash financing activities related to IPO and Corporate Reorganization
Reclassification 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 TRA liability			$	28,697					$	—					$	—

(a)The Company classifies the cash flows resulting from its interest rate swaps in Cash provided by operating activities on the Consolidated Statements of Cash Flows consistent with the interest that is hedged. Refer to “Note 11—Derivatives” for additional information on the Company's interest rate swaps.

Schedule of Effective Income Tax Rate Reconciliation

The following table represents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 31, 2025:

			Year Ended December 31, 2025
Income tax at the statutory federal rate			$	(11,580)					21.0		%
State and local income taxes
Current and Deferred State Tax Provision			6,910						(12.5)		%
State Tax Rate & Apportionment Changes			3,079						(5.6)		%
Tax Credits			(969)						1.8		%
Changes in Valuation Allowances			1,725						(3.1)		%
Nontaxable or nondeductible items
Section 179D deduction			(1,596)						2.9		%
Series A Profits Interests			6,432						(11.7)		%
Indemnification Expense			2,117						(3.8)		%
TRA Expense Adjustment			612						(1.1)		%
Non-Controlling Interest			14,381						(26.1)		%
Goodwill Impairment			5,243						(9.5)		%
Other nontaxable or nondeductible items			646						(1.2)		%
Changes in unrecognized tax benefits			(3,589)						6.5		%
Other			(1,250)						2.2		%
Effective tax rate			$	22,161					(40.2)		%

The following table presents the required disclosures prior to our adoption of ASU 2023-09 and reconciles the U.S. federal statutory income tax rate to the actual global effective tax rate for the years ended December 31, 2024 and 2023:

			Year Ended December 31,
			2024						2023
Income tax at the statutory federal income tax rate			21.0%						21.0%
Pass-through income not subject to income tax			(48.7)%						(15.5)%
State and local income taxes			(7.7)%						4.9%
Non-corporate pass-through earnings			(6.2)%						(1.1)%
Nondeductible transaction costs			—%						(3.7)%
Nondeductible earnout expenses			—%						(17.3)%
Section 179D deduction			4.1%						9.4%
Intercompany interest transfer			6.8%						3.0%
Stock compensation			(1.9)%						—%
R&D credit			3.8%						1.6%
Rate change			30.1%						(1.6)%
Return to provision adjustments			(1.8)%						8.2%
Goodwill impairment			(16.2)%						—%
Deferred tax adjustments			(0.3)%						7.1%
Other			(2.6)%						(1.5)%
Effective tax rate			(19.6)%						14.5%

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the Company's net deferred tax liability as reflected in the Consolidated Balance Sheets are as follows (in thousands):

			December 31,
			2025						2024						2023
Deferred tax assets:
Net operating loss carryforwards			$	11,161					$	1,417					$	2,314
Research and development credit carryforwards			—						—						316
Amortization			1,084						12,917						11,430
Accrued expenses			1,363						951						737
Outside basis difference in partnerships			169,244						—						—
Tax receivable agreement liability			25,431						—						—
Interest carryforwards			5,669						—						—
Operating lease liabilities			5,410						5,667						6,368
Other			1,035						924						1,889
Total deferred tax assets			220,397						21,876						23,054
Less: Valuation allowance			(181,533)						(129)						—
Net deferred tax assets			$	38,864					$	21,747					$	23,054
Deferred tax liabilities:
Outside basis difference in partnerships			(22,799)						(20,875)						(26,485)
Intangible assets			(26,187)						(28,734)						(36,974)
Operating lease right-of-use-assets			(4,759)						(5,133)						(5,818)
Property and equipment depreciation			(2,064)						(1,967)						(2,423)
Other			(55)						—						(26)
Total deferred tax liabilities			(55,864)						(56,709)						(71,726)
Net deferred tax liabilities			$	(17,000)					$	(34,962)					$	(48,672)

Schedule of Unrecognized Tax Benefits Roll Forward

			December 31,
			2025						2024						2023
Unrecognized tax benefits at the beginning of period			$	10,358					$	2,677					$	2,677
Increases based on tax positions related to the current period			—						—						—
Increases based on tax positions related to prior periods			—						7,681						—
Decreases based on tax positions related to prior periods			(2,453)						—						—
Decreases related to cash settlements with taxing authorities			—						—						—
Unrecognized tax benefits at the end of period			$	7,905					$	10,358					$	2,677

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