XML 28 R9.htm IDEA: XBRL DOCUMENT v3.26.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net loss $ (77,303) $ (27,643) $ (46,026)
Adjustments to reconcile net loss to cash provided by operating activities:      
Amortization of intangible assets 82,342 80,967 70,068
Depreciation of property and equipment 31,946 29,882 22,733
Goodwill impairment 24,966 17,804 5,051
Long-lived asset impairment 2,415 0 0
Amortization of debt issuance costs and discounts 3,480 5,052 5,035
Loss on debt extinguishment 6,651 0 0
Stock-based compensation 67,550 5,411 10,051
Changes in fair value of contingent consideration liabilities (including $13,424 for the year ended December 31, 2023 from related parties) 0 0 31,071
Deferred taxes 15,287 (13,704) (13,336)
Tax receivable agreement liability remeasurement 2,914 0 0
Equity in earnings of joint venture (1,443) (3,063) (1,329)
Return on investment in joint venture 1,700 1,000 1,329
Operating lease right-of-use asset lease expense 18,279 13,091 9,060
Other 1,158 3,749 1,156
Changes in operating assets and liabilities:      
Accounts receivable, net (130,070) 17,955 (80,976)
Contract assets (71,185) (50,995) (23,687)
Prepaid expenses and other current assets 2,929 4,498 3,264
Accounts payable 117,910 10,699 (5,020)
Accrued compensation and benefits 12,298 (2,778) 6,645
Accrued and other current liabilities (13,967) (36,638) 1,230
Contract liabilities 172,194 (14,507) 46,153
Operating lease liabilities, current and long-term (15,280) (10,603) (8,633)
Other long-term assets and liabilities 2,102 (909) 78
Cash provided by operating activities 256,873 29,268 33,917
Cash flows from investing activities:      
Purchases of property and equipment (37,940) (19,008) (17,073)
Consideration paid for acquisitions, net of cash acquired (16,497) (225,246) (119,882)
Proceeds from sale of property and equipment 390 269 353
Return of investment in joint venture 0 0 2,700
Cash used in investing activities (54,047) (243,985) (133,902)
Cash flows from financing activities:      
Term loan borrowings (including $2,968, $103,500, and $15,000 for the years ended December 31, 2025, 2024, and 2023, respectively, from related parties) 59,636 565,000 155,000
Term loan payments (including $74,797 in 2025 to related parties) (852,214) (13,682) (9,841)
Notes payable payments (7,878) (6,485) (4,755)
Finance lease payments (3,843) (2,460) (1,937)
Cash distributions to Legence Parent 0 (301,614) (1,527)
Cash contributions from Legence Parent 0 400 550
Proceeds from IPO, net of underwriting discounts and commissions 780,243 0 0
Debt issuance costs (1,626) (1,495) (3,499)
Payments for deferred offering costs (28,145) (196) 0
Payments of contingent consideration (including ($20,663) and $(5,520) for the years ended December 31, 2024 and 2023, respectively, from related parties) 0 (32,504) (5,520)
Cash (used in) provided by financing activities (53,827) 206,964 128,471
Increase (decrease) in cash and cash equivalents 148,999 (7,753) 28,486
Cash and cash equivalents and restricted cash, beginning of period 81,167 88,920 60,434
Cash and cash equivalents, end of period 230,166 81,167 88,920
Related Party      
Adjustments to reconcile net loss to cash provided by operating activities:      
Changes in fair value of contingent consideration liabilities (including $13,424 for the year ended December 31, 2023 from related parties)     13,424
Cash flows from financing activities:      
Term loan borrowings (including $2,968, $103,500, and $15,000 for the years ended December 31, 2025, 2024, and 2023, respectively, from related parties) 2,968 103,500 15,000
Term loan payments (including $74,797 in 2025 to related parties) $ (74,797)    
Payments of contingent consideration (including ($20,663) and $(5,520) for the years ended December 31, 2024 and 2023, respectively, from related parties)   $ (20,663) $ (5,520)