Income Taxes

9 Months Ended

Sep. 30, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

As outlined in the Prospectus, prior to the completion of the IPO, the Company executed the Organizational Transactions, resulting in Parent becoming the sole general partner of LILP, with Parent’s largest asset being a controlling equity interest in LILP. Following the IPO, Parent is required to pay U.S. federal, state, and local income taxes as a corporation on its share of LILP’s taxable income.

For the three and nine months ended September 30, 2026, the Company’s effective tax rates were 16.0% and 34.3%, respectively. The effective tax rate for the nine-month period was primarily driven by a $28.7 million non-recurring charge to income before income taxes related to Liquidity Event Shares issued following the IPO upon which no tax benefit was recognized. The estimated annual tax rate, which excludes certain discretely taxed items of income or expense such as the Liquidity Event Shares charge to income before income taxes, was 16.2%, which reflects a portion of the Company’s U.S. income before income taxes not being subject to federal or state income taxes at the Company level as those earnings are attributable to the Company’s noncontrolling interest.

For the three and nine months ended September 30, 2025, the Company’s effective tax rates were 5.4% and 3.6%, respectively. These tax rates primarily reflect an estimated annual tax rate of 3.6%, which was largely driven by the Company’s U.S. income before income taxes not being subject to U.S. federal or state income taxes due to the privately held partnership structure.

In conjunction with the Organizational Transactions and IPO, LILP common units were exchanged. As a result, Parent reported deferred tax assets, net of valuation allowances, related to (i) Parent’s investment in LILP and (ii) future tax benefits from payments to be made pursuant to the TRA.

Tax Receivable Agreement

In connection with the Organizational Transactions and as described in the Prospectus, Parent entered into the TRA with LILP, certain LILP Partners, and other eligible parties named therein (collectively “the TRA Parties”), which generally provides for payments to be made by Parent to the TRA Parties equaling 85% of the tax benefits, if any, Parent realizes (or in certain circumstances is deemed to realize) as a result of, or attributable to, (i) increases in the tax bases of assets owned directly or indirectly by LILP or its subsidiaries from, amongst other things, any redemptions or exchanges of LILP common units, (ii) existing tax basis (including depreciation and amortization deductions arising from such tax basis) in long-lived assets owned directly or indirectly by LILP and its subsidiaries, and (iii) certain other tax benefits (including deductions in respect of imputed interest) related to Parent making payments pursuant to the TRA. See the section entitled “Certain Relationships and Related Party Transactions—Tax Receivable Agreement” included in the Prospectus for more information.

In conjunction with the Organizational Transactions and IPO, LILP common units were exchanged. As a result, Parent reported a liability of $85.2 million for payments Parent anticipates making pursuant to the TRA. As of September 30, 2026, no payments related to this liability are anticipated within the next 12 months.