ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2026

ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued Expenses and Other Current Liabilities

The Company’s accrued expenses and other current liabilities consisted of the following as of the below dates:


	March 31, 2026		December 31, 2025
Accrued salaries, wages and related employee benefits	$	76,617	$	58,655
Accrued trade payables	28,220		32,090
Accrued operating expenses	15,528		21,718
Accrued indirect taxes	4,334		4,676
Accrued sales discounts	1,986		3,094
Current portion of contingent consideration	12,670		8,608
Other accrued expenses	28,882		22,785
Total accrued expenses and other current liabilities	$	168,237	$	151,626

Contingent Consideration

Contingent consideration arrangements are included as part of the purchase price of acquired companies on their respective acquisition dates. The Company estimates the fair value of contingent earn-out payments as part of the initial purchase price and records the estimated fair value of contingent consideration as a liability on the consolidated balance sheet. Changes in the estimated fair value of contingent consideration payments are included in “Selling, general and administrative expenses” in the consolidated statements of operations. During the three months ended March 31, 2026 the Company recorded contingent consideration of $1.0 million related to 2026 acquisitions and made payments of $1.3 million. Fair value re-measurements were $1.9 million during the three months ended March 31, 2026. Accordingly, as of March 31, 2026, the Company had $15.2 million of contingent consideration recorded on the condensed consolidated balance sheet, including $12.7 million reflected as current. As of December 31, 2025, the Company had $13.6 million of contingent consideration recorded on the consolidated balance sheet, including $8.6 million reflected as current

TIC Solutions, Inc. 10-Q