Equity Award Activity and Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

Summary of Activity Under Equity Plans and Related Information

The following table summarizes USPH Class B units activity for the period from January 1, 2026 to February 26, 2026 (Predecessor) and the six months ended June 30, 2025 (Predecessor):


	Predecessor
	Period from January 1, 2026 to February 26, 2026
	Number of Units		Weighted Average Exercise Price		Weighted Average Remaining Term
	(in thousands)				(In Years)
Balance as of December 31, 2025		17.0	$	1,000.0		1.75
Granted		—		—
Repurchased		—		—
Forfeited		—		—
Balance as of February 26, 2026		17.0	$	1,000.0		1.59


	Predecessor
	Six Months Ended June 30, 2025
	Number of Units			Weighted Average Exercise Price		Weighted Average Remaining Term
	(in thousands)					(In Years)
Balance as of December 31, 2024		18.0		$	1,000.0		2.68
Granted		—			—
Repurchased		(0.2	)		1,000.0
Forfeited		(0.8	)		1,000.0
Balance as of June 30, 2025		17.0		$	1,000.0		2.25

Equity Award Activity (Successor)

A summary of activity under the equity plans and related information was as follows:


	Successor
	Period from February 27, 2026 to June 30, 2026
	Options Outstanding							RSUs Outstanding
	Number of Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Years)		Number of RSUs
	(in thousands)							(in thousands)
Balance as of February 27, 2026 (Successor)		363.3		$	16.95		0.1		127.5
Granted		—							50.0
Vested		—							(69.9	)
Forfeited or cancelled		(363.3	)	$	16.95				—
Balance as of June 30, 2026 (Successor)		—		$	—		0.0		107.6

Summary of Stock-Based Compensation Expense

Total equity-based compensation expense included in the Condensed Consolidated Statements of Operations was as follows:


	Successor		Successor		Predecessor		Predecessor		Predecessor
	Three Months Ended June 30, 2026		Period from February 27, 2026 to June 30, 2026(1)		Period from January 1, 2026 to February 26, 2026(2)		Three Months Ended June 30, 2025(2)		Six Months Ended June 30, 2025(2)
	(in millions)		(in millions)		(in millions)		(in millions)		(in millions)
Cost of sales	$	—	$	—	$	—	$	—	$	—
Selling expense		—		—		—		—		—
General and administrative		0.1		0.2		0.1		0.1		0.2
Transaction expenses		—		0.4		—		—		—
Total equity-based compensation	$	0.1	$	0.6	$	0.1	$	0.1	$	0.2

(1)

Successor information is stock-based compensation.

(2)

Predecessor information is member-unit based compensation.

Summary of Changes in Non-vested

Changes in the Initial Grant and the Transaction Grant for the period from February 27, 2026 to June 30, 2026 (Successor), were as follows (in thousands, except per share amounts):


	Initial Grant				Transaction Grant
	Number of Units		Weighted Average Grant Date Fair Value		Number of Units		Weighted Average Grant Date Fair Value
Nonvested at February 27, 2026 (Successor)		1,898	$	2.39		600	$	0.56
Vested		—		—		—		—
Forfeited		—		—		—		—
Nonvested at June 30, 2026 (Successor)		1,898	$	2.39		600	$	0.56

Summary of Valuation Assumptions

The valuation assumptions utilized for the Transaction Grant as of the December 7, 2025 grant date were as follows:


Expected time to a liquidity event (1)	5.23 years
Expected volatility (2)		30	%
Risk-free interest rate (3)		3.71	%
Equity value (4)	$	738
Discount for lack of marketability		20	%

(1)

Represents the expected time to a liquidity event as of the measurement date.

(2)

Given the fundamental change in the Company’s business expected to result from the closing of the US Salt deal, the Company’s historical stock price volatility is not a reasonable proxy for expected volatility. Accordingly, the Company estimated expected volatility using a selected group of guideline public companies, considering industry alignment, size, and stage of development, with adjustments to reflect differences in financial leverage.

(3)

The risk-free rate equals the continuously compounded yield from the US Treasury’s published Daily Treasury Par Yield Curve Rates as of the Transaction Grant Date for a period equal to the time from the Transaction Grant Date until the expected liquidity event, assuming linear interpolation between terms.

(4)

Holdings’ underlying equity value on the Transaction Grant Date was estimated to be equal to the capital contributions for the Class A Units and Class B Units on a pro forma basis assuming closing of the US Salt Acquisition.