LiveWire Group, Inc.

5. Income Taxes

The Company’s effective income tax rate was 1.2% and (0.2)% for the nine months ended September 30, 2026 and 2025, respectively.

During the third quarter 2026, the Company recorded an income tax benefit of $795 thousand related to the release of a portion of its U.S. valuation allowance. The release was attributable to deferred tax liabilities recognized in connection with the Dust Acquisition, which provided a source of future taxable income supporting the realization of certain deferred tax assets.

During the nine months ended September 30, 2026, the Company made income tax payments of $212 thousand, including estimated tax prepayments in certain foreign jurisdictions. During the nine months ended September 30, 2025, the income tax payments made by the Company were immaterial.

The Company’s effective tax rate for each period differs from the U.S. statutory rate of 21% as the Company is not recognizing an income tax benefit related to the losses generated in the U.S. as there is not sufficient positive evidence regarding the ability to realize the benefit of these losses.