Goodwill and Other Intangibles
Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are reviewed annually for impairment of value or when indicators of a potential impairment are present. As part of the Company’s business planning cycle, the Company performs an annual goodwill impairment test in the fourth quarter of the fiscal year. There were no indications of impairment of goodwill or intangibles noted for the years ended December 31, 2025 and 2024. In March 2025, the Company recorded $252.1 million to goodwill related to the acquisition of MANTL under the preliminary purchase price allocation. For the year ended December 31, 2025, the Company adjusted goodwill related to the acquisition of MANTL to $255.4 million. See Note 3 for further information. Goodwill has a carrying value of $403.4 million and $148.1 million as of December 31, 2025 and 2024, respectively.
Total intangibles, net, consisted of the following as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | | | |
| | As of December 31, 2025 |
(in thousands) | | Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Finite-lived: | | | | | | |
| Customer Relationships | | $ | 92,800 | | | $ | (9,314) | | | $ | 83,486 | |
| Developed Technology | | 99,200 | | | (29,462) | | | 69,738 | |
| Tradenames | | 6,450 | | | (756) | | | 5,694 | |
| Subtotal amortizable intangible assets | | 198,450 | | | (39,532) | | | 158,918 | |
| Website domain name | | 25 | | | — | | | 25 | |
| Total intangible assets | | $ | 198,475 | | | $ | (39,532) | | | $ | 158,943 | |
| | | | | | | | | | | | | | | | | | | | |
| | As of December 31, 2024 |
(in thousands) | | Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Finite-lived: | | | | | | |
| Customer Relationships | | $ | 20,470 | | | $ | (4,185) | | | $ | 16,285 | |
| Developed Technology | | 27,700 | | | (15,502) | | | 12,198 | |
| Tradenames | | 750 | | | (237) | | | 513 | |
| Subtotal amortizable intangible assets | | 48,920 | | | (19,924) | | | 28,996 | |
| Website domain name | | 25 | | | — | | | 25 | |
| Total intangible assets | | $ | 48,945 | | | $ | (19,924) | | | $ | 29,021 | |
Amortization expense recognized on intangible assets was $22.3 million, $6.8 million, and $6.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.
In March 2025, due to the acquisition of MANTL, the Company assessed all of the assets of MK Decisioning Systems, LLC for potential impairment and determined that $1.2 million of developed technology intangible assets, $0.1 million of customer relationship intangible assets, as well as $0.4 million of capitalized software development costs included in property and equipment, net, would not have future economic benefit and the value of the intangible assets was written off, resulting in a loss on impairment of $1.7 million. This non-cash charge was recorded to loss on impairment of intangible assets and is included in the consolidated statements of operations for the year ended December 31, 2025. No impairment was identified for goodwill or any other assets.
The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands):
| | | | | | | | |
| 2026 | | $ | 26,477 | |
| 2027 | | 23,614 | |
| 2028 | | 21,887 | |
| 2029 | | 21,887 | |
| 2030 | | 10,006 | |
| Thereafter | | 55,047 | |
| | $ | 158,918 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.