8. Goodwill and Internal Use Software and Other Intangible Assets, Net
Changes in the carrying amount of goodwill, net consisted of the following:
| | | | | | | | | | | |
| Year Ended December 31, |
| (Amounts in thousands) | 2025 | | 2024 |
| Balance at beginning of year | $ | 23,615 | | | $ | 32,390 | |
| | | |
| Goodwill impairment | (14,000) | | | (7,266) | |
| Reclassification of disposal units goodwill to assets held for sale | — | | | (1,112) | |
| | | |
| Effect of foreign currency exchange rate changes | 1,380 | | | (397) | |
| Balance at end of year | $ | 10,995 | | | $ | 23,615 | |
For the years ended December 31, 2025 and 2024, the Company recorded goodwill impairment charges of $14.0 million and $7.3 million, respectively, which are included within other expense/(income) in the consolidated statements of operations and comprehensive loss.
During the fourth quarter of 2025, management identified a triggering event requiring an interim goodwill impairment assessment. The Company determined that the estimated fair value of Birmingham Bank was less than its carrying value and, as a result, recorded a goodwill impairment charge of $13.5 million during the year ended December 31, 2025.
The remaining impairment of $0.5 million recorded in 2025 relates to entities in the U.K. for which management has classified as held for sale, and the $7.3 million impairment recorded in 2024 similarly relates to those held-for-sale U.K. entities, see Note 10.
Internal use software and other intangible assets, net consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2025 |
| (Amounts in thousands, except useful lives) | Weighted Average Useful Lives (in years) | | Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Intangible assets with finite lives | | | | | | | |
| Internal use software and website development | 3.4 | | $ | 161,622 | | | $ | (142,069) | | | $ | 19,553 | |
| Intellectual property and other | 5.5 | | 2,626 | | | (2,048) | | | $ | 578 | |
| Total Intangible assets with finite lives, net | | | 164,248 | | | (144,117) | | | 20,131 | |
| Intangible assets with indefinite lives | | | | | | | |
| Domain name | | | 1,820 | | | — | | | $ | 1,820 | |
| Licenses and other | | | 34 | | | — | | | $ | 34 | |
| Total Internal use software and other intangible assets, net | | | $ | 166,102 | | | $ | (144,117) | | | $ | 21,985 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2024 |
| (Amounts in thousands, except useful lives) | Weighted Average Useful Lives (in years) | | Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Intangible assets with finite lives | | | | | | | |
| Internal use software and website development | 3.0 | | $ | 147,994 | | | $ | (129,487) | | | $ | 18,507 | |
| Intellectual property and other | 6.0 | | 869 | | | (291) | | | 578 | |
| Total Intangible assets with finite lives, net | | | 148,863 | | | (129,778) | | | 19,085 | |
| Intangible assets with indefinite lives | | | | | | | |
| Domain name | | | 1,820 | | | — | | | 1,820 | |
| Licenses and other | | | 31 | | | — | | | 31 | |
| Total Internal use software and other intangible assets, net | | | $ | 150,714 | | | $ | (129,778) | | | $ | 20,936 | |
The Company capitalized $11.4 million and $8.5 million in internal use software and website development costs during the years ended December 31, 2025 and 2024, respectively. Included in capitalized internal use software and website development costs are $1.4 million and $1.8 million of stock-based compensation costs for the years ended December 31, 2025 and 2024, respectively. Amortization expense totaled $13.0 million and $26.1 million during the years ended December 31, 2025 and 2024, respectively. For the years ended December 31, 2025 and 2024, no impairments were recognized relating to other intangible assets.
Amortization expense related to intangible assets as of December 31, 2025 is expected to be as follows:
| | | | | |
| (Amounts in thousands) | Total |
| 2026 | $ | 9,695 | |
| 2027 | 6,336 | |
| 2028 | 2,926 | |
| 2029 | 808 | |
| 2030 and thereafter | 366 | |
| Total | $ | 20,131 | |