BLACKBAUD INCBLKB

BLACKBAUD INC Goodwill & Intangibles Disclosure

10-KFiled Feb 18, 20262 min read
4. Goodwill and Other Intangible Assets
The change in goodwill during 2025 consisted of the following:
(dollars in thousands)Total
Balance at December 31, 2024
$
1,052,506 
Effect of foreign currency translation
4,309 
Balance at December 31, 2025
$
1,056,815 
We have recorded intangible assets acquired in various business combinations based on their fair values at the date of acquisition. The table below sets forth the balances of each class of intangible asset and related amortization as of:
December 31,
(dollars in thousands)20252024
Finite-lived gross carrying amount
Customer relationships
$
232,405 
$
243,203 
Marketing assets
32,170 
29,876 
Developed technology
111,534 
110,606 
Total finite-lived gross carrying amount
376,109 
383,685 
Accumulated amortization
Customer relationships
(175,591)
(173,720)
Marketing assets
(14,838)
(11,660)
Developed technology
(79,026)
(65,424)
Total accumulated amortization
(269,455)
(250,804)
Intangible assets, net
$
106,654 
$
132,881 
During the year ended December 31, 2025, changes to the gross carrying amounts of intangible asset classes were primarily related to write-offs of fully amortized intangible assets and the effect of foreign currency translation.
EVERFI impairment charges
As previously disclosed, on December 9, 2024, we concluded that a material impairment charge was required related to its EVERFI asset group, which primarily included finite-lived intangible assets and capitalized software development costs. On December 29, 2024, we classified EVERFI's assets and liabilities as held for sale and we determined there would be an additional impairment charge to record the EVERFI disposal group at its estimated fair value less costs to sell resulting in total noncash impairment charges of $390.2 million. On December 31, 2024, we disposed of EVERFI for a nominal amount that resulted in a loss on disposition of $15.2 million, which together with the impairment charges, is recorded within EVERFI disposition on our consolidated statements of comprehensive loss for the year ended December 31, 2024. See Note 3 to these consolidated financial statements for additional information about the disposition of EVERFI.
Amortization expense
Amortization expense related to finite-lived intangible assets acquired in business combinations is allocated to cost of revenue on the consolidated statements of comprehensive income based on the revenue stream to which the asset contributes, except for marketing assets and non-compete agreements, for which the associated amortization expense is included in operating expenses.
The following table summarizes amortization expense of our finite-lived intangible assets:
Years ended December 31,
(dollars in thousands)202520242023
Included in cost of revenue
$
27,644 
$
56,957 
$
52,463 
Included in operating expenses
2,234 
3,541 
3,139 
Total amortization of intangibles from business combinations
$
29,878 
$
60,498 
$
55,602 
The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of December 31, 2025:
Years ending December 31,
(dollars in thousands)		Amortization
expense
2026 
$
24,841 
2027 
21,403 
2028 
15,753 
2029 
14,335 
2030 
10,587 
Total
$
86,919 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 21, 2025
2023Feb 21, 2024
2022Feb 24, 2023
2021Mar 1, 2022
2020Feb 23, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 20, 2018
2016Feb 22, 2017
2015Feb 24, 2016

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.

Other Available Disclosures

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