CarGurus, Inc. Goodwill & Intangibles Disclosure
7. Intangible Assets and Goodwill
Intangible Assets
As of December 31, 2025 and 2024, intangible assets, exclusive of assets that have been retired, consisted of the following:
|
|
As of December 31, 2025 |
|
|||||||||||||
|
|
Weighted |
|
|
Gross |
|
|
Accumulated |
|
|
Net Carrying |
|
||||
|
|
|
|
|
(dollars in thousands) |
|
||||||||||
Brand |
|
|
3.5 |
|
|
$ |
9,176 |
|
|
$ |
(5,923 |
) |
|
$ |
3,253 |
|
Total |
|
|
|
|
$ |
9,176 |
|
|
$ |
(5,923 |
) |
|
$ |
3,253 |
|
|
|
|
As of December 31, 2024 |
|
|||||||||||||
|
|
Weighted |
|
|
Gross |
|
|
Accumulated |
|
|
Net Carrying |
|
||||
|
|
|
|
|
(dollars in thousands) |
|
||||||||||
Brand |
|
|
4.4 |
|
|
$ |
8,983 |
|
|
$ |
(4,966 |
) |
|
$ |
4,017 |
|
Customer relationships |
|
|
— |
|
|
|
1,870 |
|
|
|
(1,870 |
) |
|
|
— |
|
Developed technology |
|
|
— |
|
|
|
1,565 |
|
|
|
(1,565 |
) |
|
|
— |
|
Total |
|
|
|
|
$ |
12,418 |
|
|
$ |
(8,401 |
) |
|
$ |
4,017 |
|
|
For the years ended December 31, 2025, 2024, and 2023, amortization of intangible assets was $0.9 million, $0.9 million, and $1.0 million, respectively.
As of December 31, 2025, estimated amortization expense of intangible assets for future periods was as follows:
Year Ending December 31, |
|
Amortization |
|
|
|
|
(dollars in thousands) |
|
|
2026 |
|
$ |
959 |
|
2027 |
|
959 |
|
|
2028 |
|
959 |
|
|
2029 |
|
368 |
|
|
2030 |
|
8 |
|
|
Thereafter |
|
|
— |
|
Total |
|
$ |
3,253 |
|
Goodwill
As of December 31, 2025, changes in the carrying value of goodwill were as follows:
|
|
Total |
|
|
|
|
(dollars in thousands) |
|
|
Balance as of December 31, 2024 |
|
$ |
26,599 |
|
Foreign currency translation adjustment |
|
|
1,798 |
|
Balance as of December 31, 2025 |
|
$ |
28,397 |
|
The Company performed a qualitative assessment of its goodwill for impairment as of October 1, 2025, and did not identify any impairment. The Company did not identify any indicators of impairment as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
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.