CCC Intelligent Solutions Holdings Inc. Goodwill & Intangibles Disclosure

11. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets are primarily the result of business acquisitions.

The Company performs its annual impairment assessment of goodwill and indefinite life intangible assets as of November 30 of each year.

For the Domestic reporting unit, the Company performed a quantitative goodwill impairment assessment as of November 30, 2025. The fair value of the reporting unit exceeded its carrying value, and no impairment was recorded. For the years ended December 31, 2024 and 2023, the Company performed qualitative assessments for the Domestic reporting unit’s goodwill and its trademark indefinite life intangible assets. For the qualitative analysis performed as of November 30 each year, the Company assessed several events and circumstances that could affect the significant inputs used to determine the fair values of the reporting unit and trademarks, including the significance of the amount of excess fair value over carrying value, consistency of operating margins and cash flows, budgeted-to-actual performance from prior year, no significant changes to projected forecasts, overall change in economic climate, changes in the industry and competitive environment, key management turnover, and earnings quality and sustainability. There were no unanticipated changes or negative indicators in the above qualitative factors that would impact the fair values as of the annual impairment date. As such, the Company determined there were no indicators of impairment and that it is more likely than not that the fair value of the reporting unit and trademarks are greater than their carrying values and therefore performing the next step of the impairment test was unnecessary.

For the EvolutionIQ reporting unit, which was acquired in January 2025, the Company performed a quantitative goodwill impairment assessment as of November 30, 2025. The fair value of the reporting unit exceeded its carrying value, and no impairment was recorded. No goodwill impairment assessments were required for EvolutionIQ in 2024 or 2023, as the acquisition occurred in 2025.

During the year ended December 31, 2023, the Company’s China reporting unit experienced adverse impacts as a result of changes in market conditions and increases in interest rates which contributed to reduced forecasted revenues and reduced projected future cash flows.

As a result of these adverse impacts, the Company performed an interim quantitative assessment of goodwill impairment by comparing the fair value of its China reporting unit to its carrying value, including goodwill. When performing the assessment, the Company determined the fair value of its China reporting unit based on forecasted future cash flows. Based on the Company’s forecast of the future cash flows of its China reporting unit, it was determined the carrying value of goodwill for its China reporting unit was fully impaired and the Company recorded a goodwill impairment charge of $77.4 million during the year ended December 31, 2023.

The Company used a quantitative approach to measure the fair value of its China reporting unit using a discounted cash flow approach, which is a Level 3 measurement. The discounted cash flow analysis requires significant judgments, including estimates of future cash flows, which are dependent on internal forecasts and determination of the Company’s weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used for the China reporting unit in the Company’s analysis was 12.5%.

In addition to the aforementioned impairment loss recognized during the year ended December 31, 2023, the accumulated impairment loss includes an impairment loss recognized during the year ended December 31, 2019.

Intangible Assets—During the year ended December 31, 2025, the Company recorded $167.9 million of intangible assets as a result of the acquisition of EvolutionIQ (see Note 3).

No intangible asset impairments were recorded during the years ended December 31, 2025 and 2024.

The decrease in the acquired technologies’ gross carrying amount and accumulated amortization as of December 31, 2024 was due to the write-off of fully amortized intangible assets.

During the year ended December 31, 2023, the Company recorded an impairment charge to its China reporting unit’s customer relationships and acquired technologies intangible assets. The Company’s forecast of the China reporting unit’s expected cash flows indicated the carrying amounts of the intangible assets were not recoverable and therefore the Company recorded an impairment charge of $5.3 million.

Amortization expense for intangible assets was $91.5 million, $80.8 million and $98.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.