Consensus Cloud Solutions, Inc.CCSI

Consensus Cloud Solutions, Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 13, 20262 min read
Goodwill and Intangible Assets
The changes in carrying amounts of goodwill for the years ended December 31, 2025 and 2024 are as follows (in thousands):
Amount
Balance as of January 1, 2024$348,822 
Foreign exchange translation
(3,786)
Balance as of December 31, 2024$345,036 
Foreign exchange translation
7,903 
Balance as of December 31, 2025$352,939 
Intangible Assets with Indefinite Lives:
Intangible assets are summarized as of December 31, 2025 and 2024 as follows (in thousands):
20252024
Trade names$27,422 $27,316 
Other4,045 4,045 
Total$31,467 $31,361 
Intangible Assets Subject to Amortization:
As of December 31, 2025, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.1 years$8,299 $8,148 $151 
Patent and patent licenses0.0 years54,341 54,341 — 
Customer relationships (1)
1.6 years109,663 103,616 6,047 
Other purchased intangibles1.0 year11,917 10,821 1,096 
Total $184,220 $176,926 $7,294 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.
As of December 31, 2024, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.2 years$8,107 $7,826 $281 
Patent and patent licenses
0.0 years54,341 54,341 — 
Customer relationships (1)
2.1 years107,287 99,054 8,233 
Other purchased intangibles1.2 years11,914 10,576 1,338 
Total $181,649 $171,797 $9,852 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.
Expected amortization expenses for intangible assets subject to amortization at December 31, 2025 are as follows (in thousands):
Fiscal Year:Amount
2026$2,105 
20271,407 
2028986 
2029803 
2030651 
Thereafter1,342 
Total$7,294 
Amortization expense was $2.6 million, $3.7 million and $4.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 20, 2025
2023Feb 28, 2024
2022Mar 31, 2023
2021Apr 15, 2022

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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