CareDx, Inc.CDNA

CareDx, Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20263 min read
GOODWILL AND INTANGIBLE ASSETS
Goodwill
On December 1, 2025, the Company performed a qualitative assessment of its reporting unit taking into consideration past, current and projected future earnings, recent trends and market conditions, and its market capitalization. Based on this analysis, the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying amount. As such, it was not necessary to perform the quantitative goodwill impairment assessment at this time. As of December 31, 2025, 2024 and 2023, there has been no impairment of goodwill.
Intangible Assets
The following table presents details of the Company’s intangible assets as of December 31, 2025 ($ in thousands):
December 31, 2025
Gross
Carrying
Amount
Accumulated
Amortization
Foreign
Currency
Translation
Net Carrying
Amount
Weighted
Average
Remaining
Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$36,517 $(24,127)$(2,203)$10,187 5.8
Customer relationships25,581 (12,413)(1,639)11,529 7.1
Commercialization rights11,579 (7,022)— 4,557 3.6
Trademarks and tradenames4,860 (2,434)(232)2,194 6.6
Total intangible assets with finite lives78,537 (45,996)(4,074)28,467 
Intangible assets with indefinite lives:
Acquired in-process technology1,250 — — 1,250 
Favorable license agreement2,243 — — 2,243 
Total intangible assets with indefinite lives3,493 — — 3,493 
Total intangible assets$82,030 $(45,996)$(4,074)$31,960 
The following table presents details of the Company’s intangible assets as of December 31, 2024 ($ in thousands):
December 31, 2024
Gross
Carrying
Amount
Accumulated
Amortization
Foreign
Currency
Translation
Net Carrying
Amount
Weighted
Average
Remaining
Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$37,367 $(21,357)$(2,531)$13,479 6.6
Customer relationships25,718 (10,777)(2,332)12,609 8.4
Commercialization rights11,579 (5,760)— 5,819 4.6
Trademarks and tradenames5,220 (2,094)(356)2,770 8.5
Total intangible assets with finite lives79,884 (39,988)(5,219)34,677 
Acquired in-process technology1,250 — — 1,250 
Favorable license agreement2,257 — — 2,257 
Total intangible assets with indefinite lives3,507 — — 3,507 
Total intangible assets$83,391 $(39,988)$(5,219)$38,184 
As of December 31, 2025, 2024 and 2023, other than the $1.7 million intangible asset that was impaired and written off under general and administrative expenses during the year ended December 31, 2025, the Company did not identify any impairment indicators suggesting that the carrying value of the intangible assets was not recoverable.
The following table summarizes the Company's amortization expense of intangible assets (in thousands):
Year Ended December 31,
202520242023
Cost of testing services$1,388 $1,316 $1,316 
Cost of product1,751 1,660 1,655 
Cost of patient and digital solutions610 850 1,039 
Sales and marketing2,602 2,520 2,457 
Total $6,351 $6,346 $6,467 
The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2025 (in thousands):
Years Ending December 31,Total
2026$5,332 
20275,319 
20285,319 
20294,604 
20303,535 
Thereafter4,358 
Total future amortization expense$28,467 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 27, 2023
2021Feb 24, 2022
2020Feb 24, 2021
2019Feb 28, 2020
2018Mar 6, 2019
2017Mar 22, 2018
2016Apr 21, 2017

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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