Commerce.com, Inc. Goodwill & Intangibles Disclosure
5. Goodwill and intangible assets
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. There were no changes to the carrying amount of goodwill during fiscal 2025.
Goodwill amounts are not amortized but tested for impairment on an annual basis. There was no impairment of goodwill as of December 31, 2025 and 2024.
Intangible assets are amortized on a straight-line basis over the useful life. Intangible assets amortization was $8.5 million, $9.7 million and $8.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. There was no impairment of intangible assets as of December 31, 2025 and 2024.
Intangible assets consist of the following:
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
|
|
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(in thousands) |
|
Gross amount |
|
|
Accumulated amortization |
|
|
Net carrying amount |
|
|
Gross amount |
|
|
Accumulated amortization |
|
|
Net carrying amount |
|
|
Weighted average remaining useful life as of December 31, 2025 (in years) |
|
|||||||
Acquired developed technology |
|
$ |
7,030 |
|
|
$ |
(3,255 |
) |
|
$ |
3,775 |
|
|
$ |
18,824 |
|
|
$ |
(11,968 |
) |
|
$ |
6,856 |
|
|
|
2.8 |
|
Customer relationships |
|
|
23,725 |
|
|
|
(18,557 |
) |
|
|
5,168 |
|
|
|
23,725 |
|
|
|
(14,171 |
) |
|
|
9,554 |
|
|
|
1.5 |
|
Tradename |
|
|
2,560 |
|
|
|
(2,232 |
) |
|
|
328 |
|
|
|
2,560 |
|
|
|
(1,720 |
) |
|
|
840 |
|
|
|
0.9 |
|
Website domain name |
|
|
2,444 |
|
|
|
(429 |
) |
|
|
2,015 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
4.1 |
|
Other intangibles |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
200 |
|
|
|
(133 |
) |
|
|
67 |
|
|
|
0.0 |
|
Total intangible assets |
|
$ |
35,759 |
|
|
$ |
(24,473 |
) |
|
$ |
11,286 |
|
|
$ |
45,309 |
|
|
$ |
(27,992 |
) |
|
$ |
17,317 |
|
|
|
|
|
As of December 31, 2025, expected amortization expense for intangible assets was as follows:
(in thousands) |
|
December 31, 2025 |
|
|
2026 |
|
$ |
5,589 |
|
2027 |
|
|
3,544 |
|
2028 |
|
|
1,604 |
|
2029 |
|
|
489 |
|
Thereafter |
|
|
60 |
|
Total |
|
$ |
11,286 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 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.