10. GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
| | | | | |
| Carrying Amount |
| Balance at January 1, 2025 | $ | 1,139,670 | |
| Additions due to acquisitions | 3,029,297 | |
| Balance at December 31, 2025 | $ | 4,168,967 | |
There was no impairment recognized against goodwill at the beginning or end of the year presented, and no measurement period adjustments during the year presented.
Intangible assets, net
Intangible assets, net, as disclosed in this footnote, exclude internally developed software and crypto assets, which are presented within Software and equipment, net and the various crypto assets held line items in the Consolidated Balance Sheets, respectively. Intangible assets, net and their associated weighted average remaining useful lives in years (“Life”) consisted of the following (in thousands, except years):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 | | |
| | Gross Carrying Amount | | Accumulated Amortization | | Intangible Assets, Net | | Life | | Gross Carrying Amount | | Accumulated Amortization | | Intangible Assets, Net | | Life | | |
| Amortizing assets | | | | | | | | | | | | | | | | | | |
| Customer relationships | | $ | 1,072,800 | | | $ | (35,935) | | | $ | 1,036,865 | | | 14.6 | | $ | 75,711 | | | $ | (65,989) | | | $ | 9,722 | | | 0.4 | | |
| Acquired developed technology | | 335,411 | | | (47,969) | | | 287,442 | | | 5.4 | | 30,700 | | | (21,962) | | | 8,738 | | | 1.6 | | |
| | | | | | | | | | | | | | | | | | |
| Trade name and other | | 48,000 | | | (2,513) | | | 45,487 | | | 7.1 | | 3,400 | | | (3,306) | | | 94 | | | 0.1 | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Indefinite-lived assets | | | | | | | | | | | | | | | | | | |
| Licenses and other | | 28,000 | | | — | | | 28,000 | | | N/A | | 28,250 | | | — | | | 28,250 | | | N/A | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Total | | $ | 1,484,211 | | | $ | (86,417) | | | $ | 1,397,794 | | | | | $ | 138,061 | | | $ | (91,257) | | | $ | 46,804 | | | | | |
The effects of amortization of Intangible assets, net on the Consolidated Statements of Operations was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, | | |
| | 2025 | | 2024 | | 2023 | | |
| Technology and development | | $ | 28,662 | | | $ | 10,414 | | | $ | 46,610 | | | |
| Sales and marketing | | 29,252 | | | — | | | — | | | |
| General and administrative | | 9,212 | | | 16,628 | | | 23,018 | | | |
| Total amortization expense | | $ | 67,126 | | | $ | 27,042 | | | $ | 69,628 | | | |
There were no material impairment charges associated with these assets during these periods. The Company estimates no significant residual value related to these amortizing intangible assets.
The expected future amortization expense for amortizing intangible assets as of December 31, 2025, was as follows (in thousands):
| | | | | |
| 2026 | $ | 138,231 | |
| 2027 | 130,341 | |
| 2028 | 127,481 | |
| 2029 | 124,043 | |
| 2030 | 123,524 | |
| Thereafter | 726,174 | |
| Total expected future amortization expense | $ | 1,369,794 | |
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.