Circle Internet Group, Inc. Goodwill & Intangibles Disclosure
| 5.1. Details of Goodwill | ||||||||||||||
| Year ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
Balance, beginning of period | $ | 169,544 | $ | 169,544 | ||||||||||
Additions due to business combinations | 96,198 | — | ||||||||||||
Balance, end of period | $ | 265,742 | $ | 169,544 | ||||||||||
Table 5.2. Acquired Intangible Assets Useful Life | ||||||||||||||
| Acquired intangible assets | Useful life (years) | |||||||||||||
| Developed technology | 2 | ~ | 6 | |||||||||||
| Customer relationships | 2 | |||||||||||||
| Regulatory licenses | 5 | |||||||||||||
Patents and trade name | 2 | ~ | 17 | |||||||||||
Table 5.3. Details of Intangible Assets, net | ||||||||||||||||||||||||||
| As of December 31, 2025 | Gross carrying amount | Accumulated amortization | Intangible assets, net | Weighted average remaining useful life (in years) | ||||||||||||||||||||||
Amortizing intangible assets | ||||||||||||||||||||||||||
| Internally developed software | $ | 279,472 | $ | (161,666) | $ | 117,806 | 1.5 | |||||||||||||||||||
Acquired intangible assets | 38,109 | (11,599) | 26,510 | 3.0 | ||||||||||||||||||||||
Total amortizing intangible assets | $ | 317,581 | $ | (173,265) | $ | 144,316 | ||||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||||
Acquired intangible assets | 266,830 | — | 266,830 | |||||||||||||||||||||||
| Total intangible assets, net | $ | 584,411 | $ | (173,265) | $ | 411,146 | ||||||||||||||||||||
| As of December 31, 2024 | Gross carrying amount | Accumulated amortization | Intangible assets, net | Weighted average remaining useful life (in years) | ||||||||||||||||||||||
| Amortizing intangible assets | ||||||||||||||||||||||||||
| Internally developed software | $ | 146,579 | $ | (94,646) | $ | 51,933 | 1.4 | |||||||||||||||||||
Acquired intangible assets | 31,373 | (18,316) | 13,057 | 5.8 | ||||||||||||||||||||||
Total amortizing intangible assets | $ | 177,952 | $ | (112,962) | $ | 64,990 | ||||||||||||||||||||
Indefinite-lived intangible assets | ||||||||||||||||||||||||||
Acquired intangible assets | 266,404 | — | 266,404 | |||||||||||||||||||||||
| Total intangible assets, net | $ | 444,356 | $ | (112,962) | $ | 331,394 | ||||||||||||||||||||
Table 5.4. Future Amortization Expense of Intangible Assets | |||||
| Years ending December 31, | |||||
| 2026 | $ | 93,148 | |||
| 2027 | 48,102 | ||||
| 2028 | 1,515 | ||||
| 2029 | 125 | ||||
| 2030 | 125 | ||||
| Thereafter | 1,301 | ||||
| Total amortization expense | $ | 144,316 | |||
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.