Goodwill and Intangible Assets, Net
Goodwill
Goodwill represents the residual purchase price paid in business combinations after the fair value of all identified assets and liabilities have been recorded. It includes the estimated value of the integration of acquired technology into current product offerings, the potential expansion with new customers, the opportunity to further develop sales relationships with new customers and intangible assets that do not qualify for separate recognition. Goodwill is not amortized and there were no impairments to the carrying amounts of goodwill during the years ended March 31, 2026, 2025 or 2024.
Changes in goodwill during the year ended March 31, 2026 was as follows:
| | | | | |
| Total |
| Balance as of March 31, 2025 | $ | 185,255 | |
Additions (1) | 24,067 | |
| Balance as of March 31, 2026 | $ | 209,322 | |
(1) None of the goodwill acquired during the year ended March 31, 2026 is expected to be deductible for income tax purposes.
Intangible Assets, Net
Intangible assets consist of developed technology and customer relationships. Developed technology acquired in fiscal 2026 and 2025 has an estimated useful life of five years. Previously acquired developed technology had an estimated useful life of three years, and was fully amortized as of the end of fiscal 2025. Customer relationships have an estimated useful life of ten years. All of our intangible assets are amortized on a straight-line basis. Purchased intangible assets, net of amortization are summarized below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2026 | | March 31, 2025 |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Value | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Value |
| Customer relationships | $ | 3,800 | | | $ | (570) | | | $ | 3,230 | | | $ | 3,800 | | | $ | (190) | | | $ | 3,610 | |
| Developed technology | 27,050 | | | (10,565) | | | 16,485 | | | 23,350 | | | (6,223) | | | 17,127 | |
| Total intangible assets | $ | 30,850 | | | $ | (11,135) | | | $ | 19,715 | | | $ | 27,150 | | | $ | (6,413) | | | $ | 20,737 | |
During the year ended March 31, 2026, we acquired developed technology valued at $3,700 as part of the acquisition of Satori. Amortization expense from acquired intangible assets, included in depreciation and amortization in the Consolidated Statements of Operations, was $4,722, $3,705 and $1,250 for the years ended March 31, 2026, 2025 and 2024, respectively.
As of March 31, 2026, future amortization expense of intangible assets is expected to be:
| | | | | |
| Year ending March 31, | |
| 2027 | $ | 5,023 | |
| 2028 | 5,023 | |
| 2029 | 5,023 | |
| 2030 | 2,637 | |
| 2031 | 680 | |
| Thereafter | 1,329 | |
| Total | $ | 19,715 | |
As of March 31, 2026, the weighted average remaining amortization period of intangibles assets was approximately 4.40 years, with developed technology and customer relationships having weighted average remaining amortization periods of approximately 3.60 years and 8.50 years, respectively.