Intangible Assets and Goodwill
Intangible Assets
Intangible assets, net consisted of the following (in thousands):
| | | | | | | | | | | |
| As of March 31, |
| 2026 | | 2025 |
| Customer relationships | $ | 37,069 | | | $ | 37,069 | |
| Developed technology | 18,700 | | | — | |
| Other intangibles | 1,594 | | | 1,531 | |
| Total intangible assets | 57,363 | | | 38,600 | |
| Less: accumulated amortization | (22,038) | | | (15,528) | |
| Total intangible assets, net | $ | 35,325 | | | $ | 23,072 | |
Amortization expense for intangible assets was $6.5 million, $4.3 million and $4.6 million for the fiscal years ended March 31, 2026, 2025, and 2024 respectively.
No impairment charges on intangible assets were recorded during the fiscal years ended March 31, 2026 and 2025.
As of March 31, 2026, future amortization expense is as follows (in thousands):
| | | | | |
| Fiscal Years Ending March 31, | Amount |
| 2027 | $ | 7,762 | |
| 2028 | 7,762 | |
| 2029 | 7,762 | |
| 2030 | 7,762 | |
| 2031 | 4,277 | |
| |
| Total future amortization expense | $ | 35,325 | |
Goodwill
The changes in the carrying amount of goodwill were as follows (in thousands): | | | | | |
| Fiscal Year Ended March 31, 2026 |
| Balance, beginning of period | $ | 67,940 | |
| Goodwill acquired | 17,033 | |
| Balance, end of period | $ | 84,973 | |
There were no changes to the Company's goodwill balance of $67.9 million during the fiscal year ended March 31, 2025. No impairment charges on goodwill were recorded during the fiscal years ended March 31, 2026, 2025, and 2024.
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.