Goodwill and Intangible Assets, Net
The changes in the carrying amount of goodwill were as follows (in thousands): | | | | | |
| Balance at January 31, 2024 | $ | 353,138 | |
| |
| Additions—Lexion | 102,152 | |
| Foreign currency translation | (813) | |
| Balance at January 31, 2025 | 454,477 | |
| |
| |
| Foreign currency translation | 3,969 | |
| Balance at January 31, 2026 | $ | 458,446 | |
Intangible assets consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of January 31, 2026 | | As of January 31, 2025 |
| (in thousands, except years) | Weighted-average Remaining Useful Life (Years) | | Acquisition-related Intangibles, Gross | | Accumulated Amortization | | Acquisition-related Intangibles, Net | | Acquisition-related Intangibles, Gross | | Accumulated Amortization | | Acquisition-related Intangibles, Net |
| Existing technology | 3.3 | | $ | 98,144 | | | $ | (78,210) | | | $ | 19,934 | | | $ | 104,694 | | | $ | (76,644) | | | $ | 28,050 | |
| Customer contracts & related relationships | 4.0 | | 119,483 | | | (78,023) | | | 41,460 | | | 124,112 | | | (67,127) | | | 56,985 | |
| Other | 0.0 | | 7,674 | | | (7,674) | | | — | | | 7,516 | | | (7,516) | | | — | |
| 3.8 | | $ | 225,301 | | | $ | (163,907) | | | 61,394 | | | $ | 236,322 | | | $ | (151,287) | | | 85,035 | |
| Cumulative translation adjustment | | | | | | | — | | | | | | | (8,647) | |
| Total | | | | | | | $ | 61,394 | | | | | | | $ | 76,388 | |
Amortization of finite-lived intangible assets was as follows: | | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| (in thousands) | 2026 | | 2025 | | 2024 |
| Cost of subscription revenue | $ | 4,923 | | | $ | 12,267 | | | $ | 8,857 | |
| Sales and marketing | 11,208 | | | 12,450 | | | 10,518 | |
| Total | $ | 16,131 | | | $ | 24,717 | | | $ | 19,375 | |
As of January 31, 2026, future amortization of finite-lived intangible assets that will be recorded in cost of revenue and operating expenses is estimated as follows, excluding cumulative translation adjustment: | | | | | |
| Fiscal Period | Amount
(in thousands) |
| 2027 | $ | 18,941 | |
| 2028 | 16,481 | |
| 2029 | 12,734 | |
| 2030 | 8,512 | |
| 2031 | 3,757 | |
| Thereafter | 969 | |
| Total | $ | 61,394 | |
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.