8X8 INC /DE/EGHT

8X8 INC /DE/ Goodwill & Intangibles Disclosure

10-KFiled May 22, 20262 min read
Intangible Assets and Goodwill
The carrying value of intangible assets consisted of the following (in thousands):
March 31, 2026March 31, 2025
Weighted Average Remaining Useful Life (in years)Gross
Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Customer relationships4.8$106,342 $(52,673)$53,669 $105,881 $(40,670)$65,211 
Developed technology2.550,063 (46,177)3,886 46,696 (44,003)2,693 
Trade names and domains2.8671 (637)34 630 (585)45 
Total acquired identifiable intangible assets$157,076 $(99,487)$57,589 $153,207 $(85,258)$67,949 
Amortization expense for related intangible assets were $14.2 million, $19.1 million, and $20.4 million for the years ended March 31, 2026, 2025, and 2024, respectively.
There were no write-offs during the year ended March 31, 2026, and 2025. During the fourth quarter of fiscal 2026, the Company acquired $3.9 million of developed technology, customer relationships, and trade names with estimated useful lives from 3 to 5 years. See Note 1, The Company and Significant Accounting Policies, for further information.
At March 31, 2026, annual amortization of intangible assets, based upon existing intangible assets and current useful lives, is estimated to be the following (in thousands):
2027$13,055 
202812,335 
202912,153 
203011,134 
2031 and thereafter8,912 
Total$57,589 
The following table provides a summary of the changes in the carrying amounts of goodwill (in thousands):
Balance at March 31, 2024$266,574 
Acquired goodwill4,269 
Foreign currency translation687 
Balance at March 31, 2025271,530 
Acquired goodwill3,073 
Foreign currency translation1,769 
Balance at March 31, 2026$276,372 
The Company conducted its annual impairment tests of goodwill in the fourth quarter of fiscal 2026, 2025, and 2024, and determined that no adjustment to the carrying value of goodwill was required. During the fourth quarter of fiscal 2026 and 2025, the Company recognized $3.1 million and $4.3 million, respectively, of additional goodwill due to acquisitions. See Note 1, The Company and Significant Accounting Policies, for further information.

Historical Timeline

Fiscal YearFiled
2026May 22, 2026Showing above
2025May 22, 2025
2024May 21, 2024
2023May 25, 2023
2022May 27, 2022
2021May 17, 2021
2020May 19, 2020
2019May 21, 2019
2018May 30, 2018
2017May 30, 2017
2016May 31, 2016

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.

Other Available Disclosures

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