EXACT SCIENCES CORPEXAS
EXACT SCIENCES CORP Goodwill & Intangibles Disclosure
INTANGIBLE ASSETS AND GOODWILL
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Intangible Assets
The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2025:
| (In thousands) | Weighted Average Remaining Life (Years) | Cost | Accumulated Amortization | Net Balance at December 31, 2025 | ||||||||||||||||||||||
| Finite-lived intangible assets | ||||||||||||||||||||||||||
Acquired developed technology | 5.6 | $ | 887,518 | $ | (495,986) | $ | 391,532 | |||||||||||||||||||
| Trade name | 9.9 | 104,000 | (42,403) | 61,597 | ||||||||||||||||||||||
| Patents and licenses | 8.6 | 62,442 | (17,868) | 44,574 | ||||||||||||||||||||||
| Customer relationships | 5.0 | 4,000 | (1,778) | 2,222 | ||||||||||||||||||||||
| Total finite-lived intangible assets | 1,057,960 | (558,035) | 499,925 | |||||||||||||||||||||||
| In-process research and development | n/a | 420,000 | — | 420,000 | ||||||||||||||||||||||
| Total intangible assets | $ | 1,477,960 | $ | (558,035) | $ | 919,925 | ||||||||||||||||||||
The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2024:
| (In thousands) | Weighted Average Remaining Life (Years) | Cost | Accumulated Amortization | Net Balance at December 31, 2024 | ||||||||||||||||||||||
| Finite-lived intangible assets | ||||||||||||||||||||||||||
Acquired developed technology | 6.4 | $ | 887,104 | $ | (412,504) | $ | 474,600 | |||||||||||||||||||
| Trade name | 10.8 | 104,000 | (35,153) | 68,847 | ||||||||||||||||||||||
| Patents and licenses | 9.5 | 56,542 | (12,963) | 43,579 | ||||||||||||||||||||||
| Customer relationships | 6.0 | 4,000 | (1,333) | 2,667 | ||||||||||||||||||||||
| Total finite-lived intangible assets | 1,051,646 | (461,953) | 589,693 | |||||||||||||||||||||||
| In-process research and development | n/a | 420,000 | — | 420,000 | ||||||||||||||||||||||
| Total intangible assets | $ | 1,471,646 | $ | (461,953) | $ | 1,009,693 | ||||||||||||||||||||
As of December 31, 2025, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows:
| (In thousands) | ||||||||
| 2026 | $ | 95,955 | ||||||
| 2027 | 95,955 | |||||||
| 2028 | 95,955 | |||||||
| 2029 | 89,832 | |||||||
| 2030 | 22,473 | |||||||
| Thereafter | 99,755 | |||||||
| Total | $ | 499,925 | ||||||
The Company recorded an IPR&D asset of $1.25 billion related to a project associated with the development of a blood-based, multi-cancer screening test (“MCED”) as part of the acquisition of Thrive Earlier Detection Corporation (“Thrive”) in January 2021.
During the fourth quarter of 2024, the Company performed a quantitative impairment assessment for the IPR&D asset, which required a fair value measurement as of the Company's annual test date, November 15, 2024. The Company determined that the fair value of the IPR&D was $420.0 million and recorded a non-cash, pre-tax impairment charge of $830.0 million. The impairment charge recorded was the result of a decrease in projected cash flows for the asset due to external factors since the acquisition, primarily an expected decline in reimbursement rates. The ongoing legislation discussion around the proposed MCED Act legislation gave the Company new information on how reimbursement may develop. The fair value of the IPR&D asset was measured using the multi-period excess earnings method approach, which utilizes significant unobservable inputs (Level 3 inputs) including projected revenues, projected gross margin, projected operating expenses, discount rate, tax rate, obsolescence factor, and probability of commercial success. The discount rate utilized in the fair value measurement was 18.0%. The impairment loss recorded is included in impairment of long-lived and indefinite-lived assets in the Company’s consolidated statement of operations.
The Company performed a quantitative assessment as part of its annual IPR&D impairment analysis in the fourth quarter of 2025 under which it determined that the fair value exceeded the carrying value and no impairment loss was recorded.
There were no impairment losses recorded on finite-lived intangible assets during the years ended December 31, 2025, 2024, and 2023.
Goodwill
The change in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 is as follows:
| (In thousands) | ||||||||
| Balance, January 1, 2024 | $ | 2,367,120 | ||||||
Resolution Bioscience acquisition adjustments (1) | 225 | |||||||
Effects of changes in foreign currency exchange rates | (669) | |||||||
| Balance, December 31, 2024 | 2,366,676 | |||||||
| Effects of changes in foreign currency exchange rates | 1,372 | |||||||
| Balance, December 31, 2025 | $ | 2,368,048 | ||||||
(1) Refer to Note 17 for further discussion on the Company’s acquisition of Resolution Bioscience, Inc. (“Resolution Bioscience”)
There were no impairment losses recorded on goodwill for the years ended December 31, 2025, 2024, and 2023.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 16, 2021 | |
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.