Five9, Inc.FIVN

Five9, Inc. Goodwill & Intangibles Disclosure

10-KFiled Feb 20, 20262 min read
Goodwill and Intangible Assets
In 2024, goodwill and intangible assets were recorded as a result of the Company's acquisition of Acqueon, Inc. (“Acqueon”). See Note 14 for further details. The following table summarizes the activity in the Company's goodwill and intangible asset balances during the years ended December 31, 2025 and 2024 (in thousands):
GoodwillIntangible Assets
Beginning of the period, January 1, 2024$227,412 $38,323 
Addition (Acqueon)138,181 39,900 
Measurement period adjustment (Acqueon)(14)— 
Measurement period adjustment (Aceyus)(143)— 
Amortization— (12,591)
End of the period, December 31, 2024365,436 65,632 
Measurement period adjustment (Acqueon)817 — 
Amortization— (14,466)
End of the period, December 31, 2025$366,253 $51,166 
During the fourth quarter of 2025, the Company completed its annual goodwill impairment test. Based on the Company’s assessment, it concluded that it is more likely than not that the fair values were more than their carrying values. Accordingly, there was no indication of impairment of goodwill, and further quantitative testing was not required. Subsequent to the 2025 annual impairment test, the Company believes there have been no significant events or circumstances negatively affecting the valuation of goodwill. As of December 31, 2025 and 2024, there was no impairment to the carrying value of the Company’s goodwill.
The components of intangible assets were as follows (in thousands):
December 31, 2025December 31, 2024
Gross Carrying AmountAccumulated
Amortization		Net
Carrying
Amount		Weighted Average Remaining Amortization Period (Years)Gross
Carrying Amount		Accumulated
Amortization		Net
Carrying
Amount		Weighted Average Remaining Amortization Period (Years)
Developed technology$105,714 $(62,794)$42,920 5.8$105,714 $(51,230)$54,484 6.0
Acquired workforce470 (470)— 0.0470 (470)— 0.0
Customer relationships12,850 (5,150)7,700 3.512,850 (2,681)10,169 4.4
Trademarks1,300 (754)546 1.51,300 (321)979 2.4
Total$120,334 $(69,168)$51,166 5.4$120,334 $(54,702)$65,632 5.7
Amortization expense related to intangible assets was $14.5 million, $12.6 million and $12.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, the expected future amortization expense for intangible assets was as follows (in thousands):
PeriodExpected Future
Amortization Expense
2026$13,008 
20278,612 
20288,246 
20297,328 
20306,188 
Thereafter7,784 
Total$51,166 
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. The Company concluded that there were no indicators of impairment of its intangible assets as of December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 22, 2024
2022Feb 24, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Feb 27, 2020
2018Feb 25, 2019
2017Mar 1, 2018
2016Feb 28, 2017
2015Mar 3, 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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