Goodwill and Acquired Intangible Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 (in thousands):

 

Year Ended December 31,

2025

 

2024

Beginning balance

$

149,558

 

$

121,646

Goodwill related to acquisitions

 

251,517

 

 

31,818

Foreign currency translation adjustment

 

5,380

 

 

(3,906)

Measurement period adjustments

 

52

 

 

Ending balance

$

406,507

 

$

149,558

Acquired Intangible Assets

Acquired intangible assets subject to amortization consisted of the following (dollars in thousands):

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Remaining Life

 

Value

 

Amortization

 

Amount

 

(years)

Acquired Relationships

$

176,913

 

$

(32,484)

 

$

144,429

 

11.74

Developed Technology

 

75,543

 

 

(35,576)

 

 

39,967

 

5.94

Trade Name/Trademark

 

5,134

 

 

(480)

 

 

4,654

 

8.60

$

257,590

 

$

(68,540)

 

$

189,050

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Remaining Life

 

Value

 

Amortization

 

Amount

 

(years)

Acquired Relationships

$

120,119

 

$

(21,104)

 

$

99,015

 

10.12

Developed Technology

 

45,546

 

 

(26,312)

 

 

19,234

 

4.90

Trade Name/Trademark

 

524

 

 

(89)

 

 

435

 

3.30

$

166,189

 

$

(47,505)

 

$

118,684

 

 

Amortization expense for the years ended December 31, 2025, 2024, and 2023 was $20.1 million, $12.3 million, and $11.5 million, respectively.

As of December 31, 2025, the estimated annual amortization expense of intangible assets for each of the next five years and thereafter is expected to be as follows (in thousands):

Estimated Amortization Expense

2026

$

22,379

2027

 

20,883

2028

 

20,785

2029

 

20,232

2030

 

18,248

Thereafter

 

86,523

$

189,050

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Mar 10, 2023
2021Mar 29, 2022

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.