HUBSPOT INC Goodwill & Intangibles Disclosure
9. Intangible Assets and Goodwill
Intangible assets
Intangible assets as of December 31, 2025 and 2024 consist of the following:
|
|
Weighted |
|
December 31, |
|
|||||
|
|
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
(in thousands) |
|
|||||
Acquired technology |
|
3.3 |
|
$ |
60,199 |
|
|
$ |
49,791 |
|
Domain name |
|
3.3 |
|
|
10,000 |
|
|
|
10,000 |
|
Sublease asset |
|
0.3 |
|
|
980 |
|
|
|
980 |
|
Other intangible assets |
|
1.6 |
|
|
1,450 |
|
|
|
1,279 |
|
Total intangible assets |
|
|
|
|
72,629 |
|
|
|
62,050 |
|
Accumulated amortization |
|
|
|
|
(37,404 |
) |
|
|
(24,487 |
) |
Intangible assets, net |
|
|
|
$ |
35,225 |
|
|
$ |
37,563 |
|
The Company has intangible assets acquired through business acquisitions (Note 8). The estimated useful life of acquired technology is to seven years and the estimated useful life of sublease assets is two years. The Company also purchased rights to the domain name "connect.com" and the cost is amortized on a straight-line basis over its estimated useful life of seven years. Other intangible assets have estimated useful lives of two to three years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Amortization expense related to intangible assets was $12.1 million in 2025, $9.6 million in 2024, and $5.3 million in 2023. Amortization expense of acquired technology is included in cost of subscription revenue and cost of professional services and other revenue. Amortization expense of customer relationships and the domain name is included in sales and marketing expense in the consolidated statements of operations.
Estimated future amortization expense for intangible assets as of December 31, 2025 is as follows:
|
|
Amortization |
|
|
|
|
(in thousands) |
|
|
2026 |
|
$ |
12,411 |
|
2027 |
|
|
10,174 |
|
2028 |
|
|
9,387 |
|
2029 |
|
|
2,884 |
|
2030 |
|
|
369 |
|
Thereafter |
|
|
- |
|
Total |
|
$ |
35,225 |
|
Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired and is generally not deductible for tax purposes. Goodwill amounts are not amortized, but rather tested for impairment annually.
The changes in the carrying amounts of goodwill consist of the following:
|
|
(in thousands) |
|
|
Balance as of December 31, 2023 |
|
$ |
173,761 |
|
Effect of foreign currency translation |
|
|
(636 |
) |
Acquisitions |
|
|
36,383 |
|
Balance as of December 31, 2024 |
|
|
209,508 |
|
Effect of foreign currency translation |
|
|
1,806 |
|
Acquisitions |
|
|
80,138 |
|
Balance as of December 31, 2025 |
|
$ |
291,452 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 12, 2020 | |
| 2018 | Feb 12, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 24, 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.