Intapp, Inc. Goodwill & Intangibles Disclosure
Note 5. Goodwill and Intangible Assets
Goodwill
Changes in the carrying amounts of goodwill were as follows (in thousands):
|
|
Carrying Amount |
|
|
Balance as of June 30, 2023 |
|
$ |
278,890 |
|
Goodwill acquired during the period |
|
|
7,072 |
|
Foreign currency translation adjustment |
|
|
7 |
|
Balance as of June 30, 2024 |
|
$ |
285,969 |
|
Goodwill acquired during the period |
|
|
39,586 |
|
Foreign currency translation adjustment |
|
|
705 |
|
Balance as of June 30, 2025 |
|
$ |
326,260 |
|
No impairment of goodwill has been recorded for the fiscal years ended June 30, 2025, 2024 and 2023.
Intangible Assets
Intangible assets acquired through business combinations consisted of the following (in thousands):
|
|
June 30, 2025 |
|
|||||||||||
|
|
Useful Life |
|
Gross Carrying Amount |
|
|
Accumulated |
|
|
Net Carrying Amount |
|
|||
Client relationships |
|
9 to 15 |
|
$ |
52,080 |
|
|
$ |
(33,004 |
) |
|
$ |
19,076 |
|
Non-compete agreements |
|
3 to 5 |
|
|
4,907 |
|
|
|
(4,651 |
) |
|
|
256 |
|
Trademarks and trade names |
|
Indefinite |
|
|
4,683 |
|
|
|
— |
|
|
|
4,683 |
|
Trademarks and trade names |
|
5 to 10 |
|
|
7,844 |
|
|
|
(6,199 |
) |
|
|
1,645 |
|
Core technology |
|
2 to 7 |
|
|
69,614 |
|
|
|
(54,595 |
) |
|
|
15,019 |
|
Backlog |
|
2 |
|
|
1,027 |
|
|
|
(1,007 |
) |
|
|
20 |
|
Intangible assets, net |
|
|
|
$ |
140,155 |
|
|
$ |
(99,456 |
) |
|
$ |
40,699 |
|
|
|
June 30, 2024 |
|
|||||||||||
|
|
Useful Life |
|
Gross Carrying Amount |
|
|
Accumulated |
|
|
Net Carrying Amount |
|
|||
Client relationships |
|
9 to 15 |
|
$ |
48,900 |
|
|
$ |
(28,949 |
) |
|
$ |
19,951 |
|
Non-compete agreements |
|
3 to 5 |
|
|
4,907 |
|
|
|
(4,035 |
) |
|
|
872 |
|
Trademarks and trade names |
|
Indefinite |
|
|
4,683 |
|
|
|
— |
|
|
|
4,683 |
|
Trademarks and trade names |
|
5 to 10 |
|
|
7,822 |
|
|
|
(5,773 |
) |
|
|
2,049 |
|
Core technology |
|
2 to 7 |
|
|
60,584 |
|
|
|
(48,054 |
) |
|
|
12,530 |
|
Backlog |
|
2 |
|
|
1,000 |
|
|
|
(792 |
) |
|
|
208 |
|
Intangible assets, net |
|
|
|
$ |
127,896 |
|
|
$ |
(87,603 |
) |
|
$ |
40,293 |
|
Amortization expense related to acquired intangible assets was recognized as follows (in thousands):
|
|
Year Ended June 30, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cost of SaaS |
|
$ |
6,541 |
|
|
$ |
4,778 |
|
|
$ |
4,340 |
|
Sales and marketing |
|
|
4,696 |
|
|
|
5,599 |
|
|
|
5,921 |
|
General and administrative |
|
|
616 |
|
|
|
652 |
|
|
|
512 |
|
Total amortization expense |
|
$ |
11,853 |
|
|
$ |
11,029 |
|
|
$ |
10,773 |
|
There was no impairment of intangible assets recorded during the fiscal years ended June 30, 2025, 2024 and 2023.
As of June 30, 2025, the estimated future amortization expense for acquired intangible assets is as follows (in thousands):
Fiscal Year Ending June 30, |
|
Amount |
|
|
2026 |
|
$ |
10,583 |
|
2027 |
|
|
7,832 |
|
2028 |
|
|
7,335 |
|
2029 |
|
|
5,400 |
|
2030 |
|
|
2,295 |
|
2031 and thereafter |
|
|
2,571 |
|
Total remaining amortization |
|
$ |
36,016 |
|
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.