KORE Group Holdings, Inc.KORE
KORE Group Holdings, Inc. Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The following table sets forth the changes in the carrying amount of the Company’s goodwill on the consolidated balance sheets as of December 31, 2025, and 2024:
| (in thousands) | Total | ||||
| Balance as of January 1, 2024 | |||||
| Gross carrying amount | $ | 432,304 | |||
| Accumulated impairment losses | (136,331) | ||||
| Accumulated currency translation | (999) | ||||
| Net carrying amount | $ | 294,974 | |||
| Impairment losses | (65,861) | ||||
| Currency translation | (269) | ||||
| Balance as of December 31, 2024 | |||||
| Gross carrying amount | $ | 432,304 | |||
| Accumulated impairment losses | (202,192) | ||||
| Accumulated currency translation | (1,268) | ||||
| Net carrying amount | $ | 228,844 | |||
| Balance as of December 31, 2025 | |||||
| Gross carrying amount | $ | 432,304 | |||
| Accumulated impairment losses | (202,192) | ||||
| Accumulated currency translation | (1,268) | ||||
| Net carrying amount | $ | 228,844 | |||
There was no long-lived assets and goodwill impairments during the year ended December 31, 2025.
2024 Goodwill impairment loss
During the second quarter of 2024, the Company identified circumstances prior to its annual impairment test that indicated that it was “more likely than not” that the fair value of the Company’s goodwill was below its carrying value. The primary qualitative impairment indicator noted was that of a significant and sustained decline in the Company’s share price from that of the first quarter of 2024, along with decreasing cash flows, lower actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, and changes in management. The Company therefore performed a long-lived asset and goodwill impairment test during the second quarter of 2024 and
determined that goodwill was impaired. The Company recorded a goodwill impairment charge of $65.9 million for the year ended December 31, 2024. No impairment was indicated for long-lived assets.
The fair value of the Company’s goodwill was estimated by equally weighing the results of an income approach and market approach. Valuation techniques utilized were substantially considered Level 3 inputs in the fair value hierarchy. These inputs included the Company’s internal forecasts of its future results, cash flows, and its weighted average cost of capital. Key assumptions used in the impairment analysis included projected revenue growth rates, discount rates, and market factors such as earnings multiples from comparable publicly traded companies.
Long-lived assets and goodwill were determined to not be further impaired as of the annual impairment test date on October 1, 2024.
Other Intangible Assets
The following tables set forth the details of other intangible assets included on the consolidated balance sheets as of December 31, 2025 and 2024:
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||
| Customer relationships | $ | 334,986 | $ | (288,019) | $ | 46,967 | |||||||||||
| Internally developed computer software | 91,732 | (63,563) | 28,169 | ||||||||||||||
| Carrier contracts | 70,210 | (66,823) | 3,387 | ||||||||||||||
| Technology | 50,540 | (48,194) | 2,346 | ||||||||||||||
| Trademarks | 17,516 | (15,380) | 2,136 | ||||||||||||||
| Non-compete agreement | 5,604 | (5,604) | — | ||||||||||||||
| Balance as of December 31, 2025 | $ | 570,588 | $ | (487,583) | $ | 83,005 | |||||||||||
| (in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||
| Customer relationships | $ | 334,123 | $ | (257,326) | $ | 76,797 | |||||||||||
| Internally developed computer software | 89,386 | (56,679) | 32,707 | ||||||||||||||
| Carrier contracts | 70,210 | (61,479) | 8,731 | ||||||||||||||
| Technology | 50,202 | (46,835) | 3,367 | ||||||||||||||
| Trademarks | 17,385 | (13,946) | 3,439 | ||||||||||||||
| Non-compete agreement | 5,604 | (5,588) | 16 | ||||||||||||||
| Balance as of December 31, 2024 | $ | 566,910 | $ | (441,853) | $ | 125,057 | |||||||||||
As of December 31, 2025, the weighted average remaining useful lives were 4.2 years for customer relationships; 6.6 years for internally developed computer software; 2.3 years for carrier contracts; 2.6 years for technology; and 3.1 years for trademarks.
Amortization expense for the years ended December 31, 2025 and 2024 was $49.6 million and $51.7 million, respectively.
The following table sets forth the estimated amortization expense for amortizing intangible assets for the next five years and thereafter as of December 31, 2025:
| (in thousands) | Estimated Amortization Expense | ||||
| 2026 | $ | 35,888 | |||
| 2027 | 16,992 | ||||
| 2028 | 13,679 | ||||
| 2029 | 6,281 | ||||
| 2030 | 3,907 | ||||
| Thereafter | 6,258 | ||||
| Total | $ | 83,005 | |||
Loss on Sale of Assets
The Company recognized a loss on sale of assets of $1.1 million for the year ended December 31, 2025 resulting from the sale of certain intangible assets consisting of internally developed software along with hardware inventory associated with that software. The assets had a book value of $1.3 million, and the Company received proceeds of $0.3 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 30, 2025 | |
| 2023 | Apr 15, 2024 | |
| 2022 | Apr 7, 2023 | |
| 2021 | Mar 30, 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.