NOTE 6 GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill was $1,293,346 as of December 31, 2025 and 2024. There have been no changes to the goodwill carrying value during the periods.

Intangible Assets

Intangible assets consist of the following:

December 31, 2025

 

Gross
Carrying Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying Amount

 

 

Weighted
Average Useful
Life (Years)

 

Regional trade names

 

$

36,694

 

 

$

(36,319

)

 

$

375

 

 

 

4.0

 

LifeStance trade names

 

 

235,500

 

 

 

(58,957

)

 

 

176,543

 

 

 

22.5

 

Non-competition agreements

 

 

94,535

 

 

 

(93,788

)

 

 

747

 

 

 

4.2

 

Total intangible assets

 

$

366,729

 

 

$

(189,064

)

 

$

177,665

 

 

 

 

 

December 31, 2024

 

Gross
Carrying Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying Amount

 

 

Weighted
Average Useful
Life (Years)

 

Regional trade names

 

$

36,694

 

 

$

(35,039

)

 

$

1,655

 

 

 

4.0

 

LifeStance trade names

 

 

235,500

 

 

 

(48,490

)

 

 

187,010

 

 

 

22.5

 

Non-competition agreements

 

 

94,535

 

 

 

(92,401

)

 

 

2,134

 

 

 

4.2

 

Total intangible assets

 

$

366,729

 

 

$

(175,930

)

 

$

190,799

 

 

 

 

Gross carrying amount is based on the fair value of the intangible assets determined at the acquisition date. Total intangible asset amortization expense consists of the following:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Amortization expense

 

$

13,134

 

 

$

30,273

 

 

$

43,065

 

 

The future amortization of intangible assets as of December 31, 2025 is as follows:

Year Ended December 31,

 

Amount

 

2026

 

$

11,385

 

2027

 

 

10,671

 

2028

 

 

10,467

 

2029

 

 

10,467

 

2030

 

 

10,467

 

Thereafter

 

 

124,208

 

Total

 

$

177,665

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Mar 9, 2023
2021Mar 17, 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.