Natera, Inc. Goodwill & Intangibles Disclosure
6. Goodwill and Intangible Assets
Goodwill
On December 4, 2025, upon the acquisition of Foresight Diagnostics the Company recorded $141.1 million of goodwill. See Note 3, Business Combination, for additional information. There were no measurement period adjustments recorded to the carrying value of goodwill during the year ended December 31, 2025.
The Company determined that no events occurred or circumstances changed that would indicate that it is more likely than not that the fair value of its reporting unit is less than its carrying amount during the year ended December 31, 2025. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future.
Intangible Assets
The Company’s intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives, which range from to 15 years. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company has no indefinite-lived intangible assets. The Company determined that no events occurred or circumstances changed during the reporting periods ended December 31, 2025 and 2024 that would indicate that its intangible assets with finite lives may not be recoverable. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future.
Intangible assets are comprised of the following:
December 31, | ||||||||
| Useful Life | 2025 | 2024 | |||||
(in thousands) | ||||||||
Developed technology | 15 years |
| $ | 335,300 |
| $ | — | |
Customer-relationships | -10 years | 12,795 | 11,895 | |||||
License and trademarks |
| -10 years |
| 30,500 |
| — | ||
Total |
| 378,595 |
| 11,895 | ||||
Less: Accumulated amortization |
|
| (4,882) |
| (962) | |||
Total Intangible Assets, net | $ | 373,713 | $ | 10,933 | ||||
Intangible assets are amortized assuming no expected residual value. Amortization expense related to intangible assets was $3.9 million, $1.0 million, and none for the years ended December 31, 2025, 2024, and 2023, respectively.
The estimated future aggregate amortization expense as of December 31, 2025 is as follows:
| |||
(in thousands) | |||
Year ending December 31: | |||
2026 | $ | 28,666 | |
2027 | 28,666 | ||
2028 | 28,644 | ||
2029 | 28,366 | ||
2030 | 28,366 | ||
2031 and thereafter | 231,005 | ||
Total | 373,713 | ||
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.