Paymentus Holdings, Inc. Goodwill & Intangibles Disclosure
5. Goodwill, Internal-use Software Development Costs and Intangible Assets
Goodwill
The goodwill reporting units were realigned into a single reporting unit, consistent with the change to the Company's
segment structure described in Note 2, "Segment Information". The changes in the carrying amount of goodwill during the years ended December 31, 2025 and 2024 were immaterial and related to foreign currency translation adjustments.
Internal-use Software Development Costs
During the years ended December 31, 2025, 2024 and 2023, the Company capitalized $36.8 million, $36.2 million and $33.7 million in software development costs, respectively.
Amortization expense included in the consolidated statements of operations was as follows (in thousands):
|
Year Ended December 31, |
|
|||||||
|
2025 |
|
2024 |
|
2023 |
|
|||
Cost of revenue |
$ |
22,520 |
|
$ |
17,911 |
|
$ |
13,341 |
|
Research and development |
|
10,784 |
|
|
9,675 |
|
|
8,008 |
|
Total |
$ |
33,304 |
|
$ |
27,586 |
|
$ |
21,349 |
|
Intangible Assets
Intangible assets, net consisted of the following (in thousands):
|
December 31, 2025 |
|
||||||||||
|
Gross |
|
Accumulated |
|
Net |
|
Weighted- |
|
||||
Technology |
$ |
21,827 |
|
$ |
(21,827 |
) |
$ |
— |
|
|
4.0 |
|
Customer relationship |
|
31,982 |
|
|
(19,995 |
) |
|
11,987 |
|
|
8.0 |
|
Software and license |
|
2,912 |
|
|
(2,912 |
) |
|
— |
|
|
3.0 |
|
Trademark |
|
4,038 |
|
|
(4,038 |
) |
|
— |
|
|
4.0 |
|
Total |
$ |
60,759 |
|
$ |
(48,772 |
) |
$ |
11,987 |
|
|
|
|
|
December 31, 2024 |
|
||||||||||
|
Gross |
|
Accumulated |
|
Net |
|
Weighted- |
|
||||
Technology |
$ |
21,798 |
|
$ |
(18,675 |
) |
$ |
3,123 |
|
|
4.0 |
|
Customer relationship |
|
31,946 |
|
|
(16,689 |
) |
|
15,257 |
|
|
8.0 |
|
Software and license |
|
2,797 |
|
|
(2,789 |
) |
|
8 |
|
|
3.0 |
|
Trademark |
|
4,038 |
|
|
(3,350 |
) |
|
688 |
|
|
4.0 |
|
Total |
$ |
60,579 |
|
$ |
(41,503 |
) |
$ |
19,076 |
|
|
|
|
Amortization expense of intangible assets was $7.1 million, $8.1 million and $8.4 million for the years ended December 31, 2025, 2024 and 2023 respectively.
As of December 31, 2025, future expected amortization expense is as follows (in thousands):
Years Ending December 31, |
|
|
|
2026 |
$ |
3,269 |
|
2027 |
|
3,269 |
|
2028 |
|
3,269 |
|
2029 |
|
2,180 |
|
Total future amortization expense |
$ |
11,987 |
|
There were no impairments of goodwill, internal-use software development costs or intangible assets in the years ended December 31, 2025, 2024 and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 3, 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.