PROCORE TECHNOLOGIES, INC.PCOR

PROCORE TECHNOLOGIES, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 24, 20263 min read
INTANGIBLE ASSETS AND GOODWILL
Intangible assets
During the year ended December 31, 2025, the Company completed the acquisition of Novorender, which was accounted for as a business combination, as described in Note 7 above. The Company also completed an asset acquisition for $4.9 million. The acquired developed technology intangible asset has an estimated useful life of four years, and the amortization expense is recorded in cost of revenue on the accompanying consolidated statements of operations and comprehensive loss.
During the year ended December 31, 2024, the Company completed the acquisition of Intelliwave, which was accounted for as a business combination, as described in Note 7 above. The Company also completed an asset acquisition for $3.9 million. The acquired developed technology intangible asset has an estimated useful life of four years, and the amortization expense is recorded in cost of revenue on the accompanying consolidated statements of operations and comprehensive loss.
No impairments of IPR&D were recorded during any period presented.
The Company’s finite-lived and indefinite-lived intangible assets are summarized as follows (dollars in thousands):
December 31, 2025
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Weighted-Average Remaining Useful Life
(Years)
Developed technology$212,463 $(127,638)$84,825 3.8
Customer relationships75,950 (55,411)20,539 6.4
Total finite-lived intangible assets
$288,413 $(183,049)$105,364 4.3
December 31, 2024
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Weighted-Average Remaining Useful Life
(Years)
Developed technology$185,947 $(95,216)$90,731 4.0
Customer relationships71,050 (43,683)27,367 4.9
Total finite-lived intangible assets
256,997 (138,899)118,098 4.2
In-process research and development2,848 — 2,848 
Total intangible assets$259,845 $(138,899)$120,946 
The Company’s in-process research and development (“IPR&D”) intangible asset, which was acquired in 2023, was considered indefinite-lived and assessed annually for impairment. During the year ended December 31, 2025, the Company completed the development of the IPR&D intangible asset and reclassified it as a finite-lived intangible asset, which started to be amortized over its estimated useful life of two years.
The Company estimates that there is no significant residual value related to its finite-lived intangible assets. Amortization expense recorded on the Company’s finite-lived intangible assets is summarized as follows (in thousands):
Year Ended December 31,
202520242023
Cost of revenue$29,820 $25,437 $22,396 
Sales and marketing11,727 12,700 12,425 
Research and development2,603 2,657 2,757 
Total amortization of acquired finite-lived intangible assets
$44,150 $40,794 $37,578 
The following table outlines the estimated future amortization expense related to finite-lived intangible assets (in thousands):
Years Ending December 31,
2026$29,995 
202727,686 
202824,048 
20298,157 
20307,084 
Thereafter8,394 
Total$105,364 
Goodwill
The following table presents the changes in carrying amount of goodwill (in thousands):
Year Ended December 31,
20252024
Beginning balance$549,651 $539,354 
Additions23,706 11,333 
Other adjustments, net (1)
726 (1,036)
Ending balance
$574,083 $549,651 
(1) Includes post-closing working capital adjustments and the effect of foreign currency translation.
There was no impairment of goodwill during any period presented.
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Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 26, 2024
2022Mar 1, 2023
2021Mar 4, 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.

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