Goodwill and Other Intangibles
Goodwill
The carrying amount of goodwill at both December 31, 2025 and 2024 was $29.8 million. Accumulated impairment losses at both December 31, 2025 and 2024 were $11.6 million.
Other Intangible Assets
Components of intangible assets are as follows:
| | | | | | | | | | | | | | | | | | | | |
| (in thousands) | | As of December 31, 2025 |
| | Gross Carrying Value | | Accumulated Amortization | | Net Book Value |
| | | | | | |
| Customer relationships | | $ | 34,940 | | | $ | (33,751) | | | $ | 1,189 | |
| Developed technology | | 700 | | | (700) | | | — | |
| Trade names and trademarks | | 1,700 | | | (1,653) | | | 47 | |
| Total | | $ | 37,340 | | | $ | (36,104) | | | $ | 1,236 | |
| | | | | | | | | | | | | | | | | | | | |
| (in thousands) | | As of December 31, 2024 |
| | Gross Carrying Value | | Accumulated Amortization | | Net Book Value |
| | | | | | |
| Customer relationships | | $ | 34,940 | | | $ | (32,589) | | | $ | 2,351 | |
| Developed technology | | 700 | | | (700) | | | — | |
| Trade names and trademarks | | 1,700 | | | (1,597) | | | 103 | |
| Total | | $ | 37,340 | | | $ | (34,886) | | | $ | 2,454 | |
Estimated future amortization expense for intangible assets as of December 31, 2025 is as follows:
| | | | | | | | |
| (in thousands) | | |
| Year Ending December 31, | | Estimated Amortization |
| 2026 | | $ | 997 | |
| 2027 | | 230 | |
| 2028 | | 3 | |
| 2029 | | 4 | |
| 2030 and beyond | | 2 | |
| | |
| Total | | $ | 1,236 | |
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.