Goodwill and Acquisition-related Intangible Assets, Net
Goodwill
Goodwill as of December 31, 2025 and 2024 was $29.6 million. There were no accumulated impairment losses as of December 31, 2025.
Acquisition-related Intangible Assets, Net
Acquisition-related intangible assets, net consisted of the following (in thousands):
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| December 31, 2025 | | |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | | | | | | Weighted Average Remaining Useful Life (in years) | | |
| Developed technology | $ | 7,900 | | | $ | 5,196 | | | $ | 2,704 | | | | | | | | 1.75 | | |
| Customer relationships | 1,000 | | | 1,000 | | | — | | | | | | | | — | | |
| Total acquisition-related intangible assets | $ | 8,900 | | | $ | 6,196 | | | $ | 2,704 | | | | | | | | 1.75 | | |
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| December 31, 2024 | | |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | | | | | | Weighted Average Remaining Useful Life (in years) | | |
| Developed technology | $ | 7,900 | | | $ | 3,616 | | | $ | 4,284 | | | | | | | | 2.75 | | |
| Customer relationships | 1,000 | | | 1,000 | | | — | | | | | | | | — | | |
| Total acquisition-related intangible assets | $ | 8,900 | | | $ | 4,616 | | | $ | 4,284 | | | | | | | | 2.75 | | |
Amortization expense related to acquisition-related intangibles was $1.6 million for each of the years ended December 31, 2025 and 2024.
As of December 31, 2025, estimated future amortization expense for acquisition-related intangible assets was as follows (in thousands):
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| 2026 | $ | 1,580 | |
| 2027 | 1,124 | |
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| Total estimated future amortization expense for acquisition-related intangible assets | $ | 2,704 | |
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.