QUINSTREET, INC Goodwill & Intangibles Disclosure
8. Intangible Assets, Net and Goodwill
Intangible Assets, Net
Intangible assets, net consisted of the following (in thousands):
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June 30, 2025 |
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June 30, 2024 |
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Gross |
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Net |
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Gross |
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Net |
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Carrying |
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Accumulated |
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Carrying |
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Carrying |
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Accumulated |
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Carrying |
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Amount |
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Amortization |
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Amount |
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Amount |
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Amortization |
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Amount |
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Customer/publisher/advertiser relationships |
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$ |
93,511 |
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$ |
(76,353 |
) |
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$ |
17,158 |
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$ |
93,511 |
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$ |
(68,770 |
) |
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$ |
24,741 |
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Content |
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43,106 |
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(43,106 |
) |
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— |
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|
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43,106 |
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|
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(43,068 |
) |
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38 |
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Website/trade/domain names |
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25,422 |
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|
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(20,601 |
) |
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4,821 |
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25,422 |
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(20,051 |
) |
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5,371 |
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Acquired technology and others |
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43,014 |
|
|
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(36,518 |
) |
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|
6,496 |
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|
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43,014 |
|
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|
(35,156 |
) |
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|
7,858 |
|
|
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$ |
205,053 |
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|
$ |
(176,578 |
) |
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$ |
28,475 |
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|
$ |
205,053 |
|
|
$ |
(167,045 |
) |
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$ |
38,008 |
|
Amortization of intangible assets was $9.5 million, $10.7 million and $11.1 million for fiscal years 2025, 2024 and 2023.
Future amortization expense for the Company’s intangible assets as of June 30, 2025 was as follows (in thousands):
Fiscal Year Ended June 30, |
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Amortization |
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2026 |
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$ |
6,887 |
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2027 |
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|
|
|
5,864 |
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2028 |
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|
|
|
5,281 |
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2029 |
|
|
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|
4,234 |
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2030 |
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|
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|
1,524 |
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Thereafter |
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|
4,685 |
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Total |
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$ |
28,475 |
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Goodwill
The addition to goodwill during fiscal year 2024 was associated with the acquisition of AquaVida. There was no addition to goodwill during fiscal year 2025. See Note 6, Acquisitions, for further details related to the acquisitions. There was no goodwill impairment recognized during fiscal years 2025 and 2024, and as a result the carrying amount of goodwill continues to be $125.1 as of June 30, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 21, 2025 | Showing above |
| 2024 | Aug 21, 2024 | |
| 2023 | Aug 21, 2023 | |
| 2022 | Aug 22, 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.