ROKU, INCROKU

ROKU, INC Goodwill & Intangibles Disclosure

10-KFiled Feb 13, 20262 min read
5. GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed. All goodwill relates to the Platform segment.
The following table reflects the changes in the carrying value of goodwill (in thousands):

Carrying Value
Balance as of December 31, 2024$161,519 
Frndly TV acquisition (see Note 4)147,887 
Balance as of December 31, 2025$309,406 
Intangible Assets
The following tables summarize the Company’s intangible assets for the periods presented (in thousands, except years):
As of December 31, 2025
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount		Weighted-Average Useful Lives
(in years)
Developed technology$73,367 $(71,138)$2,229 5.9
Customer relationships46,100 (22,995)23,105 6.3
Tradename34,400 (11,832)22,568 7.9
Patents4,076 (1,771)2,305 14.0
Total Intangible assets$157,943 $(107,736)$50,207 6.7
As of December 31, 2024
 Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount		Weighted-Average Useful Lives
(in years)
Developed technology$73,367 $(60,896)$12,471 5.9
Customer relationships14,100 (14,100)— 4.0
Tradename20,400 (7,966)12,434 9.8
Patents4,076 (1,480)2,596 14.0
Total Intangible assets$111,943 $(84,442)$27,501 6.7
The Company amortizes the fair value of intangible assets over their estimated useful lives in proportion to the economic benefits received. Amortization expense related to intangible assets was approximately $23.3 million, $14.2 million, and $17.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company recorded amortization of developed technology in Cost of revenue, platform for the years ended December 31, 2025 and 2024. The Company recorded amortization of developed technology in Cost of revenue, platform and Research and development for the year ended December 31, 2023. The Company recorded amortization of customer relationships and tradename in Sales and marketing expenses, and recorded amortization of patents in General and administrative expenses in the consolidated statements of operations for all periods presented.
As of December 31, 2025, the estimated future amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands):
Year Ending December 31, 
2026$14,698 
202710,507
20288,419
20297,257
20304,884
Thereafter4,442
Total$50,207 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 16, 2023
2021Feb 18, 2022
2020Feb 26, 2021
2019Mar 2, 2020

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.

Other Available Disclosures

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