8. Intangible Assets, Net and Goodwill
Intangible Assets, Net
Intangible assets consisted of the following as of December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | |
| | Gross
Carrying Value | | Accumulated Amortization | | Net Carrying Value | | Weighted-Average Remaining Useful Life |
| | | | | | | | |
| | (in thousands) | | (in years) |
| Intangible assets subject to amortization: | | | | | | | |
| Customer relationships | $ | 143,083 | | | $ | (131,159) | | | $ | 11,924 | | | 0.8 |
| Patents | 77,326 | | | (36,973) | | | 40,353 | | | 7.5 |
| Developed technology | 23,070 | | | (11,148) | | | 11,922 | | | 6.0 |
| Total intangible assets subject to amortization | $ | 243,479 | | | $ | (179,280) | | | $ | 64,199 | | | |
| Intangible assets not subject to amortization: | | | | | | | |
| Trade name and trademarks | $ | 386,938 | | | $ | — | | | $ | 386,938 | | | Indefinite |
| Total intangible assets, net | $ | 630,417 | | | $ | (179,280) | | | $ | 451,137 | | | |
Intangible assets consisted of the following as of December 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| | Gross
Carrying Value | | Accumulated Amortization | | Net Carrying Value | | Weighted-Average Remaining Useful Life |
| | | | | | | | |
| | (in thousands) | | (in years) |
| Intangible assets subject to amortization: | | | | | | | |
| Customer relationships | $ | 143,083 | | | $ | (115,261) | | | $ | 27,822 | | | 1.8 |
| Patents | 66,209 | | | (30,448) | | | 35,761 | | | 7.1 |
| Developed technology | 22,245 | | | (8,832) | | | 13,413 | | | 7.0 |
| Total intangible assets subject to amortization | $ | 231,537 | | | $ | (154,541) | | | $ | 76,996 | | | |
| Intangible assets not subject to amortization: | | | | | | | |
| Trade name and trademarks | $ | 385,682 | | | $ | — | | | $ | 385,682 | | | Indefinite |
| Total intangible assets, net | $ | 617,219 | | | $ | (154,541) | | | $ | 462,678 | | | |
Amortization expenses for intangible assets were as follows:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | | |
| | (in thousands) |
| Research and development | $ | 8,490 | | | $ | 8,767 | | | $ | 6,884 | |
| Sales and marketing | 15,898 | | | 15,898 | | | 15,898 | |
| Total amortization expenses | $ | 24,388 | | | $ | 24,665 | | | $ | 22,782 | |
The expected future amortization expenses related to the intangible assets as of December 31, 2025 were as follows:
| | | | | |
| | Amount |
| | (in thousands) |
| Years ending December 31, | |
| 2026 | $ | 21,753 | |
| 2027 | 8,797 | |
| 2028 | 6,028 | |
| 2029 | 6,007 | |
| 2030 | 5,931 | |
| Thereafter | 15,683 | |
| Total | $ | 64,199 | |
Goodwill
During 2025, the Company identified two reporting units for goodwill impairment testing, Domestic and International, and allocated the carrying amount of goodwill to each reporting unit based on relative net sales. There were no changes to goodwill during the year ended December 31, 2025. The following table represents the changes to goodwill during the year ended December 31, 2024:
| | | | | |
| | Carrying Amount |
| | (in thousands) |
| Balance as of December 31, 2023 | $ | 834,203 | |
| Effect of foreign currency translation | 578 | |
| Balance as of December 31, 2024 | $ | 834,781 | |
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.