STEWART INFORMATION SERVICES CORPSTC

STEWART INFORMATION SERVICES CORP Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20262 min read
Goodwill and other intangibles. The summary of changes in goodwill is as follows: 
TitleReal Estate Solutions
Corporate
Total
 (in $ thousands)
Balances at January 1, 2024
707,935 364,194 — 1,072,129 
Acquisitions12,666 — — 12,666 
Purchase accounting adjustments186 — — 186 
Disposals(842)— — (842)
Balances at December 31, 2024
719,945 364,194 — 1,084,139 
Acquisitions8,608 179,211 — 187,819 
Balances at December 31, 2025
728,553 543,405 — 1,271,958 

An aggregate of $86.6 million of the goodwill recognized in 2025 related to acquisitions is tax-deductible over a period of 15 years from the corresponding acquisition date, while there was no such amount recognized in 2024. In connection with all of its acquisitions, the Company recorded other intangible assets of $184.0 million and $12.0 million during 2025 and 2024, respectively.

In December 2025, the Company acquired all of Mortgage Contracting Services (MCS) for a total cash purchase consideration of $332.7 million. MCS provides property preservation and field services to mortgage servicers and is included in the real estate solutions segment. Based on management's provisional purchase accounting, which is expected to be completed within the one-year measurement period from the acquisition date, the Company recognized fair value amounts of assets acquired and liabilities assumed at acquisition date, primarily related to goodwill ($152.2 million), other intangible assets ($175.0 million), trade receivables ($17.9 million) and accounts payable and accrued liabilities ($10.2 million). Provisional other intangible assets recognized were primarily related to customer relationships, internally-developed technology and trademark.
The summary of other intangibles by major class (refer to Note 1-M) is as follows:

Customer RelationshipsTechnologyOthersTotal
 (in $ thousands)
Balances at December 31, 2025:
Gross315,402 106,763 66,130 488,295 
Accumulated amortization(61,064)(69,244)(32,852)(163,160)
Net254,338 37,519 33,278 325,135 
Balances at December 31, 2024:
Gross174,302 81,062 48,957 304,321 
Accumulated amortization(46,141)(53,984)(31,121)(131,246)
Net128,161 27,078 17,836 173,075 

Total amortization expense recorded for other intangible assets was $31.9 million and $32.1 million in 2025 and 2024, respectively. The annual amortization expense expected to be recognized in the next five years relating to other intangible assets is approximately $31.8 million in 2026, $23.0 million in 2027, $21.7 million in 2028, $21.0 million in 2029 and $19.7 million in 2030.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 28, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Feb 27, 2017
2015Feb 26, 2016

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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