Strategic Education, Inc.STRA
Strategic Education, Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
Goodwill
The following table presents changes in the carrying value of goodwill by segment for the years ended December 31, 2024 and 2025 (in thousands):
| U.S. Higher Education | Australia / New Zealand | Education Technology Services | Total | ||||||||||||||||||||
| Balance as of December 31, 2023 | $ | 632,075 | $ | 519,813 | $ | 100,000 | $ | 1,251,888 | |||||||||||||||
| Additions | — | — | — | — | |||||||||||||||||||
| Impairments | — | — | — | — | |||||||||||||||||||
| Currency translation adjustments | — | (45,005) | — | (45,005) | |||||||||||||||||||
| Balance as of December 31, 2024 | 632,075 | 474,808 | 100,000 | 1,206,883 | |||||||||||||||||||
| Additions | — | — | — | — | |||||||||||||||||||
| Impairments | — | — | — | — | |||||||||||||||||||
| Currency translation adjustments | — | 35,530 | — | 35,530 | |||||||||||||||||||
| Balance as of December 31, 2025 | $ | 632,075 | $ | 510,338 | $ | 100,000 | $ | 1,242,413 | |||||||||||||||
The Company assesses goodwill at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount.
In 2025, the Company performed a qualitative impairment assessment of goodwill assigned to its reporting units using the first day of the fourth quarter of 2025 as the assessment date. The Company evaluated the likelihood of impairment by considering qualitative factors relevant to the reporting units, such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and any other factors that could have a significant bearing on fair value. Based on the results of this qualitative impairment analysis, the Company concluded that no impairment indicators existed for its reporting units as of the assessment date. There were no goodwill impairment charges recorded during the years ended December 31, 2023, 2024, and 2025.
Intangible Assets
The Company’s finite-lived intangible assets were comprised of approximately $200.0 million of student relationships, which were amortized on a straight-line basis over a three-year useful life. Straight-line amortization expense for finite-lived intangible assets reflected the pattern in which the economic benefits of the assets were consumed over their estimated useful lives. All finite-lived intangible assets were fully amortized by the end of 2023. Amortization expense related to finite-lived intangible assets was $8.9 million for the year ended December 31, 2023.
Indefinite-lived intangible assets not subject to amortization consist of trade names. The Company assigned an indefinite useful life to its trade name intangible assets, as it is believed these assets have the ability to generate cash flows indefinitely. In addition, there are no legal, regulatory, contractual, economic, or other factors to limit the useful life of the trade name intangibles.
The following table presents changes in the carrying value of indefinite-lived intangible assets for the years ended December 31, 2024 and 2025 (in thousands):
| Indefinite-Lived Intangible Assets | ||||||||
| Balance as of December 31, 2023 | $ | 251,623 | ||||||
| Additions | — | |||||||
| (800) | ||||||||
| Currency translation adjustments | (5,725) | |||||||
| Balance as of December 31, 2024 | 245,098 | |||||||
| Additions | — | |||||||
| (356) | ||||||||
| Currency translation adjustments | 4,501 | |||||||
| Balance as of December 31, 2025 | $ | 249,243 | ||||||
The Company assesses indefinite-lived intangible assets at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective indefinite-lived intangible asset below its carrying amount.
In 2025, the Company performed a qualitative impairment assessment of its indefinite-lived intangible assets using the first day of the fourth quarter of 2025 as the assessment date. The Company evaluated the likelihood of impairment by considering qualitative factors, such as macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and any other factors that could have a significant bearing on fair value. Based on the results of this qualitative impairment analysis, the Company concluded that no impairment indicators existed for its indefinite-lived intangible assets as of the assessment date.
There were no impairment charges related to indefinite-lived intangible assets recorded during the year ended December 31, 2023. During the years ended December 31, 2024 and 2025, the Company recorded indefinite-lived intangible asset impairment charges of $0.8 million and $0.4 million, respectively, which are included in Restructuring costs on the consolidated statements of income.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
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.