Goodwill and Other Intangible Assets
Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the assembled workforce and anticipated operational synergies. Goodwill was $54,256 and $53,110 as of December 31, 2025 and 2024, respectively. There were no impairments of goodwill during the year ended December 31, 2025 and 2024.
The Company has only one reporting unit and evaluates goodwill for impairment at the single reporting unit level. As a result, there is no goodwill assigned specifically to Veritone One and goodwill pertaining to discontinued operations is allocated based on the relative fair value of Veritone One and the remaining business.
The following table displays the changes in the carrying amount of goodwill:
| | | | | | | | |
| Balance at December 31, 2024 | | $ | 53,110 | |
| Foreign currency translation | | 1,146 | |
| Balance at December 31, 2025 | | $ | 54,256 | |
The gross carrying amounts and accumulated amortization of the Company’s finite-lived intangible assets as of December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2025 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Developed technology | | $ | 44,474 | | | $ | (40,345) | | | $ | 4,129 | |
| Customer relationships | | 99,225 | | | (65,122) | | | 34,103 | |
| Trademarks and trade names | | 2,300 | | | (1,893) | | | 407 | |
| Total finite-lived intangible assets | | $ | 145,999 | | | $ | (107,360) | | | $ | 38,639 | |
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Developed technology | | $ | 44,100 | | | $ | (33,561) | | | $ | 10,539 | |
| Customer relationships | | 99,000 | | | (50,866) | | | 48,134 | |
| Trademarks and trade names | | 2,300 | | | (1,473) | | | 827 | |
| Total finite-lived intangible assets | | $ | 145,400 | | | $ | (85,900) | | | $ | 59,500 | |
Amortization expense related to developed technology, customer relationships, and trademarks and trade names is recorded in depreciation and amortization within the Company’s consolidated statements of operations. Amortization expense of finite-lived intangible assets was $21,670 and $24,011 for the years ended December 31, 2025 and 2024, respectively.
The following table presents future amortization of the Company’s finite-lived intangible assets as of December 31, 2025:
| | | | | | | | |
| | Amount |
| 2026 | | $ | 17,168 | |
| 2027 | | 13,541 | |
| 2028 | | 7,870 | |
| 2029 | | 20 | |
| 2030 | | 20 | |
| 2031 | | 20 | |
| | |
| Total | | $ | 38,639 | |
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.