GOODWILL AND INTANGIBLE ASSETS
The change in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 was as follows (in thousands):
Year Ended December 31,
20252024
Balance—beginning of year
$160,134 $161,824 
Additions
26,382 — 
Foreign currency translation5,789 (1,690)
Balance—end of year
$192,305 $160,134 
Intangible assets—net consisted of the following as of December 31, 2025 and 2024 (in thousands, except years):
December 31, 2025Useful Life
(Years)
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology
4–5
$16,870 $(10,265)$6,605 
Trade names56,992 (2,196)4,796 
Customer relationships
12–15
32,770 (8,146)24,624 
Total intangible assets$56,632 $(20,607)$36,025 
December 31, 2024Useful Life
(Years)
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technology
4–5
$11,506 $(8,203)$3,303 
Trade names55,464 (1,462)4,002 
Customer relationships
12–15
24,782 (5,920)18,862 
Assembled workforce2520 (363)157 
Total intangible assets$42,272 $(15,948)$26,324 
For the years ended December 31, 2025, 2024 and 2023, the Company recorded amortization expense of $4.7 million, $5.6 million and $4.9 million, respectively.
As of December 31, 2025, future amortization of intangible assets that will be recorded in cost of revenue and general and administrative expenses is estimated as follows (in thousands):
Amortization
2026$5,558 
20274,436 
20284,154 
20294,154 
20304,088 
Thereafter13,635 
Total remaining amortization$36,025 

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.