| Intangible Assets and Goodwill |
5. Intangible Assets and Goodwill The following table provides the components of the Company’s intangible assets (in thousands, except weighted average amortization period in years): | | | | | | | | | | | | | | | | | | | | | | | | | Weighted | | | | | | | | | | | | | | | | | | | | | | Average | | As of June 30, 2025 | | As of December 31, 2024 | | | | Amortization | | Initial | | Accumulated | | Net | | Initial | | Accumulated | | Net | | | | Period | | Cost | | Amortization | | Balance | | Cost | | Amortization | | Balance | Franchise agreements | | | 11.9 | | $ | 224,208 | | $ | (149,368) | | $ | 74,840 | | $ | 222,055 | | $ | (140,869) | | $ | 81,186 | Other intangible assets: | | | | | | | | | | | | | | | | | | | | | | Software (a) | | | 3.4 | | $ | 59,839 | | $ | (50,149) | | $ | 9,690 | | $ | 57,243 | | $ | (46,829) | | $ | 10,414 | Trademarks | | | 9.7 | | | 915 | | | (726) | | | 189 | | | 900 | | | (684) | | | 216 | Non-compete agreements | | | 5.0 | | | 12,915 | | | (10,990) | | | 1,925 | | | 12,721 | | | (9,969) | | | 2,752 | Training materials | | | — | | | — | | | — | | | — | | | 2,400 | | | (2,400) | | | — | Other | | | — | | | — | | | — | | | — | | | 870 | | | (870) | | | — | Total other intangible assets | | | 4.0 | | $ | 73,669 | | $ | (61,865) | | $ | 11,804 | | $ | 74,134 | | $ | (60,752) | | $ | 13,382 |
| (a) | As of June 30, 2025 and December 31, 2024, capitalized software development costs of $2.0 million and $1.2 million, respectively, were related to technology projects not yet complete and ready for their intended use and thus were not subject to amortization. |
Amortization expense was $6.0 million and $6.8 million for the three months ended June 30, 2025 and 2024, respectively and was $12.0 million and $14.1 million for the six months ended June 30, 2025 and 2024. As of June 30, 2025, the estimated future amortization expense related to intangible assets includes the estimated amortization expense associated with the Company’s intangible assets assumed with the Company’s acquisitions (in thousands): | | | | Remainder of 2025 | | $ | 11,516 | 2026 | | | 17,810 | 2027 | | | 10,696 | 2028 | | | 8,883 | 2029 | | | 7,145 | Thereafter | | | 30,594 | | | $ | 86,644 |
The following table presents changes to goodwill at the Real Estate reporting unit (in thousands): | | | | | | Real Estate | Balance, January 1, 2025 | | $ | 237,239 | Effect of changes in foreign currency exchange rates | | | 2,309 | Balance, June 30, 2025 | | $ | 239,548 |
As of June 30, 2025, there were no events or circumstances that would indicate impairment may have occurred.
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