v3.25.4
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The carrying amount of goodwill was $512.9 million at both December 31, 2025 and 2024. Goodwill represents the excess purchase price over the fair value of net assets acquired. The annual impairment test was performed as of October 31, 2025. No impairment of goodwill was identified during 2025, nor has any impairment of goodwill been recorded to date.
Intangible assets at December 31, 2025 and 2024 were as follows:
As of December 31, 2025As of December 31, 2024
Gross AmountAccumulated AmortizationNet Carrying AmountGross AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$— $— $— $1,495 $(1,401)$94 
Acquired technology 117,737 (101,481)16,256 150,097 (112,791)37,306 
Capitalized software development costs103,884 (41,763)62,121 81,080 (23,847)57,233 
$221,621 $(143,244)$78,377 $232,672 $(138,039)$94,633 
The estimated useful lives and weighted average remaining amortization periods for intangible assets at December 31, 2025 are as follows (in years):
Estimated Useful Life Weighted Average Remaining Amortization Period
Acquired technology
5 - 7
1.0
Capitalized software development costs53.5
Total3.0
The Company recorded intangible assets from various prior business combinations as well as capitalized software development costs. Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from five to seven years. During the years ended December 31, 2025, 2024 and 2023, the Company capitalized software development costs of $23.2 million, $25.2 million and $27.6 million. Amortization expense included in cost of revenues on the consolidated statements of comprehensive income (loss) was $39.0 million, $35.2 million and $31.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization expense included in operating expenses on the consolidated statements of comprehensive income (loss) was $0.1 million, $17.0 million and $20.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
During the year ended December 31, 2025, the Company recognized an impairment loss related to capitalized software development costs for certain software assets that are no longer expected to be recoverable. The Company determined the amount of the impairment as the excess of the carrying amount of the asset over its estimated fair value using a discounted cash flow model. As a result, the Company recorded an impairment charge of $0.4 million to research and development expense within the Company's consolidated statements of comprehensive income (loss) during year ended December 31, 2025.
The estimated future amortization expense related to intangible assets as of December 31, 2025 was as follows:
Amortization
Year Ended December 31,
2026$35,299 
202719,364 
202813,138 
20297,681 
20302,895 
Total amortization$78,377