Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. There were no goodwill additions during the three months ended March 31, 2026. During the three months ended March 31, 2025, goodwill of $252.3 million was recorded in connection with the Ambry Acquisition and Deep 6 Acquisition. Measurement period adjustments of $3.3 million were recorded related to these acquisitions. Refer to Note 4. The Company recorded no impairment loss during the three months ended March 31, 2026 and 2025.

Intangible assets are initially recorded at their acquisition cost, or fair value if acquired as part of a business combination and amortized over their estimated useful lives. Intangible assets consist of a website domain, customer relationships, trade names, developed technology acquired as part of a business combination, and licensed data acquired by entering into research collaboration agreements. In each license arrangement, the other party provides the Company with specified data, which is used for research and development purposes and may also be licensed to third parties. The asset represents the Company’s right to use these datasets. The Company also recognizes a liability for the associated minimum payments that are presented within Accrued data licensing fees on the condensed consolidated balance sheets.

There were no impairment charges recognized related to intangible assets during the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes intangible assets as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026						December 31, 2025
	Gross Amount		Accumulated Amortization		Net		Gross Amount		Accumulated Amortization		Net
Customer relationships	$	254,550	$	57,697	$	196,853	$	254,550	$	48,722	$	205,828
Licensed data		28,601		23,929		4,672		28,601		22,954		5,647
Website domain		19		—		19		19		—		19
Trade names		41,000		10,357		30,643		41,000		8,892		32,108
Developed technology - biotech		114,000		26,600		87,400		114,000		20,900		93,100
Developed technology - software		18,000		7,000		11,000		18,000		5,500		12,500
	$	456,170	$	125,583	$	330,587	$	456,170	$	106,968	$	349,202

Amortization of intangible assets is recognized using the straight-line method over their estimated useful lives, which range from three to seven years. Amortization expense was $18.6 million and $12.5 million for the three months ended March 31, 2026 and 2025, respectively, and is recorded in Cost of revenues, Research and development, or Selling, general and administrative expense, depending on use of the asset. The weighted average life of the Company’s intangibles is approximately six years.

Capitalized software consists of internal-use software costs, which are initially recorded at cost. The Company adopted ASU 2025-06 on January 1, 2026 on a prospective basis. Refer to Note 1 for further detail. Amortization of capitalized software is recognized using the straight-line method when placed into service over the estimated useful life of the software, which is typically three to five years. Amortization expense was immaterial for the three months ended March 31, 2026 and 2025, and is recorded in Selling, general and administrative expense.

There were no impairment charges recognized related to capitalized software during the three months ended March 31, 2026 and 2025, respectively.