v3.26.1
Intangible Assets and Goodwill
3 Months Ended
Mar. 31, 2026
Intangible Assets and Goodwill  
Intangible Assets And Goodwill

9. Intangible Assets and Goodwill

 

Acquired intangible assets subject to amortization consist of the following (in thousands):

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Customer relationships

 

$48,373

 

 

$(10,252)

 

$38,121

 

 

$26,073

 

 

$(9,404)

 

$16,669

 

Developed technologies

 

 

4,900

 

 

 

(3,965)

 

 

935

 

 

 

4,900

 

 

 

(3,811)

 

 

1,089

 

Trademark and trade names

 

 

1,500

 

 

 

(420)

 

 

1,080

 

 

 

400

 

 

 

(400)

 

 

-

 

Capitalized software development costs

 

 

410

 

 

 

(410)

 

 

-

 

 

 

410

 

 

 

(308)

 

 

102

 

Total acquired intangible assets

 

$55,183

 

 

$(15,047)

 

$40,136

 

 

$31,783

 

 

$(13,923)

 

$17,860

 

 

As of March 31, 2026, the weighted average remaining useful life for customer relationships was 11.1 years, developed technologies was 1.2 years, trademarks and trade names was 5.8 years, and capitalized software development costs was 0.5 years.

 

Amortization expense for customer relationships intangible assets is included in sales and marketing expenses and totaled $848 and $501 for the three months ended March 31, 2026 and 2025, respectively. Amortization expense for developed technologies intangible assets is included in cost of software solutions revenue and totaled $154 and $182 for the three months ended March 31, 2026 and 2025, respectively. Amortization expense for trademark and trade name intangible assets is included in general and administrative expenses and totaled $20 and $23 for the three months ended March 31, 2026 and 2025, respectively. Amortization expense for capitalized software development costs is included in general and administrative expenses and totaled $102 and $0 for the three months ended March 31, 2026 and 2025, respectively.

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Cost of software solutions revenue

 

$154

 

 

$182

 

Selling and marketing

 

 

848

 

 

 

501

 

General and administrative

 

 

122

 

 

 

23

 

Total amortization expense

 

$1,124

 

 

$706

 

 

As of March 31, 2026, annual amortization of definite lived intangible assets, based on existing intangible assets and current useful lives, is estimated to be the following (in thousands):

 

Year ending December 31,

 

 

 

2026 remaining

 

$5,504

 

2027

 

 

6,179

 

2028

 

 

4,850

 

2029

 

 

4,219

 

2030

 

 

3,640

 

2031 and thereafter

 

 

15,744

 

Total

 

$40,136

 

 

The following table provides a summary of changes in the carrying amounts of goodwill (in thousands):

 

 

 

Goodwill

 

Balance at January 1, 2025

 

$9,454

 

Additions

 

 

-

 

Balance at December 31, 2025

 

$9,454

 

Additions

 

 

4,761

 

Balance at March 31, 2026

 

$14,215