v3.26.1
Goodwill and Intangibles
3 Months Ended
Mar. 31, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles
Note 7. Goodwill and Intangibles
Goodwill was $593.3 million as of March 31, 2026 and $575.3 million as of December 31, 2025. The following table displays the changes in the gross carrying amount of goodwill (in thousands):
Carrying Amount
Balance at December 31, 2025$575,268 
Kenzo acquisition18,066 
Balance at March 31, 2026$593,334 
The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs (in thousands):
As of March 31, 2026As of December 31, 2025
Weighted Average Estimated Useful Life (years)Gross Carrying
Amount
Accumulated
Amortization
Net Book ValueGross Carrying
Amount
Accumulated
Amortization
Net Book Value
Intangible assets subject to amortization:
Developed technology6.3$154,055 $(116,309)$37,746 $146,855 $(111,886)$34,969 
Customer relationships6.012,000 (11,976)24 12,000 (11,906)94 
Trade names0.02,619 (2,619)— 2,619 (2,619)— 
Total acquired intangible assets168,674 (130,904)37,770 161,474 (126,411)35,063 
Internal-use software3.088,031 (58,234)29,797 83,934 (53,892)30,042 
Total intangible assets$256,705 $(189,138)$67,567 $245,408 $(180,303)$65,105 
Intangible assets are expensed on a straight-line basis over the useful life of the asset. Amortization expense was $8.8 million and $8.9 million for the three months ended March 31, 2026 and 2025, respectively.
Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2026 was as follows (in thousands):
2026 (for the remaining nine months)$22,491 
202719,345 
20288,944 
20294,587 
20304,443 
2031 and thereafter2,653 
Total$62,463 
The table above excludes the impact of $5.1 million of capitalized internal-use software costs for projects that have not been completed as of March 31, 2026, and therefore, all the costs associated with these projects have not been incurred.