Goodwill and intangible assets

During fiscal year 2026, the additions to the Company’s goodwill are driven by its acquisitions of Bentek Corporation (“Bentek”), OnSight Technology Inc. (“OnSight”), Origami Solar, Inc. (“Origami”) and Fracsun Inc. (“Fracsun”), as further described below in Note 14. The additions to goodwill during fiscal year 2025 are driven by the Company’s acquisitions of Ojjo, Inc. (“Ojjo”) and the solar foundations business held by Solar Pile International (“SPI”).

The following table summarizes the activity in the Company’s goodwill during the fiscal year ended March 31, 2026 and 2025 (in thousands):


	As of March 31,
	2026		2025
	(In thousands)
Beginning balance	$	371,018	$	265,153
Additions	117,932		103,565
Purchase accounting adjustments	—		2,300
Ending balance	$	488,950	$	371,018

The Company evaluates goodwill for impairment at the reporting unit level annually, and in certain circumstances, such as when there is a change in reporting units or whenever there are indications that goodwill might be impaired. The Company performed its annual goodwill impairment assessment on January 1 of each fiscal year, and assessed qualitative factors to determine whether it is more likely or not that the fair value of its reporting units is less than its carrying amount. The qualitative assessment required management to make various judgmental assumptions including but not limited to macroeconomic conditions, industry and market considerations, cost factors, financial performances, and change in stock price. Management assessed each factor and evaluated whether the evidence, in aggregate, would indicate that it is more likely than not that the Company’s reporting unit is less than its carrying amount. As a result of the qualitative assessment of its goodwill, the Company determined that no impairment existed as of the dates of the impairment tests because the fair value of its reporting unit exceeded its carrying value.

Other intangible assets

Nextpower amortizes identifiable intangible assets consisting of developed technology, customer relationships, and trade names because these assets have finite lives. Nextpower’s intangible assets are amortized on a straight-line basis over the estimated useful lives. The basis of amortization approximates the pattern in which the assets are utilized over their estimated useful lives. No residual value is estimated for any intangible assets.

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. An impairment loss is recognized when the carrying amount of an intangible asset exceeds its fair value. The fair value of Nextpower’s intangible assets is determined based on management’s estimates of cash flows and recoverability. Nextpower reviewed the carrying value of its intangible assets as of March 31, 2026 and 2025, and concluded that such amounts continued to be recoverable.

The components of identifiable intangible assets are as follows (in thousands):


		As of March 31, 2026						As of March 31, 2025
	Weighted-average remaining useful life (in years)	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Developed technology	8.6	$	72,673	$	(8,784)	$	63,889	$	39,200	$	(2,394)	$	36,806
Customer relationships	3.1	19,159		(7,022)		12,137		18,000		(2,779)		15,221
Trade names and other intangibles	1.6	5,157		(3,137)		2,020		3,018		(1,804)		1,214
Total		$	96,989	$	(18,943)	$	78,046	$	60,218	$	(6,977)	$	53,241

The gross carrying amount of intangible assets are removed when fully amortized. Total intangible asset amortization expense recognized in operations during the fiscal years ended March 31, 2026, 2025 and 2024 are as follows:


	Fiscal year ended March 31,
	2026		2025		2024
	(In thousands)
Cost of sales	$	6,742	$	2,744	$	275
Selling general and administrative expense	5,225		2,779		—
Total amortization expense	$	11,967	$	5,523	$	275

The estimated future annual amortization expense for the acquired finite-lived intangible assets as of March 31, 2026 is as follows:


Fiscal year ending March 31,	Amount
	(In thousands)
2027	$	12,892
2028	11,604
2029	11,236
2030	8,282
2031	7,461
Thereafter	26,553
Total amortization expense	$	78,028