We evaluate the carrying value of our indefinite-lived intangible assets and goodwill at least annually or when an interim triggering event has occurred indicating potential impairment. Any impairment recorded is reflected as a non-cash adjustment to net income (loss) within cash flows from operating activities in the condensed consolidated statements of cash flows.

During the three months ended June 30, 2025, there was a triggering event for the HEYDUDE Brand indefinite-lived intangible assets (which consists solely of the HEYDUDE trademark) (the “trademark”) and the HEYDUDE Brand reporting unit (the “reporting unit”) goodwill. The triggering event was due to downward revisions during the second quarter of the fiscal year ended 2025, to our internal HEYDUDE Brand forecast as a result of the extended time we believed it would take us to stabilize the HEYDUDE Brand and return it to growth. This was partly due to the projected impact of a weak U.S. consumer at the time of the triggering event, and the disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the second quarter of the fiscal year ended 2025. As a result, we completed quantitative assessments for the trademark and the reporting unit goodwill in the second quarter of the fiscal year ended 2025.

For the quantitative assessments, we compared the estimated fair values of the trademark and reporting unit with their respective carrying values. If the carrying value of the trademark or reporting unit exceeded the estimated fair value, an impairment charge was recorded. The quantitative assessments for the trademark and reporting unit goodwill were performed by management with the assistance of third-party valuation specialists.

The quantitative assessment of the trademark was performed using the Multi-Period Excess Earnings approach. The primary assumptions developed by management and used in the assessment included annual revenue growth rates averaging approximately 8%, projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins averaging approximately 20%, and a market-based discount rate of 15.0%, which was based on, most significantly, a risk-free rate of return, an equity market risk premium, and a company-specific risk premium. The estimated fair value of the trademark did not exceed its carrying value. In the second quarter of the fiscal year ended 2025, we recorded an impairment charge of $430.0 million within ‘Asset impairments’ in our condensed consolidated statements of operations related to the trademark, after which the estimated fair value equaled its carrying value. This impairment charge reflects lower than previously expected annual revenue growth rates and EBITDA as well as increases in market-based discount rates, specifically the risk-free rate of return, when compared to those used in our most recent annual impairment test completed in the fourth quarter of 2024.

We performed the quantitative assessment for the reporting unit goodwill using the discounted cash flow method. The primary assumptions developed by management and used in the assessment included annual revenue growth rates, projected EBITDA margins, and a market-based discount rate, which was based on, most significantly, a risk-free rate of return, an equity market risk premium, and a company-specific risk premium. The estimated fair value of the reporting unit goodwill did not exceed its carrying value. In the second quarter of the fiscal year ended 2025, we recorded an impairment charge of $307.0 million within ‘Goodwill impairment’ in our condensed consolidated statements of operations related to the reporting unit goodwill, after which the estimated fair value equaled its carrying value. This impairment charge reflects lower than previously expected annual revenue growth rates and EBITDA as well as increases in market-based discount rates, specifically the risk-free rate of return, when compared to those used in our most recent annual impairment test completed in the fourth quarter of 2024.


	Goodwill
	Crocs Brand		HEYDUDE Brand		Total
	(in thousands)
Gross goodwill at December 31, 2025	$	2,424	$	710,034	$	712,458
Accumulated impairment	(769)		(307,000)		(307,769)
Net goodwill at December 31, 2025	1,655		403,034		404,689

Changes during the six months ended June 30, 2026:
Foreign currency translation	(46)		—		(46)


Gross goodwill at June 30, 2026	2,378		710,034		712,412
Accumulated impairment	(769)		(307,000)		(307,769)
Net goodwill at June 30, 2026	$	1,609	$	403,034	$	404,643


	June 30, 2026								December 31, 2025
	Gross		Accumulated Amortization		Accumulated Impairment		Net		Gross		Accumulated Amortization		Accumulated Impairment		Net
	(in thousands)
Intangible assets subject to amortization:
Capitalized software	$	146,755	$	(130,639)	$	—	$	16,116	$	145,954	$	(126,000)	$	—	$	19,954
Customer relationships	210,000		(61,250)		—		148,750		210,000		(54,250)		—		155,750
Patents, copyrights, and trademarks	10,783		(4,490)		—		6,293		9,767		(4,240)		—		5,527
Intangible assets not subject to amortization:
HEYDUDE trademark	1,570,000		—		(430,000)		1,140,000		1,570,000		—		(430,000)		1,140,000
In progress	5,720		—		—		5,720		2,676		—		—		2,676
Other	828		—		—		828		773		—		—		773
Total	$	1,944,086	$	(196,379)	$	(430,000)	$	1,317,707	$	1,939,170	$	(184,490)	$	(430,000)	$	1,324,680