During the second quarter of 2026, the Partner Network reporting unit forecast was revised to reflect reduced revenue growth expectations and lower projected gross profit margins. The change constituted a triggering event under ASC 350 and we performed an interim quantitative goodwill impairment test as of June 30, 2026. Based on the results of the test, the estimated fair value of the Partner Network reporting unit exceeded its carrying amount and no impairment of goodwill was recognized in any of the periods presented. If revenue and gross profit performance deteriorate further, it is possible that there could be impairment of Goodwill in future periods in the Partner Network reporting unit. Goodwill was $82.4 million as of June 30, 2026 and December 31, 2025, all of which was attributable to the Partner Network reporting unit.

During the first half of 2026, we significantly reduced our marketing activities for search monetization in our publishing business. The reduction in marketing activities constituted a triggering event under ASC 360 for both interim periods and we performed an analysis of the carrying value of the long-lived assets in our Marketing asset group. The asset group was tested for recoverability using the undiscounted cash flows over the remaining useful life of the primary asset in the asset group. The estimated net cash flows were determined utilizing internal forecasts. If forecasted net cash flows were less than the carrying amount of the asset group, an impairment expense would be measured by comparing the fair value of the asset group to its carrying amount. The carrying amount of an individual asset in the group cannot be reduced below its fair value.

During the first and second quarter of 2026, we concluded that the carrying amount of the Marketing asset group exceeded the undiscounted cash flows. Consequently, our Marketing asset group was no longer recoverable from future operations and we recognized an impairment to our Marketing asset group trademarks, the only asset in the group to which an impairment could be allocated under ASC 360. For the three and six months ended June 30, 2026, the impairment of long-lived assets expense recognized was $0.9 million and $37.7 million, respectively, presented in our condensed consolidated statements of operations.

During the first quarter of 2026, we implemented measures to optimize and improve operating efficiency in response to changes in products offered by Advertising Partners. As a result of these actions, we incurred $2.2 million of one-time costs which were presented within salaries and benefits expense in our condensed consolidated statements of operations. These actions impacted our publishing business by reducing future cashflows. There were no one-time costs recorded during the three months ended June 30, 2026.


	June 30, 2026
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Internal-use software development costs	$	32,186	$	(19,089)	$	13,097
Intangible assets:
Developed technology	$	196,403	$	(196,403)	$	—
Trademarks and trade names	162,502		(66,679)		95,823
Software	5,100		(5,100)		—
Customer relationships	2,900		(2,716)		184
Total	$	366,905	$	(270,898)	$	96,007


	December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Internal-use software development costs	$	28,325	$	(14,653)	$	13,672
Intangible assets:
Developed technology	$	196,403	$	(192,670)	$	3,733
Trademarks and trade names	236,053		(92,250)		143,803
Software	5,100		(4,891)		209
Customer relationships	2,900		(2,556)		344
Total	$	440,456	$	(292,367)	$	148,089

The internal-use software development costs include work in progress which is not being amortized of $2.6 million and $2.9 million as of June 30, 2026 and December 31, 2025, respectively.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Amortization expense for internal-use software development	$	2,280	$	1,755	$	4,436	$	3,374
Amortization expense for intangible assets	$	4,440	$	18,625	$	14,349	$	37,276


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of revenue	$	1,222	$	13,091	$	6,130	$	26,141
Selling, general, and administrative	$	5,498	$	7,289	$	12,655	$	14,509