Goodwill is allocated to the Company’s reporting units within its Talent and Data & AI segments. In connection with the Company’s adoption of its revised segment reporting structure effective January 1, 2026, goodwill and identifiable intangible assets were reassigned to the Company’s reporting units using a relative fair value approach. The reassignment did not impact the Company’s total consolidated goodwill or intangible asset balances.

Goodwill associated with the Talent segment relates to the Company’s 2015 acquisition of Hudson Global Resources Management’s U.S. IT staffing business. Goodwill associated with the Data & AI segment includes amounts related to the Company’s acquisitions of the services division of InfoTrellis in 2017 and AmberLeaf in 2020, as well as a portion of goodwill originally arising from the Company’s 2015 acquisition of Hudson Global Resources Management’s U.S. IT staffing business that was reallocated in connection with the segment realignment.

The Company recorded goodwill impairment charges of $5.3 million in 2023 and $9.7 million in 2018 related to its Data & AI segment. These impairments were primarily attributable to declines in revenue levels and lower projected future revenues.

A continued decline in operating performance or adverse changes in market conditions affecting the Company’s Talent segment could adversely affect the estimated fair value of the related reporting unit. If such trends persist, there is a risk that a goodwill impairment charge may be required in a future reporting period.

A reconciliation of the beginning and ending amounts of goodwill by operating segment for the periods ended June 30, 2026 and December 31, 2025 is as follows:


	Six Months Ended June 30, 2026		Twelve Months Ended December 31, 2025
	(in thousands)
Talent:
Beginning balance	$	5,393	$	5,393
Goodwill recorded	—		—
Impairment	—		—
Ending Balance	$	5,393	$	5,393


	Six Months Ended June 30, 2026		Twelve Months Ended December 31, 2025
	(in thousands)
Data & AI:
Beginning balance	$	21,817	$	21,817
Goodwill recorded	—		—
Impairment	—		—
Ending Balance	$	21,817	$	21,817

The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of June 30, 2026 and December 31, 2025:


	As of June 30, 2026
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
Talent:
Client relationships		12	$	5,119	$	4,710	$	409
Covenant-not-to-compete		5		204		204		—
Trade name		3		159		159		—
Data & AI:
Client relationships		12		22,521		16,518		6,003
Covenant-not-to-compete		5		1,316		1,316		—
Trade name		5		1,801		1,801		—
Technology		7		1,979		1,842		137
Total Intangible Assets			$	33,099	$	26,550	$	6,549


	As of December 31, 2025
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
Talent:
Client relationships		12	$	5,119	$	4,497	$	622
Covenant-not-to-compete		5		204		204		—
Trade name		3		159		159		—
Data & AI:
Client relationships		12		22,521		15,580		6,941
Covenant-not-to-compete		5		1,316		1,316		—
Trade name		5		1,801		1,801		—
Technology		7		1,979		1,787		192
Total Intangible Assets			$	33,099	$	25,344	$	7,755

Amortization expense for the three and six months ended June 30, 2026, totaled $0.6 million and $1.2 million respectively, and is included in selling, general and administrative expenses in the Consolidated Statement of Operations. Amortization expense for the three and six months ended June 30, 2025, totaled $0.6 million and $1.3 million respectively, and is included in selling, general and administrative expenses in the Consolidated Statement of Operations.