During the three months ended June 30, 2026 and in connection with the Vitalware Transaction, certain assets and liabilities representing the Vitalware Business met the held for sale criteria as of the date of the announcement of the signing of the Vitalware Purchase Agreement. Immediately prior to such classification, elements of the disposal group were evaluated for impairment under their respective models as required and no impairment adjustment was recorded. Since the Vitalware Business was a portion of the technology reporting unit, the assignment of goodwill to the Vitalware Business was based on the relative fair values of the Vitalware Business being disposed of and the portion of the technology reporting unit remaining. Following the allocation of goodwill to the held for sale asset group, we evaluated the remaining technology reporting unit for goodwill impairment due to the triggering event created by the transaction. Based on this interim test of goodwill, the fair value of the remaining technology reporting unit was below its carrying value, resulting in the recognition of a goodwill impairment charge of $27.0 million.

Based on our interim impairment test of goodwill as of March 31, 2026, it was determined that the fair value of our technology reporting unit was below its carrying value, and we recorded a total non-cash goodwill impairment charge of $95.5 million, resulting in total goodwill impairment charges of $122.5 million for the six months ended June 30, 2026.

During the six months ended June 30, 2025, we recorded a non-cash goodwill impairment charge of $28.8 million. The goodwill impairment charges were recorded as a separate line item in our condensed consolidated statements of operations.

As part of our interim goodwill impairment assessments and the allocation of goodwill to the held for sale asset group, the fair value of the technology reporting unit was estimated based upon weightings of the income approach and a market-based approach. The fair value of the Vitalware Business used in the goodwill allocation was based on the base purchase price of $147 million pursuant to the Vitalware Purchase Agreement. The income approach utilizes a discounted cash flow analysis. The market-based approach utilizes comparable public company information, key valuation multiples, and considers a market control premium associated with cost synergies and other cash flow benefits that arise from obtaining control over a reporting unit, and guideline transactions, when applicable. The significant assumptions used in these approaches include revenue growth rates, profit margins, projected future cash flows, and discount rates under the income approach as well as valuation multiples derived from comparable public trading companies under the market-based approach.


	Gross Goodwill		Accumulated Impairment Losses		Net Goodwill



Balance as of December 31, 2025	$	307,790	$	(98,717)	$	209,073
Transferred to assets held for sale	(75,176)		—		(75,176)
Impairment of goodwill	—		(122,548)		(122,548)
Foreign currency translation adjustments	(248)		—		(248)
Balance as of June 30, 2026	$	232,366	$	(221,265)	$	11,101

The carrying values of goodwill and intangible assets attributable to the our U.K. operations are denominated in British pounds and are translated into U.S. dollars at the exchange rate in effect as of the balance sheet date. As a result, the reported balances of goodwill and intangible assets are subject to fluctuation due to changes in foreign currency exchange rates, with translation adjustments recorded in accumulated other comprehensive income.


	Cost		Accumulated Amortization		Net
	(unaudited)
Developed technologies	$	122,908	$	(99,994)	$	22,914
Client relationships and contracts	72,771		(42,402)		30,369
Computer software licenses	13,369		(11,967)		1,402
Trademarks	3,944		(2,508)		1,436
Total intangible assets	$	212,992	$	(156,871)	$	56,121

Amortization expense of acquired intangible assets was $7.3 million and $9.0 million for the three months ended June 30, 2026 and 2025, respectively, and $15.4 million and $17.8 million for the six months ended June 30, 2026 and 2025, respectively. Amortization expense for intangible assets is included in depreciation and amortization in our condensed consolidated statements of operations. We did not incur any intangible asset impairment charges for the three and six months ended June 30, 2026 and 2025.


	Cost		Accumulated Amortization		Net
Developed technologies	$	141,101	$	(110,621)	$	30,480
Client relationships and contracts	115,808		(72,750)		43,058
Computer software licenses	13,600		(11,329)		2,271
Trademarks	5,367		(3,498)		1,869
Total intangible assets	$	275,876	$	(198,198)	$	77,678