5.Goodwill and Intangible Assets

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Goodwill

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The Company evaluates goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. Following the Company’s determination that it operates as a single reporting segment, goodwill is assigned to a single reporting unit. Accordingly, the Company performs its goodwill impairment assessment at the consolidated reporting unit level.

The Company performs its annual impairment test as of September 30. The fair value of the reporting unit is estimated using a combination of the income approach, which incorporates discounted cash flow projections, and the market approach, which utilizes observable market multiples of comparable companies. These valuation methodologies require the use of significant estimates and assumptions, including projected revenues, operating margins, discount rates, and market multiples, and are classified within Level 3 of the fair value hierarchy.

As of September 30, 2025, the Company concluded that the fair value of the reporting unit exceeded its carrying value and no impairment was recognized. The carrying amount of goodwill was $2.0 million and $2.1 million as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, there were no triggering events to indicate impairment of goodwill.

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The change in the carrying amount of goodwill for the six months ended June 30, 2026 was as follows (in thousands):

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Intangibles

Information regarding the Company’s acquired intangible assets and capitalized developed software was as follows (in thousands):

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Amortization expense relating to acquired intangible assets was $0.2 million for each of the three-month periods ended June 30, 2026 and 2025. Amortization expense relating to acquired intangible assets was $0.4 million for each of the six-month periods ended June 30, 2026 and 2025.

Amortization expense relating to capitalized developed software was $1.2 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively. Amortization expense relating to capitalized developed software was $2.3 million and $1.9 million for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, estimated future amortization expense for intangible assets was as follows (in thousands):

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