Goodwill, net |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||
| Intangible Asset, Goodwill and Other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Goodwill, net | Goodwill, net The changes in the carrying amount of goodwill for the six months ended June 30, 2026, are as follows:
The changes in the carrying amount of goodwill during the three and six months ended June 30, 2026 were attributable solely to foreign currency translation adjustments. During the fiscal year ended December 31, 2025, the Company recorded a goodwill impairment charge principally related to its Wattpad and Munpia reporting units, as described in Note 7, “Goodwill, net and Intangible Assets, net,” to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. During the three and six months ended June 30, 2026, the Company evaluated its reporting units for triggering events in accordance with ASC 350-20-35-30. This evaluation considered macroeconomic conditions; industry and market considerations; cost factors; the overall financial performance of the reporting units relative to the projections used in the 2025 annual quantitative impairment test; other entity-specific events; events affecting the reporting units; and trends in the Company’s share price. Based on this evaluation, the Company concluded that no triggering events occurred during either period and, accordingly, did not perform an interim goodwill impairment test for the three or six months ended June 30, 2026. No goodwill impairment was recognized during either period. Similarly, for the three months ended March 31, 2026, the Company performed the same triggering-event evaluation and concluded that no triggering events had occurred; accordingly, no interim goodwill impairment test was performed for that period. There can be no assurance that the estimates and assumptions underlying the Company’s goodwill evaluations will prove accurate, and material impairment charges may be required in future periods.
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