
	(in thousands)
Balance as of December 31, 2025	$	1,024,300
Acquisitions	—
Foreign currency translation and other adjustments	(12,156)
Balance as of June 30, 2026	$	1,012,144

A significant portion of our assets consists of goodwill, which represents the excess of the purchase price over the estimated fair value of net assets acquired in business combinations and was primarily derived from the take‑private transaction of SolarWinds in February 2016 and subsequent acquisitions. We test goodwill for impairment at least annually during the fourth quarter and more frequently if events or changes in circumstances indicate that an impairment may exist. An impairment is recognized when the carrying value of our reporting unit exceeds its estimated fair value. No goodwill impairment has been recorded during the six months ended June 30, 2026 and 2025.

We operate as a single reporting unit for purposes of goodwill impairment testing. During the three months ended June 30, 2026, management identified indicators of potential goodwill impairment, primarily as a result of a sustained decline in the Company’s stock price and corresponding decline in market capitalization. As a result, management performed an interim quantitative goodwill impairment test as of June 30, 2026. The fair value of the reporting unit was estimated using a market approach, based on the Company's market capitalization as adjusted for a control premium derived from comparable market

transactions, which was also compared to the implied control premium based upon estimated synergies that would be realized by a hypothetical buyer. Determining the appropriate control premium requires judgment.

Based on this test, the estimated fair value of the reporting unit exceeded its carrying value, and accordingly no goodwill impairment was recorded during the three months ended June 30, 2026.

A continued and sustained decline in the Company's stock price, or changes in other assumptions used in the test could indicate that the fair value of the reporting unit has declined below its carrying value and could require the recognition of a goodwill impairment charge in a future period, which could have a material adverse impact on the Company's results of operations. The Company will continue to monitor its stock price and other relevant qualitative and quantitative factors throughout the remainder of fiscal 2026.