Goodwill and Other Intangible Assets

Changes in the Company’s goodwill balance for the six months ended June 30, 2026 are summarized in the table below (in thousands):


Balance at December 31, 2025	$	259,631





Impairment of goodwill	(35,246)
Foreign currency translation adjustment	(1,692)
Balance at June 30, 2026	$	222,693

The Company reviews its goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable. As a result of the sustained decline of the Company’s stock price impacting its market capitalization during the three months ended June 30, 2026, and the potential impact of its current operating results on the long-range forecast, the Company performed a quantitative impairment evaluation, which resulted in a goodwill impairment of $35.2 million. The quantitative goodwill impairment analysis applied two methodologies to estimate the Company’s fair value which were: a) a discounted cash flow method and b) a guideline public company method. The two methods generated similar results and indicated that the fair value of the Company was less than its carrying value. The discounted cash flow method requires significant judgments, including estimation of future cash flows, which is dependent on internally developed forecasts, estimation of the long-term rate of growth for our business, and determination of the Company’s weighted average cost of capital. Under the guideline public company method, the Company estimates fair value based on a market multiple of revenues and earnings derived for comparable publicly traded companies with similar operating characteristics as the Company. The Company will continue to evaluate goodwill for impairment and adjust as indicators arise. If the Company’s stock price further declines or operational results do not meet expectations, additional material goodwill impairments could occur.

Intangible assets, net, include the estimated acquisition-date fair values of customer relationships, marketing-related assets, and developed technology that the Company recorded as part of its historical business acquisitions. The following is a summary of the Company’s intangible assets, net (in thousands):


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2026:
Customer relationships	7-10	$	199,397	$	155,149	$	44,248
Trade name	9.6-10	1,181		925		256
Developed technology	4-9	31,775		27,540		4,235

Favorable leases	6.3	260		185		75
Total intangible assets		$	232,613	$	183,799	$	48,814


	Estimated Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
December 31, 2025:
Customer relationships	7-10	$	201,918	$	146,221	$	55,697
Trade name	9.6-10	1,196		889		307
Developed technology	4-9	32,340		26,126		6,214

Favorable leases	6.3	270		171		99
Total intangible assets		$	235,724	$	173,407	$	62,317

The Company periodically reviews the estimated useful lives of its identifiable intangible assets, taking into consideration any events or circumstances that might result in either a diminished fair value or revised useful life. No impairments of identifiable intangibles were recorded during the three or six months ended June 30, 2026.

During the three months ended June 30, 2025, the Company identified a triggering event related to certain identifiable intangible assets associated with Sunset Assets and performed a valuation of those long-lived assets in accordance with ASC 360 Impairment and Disposal of Long-Lived Assets. The Company used a discounted cash flow analysis to estimate the fair value of the long-lived asset group. As a result of the valuation, during the three months ended June 30, 2025 the Company recorded a $2.5 million of impairment charge related to identifiable intangible assets associated with certain Sunset Assets.

Total amortization expense was $6.2 million and $12.6 million during the three and six months ended June 30, 2026, and $7.9 million and $17.3 million for the three and six months ended June 30, 2025, respectively.