During the three months ended July 31, 2026, the Company identified indicators of impairment for its LHD reporting unit within the Europe geographic segment, primarily due to lower-than-expected financial performance and projected cash flows. As a result, the Company performed an interim quantitative goodwill impairment assessment to evaluate the goodwill of the LHD reporting unit using a discounted cash flow methodology. Based on the results of the interim quantitative impairment assessment, the Company recorded a goodwill impairment expense of $3.2 million, representing the remaining goodwill associated with this reporting unit. Following recognition of the impairment charge, accumulated goodwill impairment charges associated with the LHD reporting unit were $5.8 million, and no goodwill remains allocated to the LHD reporting unit.

Amortization expense was $0.7 million and $0.4 million in the three months ended July 31, 2026 and 2025, respectively, and $1.3 million and $0.8 million in the six months ended July 31, 2026 and 2025, respectively, and was included in operating expenses on the condensed consolidated statements of operations.