v3.26.3
Intangible Assets and Goodwill
9 Months Ended
Sep. 30, 2026
Intangible Assets and Goodwill  
Intangible Assets And Goodwill

9. Intangible Assets and Goodwill

 

Acquired intangible assets subject to amortization consisted of the following (in thousands):

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Customer relationships

 

$48,373

 

 

$(13,496)

 

$34,877

 

 

$26,073

 

 

$(9,404)

 

$16,669

 

Developed technologies

 

 

4,900

 

 

 

(4,273)

 

 

627

 

 

 

4,900

 

 

 

(3,811)

 

 

1,089

 

Trademark and trade names

 

 

1,500

 

 

 

(536)

 

 

964

 

 

 

400

 

 

 

(400)

 

 

-

 

Capitalized software development costs

 

 

410

 

 

 

(410)

 

 

-

 

 

 

410

 

 

 

(308)

 

 

102

 

Total acquired intangible assets

 

$55,183

 

 

$(18,715)

 

$36,468

 

 

$31,783

 

 

$(13,923)

 

$17,860

 

 

As of September 30, 2026, the weighted average remaining useful life for customer relationships was 12.2 years and developed technologies was 0.7 years, and trademark and trade names was 5.3 years

 

Amortization expense for customer relationships intangible assets is included in selling and marketing expenses, amortization expense for developed technologies intangible assets is included in cost of software solutions revenue, amortization expense for trademark and trade name intangible assets is included in general and administrative expenses, amortization expense for capitalized software development costs intangible assets is included in general and administrative expenses. The following table summarizes the amortization expense by financial statement line item (in thousands):

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cost of software solutions revenue

 

$154

 

 

$183

 

 

$462

 

 

$548

 

Selling and marketing

 

 

1,622

 

 

 

500

 

 

 

4,092

 

 

 

1,500

 

General and administrative

 

 

58

 

 

 

102

 

 

 

238

 

 

 

244

 

Total amortization expense

 

$1,834

 

 

$785

 

 

$4,792

 

 

$2,292

 

 

As of September 30, 2026, annual amortization of definite lived intangible assets, based on existing intangible assets and current useful lives, is estimated to be the following (in thousands):

 

Year ending December 31,

 

 

 

2026 remaining

 

$1,835

 

2027

 

 

6,179

 

2028

 

 

4,850

 

2029

 

 

4,219

 

2030

 

 

3,640

 

2031 and thereafter

 

 

15,745

 

Total

 

$36,468

 

 

The following table provides a summary of changes in the carrying amounts of goodwill (in thousands):

 

 

 

Goodwill

 

Balance at January 1, 2025

 

$9,454

 

Additions

 

 

-

 

Balance at December 31, 2025

 

$9,454

 

Additions

 

 

4,716

 

Balance at September 30, 2026

 

$14,170