| Goodwill and Intangible Assets, Net |
6. Goodwill and Intangible Assets, Net The change in the carrying amounts of goodwill during the nine months ended September 30, 2026 is presented below (in thousands): | | | | | | | Balance as of December 31, 2025 | $ | 146,676 | | Goodwill acquired (Note 5 — Business Combinations) | 51,334 | | | Balance as of September 30, 2026 | $ | 198,010 | |
Acquired intangible assets consist of developed technology, customer relationships and trademarks and are amortized on a straight-line basis over their estimated useful lives. The following tables summarize acquired intangible assets as of the periods presented below: | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Gross Amount | | Accumulated Amortization | | Net Carrying Value | | Weighted Average Remaining Useful Life | | (amounts in thousands) | | (in years) | | Developed technology | $ | 51,896 | | | $ | (23,501) | | | $ | 28,395 | | | 4.6 | | Customer relationships | 82,400 | | | (22,598) | | | 59,802 | | | 5.8 | Trademarks | 700 | | | (700) | | | — | | | — | | | Total | $ | 134,996 | | | $ | (46,799) | | | $ | 88,197 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Gross Amount | | Accumulated Amortization | | Net Carrying Value | | Weighted Average Remaining Useful Life | | (amounts in thousands) | | (in years) | | Developed technology | $ | 41,196 | | | $ | (18,535) | | | $ | 22,661 | | | 4.4 | | Customer relationships | 69,200 | | | (14,875) | | | 54,325 | | | 6.4 | Trademarks | 700 | | | (700) | | | — | | | — | | | Total | $ | 111,096 | | | $ | (34,110) | | | $ | 76,986 | | | |
Amortization of acquired intangible assets is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | Cost of revenue | $ | 1,674 | | | $ | 1,288 | | | $ | 4,966 | | | $ | 3,824 | | | | | | | | | | | Sales and marketing | 2,603 | | | 2,128 | | | 7,723 | | | 6,614 | | | | | | | | | | | | | | | | | | | Total amortization expense | $ | 4,277 | | | $ | 3,416 | | | $ | 12,689 | | | $ | 10,438 | |
As of September 30, 2026, expected future amortization expense related to acquired intangible assets is as follows (in thousands): | | | | | | | | | | Year Ending December 31, | | Amortization Expense | | Remainder of 2026 | | $ | 4,276 | | | 2027 | | 16,965 | | | 2028 | | 17,011 | | | 2029 | | 16,965 | | | 2030 | | 14,052 | | Thereafter | | 18,928 | | | Total future amortization | | $ | 88,197 | |
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