v3.26.3
Goodwill and Intangibles
9 Months Ended
Sep. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill and Intangibles
Note 7. Goodwill and Intangibles
Goodwill was $593.3 million as of September 30, 2026 and $575.3 million as of December 31, 2025. The following table displays the changes in the gross carrying amount of goodwill (in thousands):
Carrying Amount
Balance at December 31, 2025$575,268 
Kenzo acquisition18,066 
Balance at September 30, 2026$593,334 
The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs (in thousands):
As of September 30, 2026As of December 31, 2025
Weighted Average Estimated Useful Life (years)Gross Carrying
Amount
Accumulated
Amortization
Net Book ValueGross Carrying
Amount
Accumulated
Amortization
Net Book Value
Intangible assets subject to amortization:
Developed technology6.3$154,055 $(124,477)$29,578 $146,855 $(111,886)$34,969 
Customer relationships6.012,000 (12,000)— 12,000 (11,906)94 
Trade names0.02,619 (2,619)— 2,619 (2,619)— 
Licensed IP3.0500 (83)417 — — — 
Total acquired intangible assets169,174 (139,179)29,995 161,474 (126,411)35,063 
Internal-use software3.094,910 (66,359)28,551 83,934 (53,892)30,042 
Total intangible assets$264,084 $(205,538)$58,546 $245,408 $(180,303)$65,105 
Intangible assets are expensed on a straight-line basis over the useful life of the asset. Amortization expense was $7.8 million and $8.9 million for the three months ended September 30, 2026 and 2025, respectively, and $25.2 million and $26.8 million for the nine months ended September 30, 2026 and 2025, respectively.
Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of September 30, 2026 was as follows (in thousands):
2026 (for the remaining three months)$7,470 
202721,630 
202811,236 
20295,500 
20304,443 
2031 and thereafter2,653 
Total$52,932 
The table above excludes the impact of $5.6 million of capitalized internal-use software costs for projects that have not been completed as of September 30, 2026, and therefore, all the costs associated with these projects have not been incurred.