Property, Software and Equipment, net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Property, Software and Equipment, net | Property, Software and Equipment, net Property, software and equipment, net, consist of the following (in thousands):
Amortization and depreciation expense on property, software and equipment was approximately $3.7 million and $3.0 million for the three months ended September 30, 2026 and 2025, respectively, and $12.0 million and $9.1 million for the nine months ended September 30, 2026 and 2025, respectively. Included in these amounts were the amortization of capitalized internal-use software costs of approximately $3.6 million and $2.9 million, for the three months ended September 30, 2026 and 2025, respectively, and $11.7 million and $8.8 million for the nine months ended September 30, 2026 and 2025, respectively. There were no write-offs of internal-use software or resulting impairment losses recorded for the three and nine months ended September 30, 2026 and 2025. Revision of Useful Life During the first quarter of 2026, the Company revised the estimated useful life of an AI-related internal-use software module from four years to one year, resulting in a revised remaining amortization period ending September 2026. This revision reflects management’s conclusion that the expected period of economic benefit of the in-service module is shorter than originally estimated due to changes in the product roadmap, including planned near-term development efforts that are expected to substantially replace the existing module earlier than originally anticipated. The software remains in active use through the transition period. This change in estimate has been reflected prospectively beginning in the first quarter of 2026 in accordance with FASB ASC 250. The effect of this change was to increase amortization expense and net loss by approximately $0.7 million and $2.1 million for the three and nine months ended September 30, 2026, respectively, and increased basic and diluted net loss per share by $0.02 and $0.06, for the three and nine months ended September 30, 2026, respectively. The module has been fully amortized as of September 30, 2026. This change will both increase depreciation and amortization expense for the full year in 2026 and reduce depreciation and amortization expense for the years 2027 through 2029 by a total of $1.9 million.
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