Annual report [Section 13 and 15(d), not S-K Item 405]

Acquisitions, Goodwill and Other Intangible Assets

v3.25.4
Acquisitions, Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions, Goodwill and Other Intangible Assets Acquisitions, Goodwill and Other Intangible Assets
Goodwill is recorded as part of the Company’s acquisitions and primarily arose from the acquired assembled workforce and brokerage and financing sales platforms. The Company expects all of the goodwill to be tax deductible, with the tax-deductible amount of goodwill related to the contingent and deferred consideration to be determined once the cash payments are made to settle any contingent and deferred consideration. The goodwill resulting from acquisitions is allocated to the Company’s one reporting unit.
Goodwill and intangible assets, net consisted of the following (in thousands):
December 31, 2025 December 31, 2024
Gross
Carrying
Amount		 Accumulated
Amortization 		Net Book
Value		 Gross
Carrying
Amount		 Accumulated
Amortization 		Net Book
Value
Goodwill and intangible assets:            
Goodwill $ 37,851  $ —  $ 37,851  $ 37,597  $ —  $ 37,597 
Intangible assets (1)
19,377  (15,566) 3,811  19,123  (13,199) 5,924 
$ 57,228  $ (15,566) $ 41,662  $ 56,720  $ (13,199) $ 43,521 
(1)Total weighted remaining average amortization period was 2.9 years and 3.5 years as of December 31, 2025 and 2024, respectively. Intangible assets principally include non-compete agreements and customer relationships.
The Company recorded amortization expense for intangible assets of $2.1 million for the year ended December 31, 2025, $7.2 million for the year ended December 31, 2024 and $4.7 million for the year ended December 31, 2023. The amortization expense of $7.2 million for the year ended December 31, 2024 included an accelerated amortization of $1.2 million and an impairment of $2.2 million of certain intangible assets resulting from changes in estimates.
The changes in the carrying amount of goodwill consisted of the following (in thousands):
Years Ended December 31,
2025 2024
Beginning balance $ 37,597  $ 38,046 
Impact of foreign currency translation 254  (449)
Ending balance $ 37,851  $ 37,597 
Estimated amortization expense for intangible assets by year for the next five years and thereafter consisted of the following (in thousands):
Years Ended December 31,
2026 $ 1,387 
2027 1,214 
2028 1,210 
$ 3,811 
As of December 31, 2025, the Company considered the impact of economic conditions and evaluated its goodwill and intangible assets for impairment testing. The Company estimated the recoverability of the intangible assets by comparing the carrying amount of each asset to the future undiscounted cash flows that the Company expects the asset to generate. The sum of the undiscounted expected future cash flows was greater than the carrying amount of the intangible assets as of December 31, 2025. The Company concluded that there was no impairment of intangible assets during the year ended December 31, 2025. At December 31, 2024, the sum of the undiscounted expected future cash flows related to a prior acquisition was lower than the carrying amount of the intangible assets. We determined the fair value to be nominal based on a discounted cash flow over the remaining useful life, resulting in an impairment of the related intangible assets of $2.2 million during the year ended December 31, 2024. The Company concluded that there was no impairment of goodwill during the years ended December 31, 2025 and 2024.