Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Our acquisitions have resulted in the recording of goodwill and other identifiable intangible assets. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets consist of internally developed software, domain names and other identifiable intangible assets, such as trade names, developed technologies, and customer relationships related to the acquisitions the Company has completed. The changes in goodwill and intangible assets are as follows:

	Goodwill		Trade Names		Developed Technologies		Customer Relationships		Domain Names		Internally Developed Software		Total Intangible Assets, net
($ in thousands)	Unamortized		Unamortized		Amortized		Amortized		Amortized		Amortized
Net balance as of September 30, 2024	$	336,602	$	149,921	$	3,964	$	46,403	$	1,750	$	3,353	$	205,391
Acquisitions and additions during the three months ended December 31, 2024	—		—		—		—		—		362		362
Accumulated amortization for the three months ended December 31, 2024	—		—		(135)		(1,525)		(159)		(303)		(2,122)
Net balance as of December 31, 2024	$	336,602	$	149,921	$	3,829	$	44,878	$	1,591	$	3,412	$	203,631

Amortization expense was $2.1 million and $1.6 million for the three months ended December 31, 2024 and 2023, respectively, which includes amortization expense of $0.3 million and $0.2 million for the three months ended December 31, 2024 and 2023, respectively, for internally developed software, and is recorded in depreciation and amortization expense in the unaudited condensed consolidated statements of operations. For internally developed software acquisitions and additions during the three months ended December 31, 2024, the weighted average useful life is 4.3 years.

The following table summarizes the expected amortization expense for the fiscal years 2025 through 2029 and thereafter ($ in thousands):

2025 (excluding the three months ended December 31, 2024)	$	6,381
2026	8,508
2027	8,265
2028	6,687
2029	6,686
Thereafter	17,183
	$	53,710

As of December 31, 2024 and September 30, 2024, the carrying value of goodwill totaled approximately $336.6 million, of which $295.3 million was related to our Dealerships reporting segment and $41.3 million was related to our Distribution reporting segment.