Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

11. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets are primarily the result of business acquisitions.

The Company performs its annual impairment assessment of goodwill and indefinite life intangible assets as of November 30 of each year.

No impairments to goodwill or indefinite life intangible assets were recorded during the three and six months ended June 30, 2025.

Changes in the carrying amount of goodwill were as follows during the six months ended June 30, 2025 (in thousands):

	Net Carrying
	Amount
Balance as of December 31, 2024	$	1,417,724
Acquisition of EvolutionIQ, Inc.		538,761
Balance as of June 30, 2025	$	1,956,485

Intangible Assets—During the six months ended June 30, 2025, the Company recorded $167.9 million of intangible assets as a result of the acquisition of EvolutionIQ (see Note 3).

No intangible asset impairments were recorded during the three and six months ended June 30, 2025.

The intangible assets balance as of June 30, 2025 is reflected below (in thousands):

		Weighted-
		Average
	Estimated	Remaining	Gross					Net
	Useful Life	Useful Life	Carrying		Accumulated			Carrying
	(Years)	(Years)	Amount		Amortization			Amount
Customer relationships	16-18	10.1	$	1,324,130	$	(587,715	)	$	736,415
Acquired technologies	7-8	7.4		139,100		(10,737	)		128,363
Trademarks	5	4.5		1,300		(130	)		1,170
Subtotal				1,464,530		(598,582	)		865,948
Trademarks—indefinite life				190,470		—			190,470
Total intangible assets			$	1,655,000	$	(598,582	)	$	1,056,418

The intangible assets balance as of December 31, 2024 is reflected below (in thousands):

			Weighted-
			Average
	Estimated		Remaining	Gross					Net
	Useful Life		Useful Life	Carrying		Accumulated			Carrying
	(Years)		(Years)	Amount		Amortization			Amount
Customer relationships		18	10.3	$	1,291,830	$	(550,822	)	$	741,008
Acquired technologies	7		4.1		4,800		(2,000	)		2,800
Subtotal					1,296,630		(552,822	)		743,808
Trademarks—indefinite life					190,470		—			190,470
Total intangible assets				$	1,487,100	$	(552,822	)	$	934,278

Amortization expense for intangible assets was $22.9 million and $20.0 million for the three months ended June 30, 2025 and 2024, respectively. Amortization expense for intangible assets was $45.8 million and $44.5 million for the six months ended June 30, 2025 and 2024, respectively.

Future amortization expense for the remainder of the year ended December 31, 2025 and the following four years ended December 31 and thereafter for intangible assets as of June 30, 2025 is as follows (in thousands):

Years Ending December 31:
2025		45,760
2026		91,520
2027		91,520
2028		91,520
2029		90,891
Thereafter		454,737
Total	$	865,948