Goodwill and Other Intangible Assets, Net

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

Goodwill and Other Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill by operating segment during the six months ended June 30, 2025, consisted of the following (in thousands):

	Array Legacy Operations		STI Operations		Total
Beginning balance	$	69,727	$	90,462	$	160,189
Foreign currency translation	—		12,419		12,419
Ending balance (1)	$	69,727	$	102,881	$	172,608

(1) Goodwill attributable to Array Legacy Operations is net of cumulative impairments of $51.9 million. Goodwill attributable to STI Operations is net of cumulative impairments of $236.0 million.

The Company tests goodwill for impairment annually or more frequently if facts and circumstances indicate that it is more likely than not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. There were no indicators of impairment as of June 30, 2025.

Long Lived Assets

The Company assesses long-lived assets classified as “held and used,” including property, plant and equipment, lease assets and intangible assets for impairment whenever events or changes in circumstances arise, including consideration of technological obsolescence, that may indicate that the carrying amount of such assets may not be recoverable.

As of June 30, 2025, no events or circumstances were noted that would indicate the carrying amount of any of Array Legacy’s Operations or STI Operations assets may not be recoverable.

Other Intangible Assets, Net

Other intangible assets, net consisted of the following (in thousands, except useful lives):

	Estimated Useful Lives (Years)	June 30, 2025		December 31, 2024
Amortizable:
Developed technology	14	$	203,800	$	203,800
Computer software	3	15,906		15,826
Customer relationships	10	191,480		179,166
Backlog	1	19,195		16,877
Trade name	20	17,193		15,117
Total amortizable intangibles		447,574		430,786
Accumulated amortization:
Developed technology		130,740		123,462
Computer software		14,836		14,552
Customer relationships		115,774		102,541
Backlog		19,195		16,877
Trade name		2,983		2,245
Total accumulated amortization		283,528		259,677
Total amortizable intangibles, net		164,046		171,109
Non-amortizable:
Trade name		10,300		10,300
Total other intangible assets, net		$	174,346	$	181,409

Amortization expense related to intangible assets was $8.7 million and $11.8 million for the three months ended June 30, 2025 and 2024, respectively, of which $3.6 million was included in Amortization of developed technology, a component of cost of revenue, in both periods and $5.1 million and $8.1 million, respectively, was included in Depreciation and amortization, on the accompanying condensed consolidated statements of operations.

Amortization expense related to intangible assets was $17.3 million and $24.7 million for the six months ended June 30, 2025 and 2024, respectively, of which $7.3 million was included in Amortization of developed technology, a component of cost of revenue, in both periods and $10.0 million and $17.4 million, respectively, was included in Depreciation and amortization, on the accompanying condensed consolidated statements of operations.

Estimated future amortization expense of intangible assets as of June 30, 2025, is as follows (in thousands):

	Amount
Remainder of 2025	$	18,032
2026	30,577
2027	25,614
2028	25,614
2029	25,614
Thereafter	38,595
	$	164,046