The following table sets forth the carrying amount and activity of goodwill as of December 31, 2025:


	December 31,
	2025		2024
Balance as of the beginning of the period	$	266,368	$	295,096
Acquisitions (Note 3)		16,394		1,239
Measurement period adjustment for business combinations from prior year		—		(17,045	)
Effect of exchange rate on goodwill		9,882		(12,922	)
Balance as of the end of the period	$	292,644	$	266,368

During the year ended December 31, 2025, the change in goodwill was primarily related to a $16,394 increase due to the acquisition of emotion3D that was completed during the period, as well as a $9,882 increase in value due to the effect of exchange rates on goodwill.

The change in goodwill during the year ended December 31, 2024, was primarily driven by a $1,239 increase due to the acquisition of Kinetic completed during the period, a $17,045 decrease related to the completion of the purchase price allocation for indie Switzerland, as well as a $12,922 decrease in value due to effect of exchange rate on goodwill.

See Note 3 — Business Combinations for a detailed discussion of goodwill acquired as well as adjustments due to finalization of the business combination valuations.

The Company tests its goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if certain events occur indicating the carrying value of goodwill may be impaired. For the year ended December 31, 2025, the Company performed a quantitative analysis over its two reporting units on October 1 using a combination of income and market approaches. The fair value of both reporting units exceeded their carrying values. For the years ended December 31, 2024 and 2023, the Company performed a qualitative analysis over its two reporting units on October 1 and concluded that it was not more likely than not that the fair value of the reporting units were less than their carrying amount. As a result, there were no impairment of goodwill recorded during the years ended December 31, 2025, 2024 and 2023.