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Goodwill and Intangibles | 6 Months Ended
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Jun. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangibles | 6. GOODWILL AND INTANGIBLES Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. During the six months ended June 30, 2025, goodwill of $252.3 million was recorded in connection with the Ambry Acquisition and Deep 6 Acquisition. There were no goodwill additions for the three months ended June 30, 2025 or the three and six months ended June 30, 2024. The Company recorded no impairment loss during the three and six months ended June 30, 2025 and 2024. Intangible assets Intangible assets are initially recorded at their acquisition cost, or fair value if acquired as part of a business combination and amortized over their estimated useful lives. Intangible assets consist of a website domain, customer relationships and trade names acquired as part of a business combination, and licensed data acquired by entering into research collaboration agreements. In each license arrangement, the other party provides the Company with specified data, which currently is used primarily for research and development purposes but may also be licensed to third parties. The asset represents the Company’s right to use these datasets. The Company also recognizes a liability for the associated minimum payments that are presented within accrued data licensing fees. During the three months ended June 30, 2025 the Company recorded $5.7 million in licensed data related to de-identified data obtained through amended agreements and $2.0 million in capitalized software. During the six months ended June 30, 2025, the Company recorded an additional $234.0 million in customer relationships, $114.0 million in developed technology - biotech, $33.0 million in trade names, $18.0 million in developed technology - software, $5.7 million in licensed data, and $3.3 million in capitalized software. During the three and six months ended June 30, 2024, the Company did no t record any additions in intangible assets. There were no impairment charges recognized related to intangible assets during the three and six months ended June 30, 2025 and 2024, respectively. The following table summarizes intangible assets as of June 30, 2025 and December 31, 2024 (in thousands):
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | Gross Amount |  |  | Accumulated Amortization |  |  | Net |  |  | Gross Amount |  |  | Accumulated Amortization |  |  | Net |
Customer relationships |  | $ | 254,550 |  |  | $ | 30,772 |  |  | $ | 223,778 |  |  | $ | 20,550 |  |  | $ | 15,606 |  |  | $ | 4,944 |
Licensed data |  |  | 25,718 |  |  |  | 20,248 |  |  |  | 5,470 |  |  |  | 20,010 |  |  |  | 17,828 |  |  |  | 2,182 |
Website domain |  |  | 19 |  |  |  | — |  |  |  | 19 |  |  |  | 19 |  |  |  | — |  |  |  | 19 |
Trade names |  |  | 41,000 |  |  |  | 5,964 |  |  |  | 35,036 |  |  |  | 8,000 |  |  |  | 3,429 |  |  |  | 4,571 |
Capitalized software |  |  | 3,295 |  |  |  | 34 |  |  |  | 3,261 |  |  |  | — |  |  |  | — |  |  |  | — |
Developed technology - biotech |  |  | 114,000 |  |  |  | 9,500 |  |  |  | 104,500 |  |  |  | — |  |  |  | — |  |  |  | — |
Developed technology - software |  |  | 18,000 |  |  |  | 2,500 |  |  |  | 15,500 |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 456,582 |  |  | $ | 69,018 |  |  | $ | 387,564 |  |  | $ | 48,579 |  |  | $ | 36,863 |  |  | $ | 11,716 |
Amortization of intangible assets is recognized using the straight-line method over their estimated useful lives, which range from three to seven years. Amortization expense was $19.7 million and $2.8 million for the three months ended June 30, 2025 and 2024, respectively, and $32.2 million and $5.7 million for the six months ended June 30, 2025 and 2024, respectively, and is recorded in cost of revenues, research and development, or selling, general and administrative expense, depending on use of the asset. The weighted average life of the Company’s intangibles is approximately six years. As of June 30, 2025, the estimated future amortization expense related to intangible assets is as follows (in thousands):
7/1/2025 - 12/31/2025 | $ | 37,833 |
2026 |  | 73,953 |
2027 |  | 69,049 |
2028 |  | 63,245 |
2029 |  | 61,602 |
2030 |  | 40,534 |
Thereafter |  | 41,329 |
Total | $ | 387,545 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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