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Acquisitions, Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions, Goodwill and Intangible Assets Acquisitions, Goodwill and Intangible Assets
Paperspace Co.
On July 5, 2023, the Company acquired 100% of Paperspace for total cash consideration of $100,399, which was accounted for as a business combination. Included in the consideration paid was a contribution of $11,100 to an escrow account held by a third party on the Paperspace Acquisition Date to support certain post-closing indemnification obligations. During the year ended December 31, 2024, the indemnification period expired and the remaining indemnity escrow fund was distributed to the participating Paperspace stockholders in accordance with the acquisition agreement.
Acquisition and integration related costs consist of miscellaneous professional service fees and expenses for acquisition-related activities. The Company recognized approximately $5,745 of acquisition-related costs that were expensed in the year ended December 31, 2023.
Contingent compensation costs relate to payments due to certain Paperspace sellers for $10,120, which represents compensation for post-combination services because the payments are generally contingent on continuing employment of the Paperspace founders at each payment date. For the years ended December 31, 2024 and 2023, the Company recorded acquisition-related compensation expense of $5,985 and $4,135, respectively, included in general and administrative expenses in the accompanying consolidated statements of operations. All contingent compensation costs were paid during the year ended December 31, 2024.
The amount of Paperspace’s revenue and net loss included in the Company’s consolidated statements of Operations from the Paperspace Acquisition Date through December 31, 2023, was $6,350 and $18,914, respectively.
Cloudways Ltd.
On September 1, 2022, the Company acquired 100% of the outstanding equity interests of Cloudways for total cash consideration of $311,237, which was accounted for as a business combination.
Contingent compensation costs related to payments due to a Cloudways seller for $38,830, of which $14,652 was earned and paid during the year ended December 31, 2024. On October 30, 2024, the Cloudways seller resigned from the Company. In recognition of the Cloudways seller’s service to the Company, the Company made the remaining payment of $7,326 following the resignation date during the quarter ended December 31, 2024.
Goodwill
During the year ended December 31, 2025 there were no changes to the Company’s goodwill. Movements in goodwill during the year ended December 31, 2024 were as follows:
Balance at January 1, 2024
$348,322 
Measurement period adjustments(1)
352 
Balance at December 31, 2024$348,674 
___________________
(1)Represents measurement period adjustment of the purchase price of the Paperspace acquisition.
Intangible Assets, net
Intangible assets, net consisted of the following amounts:
December 31,
20252024
Asset Type
IP addresses$46,657 $44,822 
Developed technology62,330 62,323 
Customer relationships44,270 44,270 
Trade name9,800 9,800 
Content4,400 4,400 
Brand1,000 1,000 
Total carrying value$168,457 $166,615 
Accumulated Amortization
Developed technology$(38,718)$(27,094)
Customer relationships(21,368)(14,286)
Trade name(3,467)(2,517)
Content(4,400)(4,000)
Brand(1,000)(1,000)
Total accumulated amortization(68,953)(48,897)
Total intangible assets, net$99,504 $117,718 
Amortization expense was $20,057, $22,426 and $18,967 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, the weighted-average estimated useful life of intangible assets is five years for developed technology, six years for customer relationships, and ten years for trade name. Brand and content are fully amortized as of December 31, 2025 and 2024, respectively. Amortization expense for the next five years and thereafter, based on valuations and determinations of useful lives, is expected to be as follows:
2026$19,657 
202717,557 
20289,198 
20293,902 
2030950 
Thereafter1,583 
Total estimated future intangible amortization expense$52,847