| Intangible Assets and Goodwill |
6.Intangible Assets and Goodwill Intangible Assets The following tables summarize the components of gross and net intangible assets (in thousands, except years):
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Weighted Average
Remaining Amortization |
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Gross Carrying |
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Accumulated |
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Net Carrying |
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Period |
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Amount |
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Amortization |
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Amount |
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December 31, 2025 |
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Developed technology |
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2.7 years |
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$ |
170,538 |
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$ |
166,877 |
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$ |
3,661 |
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Customer relationships |
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0.6 years |
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66,630 |
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65,681 |
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949 |
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Trade names |
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0.0 years |
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10,700 |
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10,700 |
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— |
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License agreements |
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1.0 years |
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1,282 |
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1,210 |
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72 |
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Total intangible assets, net* |
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$ |
249,150 |
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$ |
244,468 |
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$ |
4,682 |
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* The carrying amount of foreign intangible assets are affected by foreign currency translation. |
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Weighted Average |
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Remaining Amortization |
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Gross Carrying |
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Accumulated |
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Net Carrying |
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Period |
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Amount |
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Amortization |
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Amount |
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June 30, 2025 |
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Developed technology |
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3.0 years |
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$ |
170,480 |
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$ |
165,908 |
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$ |
4,572 |
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Customer relationships |
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1.0 years |
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64,824 |
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62,961 |
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1,863 |
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Trade names |
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0.0 years |
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10,700 |
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10,700 |
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— |
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License agreements |
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1.4 years |
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1,282 |
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1,176 |
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106 |
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Total intangible assets, net* |
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$ |
247,286 |
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$ |
240,745 |
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$ |
6,541 |
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* The carrying amount of foreign intangible assets are affected by foreign currency translation. |
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The following table summarizes the amortization expense of intangible assets for the periods presented (in thousands):
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Three Months Ended |
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Six Months Ended |
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December 31, 2025 |
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December 31, 2024 |
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December 31, 2025 |
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December 31, 2024 |
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Amortization of intangible assets in “Total cost of revenues” |
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$ |
352 |
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$ |
606 |
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$ |
963 |
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$ |
1,230 |
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Amortization of intangible assets in “Total operating expenses” |
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407 |
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509 |
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907 |
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1,021 |
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Total amortization expense |
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$ |
759 |
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$ |
1,115 |
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$ |
1,870 |
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$ |
2,251 |
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The amortization expense that is recognized in “Total cost of revenues” primarily consists of amortization related to developed technology and license agreements. The estimated future amortization expense to be recorded for each of the respective future fiscal years is as follows (in thousands):
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Amount |
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For the fiscal year ending June 30: |
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2026 (the remainder of fiscal 2026) |
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$ |
1,524 |
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2027 |
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1,524 |
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2028 |
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1,353 |
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2029 |
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281 |
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Total |
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$ |
4,682 |
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Goodwill The Company had goodwill in the amount of $399.9 million and $399.6 million as of December 31, 2025 and June 30, 2025, respectively. The change in goodwill during the six months ended December 31, 2025 is primarily due to foreign currency translation adjustments which are recorded as a component of "Accumulated other comprehensive loss" in the condensed consolidated balance sheets. |