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GOODWILL AND ACQUIRED INTANGIBLES
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND ACQUIRED INTANGIBLES GOODWILL AND ACQUIRED INTANGIBLES
Goodwill
Goodwill is tested annually for impairment, unless certain triggering events require an interim impairment analysis, including macroeconomic conditions, industry and market considerations, costs factors, overall financial performance, and other relevant entity-specific events and changes. These considerations are evaluated holistically to assess whether it is more likely than not that a reporting unit's carrying value exceeds its fair value. Our reporting units consist of the Cardlytics platform in the U.S., the Cardlytics platform in the U.K. and the Bridg platform. There is no goodwill recorded within the Cardlytics platform in the U.K.
The changes in the carrying amount of goodwill for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):
Cardlytics Platform in the U.S.Consolidated
Balance as of December 31, 2024$159,429 $159,429 
Goodwill impairment(49,124)(49,124)
Balance as of December 31, 2025$110,305 $110,305 
Cardlytics Platform in the U.S.Bridg PlatformConsolidated
Balance as of December 31, 2023$159,429 $117,773 $277,202 
Goodwill impairment— (117,773)(117,773)
Balance as of December 31, 2024$159,429 $— $159,429 
Cardlytics Platform in the U.S.Bridg PlatformConsolidated
Balance as of December 31, 2022$164,430 $188,291 $352,721 
Goodwill impairment— (70,518)(70,518)
Divestiture of Entertainment(5,001)— (5,001)
Balance as of December 31, 2023$159,429 $117,773 $277,202 
We assessed the triggering events criteria along with related conditions and developments as of September 30, 2025 and September 30, 2024, and we concluded that we had a triggering event as a result of a sustained decline in our stock price during the three months ended September 30, 2025 and 2024. We, therefore, performed a quantitative impairment test as of September 30, 2025 and 2024. As a result of our quantitative impairment tests, we determined that the carrying value of the Cardlytics platform in the U.S. exceeded its fair value for the three months ended September 30, 2025 and that the carrying value of the Bridg platform exceeded its fair value for the three months ended September 30, 2024. As such, we recognized a goodwill impairment of $49.1 million for the Cardlytics platform in the U.S. during the three months ended September 30, 2025 and $117.8 million for the Bridg platform during the three months ended September 30, 2024. We performed our annual goodwill impairment test in the fourth quarter of 2025 and 2024 and concluded that there was no additional impairment associated with the Cardlytics platform in the U.S.
We performed our annual impairment test as of October 1, 2023 and determined that the carrying value of the Bridg platform, which is comprised entirely of an acquired business exceeded its fair value, and we recognized a goodwill impairment of $70.5 million. On December 7, 2023, we sold and transferred substantially all of the assets of Entertainment, and as a result, we reduced goodwill by $5.0 million, which is the amount of goodwill attributed to Entertainment. The reduction of goodwill is included as part of the determination of the (Gain)/loss on divestiture of $6.6 million in the consolidated statements of operations.
The decline in the fair value of the Cardlytics platform in the U.S. below its carrying value at September 30, 2025 and the decline in the fair values of the Bridg platform reporting unit below its carrying values at September 30, 2024 and October 1, 2023 resulted from a continued slowdown in the economy and decreased consumer spend that led to a sustained decline in our stock price. The method of determining fair values of the reporting units at September 30, 2025, September 30, 2024 and October 1, 2023 was the discounted cash flow method under the income approach, and to a lesser extent the market approach. The most significant assumptions utilized in the determination of the estimated fair values of the Cardlytics platform in the U.S. and the Bridg platform are the discount rate and forecasts of future revenues and cash flows.
We prepared cash flow projections based on management's estimates of revenue growth rates and earnings growth rates for each reporting unit, taking into consideration the historical performance and the current macroeconomic, industry, and market conditions. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment and volatility in the equity and debt markets.
Acquired Intangibles
We evaluate the recoverability of our finite-lived intangible assets and other long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. Prior to the quantitative goodwill impairment test, we evaluated the recoverability of these long-lived assets for our asset groups. The evaluation is based on the cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the extent the carrying amount of the asset group exceeded its estimated fair value.
2025 Acquired Intangibles
Acquired intangible assets subject to amortization as of December 31, 2025 were as follows:
Gross Carrying AmountAccumulated AmortizationNetWeighted Average Remaining Useful Life
(in thousands)(in years)
Developed technology49,873 (45,055)4,818 1.5
Merchant relationships21,930 (21,195)735 0.4
Total other intangible assets$71,803 $(66,250)$5,553 
Amortization expense of acquired intangibles for the year ended December 31, 2025 was $5.8 million.
2024 Acquired Intangibles
Acquired intangible assets subject to amortization as of December 31, 2024 were as follows:
Gross Carrying AmountAccumulated AmortizationImpairment of Intangible AssetsNetWeighted Average Remaining Useful Life
(in thousands)(in years)
Developed technology63,621 (41,442)(13,748)8,431 2.5
Merchant relationships21,930 (18,989)— 2,941 1.4
Total other intangible assets$85,551 $(60,432)$(13,748)$11,371 
Amortization expense of acquired intangibles for the year ended December 31, 2024 was $9.8 million.
2023 Acquired Intangibles
Acquired intangible assets subject to amortization as of December 31, 2023 were as follows:
Gross Carrying AmountAccumulated AmortizationDivestiture of EntertainmentNetWeighted Average Remaining Useful Life
(in thousands)(in years)
Trade name$2,315 $(1,802)$(513)$— 0.0
Developed technology64,070 (33,838)(449)29,783 3.4
Merchant relationships25,915 (16,784)(3,985)5,146 2.4
Total other intangible assets$92,300 $(52,424)$(4,947)$34,929 
Amortization expense of acquired intangibles for the year ended December 31, 2023 was $13.6 million.
We have assessed the triggering events criteria along with related conditions and developments as of September 30, 2024. As a result of a triggering event in 2024 as discussed above, we performed an impairment test as of September 30, 2024, and determined that the carrying value of the Bridg platform Developed technology intangible asset exceeded its fair values. As such, we recognized an acquired intangible asset impairment of $13.7 million during the year ended December 31, 2024.
Our impairment analysis at September 30, 2024 incorporated revised forecasts that took into account the continued slowdown in the global economy and decreased consumer spend during the quarter and expected impacts of these disruptions on our results in the near term. Given the significant level of uncertainty that currently exists, management applied several alternative scenarios for market and Company performance over the next several years to determine fair value. Other key assumptions were updated as appropriate, including the discount rate, which increased as a result of an increase in the equity risk premium, which was partially offset by a decrease in the risk-free rate.
As of December 31, 2025, we expect amortization expense in future periods to be as follows (in thousands):
Amount
20264,348 
20271,205 
2028— 
2029— 
2030— 
Thereafter— 
Total expected future amortization expense$5,553