Goodwill, Internal-Use Software Development Costs, Net, and Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2025

Internal-use software development costs and intangible assets consisted of the following (in thousands):


	June 30, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Internal-use software development costs	$	24,545	$	(10,331)	$	14,214
Intangible assets:
Developed technology	$	196,403	$	(168,017)	$	28,386
Trademarks and trade names	236,053		(80,450)		155,603
Software	5,100		(4,253)		847
Customer relationships	2,900		(2,396)		504
Total	$	440,456	$	(255,116)	$	185,340


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Internal-use software development costs	$	21,393	$	(6,957)	$	14,436
Intangible assets:
Developed technology	$	196,128	$	(143,386)	$	52,742
Trademarks and trade names	236,053		(68,650)		167,403
Software	5,100		(3,616)		1,484
Customer relationships	2,900		(2,188)		712
Total	$	440,181	$	(217,840)	$	222,341

Amortization expense for internal-use software development costs and intangible assets were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Amortization expense for internal-use software development	$	1,755	$	1,076	$	3,374	$	2,010
Amortization expense for intangible assets	$	18,625	$	18,665	$	37,276	$	37,330

Amortization expense was presented as follows in the Statements of Operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cost of revenue	$	13,091	$	12,709	$	26,141	$	25,329
Selling, general, and administrative	$	7,289	$	7,032	$	14,509	$	14,011

System1, Inc. 10-Q