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Restructuring and Other Charges | 9 Months Ended
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Sep. 30, 2025
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges 2023 Restructuring During the fourth quarter of 2023, we incurred approximately $14.0 million in restructuring expenses, of which $5.3 million remained unpaid and were included in Accrued liabilities as of December 31, 2023. As of December 31, 2024, we had no remaining restructuring liability related to the 2023 Restructuring. 2024 Restructuring During the fourth quarter of 2024, we incurred approximately $37.0 million in restructuring expenses, of which $13.0 million remained unpaid and were included in Accrued liabilities as of December 31, 2024. For the nine months ended September 30, 2025, we reduced our December 31, 2024 restructuring liability by approximately $14.6 million primarily due to cash payments, offset by approximately $2.1 million of additional restructuring expense recorded in Cost of net revenues. The 2023 and 2024 restructuring charges were primarily related to involuntary termination benefits, including employee severance and other post-employment benefits. 2025 Restructuring During the third quarter of 2025, we initiated a plan to realign certain business groups and reduce our global workforce. This plan represents our continued effort to right size our labor force with the current macroeconomic environment. We anticipate incurring between $40.0 million and $50.0 million in total restructuring expenses, primarily related to involuntary termination benefits, including employee severance and other post-employment benefits. We recorded $4.8 million in Cost of net revenues and $31.8 million in Restructuring and other charges in our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025. All charges recorded to Cost of net revenues were allocated to our Clear Aligner reportable segment and all charges recorded to Restructuring and other charges were unallocated corporate expenses. As of September 30, 2025, $32.0 million remained unpaid and was included in Accrued liabilities in our Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities associated with our restructuring initiatives consists of the following (in thousands):
|  | For the twelve months ended December 31, 2024
|  | 2023 Restructuring |  | 2024 Restructuring |  | Total
Balance at beginning of period 1 |  | $ | 5,299 |  |  | $ | — |  |  | $ | 5,299 |
Restructuring and other charges |  | (598) |  |  | 36,991 |  |  | 36,393 |
Cash payments and adjustments |  | (4,701) |  |  | (23,990) |  |  | (28,691) |
Balance at end of period 1 |  | $ | — |  |  | $ | 13,001 |  |  | $ | 13,001 |
|  | For the nine months ended September 30, 2025
|  | 2024 Restructuring |  | 2025 Restructuring 2 |  | Total
Balance at beginning of period 1 |  | $ | 13,001 |  |  | $ | — |  |  | $ | 13,001 |
Restructuring and other charges |  | 2,056 |  |  | 36,619 |  |  | 38,675 |
Cash payments and adjustments |  | (14,569) |  |  | (4,659) |  |  | (19,228) |
Balance at end of period 1 |  | $ | 488 |  |  | $ | 31,960 |  |  | $ | 32,448 |
1 Included in “Accrued liabilities” within our Condensed Consolidated Balance Sheets. 2 2025 restructuring activities include an immaterial amount of charges for non post-employment benefit related restructuring expense.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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