Restructuring and Other Related Charges

3 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

In 2021 and 2022, the Company's Board of Directors approved cost reduction actions designed to streamline its business and improve efficiency. On August 3, 2023, the Board approved further cost reduction actions (the "2023 Actions") to seek to drive higher levels of Adjusted EBITDA while maintaining the Company's long-term growth potential. The Company has incurred and expects to continue to incur restructuring charges in connection with the 2023 Actions, and anticipates that these charges will consist primarily of charges related to employee transition and severance payments, with a significantly smaller amount of charges relating to vendor contract termination and rationalization actions.

In connection with the Plan (including the 2023 Actions), the Company recorded a total of $0.4 million and $1.6 million in restructuring charges for the three months ended March 31, 2025 and 2024, respectively. Approximately less than $0.1 million is recorded in "Services and other cost of goods sold" in the condensed consolidated statements of operations for both periods while the remaining amounts of $0.4 million and $1.5 million is recorded in “Restructuring and other related charges” in the condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024.

The main categories of charges are in the following areas:

•Employee costs – include severance, related benefits and retention pay costs incurred as a result of eliminating positions in certain areas of the Company. For the three months ended March 31, 2025 and 2024 employee costs were $0.3 million and $1.4 million, respectively. In total, there were approximately 335 employees, across multiple functions, whose positions were made redundant. The $0.6 million current portion of the restructuring liability at March 31, 2025 is included in "Accrued wages and payroll taxes" in the consolidated balance sheet and is expected to be paid within the next 12 months.

•Real estate rationalization costs – includes costs to align the real estate footprint with the Company’s needs. During 2023, the Company vacated its Chicago and Brussels office spaces, which resulted in the abandonment and termination of the underlying leases. In August 2024, the Company finalized its early termination agreement with the Chicago office landlord to terminate and release any further obligations for either party. The remaining contract termination fees of $0.5 million were paid in January 2025 and no liability was outstanding as of March 31, 2025.

•Vendor rationalization costs – include costs for contractually committed services the Company is no longer utilizing. The Company recognized $0.1 million and $0 of vendor rationalization costs for the three months ended March 31, 2025 and 2024, respectively. These costs are included in "Restructuring and other related charges" on the condensed consolidated statements of operations.

The table below sets forth the changes in the carrying amount of the restructuring charge liability for the three months ended March 31, 2025.


(In thousands)	Employee Costs		Real Estate Rationalization		Total
Balance as of December 31, 2024	$	1,257	$	525	$	1,782
Additions	316		—		316
Payments	(998)		(525)		(1,523)
Balance as of March 31, 2025	$	575	$	—	$	575