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Restructuring
3 Months Ended
Mar. 31, 2026
Restructuring and Related Activities [Abstract]  
Restructuring
2. Restructuring
2025 Restructuring Plans
On February 3, 2025, in connection with the completion of the Acquisition, the Company announced a restructuring plan (the “Plan”), as part of its efforts to streamline operations and reduce duplication of roles. The Plan involved a reduction in workforce of approximately 15%. The actions associated with the employee restructuring under the Plan were initiated in February 2025, were implemented in large part in the second quarter of 2025 and are substantially completed.
On December 3, 2025, the Company commenced a broader strategic restructuring plan (the “Strategic Plan”) intended to reduce operating costs, improve operating margins and advance the Company’s ongoing commitment to profitable growth. The Strategic Plan is expected to impact approximately 10% of the Company’s employees globally. The Company expects to incur approximately $8.0 million to $12.0 million in charges related to severance and legal costs in connection with the Strategic Plan. The Company has recognized approximately $7.0 million of these charges to date and expects to incur the remainder primarily in the second quarter of 2026.
The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan and the Strategic Plan, and the timing thereof, are subject to a number of assumptions, and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan and the Strategic Plan. The Company recorded the following pre-tax charges within restructuring charges in its condensed consolidated statement of operations for the periods presented:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
(In thousands)
Severance and related costs$1,506 $6,847 
Legal costs197 432 
Total restructuring charges (1)
$1,703 $7,279 
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(1)Includes $1.3 million related to sales and marketing and $0.4 million related to general and administrative expenses for the three months ended March 31, 2026. Includes $0.8 million related to research and development, $5.0 million related to sales and marketing, and $1.5 million related to general and administrative expenses for the three months ended March 31, 2025.
The following table is a reconciliation of the beginning and ending balances for accrued severance and related liabilities recorded within accrued compensation and benefits and accrued and other current liabilities in the Company’s condensed consolidated balance sheets for the three months ended March 31, 2026:
Severance and related costsLegal costsTotal
Balance as of December 31, 2025
$3,361 $125 $3,486 
Restructuring charges1,506 197 1,703 
Cash payments(3,223)(309)(3,532)
Foreign currency translation(75)(1)(76)
Balance as of March 31, 2026
$1,569 $12 $1,581