In the first quarter of 2025, we implemented an expense reduction initiative aimed at lowering our annualized run-rate operating expenses. These actions, which included workforce reductions and other cost-saving measures, were part of a broader strategic shift to prioritize the adoption of HiFi sequencing.


(In thousands)	Three Months Ended March 31, 2026		Cumulative amount incurred to date
Employee separation costs	$	—	$	4,787
Other costs	—		1,076
Total restructuring charges (1)	$	—	$	5,863

(1) Cumulative charges incurred to date include $3.8 million in sales, general and administrative expense and $2.1 million in research and development expense.

Charges included employee separation costs comprised of approximately $2.5 million related to salaries, wages and other employee benefits paid to terminated employees pursuant to the Worker Adjustment and Retraining Notification (WARN) Act and approximately $2.3 million of severance costs.

In connection with the restructuring and strategic shift, we incurred an additional $389.9 million in costs. These include $359.3 million of accelerated amortization of certain intangible assets, $15.0 million of IPR&D impairment charges, $8.1 million related to excess inventory due to decreased external demand and $3.9 million for estimated losses on purchase commitments tied to anticipated future excess inventory included in cost of revenue, and $3.1 million of accelerated depreciation of fixed assets. See Note 3. Balance Sheet Components for additional information on the IPR&D impairment assessment and the change in estimated useful life of the intangible asset and accelerated amortization.


(In thousands, excluding non-cash activities)	Other Costs
Amount recorded in current liabilities as of December 31, 2025	$	389
Cash paid during YTD 2026	(389)
Amount recorded in current liabilities as of March 31, 2026	$	—

Estimated total restructuring costs to still be incurred	$	—

In the second quarter of 2024, we implemented an expense reduction initiative that included workforce reductions, the closing of our San Diego office, and other actions to reduce annualized run-rate operating expenses. We recognized approximately $1 million of expense related to the 2024 restructuring during the three months ended March 31, 2026. See Note 6 – Restructuring in Part II, Item 8 of the 2025 Annual Report for information regarding the 2024 restructuring initiative.