The Company incurs restructuring charges in connection with strategic initiatives and cost-reduction efforts aimed at optimizing business operations. A description of significant restructuring plans and other restructuring charges is provided below.

In 2025, in response to continuing macroeconomic challenges impacting the Company’s financial performance, the Company implemented a series of cost savings and restructuring initiatives (the "2025 Restructuring Plan") as part of its ongoing multi-faceted transformation strategy. In March 2025, the Company authorized and began executing the next phase of its cost savings and restructuring initiative which includes initiatives to deliver sustainable growth and profitability, enabled by a streamlining of both infrastructure and business processes, while consistently investing in core research and development activities to support long-term growth opportunities. In May 2025, the Company announced and began executing an incremental cost reduction initiative focused on labor force reductions in response to continued uncertainty in the economy and our industry and the related potential negative impact on our financial performance.

The Company incurred $0.2 million and $1.0 million in severance and termination benefit costs related to headcount reductions during the three months ended March 31, 2026 and March 31, 2025, respectively. These costs were primarily cash charges and were generally recognized when probable and estimable consistent with the Company’s past practices or statutory law. The Company does not expect to incur significant additional restructuring charges in 2026 related to the 2025 Restructuring Plan.


	Three Months Ended
(in thousands)	March 31, 2026		March 31, 2025
Cost of sales	$	—	$	163
Selling, general, and administrative expenses	88		558
Research and development	159		276
Total	$	247	$	997

There were no restructuring and other related charges recorded in cost of sales for the three months ended March 31, 2026. Restructuring and other related charges recorded in cost of sales by reportable segment for the three months ended March 31, 2025 were as follows:


	Three Months Ended
(in thousands)	March 31, 2026		March 31, 2025
Balance at beginning of period	$	1,230	$	—
Costs incurred and other adjustments to accrued liability during the period	247		997
Amounts settled with cash	(1,286)		(399)
Balance at the end of period	$	191	$	598