During the first quarter of 2026, the Company initiated a series of restructuring activities to simplify the global manufacturing footprint of the organization and align its workforce to support long-term company growth. These activities will include a series of site optimization phases with the purpose of improving operating efficiency. Costs related to these initiatives will primarily consist of severance and employee-related costs and facility and other exit costs.

The Company expects to identify additional actions as it further refines its initiatives in future periods. These charges will be recorded when criteria are met in accordance with ASC 420, “Exit or Disposal Cost Obligations.” The activities included in these initiatives are expected to be substantially complete by the end of 2027.

Beginning in 2023, the Company initiated restructuring activities to simplify and streamline its organization and strengthen the overall effectiveness of operations. The activity continued into 2024 and 2025 and included consolidating a portion of the manufacturing operations between certain U.S. locations, writing-off abandoned equipment with the rationalization of excess production line capacity and discontinuing the sale of certain product SKUs. The Company does not expect to incur further significant charges related to these actions.

The following table summarizes the charges related to restructuring activities and other charges by type of cost for the periods presented within the Company’s condensed consolidated statements of comprehensive income or loss:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(Amounts in thousands)
Severance and employee-related costs	$	2,185	$	185	$	3,327	$	197
Facility and other exit costs		533		1,977		887		3,938
Restructuring activities and other charges	$	2,718	$	2,162	$	4,214	$	4,135

The following table summarizes the changes in the Company’s accrued restructuring balance, which is recorded within accrued liabilities on the condensed consolidated balance sheets.


	Restructuring liability December 31, 2025		Restructuring charges		Cash payments			Non-cash items			Restructuring liability June 30, 2026
	(Amounts in thousands)
Severance and employee-related costs	$	147	$	3,327	$	(1,400	)	$	—		$	2,074
Facility and other exit costs		—		887		(19	)		(868	)		—
Restructuring activities and other charges	$	147	$	4,214	$	(1,419	)	$	(868	)	$	2,074