In November 2025, the Company initiated a restructuring and transformation plan designed primarily to improve the effectiveness and efficiency of its sales and marketing functions and accelerate product innovation in support of its go-to-market objectives (the “2025 Restructuring and Transformation Plan”). The 2025 Restructuring and Transformation Plan includes the redesign and implementation of new strategies and processes, organizational realignment and reallocation of resources, and other corporate actions.

Restructuring costs related to the 2025 Restructuring and Transformation Plan for the three and six months ended June 30, 2026 and from the inception of the plan through June 30, 2026 were as follows (in thousands):


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026		From Inception Through June 30, 2026

Workforce reduction	$	657	$	1,143	$	2,113
Impairment loss on right-of-use asset(1)	—		—		901
Other transformation costs	664		2,369		3,036
Total restructuring costs	$	1,321	$	3,512	$	6,050

The following table presents the restructuring costs as reported in the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026 (in thousands):


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026

Restructuring Costs
Cost of revenue	$	135	$	372
Research and development	12		167
Sales and marketing	355		1,756
General and administrative	819		1,217
Total	$	1,321	$	3,512

The following table presents the stock-based compensation costs related to the Company’s restructuring activity as reported in the condensed consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2026 (in thousands):


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026

Stock-based Compensation


Sales and marketing	$	39	$	105
General and administrative	358		481
Total	$	397	$	586

As of June 30, 2026, the Company expects to incur additional charges of approximately $2.4 million to $3.7 million through the first quarter of 2027, at which time the 2025 Restructuring and Transformation Plan is expected to be completed. These charges include estimated employee termination expenses of approximately $1.0 million to $1.1 million, and other business transformation costs.

Subsequent to June 30, 2026, the Company incurred approximately $0.9 million of employee termination costs in connection with additional workforce reduction actions under the 2025 Restructuring and Transformation Plan.

The following table summarizes liabilities incurred under the 2025 Restructuring and Transformation Plan that are included in accounts payable, accrued expenses and other current liabilities on the condensed consolidated balance sheet (in thousands):


	Workforce Reduction		Transformation		Total
Balance as of December 31, 2025	$	510	$	165	$	675
Charges incurred	1,143		2,369		3,512
Noncash charges	(118)		(740)		(858)
Cash payments during the period	(847)		(1,612)		(2,459)
Balance as of June 30, 2026	$	688	$	182	$	870

In November 2024, management approved a restructuring plan intended to improve the Company’s cost structure and operating efficiency (the “2024 Restructuring Plan”). The 2024 Restructuring Plan included an involuntary reduction in headcount of approximately 12% of the Company’s workforce. In addition, as part of the 2024 Restructuring Plan, the Company reduced its footprint at its corporate headquarters. The 2024 Restructuring Plan was substantially completed as of December 31, 2024.

The 2024 Restructuring Plan resulted in total restructuring charges of $4.9 million, which were recognized in the fourth quarter of 2024, and primarily consisted of employee severance and benefits in connection with the workforce reduction, which amounted to $3.9 million. The Company also recorded an impairment charge of $0.9 million to its operating right-of-use assets related to the lease of the Company’s corporate headquarters and $0.1 million of professional services fees related to the execution of the Company’s 2024 Restructuring Plan.

In the second quarter of 2025, the Company recorded a $0.1 million credit to the estimated severance and benefits costs and an incremental impairment charge of $0.1 million related to the execution of the sublease of the Company’s corporate headquarters. No restructuring charges were recognized under the 2024 Restructuring Plan during the three months ended March 31, 2025, nor the six months ended June 30, 2026.