RESTRUCTURING

6 Months Ended

Jun. 30, 2026

Restructuring and Related Activities [Abstract]

RESTRUCTURING:

The Company continuously evaluates its operations to better align the organization with market opportunities, increase operational efficiency, decrease costs, and increase profitability. During the three months ended March 31, 2026, the Company undertook a restructuring plan, reducing its workforce by approximately 7% to better align expenses with revenue and create flexibility to invest in the products, people, and markets that are expected to drive long-term growth and profitability. In conjunction with this restructuring plan, restructuring charges of $6.6 million were recognized during the first quarter of 2026, primarily composed of severance costs. The restructuring plan was substantially completed in the first quarter of 2026. No restructuring charges were incurred in fiscal 2025. Restructuring liabilities are included in other accrued liabilities in the accompanying unaudited condensed consolidated balance sheets, and are summarized in the following table:


	2026 Plan
(in thousands)	Employee severance		Other		Total
Restructuring liability as of January 1, 2026	$	—	$	—	$	—
Charges	4,591		151		4,742
Cash payments	(4,388)		(151)		(4,539)
Non-cash and other	—		—		—
Restructuring liability as of June 30, 2026	$	203	$	—	$	203

Cash severance charges of $0.4 million related to the departure of an executive officer are included in the table above. In addition, stock-based compensation expense of $1.8 million was recognized in the six months ended June 30, 2026 due to the acceleration of equity awards in accordance with the terms of the executive’s severance agreement.

The following table provides a summary of restructuring-related charges as presented in the unaudited condensed consolidated statements of income:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Restructuring and related charges in cost of revenue	$	—	$	—	$	365	$	—
Restructuring and related charges in operating expenses	—		—		6,204		—
	$	—	$	—	$	6,569	$	—

In conjunction with the restructuring actions taken in the first quarter of 2026, certain engineers were moved from sales and marketing projects to product development priorities. Accordingly, $3.0 million of related department costs have been classified as research and development expense in the accompanying condensed consolidated statement of income for the first quarter ended March 31, 2026 and will be accounted for as such going forward.