Restructuring activities reflect programs that fundamentally change our operations, such as divestitures, closing or consolidating facilities, employee severance charges (including rationalizing headcount or other significant changes in personnel) and realignment of existing operations (including changes in management structure in response to underlying performance and/or changing market conditions).

In February 2026, we announced an enterprise-wide transformation plan that is designed to improve operating performance and unlock new value through targeted annualized enterprise EBITDA growth. We expect to fully operationalize this plan by the end of 2028 through cost savings and revenue growth initiatives that will leverage technology including artificial intelligence and automation and increase revenue yield on our existing businesses.

Restructuring costs in the second quarter of 2026 and 2025 totaled $35.8 million and $0.6 million, respectively. Year-to-date restructuring costs totaled $36.5 million and $4.8 million in 2026 and 2025, respectively. Restructuring costs in 2026 included $12.1 million in asset losses following strategic programming assessments, severance charges of $4.5 million, operating lease exit costs of $3.5 million and contract exit costs of $2.7 million. Remaining 2026 restructuring costs consisted of $13.7 million in outside consulting fees associated with the enterprise-wide transformation plan. Restructuring costs in 2025 included severance charges of $2.6 million and operating lease exit costs of $2.1 million related to prior strategic reorganization efforts.


Six Months Ended June 30, 2026 and 2025 (in thousands)	Severance and Employee Benefits		Other Restructuring Charges		Total

Liability as of December 31, 2025	$	—	$	2,535	$	2,535
Net charges	4,543		31,941		36,484
Payments	(1,124)		(13,504)		(14,628)
Non-cash (a)	—		(14,857)		(14,857)
Liability as of June 30, 2026	$	3,419	$	6,115	$	9,534


Liability as of December 31, 2024	$	9,653	$	—	$	9,653
Net charges	2,618		2,139		4,757
Payments	(12,271)		(180)		(12,451)
Non-cash (a)	—		(1,397)		(1,397)
Liability as of June 30, 2025	$	—	$	562	$	562