Severance and related employee benefits costs incurred during the three and six months ended June 30, 2026 were immaterial. During the three and six months ended June 30, 2025, we incurred severance and related employee benefits costs of $0.3 million and $2.6 million, respectively, due to the reduction of headcount as we continued to shift our business to a more capital-light model, including the transition of our digital subscriptions and content operations into a licensing model. Severance costs are recorded in selling and administrative expenses in our condensed consolidated statements of operations, and in other current liabilities and accrued expenses in our condensed consolidated balance sheets.

The following is a reconciliation of the beginning and ending severance costs balances recorded in other current liabilities and accrued expenses in our condensed consolidated balance sheets (in thousands):


	Employee Separation Costs
Balance at December 31, 2025	$	272
Costs incurred and charged to expense	71
Costs paid or otherwise settled	(293)
Balance at June 30, 2026	$	50