In June 2026, the Company made the decision to implement a restructuring plan (the “Plan”), which includes a workforce reduction that was initiated on June 10, 2026, and a reduction in certain third-party operating costs. These actions were intended to reduce the Company’s operating expenses as part of a realignment of its business and cost structure. As of August 13, 2026, the Company had realized approximately $11.3 million in annualized cost savings through reduction of workforce and certain operating expenses.

The Company expects that the Plan will reduce the size of the Company’s workforce by at least 25% of its employee count as of March 31, 2026.

The workforce reduction began on June 10, 2026 in structured phases and is expected to be substantially completed by the first half of 2027. Employees affected by the Plan may be eligible to receive, among other things, severance payments based on the applicable employee’s length of service with the Company and the continuation of benefits for a specified time period post-termination, provided, that each affected employee’s eligibility for severance benefits is contingent upon such employee’s execution of a separation agreement, which includes a general release of claims against the Company.

In addition to restructuring costs, the Company will also incur costs that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as business transformation costs. These costs consist primarily of expenditures directly related to the Plan and include employee retention costs, professional fees and investments in automation and technology. The following table provides a summary of the Company’s estimates of total pre-tax charges associated with the Plan, by major type of cost, of which approximately $4.4 million to $5.3 million are expected to result in cash outlays (in thousands):


	Total Estimated Amount Expected to be Incurred
Restructuring charges:
Workforce	$	3,859	to	$	4,500
Software cost	661		to	800
Total restructuring and business transformation charges	$	4,520	to	$	5,300


	Workforce (1)		Software (2)		Total
Balance at April 1, 2026	$	—	$	—	$	—
Charges	3,859		661		4,520
Charges settled in cash	(262)		(35)		(297)
Charges settled in non-cash	—		—		—
Balance at June 30, 2026	$	3,597	$	626	$	4,223

(2) Balance at June 30, 2026 was recorded to accrued expenses in the consolidated balance sheet and pertain to software no longer deemed necessary based on the restructuring plan.