On June 24, 2026, the Company announced and began implementing a plan to align its investments more closely with its strategic priorities by simplifying team structures, reducing organizational complexity, improving decision-making speed, reallocating resources towards key growth areas, and investing in the skills and capabilities needed to support the Company’s ongoing growth. As part of the plan, the Company expects to reduce the Company’s workforce by approximately 7% and expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits. For the three months ended July 31, 2026, the Company recorded employee-related severance and other termination benefits of $19.9 million. The restructuring plan is expected to be substantially completed by the end of the third quarter of fiscal 2027.

The following table presents activity related to the liability, which is recorded in accrued compensation and employee benefits in the consolidated balance sheets, for restructuring-related employee severance and benefits for the three months ended July 31, 2026 (in thousands):


	Three Months Ended July 31, 2026
Beginning balance	$	—
Incurred during the period	19,920
Paid during the period	(13,016)
Foreign currency translation adjustment	15
Ending balance	$	6,919