In June 2026, the Company approved a restructuring plan (the "Plan") intended to realign resources as part of the Company's transition to an AI-native business. The Plan resulted in a reduction of the Company's global workforce by approximately 5%.

During the three and six months ended July 31, 2026, the Company recognized restructuring costs of approximately $3.5 million related primarily to employee severance and other termination-related benefits. The execution of the Plan was substantially completed as of July 31, 2026, however, the elimination of certain positions outside of the United States remains subject to extended consultation requirements mandated by local jurisdictions. The Company does not expect any additional restructuring costs associated with these remaining activities to be material.

The following table summarizes the restructuring costs recognized in the condensed consolidated statements of operations for the three and six months ended July 31, 2026 (in thousands):


	Amount
Sales and marketing	$	382
Research and development		2,334
General and administrative		784
Total restructuring costs	$	3,500

The following table summarizes the restructuring liability that is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets (in thousands):


	Amount
Balance as of April 30, 2026	$	-
Restructuring costs		3,500
Cash payment		(2,357	)
Balance as of July 31, 2026		1,143