Restructuring

During the three months ended July 31, 2026, management approved and initiated a strategic restructuring plan designed to streamline operations and reduce operating costs and cost of revenue. The plan involved a reduction in headcount affecting multiple departments, including Gloo 360, AI, and sales and marketing, as well as the termination of a vendor contract. In connection with the restructuring plan, the Company recorded total pre-tax restructuring charges of $4.4 million during the three months ended July 31, 2026, consisting primarily of severance and related employee benefits and a $1.0 million contract termination fee. Restructuring charges for the six months ended July 31, 2026 were $4.4 million, which includes an immaterial amount related to actions initiated prior to the current plan. These charges are reflected within the Condensed Consolidated Statements of Operations as follows: $1.9 million in sales and marketing, $1.5 million in product development, $0.8 million in general and administrative, and $0.2 million in cost of revenue. The Company does not expect to incur material additional charges under this plan. The contract termination fee was paid in full during the quarter ended July 31, 2026, and no further obligation remains. As of July 31, 2026, $2.3 million of accrued severance and related benefits remained outstanding within accrued compensation on the Condensed Consolidated Balance Sheet. The components of the restructuring charges are as follows: