RESTRUCTURING CHARGES

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

17. RESTRUCTURING CHARGES

Starting in the fourth quarter of fiscal 2022, the Company implemented measures to reduce its operating expense growth rate due to economic conditions, including consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.

During the nine months ended September 30, 2025, the Company recorded restructuring charges associated with decisions to sub-lease and cease the use of certain office facilities, and there were no restructuring charges recorded during the three months ended September 30, 2025. During the three and nine months ended September 30, 2024, the Company recorded restructuring charges associated with employee termination expenses consisting primarily of severance payments, employee benefits contributions, payroll taxes and related costs, and impairment charges related to decisions to sub-lease and cease the use of certain office facilities and related property and equipment.

Restructuring charges are recorded as follows (in thousands):


	Three Months Ended September 30, 2024
	Employee Terminations		Facilities Exit Costs		Asset Impairment Charges		Total
Cost of revenue, platform	$	—	$	—	$	—	$	—
Cost of revenue, devices	—		—		—		—
Research and development	—		52		(1,418)		(1,366)
Sales and marketing	—		717		16,271		16,988
General and administrative	—		140		2,759		2,899
Total restructuring charges	$	—	$	909	$	17,612	$	18,521


	Nine Months Ended September 30, 2025						Nine Months Ended September 30, 2024
	Facilities Exit Costs		Asset Impairment Charges		Total		Employee Terminations		Facilities Exit Costs		Asset Impairment Charges		Total
Cost of revenue, platform	$	—	$	—	$	—	$	(3)	$	—	$	—	$	(3)
Cost of revenue, devices	—		—		—		1		—		5		6
Research and development	194		2,133		2,327		368		98		(603)		(137)
Sales and marketing	—		175		175		697		719		24,641		26,057
General and administrative	—		562		562		(116)		117		5,075		5,076
Total restructuring charges	$	194	$	2,870	$	3,064	$	947	$	934	$	29,118	$	30,999

The asset impairment charges for the nine months ended September 30, 2025 are primarily comprised of $2.9 million of operating lease right-of-use assets impairment. The asset impairment charges for the three months ended September 30, 2024 are primarily comprised of $11.4 million of operating lease right-of-use assets impairment and $6.5 million of property and equipment impairment. The asset impairment charges for the nine months ended September 30, 2024 include $22.6 million of operating lease right-of-use assets impairment and $7.0 million of property and equipment impairment, partially offset by $0.5 million of adjustments to other long-term liabilities and assets.

A reconciliation of the beginning and ending balance of employee termination restructuring charges and facilities exit costs, which are included in Accrued liabilities in the condensed consolidated balance sheets, is as follows (in thousands):


	Three Months Ended September 30, 2025						Three Months Ended September 30, 2024
	Employee Terminations		Facilities Exit Costs		Total		Employee Terminations		Facilities Exit Costs		Total
Beginning balance	$	—	$	1,226	$	1,226	$	181	$	839	$	1,020
Restructuring charges incurred	—		—		—		—		909		909
Payments made	—		—		—		(181)		(326)		(507)
Ending balance	$	—	$	1,226	$	1,226	$	—	$	1,422	$	1,422


	Nine Months Ended September 30, 2025						Nine Months Ended September 30, 2024
	Employee Terminations		Facilities Exit Costs		Total		Employee Terminations		Facilities Exit Costs		Total
Beginning balance	$	—	$	1,381	$	1,381	$	12,661	$	1,198	$	13,859
Restructuring charges incurred	—		194		194		947		934		1,881
Payments made	—		(349)		(349)		(13,608)		(710)		(14,318)
Ending balance	$	—	$	1,226	$	1,226	$	—	$	1,422	$	1,422