Restructuring

9 Months Ended

Mar. 31, 2026

Restructuring and Related Activities [Abstract]

Restructuring

RESTRUCTURING

The Company is committed to undertaking measures to improve organizational agility and efficiency, while also seeking to drive greater profitability. On October 15, 2025, in furtherance of this commitment, the Company announced a reduction in force (RIF) impacting approximately 6% of employees. The Company incurred the majority of the charges relating to this RIF in the three months ended September 30, 2025. During the nine months ended March 31, 2026, the Company recorded $9.3 million of restructuring expenses related to the RIF, as a separate line item in the accompanying condensed consolidated statements of operations. As of March 31, 2026, the Company paid substantially all of the accrued amount, subject to local law and consultation requirements. Furthermore, in March 2026, the Company undertook an additional RIF and incurred approximately $5.0 million in restructuring charges, which are expected to be substantially paid by June 30, 2026.

In May 2026, the Company announced that its board of directors approved a plan to reduce its workforce by up to 30% (the Q4’26 RIF). The Company currently estimates that it will incur charges of approximately $30 million to $60 million in connection with the Q4’26 RIF, consisting primarily of cash expenditures for severance payments, employee benefits, and related costs as well as non-cash charges related to stock-based compensation expense. The Company expects that the majority of the restructuring charges will be incurred in the fourth quarter of fiscal 2026, and that the execution of the Q4’26 RIF will be substantially complete by the end of the first quarter of fiscal 2027. The Company’s estimates are subject to a number of assumptions, and the actual costs incurred may differ materially from those initial estimates.

The Company continues to consider actions to improve structural efficiencies and optimize operations in future periods.