Restructuring and Related Activities

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

RESTRUCTURING AND BUSINESS TRANSFORMATION

In August 2025, the Company announced a multi-year productivity plan (the “Plan”). The Plan includes several initiatives that are intended to drive sustainable growth, improve operating leverage, and amplify the Company’s ability to invest in innovation and serve more patients. These savings are expected to primarily come from general and administrative efficiencies, that in addition to restructuring certain support functions globally, include external spend optimization, and building more automation in core operations. The Company currently expects to incur additional business transformation costs of approximately $5 million through the completion of certain initiatives already underway, which are expected to be completed by the fourth quarter of 2026. The Company continues to pursue cost savings initiatives, and to the extent further cost saving initiatives are identified, the Company could incur additional charges to implement those business transformation initiatives in future periods.

The Company recorded the following charges related to the Plan for the year ended December 31, 2025.


(In thousands)
Restructuring charges	$	22,169
Business transformation costs (1)	51,044
Total restructuring and business transformation	$	73,213

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(1)Business transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. For the year ended December 31, 2025, these costs primarily include consulting services, and employee termination benefits.

The restructuring charges were recorded as follows within the consolidated statement of operations for the year ended December 31, 2025:


(In thousands)	Cost of sales		Research and development		Sales and marketing		General and administrative		Total
Employee termination costs	$	84	$	554	$	2,868	$	10,884	$	14,390
Other costs	—		—		—		7,779		7,779
Total restructuring charges	$	84	$	554	$	2,868	$	18,663	$	22,169

The following table summarizes activity in the liability related to the Company’s restructuring initiatives:


(In thousands)	Employee Termination Costs		Other Costs		Total
Balance, December 31, 2024	$	—	$	—	$	—
Charges (1)	14,390		7,779		22,169
Payments	(11,348)		(7,470)		(18,818)
Adjustments (2)	496		—		496
Balance, December 31, 2025	$	3,538	$	309	$	3,847

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(1)Inclusive of the reversal of employee termination related charges originally recorded in the third quarter of 2025 primarily due to certain employees identified for termination finding other positions within the Company or voluntarily separating prior to their scheduled termination date.

(2)Adjustments relate to the effects of foreign currency exchange rates.

The Company does not expect to incur additional significant costs related to this restructuring. Substantially all of the cash payments for the liability are expected to be disbursed by the middle of 2026.

EXACT SCIENCES CORP 10-K