v3.25.2
Stock-Based Compensation and Warrant Units
 9 Months Ended
Jun. 28, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation and Warrant Units Stock-Based Compensation and Warrant Units
The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s condensed consolidated statements of operations (in thousands):
Three Months EndedNine Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
RSUs (service-based and performance-based)$48,468 $28,416 $117,760 $84,970 
Employee stock purchase plan972 916 2,854 1,888 
Total stock-based compensation expense$49,440 $29,332 $120,614 $86,858 
Effect of stock-based compensation expense on income by line item (in thousands):
Three Months EndedNine Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Cost of revenue, Systems$14,983 $3,401 $27,323 $9,955 
Cost of revenue, Software maintenance and support194 116 538 351 
Cost of revenue, Operation services856 290 1,804 1,502 
Research and development12,369 12,819 37,241 37,905 
Selling, general, and administrative21,038 12,706 53,708 37,145 
Total stock-based compensation expense$49,440 $29,332 $120,614 $86,858 
Total stock-based compensation expense for the three and nine months ended June 28, 2025 increased as compared to the three and nine months ended June 29, 2024. There was an increase in RSU grants to employees because there was an increase in the number of employees in fiscal year 2025, as compared to fiscal year 2024, which resulted in an increase in this expense.
GreenBox Warrant
On July 23, 2023, the Company issued the GreenBox Warrant to Sunlight, which allows Sunlight to acquire up to an aggregate of 11,434,360 shares of the Company’s Class A Common Stock, subject to certain vesting conditions. The GreenBox Warrant had a grant date fair value of $19.90 per share. The GreenBox Warrant vests upon conditions defined in the GreenBox Warrant, as GreenBox makes additional expenditures to the Company in connection with the Framework Agreement. There are up to eight vesting tranches in the GreenBox Warrant based on increments of expenditures where approximately 1,429,295 shares may vest per tranche, subject to certain conditions defined in the GreenBox Warrant. Upon vesting, shares may be acquired at an exercise price of $41.9719 per share. The warrant contains customary anti-dilution, down-round, and change-in-control provisions. The right to purchase shares pursuant to the GreenBox Warrant expires 36 months following the end of the initial term of the Framework Agreement, which is July 23, 2027, or if applicable, the extension term of the Framework Agreement, which is July 23, 2029. As of June 28, 2025, none of the shares issuable pursuant to the GreenBox Warrant had vested.