Effective June 1, 2017, upon the approval and ratification of the 2017 Equity Plan, the Company’s 2007 Stock Incentive Plan (2007 Equity Plan) terminated, provided that awards outstanding under the 2007 Equity Plan will continue to be governed by the terms of that plan. In addition, upon the effectiveness of the 2017 Equity Plan, an aggregate of 5.0 million shares of the Company’s common stock registered under prior registration statements for issuance pursuant to the 2007 Equity Plan were deregistered and concurrently registered under the 2017 Equity Plan.

On June 1, 2017, the Company’s stockholders ratified and approved the 2017 Equity Plan. The 2017 Equity Plan permits the grant of stock options, restricted stock, RSUs, stock appreciation rights, PSUs, performance shares, performance bonus awards and other stock or cash awards to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. Upon effectiveness, an aggregate of 5.0 million shares were available for issuance under the 2017 Equity Plan. In May 2020, the Company’s stockholders approved an increase of 2.5 million shares to the 2017 Equity Plan. The aggregate number of shares that may be awarded under the 2017 Equity Plan is 7.5 million shares. The 2017 Equity Plan provides that at least 95% of the equity awards issued under the 2017 Equity Plan must vest over a period of not less than one year following the date of grant. The exercise price per share of each option granted under the 2017 Equity Plan may not be less than the fair market value of a share of the Company’s common stock on the date of grant, which is generally equal to the closing price of the Company’s common stock on the Nasdaq Global Select Market on the grant date.

Total stock-based compensation expense for the three months ended April 4, 2026 and March 29, 2025 was $8.9 million and $9.1 million, respectively. The stock-based compensation expense amounts for each of the three months ended April 4, 2026 and March 29, 2025 reflect adjustments for the expected life-to-date achievement of certain PSUs. The Company reassesses the expected achievement of such PSU awards based upon the achievement of certain pre-established multi-year performance criteria approved by the Board at the date of grant.

As of April 4, 2026, an aggregate of 4.9 million shares of common stock were reserved for future issuance under the Company’s equity plans, of which 3.5 million shares were available for future grant under the Masimo Corporation 2017 Equity Incentive Plan (2017 Equity Plan). Additional information related to the Company’s current equity incentive plans, stock-based award activity and valuation of stock-based awards is included below.


	Three Months Ended April 4, 2026
(in millions, except for weighted-average exercise prices)	Shares	Weighted-Average Exercise Price
Options outstanding, beginning of period(1)	0.7	$	117.87
Granted	—	—
Canceled	—	208.66
Exercised	(0.2)	66.48
Options outstanding, end of period	0.5	$	132.81
Options exercisable, end of period	0.5	$	130.22

Total stock option expense for the three months ended April 4, 2026 and March 29, 2025 was $0.3 million and $0.3 million, respectively. As of April 4, 2026, the Company had $3.0 million of unrecognized compensation cost related to non-vested stock options that are expected to vest over a weighted-average period of approximately 3.4 years.


	Three Months Ended April 4, 2026
(in millions, except for weighted-average grant date fair value amounts)	Units	Weighted-Average Grant Date Fair Value
RSUs outstanding, beginning of period(1)	0.6	$	145.70
Granted	0.3	173.87
Canceled	—	138.68

Vested	(0.1)	169.35
RSUs outstanding, end of period	0.8	$	153.83

Total RSU expense for the three months ended April 4, 2026 and March 29, 2025 was $7.1 million and $9.2 million, respectively. As of April 4, 2026, the Company had $111.2 million of unrecognized compensation cost related to non-vested RSU awards expected to be recognized and vest over a weighted-average period of approximately 3.4 years.

As previously mentioned in Note 2, “Summary of Significant Accounting Policies” under the heading “Net Income Per Share”, 2.7 million shares related to certain RSUs were considered contingently issuable shares as their vesting is contingent upon the occurrence of certain events. As of April 4, 2026, such events were deemed to have not occurred. See Note 24, “Commitments and Contingencies” for additional details.


	Three Months Ended April 4, 2026
(in millions, except for weighted-average grant date fair value amounts)	Units	Weighted-Average Grant Date Fair Value
PSUs outstanding, beginning of period(1)	0.1	$	180.65
Granted(2)	—	137.91
Canceled	—	185.15

Vested	—	293.65
PSUs outstanding, end of period	0.1	$	172.11

(2) On February 26, 2026, the Audit Committee approved the weighted payout percentage of 18% for the 2023 PSU awards (three-year performance period), which were based upon the actual fiscal 2025 performance against pre-established performance objectives. Included in the granted amount are those additional PSUs earned based on actual performance achieved. These PSUs were originally awarded at target.

During the three months ended April 4, 2026, the Company awarded 14,502 PSUs that will vest two years from the award date, based solely on the achievement of certain pre-established performance criteria approved by the Board. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions and the cumulative effect of any changes in the probability outcomes is recorded in the period in which the changes occur. If earned, the PSUs granted will vest upon achievement of the performance criteria in the year following the evaluation and confirmation of the performance achievement criteria. The number of shares that may be earned can range from 0% to 100% of the target amount. The fair value of performance-based PSUs is determined using the closing price of the Company’s common stock on the grant date. Based on management’s estimate of the number of units expected to vest, total PSU expense (benefit) for the three months ended April 4, 2026 and March 29, 2025 was $1.5 million and $(0.4) million, respectively. The PSU expense amounts for the three months ended April 4, 2026 relate to adjustments for the expected life-to-date performance of the PSU. As of April 4, 2026, the Company had $12.6 million of unrecognized compensation cost related to non-vested PSU awards expected to be recognized and vest over a weighted-average period of approximately 1.7 years.

The aggregate intrinsic value of options is calculated as the positive difference, if any, between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding with an exercise price less than the closing price of the Company’s common stock as of April 4, 2026 was $25.6 million. The aggregate intrinsic value of options exercisable with an exercise price less than the closing price of the Company’s common stock as of April 4, 2026 was $24.7 million.