v3.26.1
Share-Based Compensation
3 Months Ended
Mar. 28, 2026
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
The activity under our incentive plans for the periods presented is reflected in the following tables:
Three Months Ended
March 28, 2026March 29, 2025
SharesWeighted Average Exercise Price Per ShareSharesWeighted Average Exercise Price Per Share
Options granted— $— 536,432 $9.05 
Options cancelled5,568 $33.34 41,989 $22.28 
SharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
RSUs granted1,150,708 $2.72 1,386,301 $9.02 
PSUs granted— $— 620,673 $9.47 
PSUs performance adjustment(181,281)$— — $— 
Share-based compensation expense was $3.7 million and $3.2 million for the three months ended March 28, 2026, and March 29, 2025, respectively. As of March 28, 2026, we had $12.7 million of total unrecognized share-based compensation expense related to non-vested share-based compensation arrangements. This cost is expected to be recognized over the remaining weighted-average vesting period of 1.5 years.
On February 23, 2026, the Company modified certain underwater options and a subset of 2024 PSUs to require cash settlement. For the modified underwater options, the modification resulted in a classification change from equity to liability. In accordance with ASC 718, the Company records a share‑based compensation liability for the modified options measured at fair value and remeasured at each reporting date until settlement, with changes recognized in share‑based compensation expense included within SG&A in the accompanying unaudited condensed consolidated statement of operations. The Company measured the share‑based compensation liability as of quarter‑end using a Black‑Scholes valuation. For the cash‑settled subset of the 2024 PSUs, the Company currently assesses the performance conditions as not probable. Accordingly, no share‑based compensation expense was recognized at the modification date or through March 28, 2026. The Company will reassess the probability of achievement each reporting period and, if performance conditions are probable, will recognize share‑based compensation expense and a related liability, with subsequent remeasurement through earnings until settlement.