The Company operates an equity-based compensation plan (the “2021 Plan”), which allows for the issuance of nonqualified stock options, restricted stock, dividend equivalents, restricted stock units (“RSUs”), performance restricted stock units (“PRSUs”), and other stock-based and cash awards (collectively, the “2021 Plan Awards”). As of March 28, 2026, 26,963,662 shares of Class A common stock have been authorized to be awarded under the 2021 Plan and 11,817,142 shares were available for 2021 Plan Awards.

The Company also operates the 2023 Retention Equity Award Plan (the “2023 Plan” and, together with the 2021 Plan, the “Plans”), the purpose of which is to retain and motivate critical personnel over the short-term by providing them additional incentives in the form of RSUs (the “Retention Awards” and together with the “2021 Plan Awards,” the “Awards”). As of March 28, 2026, 600,000 shares of Class A common stock were authorized to be awarded under the 2023 Plan and 69,050 shares were available for Retention Awards.

Equity-based compensation, net for Awards granted under the Plans for the three months ended March 28, 2026 and March 29, 2025 totaled $3,264 and $2,414, respectively. The expense is primarily included in selling, general and administrative expense with a nominal amount in research and development expense within the consolidated condensed statements of operations and comprehensive income (loss), based upon the classification of the employee. There were no income tax benefits related to equity-based compensation expense for the three months ended March 28, 2026 and March 29, 2025.

During the three months ended March 28, 2026, the Company granted time-based RSUs which vest at various dates through March 13, 2030. RSU compensation expense is recognized over the vesting period, which is typically between 1 and 4 years. Unamortized compensation expense related to RSUs totaled $22,381 at March 28, 2026, and is expected to be recognized over a weighted-average period of approximately 3.57 years. A summary of the RSU award activity for the three months ended March 28, 2026 is as follows (number of units in thousands):


	Number of units	Weighted-average grant-date fair value per unit
Unvested at December 31, 2025	2,777	$	6.90
Granted	1,870	8.58
Vested	(637)	7.72
Forfeited or canceled	(29)	6.87
Unvested at March 28, 2026	3,981	$	7.56

During the three months ended March 28, 2026, the Company granted PRSUs subject to a 3-year cliff vesting period, contingent upon the achievement of a designated market condition at the end of the vesting term. The market condition is based on the Company’s relative total shareholder return (“TSR”). Compensation expense related to PRSUs is recognized on a straight-line basis over the 3-year vesting period. The fair value of the PRSUs was determined on the grant date using a Monte Carlo simulation model, which estimated TSR for the Company’s Class A common stock relative to a peer group consisting of companies included in the Russell 2000 Medical Equipment Index, along with additional selected companies. The number of shares of Class A common stock issuable upon vesting of the PRSUs is determined based on achievement of the TSR. Actual shares issued may range from 0% to 200% of the target award granted.

Unamortized compensation expense related to PRSUs totaled $6,031 at March 28, 2026, and is expected to be recognized over a weighted-average period of approximately 2.65 years. A summary of PRSU award activity for the three months ended March 28, 2026 is as follows (number of units in thousands):

During the three months ended March 28, 2026, the Company granted time-based stock options which vest over 1 to 4 years following the date of grant and expire within 10 years. The fair value of time-based stock options is determined using the Black-Scholes valuation model, with such value recognized as expense over the service period, which is typically 1 to 4 years, net of actual forfeitures. A summary of the Company’s assumptions used in determining the fair value of the stock options granted during the three months ended March 28, 2026 is shown in the following table:

The weighted-average grant date fair value of options granted during the three months ended March 28, 2026 was $3.93 per share. The expected term of the options granted is estimated using the simplified method. Expected volatility is based on the historical volatility of the peer Company’s common stock. The risk-free interest rate is determined based upon a constant U.S. Treasury security rate with a contractual life that approximates the expected term of the option. Unamortized compensation expense related to the options totaled $6,004 at March 28, 2026, and is expected to be recognized over a weighted-average period of approximately 3.53 years.


	Number of options	Weighted-average exercise price		Weighted-average remaining contractual term	Aggregate intrinsic value(1)
Outstanding at December 31, 2025	4,664	$	7.77	7.06	$	7,780
Granted	1,047	8.60
Exercised	(30)	4.00
Forfeited or canceled	(14)	12.01
Outstanding at March 28, 2026	5,667	$	7.93	7.42	$	11,840
Exercisable and vested at March 28, 2026	2,953	$	8.94	6.19	$	5,721

(1)The aggregate intrinsic value is based upon the difference between the Company’s closing stock price at the date of the consolidated condensed balance sheets and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company’s Class A common stock.