v3.26.1
Stockholders' Equity
 3 Months Ended
Apr. 03, 2026
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 11 — Stockholders’ Equity

Incentive Plan

The Company maintains an Amended and Restated Omnibus Equity Incentive Plan, as amended (the “Equity Plan”). The Equity Plan allows for awards of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and performance stock units (“PSUs”) and other stock- and cash-based awards, including awards that are subject to service-based and performance-based vesting conditions. As of April 3, 2026, the Company had outstanding grants of stock options, RSUs and PSUs.

Stock options granted under the Equity Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board of Directors (the “Board”), and expire over periods not exceeding 10 years from the date of grant. Certain stock options and stock-based awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Equity Plan). Grants of restricted stock outstanding under the Equity Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Equity Plan generally vest based on service, performance, or a combination of both. On June 19, 2024, stockholders approved a proposal to increase the number of shares under the Equity Plan by 2,600,000 shares, for a total of 22,805,000 shares. As of April 3, 2026, there were 344,635 shares available for grant under the Equity Plan.

Stock-Based Compensation

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):

 

 

 

Three Months Ended

 

 

 

April 3, 2026

 

 

March 28, 2025

 

Employee stock options

 

$

1,134

 

 

$

2,362

 

Restricted stock

 

 

—

 

 

 

157

 

RSUs

 

 

2,278

 

 

 

2,963

 

PSUs

 

 

1,193

 

 

 

396

 

Nonemployee stock options

 

 

103

 

 

 

137

 

Nonemployee RSUs

 

 

115

 

 

 

—

 

Total stock-based compensation expense

 

$

4,823

 

 

$

6,015

 

 

The Company recorded stock-based compensation costs in the following categories (in thousands):

 

 

 

Three Months Ended

 

 

 

April 3, 2026

 

 

March 28, 2025

 

Cost of sales

 

$

224

 

 

$

290

 

General and administrative

 

 

1,653

 

 

 

2,683

 

Selling and marketing

 

 

1,236

 

 

 

1,277

 

Research and development

 

 

1,710

 

 

 

1,765

 

Total stock-based compensation expense, net

 

 

4,823

 

 

 

6,015

 

Amounts capitalized as part of inventory

 

 

113

 

 

 

312

 

Total stock-based compensation expense, gross

 

$

4,936

 

 

$

6,327

 

 

Note 11 — Stockholders’ Equity (Continued)

Stock-Based Compensation (Continued)

As of April 3, 2026, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):

 

 

 

April 3, 2026

 

Stock options

 

$

3,499

 

RSUs and PSUs

 

 

32,214

 

Total unrecognized stock-based compensation cost

 

$

35,713

 

 

The cost is expected to be recognized over a weighted-average period of approximately two years.

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of stock options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that stock options granted are expected to be outstanding. The Company has calculated a 15% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

 

 

 

Three Months Ended

 

 

 

April 3, 2026

 

 

March 28, 2025

 

Expected dividend yield

 

 

0

%

 

 

0

%

Expected volatility

 

 

62

%

 

 

60

%

Risk-free interest rate

 

 

3.72

%

 

 

4.33

%

Expected term (in years)

 

 

4.86

 

 

 

5.05

 

 

Stock Options

A summary of stock option activity under the Equity Plan for three months ended April 3, 2026 is presented below:

 

 

 

Stock
Options
(in 000’s)

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (years)

 

 

Aggregate
Intrinsic
Value
(in 000’s)

 

Outstanding at January 2, 2026

 

 

1,716

 

 

$

44.85

 

 

 

 

 

 

 

Granted

 

 

23

 

 

 

18.46

 

 

 

 

 

 

 

Exercised

 

 

(20

)

 

 

8.51

 

 

 

 

 

 

 

Forfeited or expired

 

 

(85

)

 

 

34.50

 

 

 

 

 

 

 

Outstanding at April 3, 2026

 

 

1,634

 

 

$

45.47

 

 

 

5.79

 

 

$

1,158

 

Exercisable at April 3, 2026

 

 

1,363

 

 

$

48.66

 

 

 

5.26

 

 

$

898

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of RSU and PSU activity under the Equity Plan for the three months ended April 3, 2026 is presented below (shares in thousands):

 

 

 

RSUs

 

 

PSUs

 

Unvested at January 2, 2026

 

 

1,459

 

 

 

802

 

Granted

 

 

456

 

 

 

414

 

Vested

 

 

(453

)

 

 

—

 

Forfeited or expired

 

 

(243

)

 

 

(178

)

Unvested at April 3, 2026

 

 

1,219

 

 

 

1,038