Our employees, consultants and members of our Board of Directors are eligible to receive awards under the Fourth Amended and Restated 2019 Equity Incentive Award Plan (the “2019 Plan”). The 2019 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), other stock or cash-based awards and dividend equivalents to eligible individuals. As of June 27, 2026, there were 2.6 million shares available for issuance under the 2019 Plan.

In February 2026, 0.7 million PSUs were granted to certain members of our leadership team with a grant date fair value of $52.02 per share. The actual number of PSUs earned is contingent upon achievement of an annual corporate financial target for non-GAAP net income per share for 2026 (collectively, the “2026 Performance Target”) during the one-year performance period. The PSUs will vest, subject to certification by the Compensation Committee of our Board of Directors upon the achievement of the 2026 Performance Target, as to 25% of the shares of common stock earned on the one year anniversary of the date of grant, and as to the remaining 75% of the shares of common stock earned, in substantially equal quarterly installments over the subsequent 36 months, subject to the executive’s continuous service with us through the respective vesting dates. If the non-GAAP net income per share target is achieved below 80% of target, no shares would be awarded. If the target is achieved at the minimum threshold of 80% of target, then the shares would be awarded, with an increasing percentage of shares awarded above the minimum thresholds up to 100% of the granted shares. The maximum combined award is 100%. The probability of meeting the minimum threshold was assessed to be probable as of June 27, 2026, and stock-based compensation expense of $1.1 million was recognized for the six months ended June 27, 2026.

During the three months ended June 27, 2026, 0.1 million RSUs were granted with a grant date fair value of $40.26 per share. During the six months ended June 27, 2026, 0.2 million RSUs were granted with a grant date fair value of $49.17 per share. These RSUs generally vest 25% on the first anniversary of the vesting commencement date and on a quarterly basis thereafter over an additional three years.

During the three months ended June 27, 2026, stock option awards exercisable for up to an aggregate of 12,000 shares of common stock were granted with a grant date weighted-average exercise price of $49.40 per share. During the six months ended June 27, 2026, stock option awards exercisable for up to an aggregate of 23,000 shares of common stock were granted with a grant date weighted-average exercise price of $51.49 per share. These stock option awards generally vest 25% on the first anniversary of the vesting commencement date and on a yearly basis thereafter over an additional three years.

During the three months ended June 27, 2026, 26,000 shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $18.55 per share. During the six months ended June 27, 2026, 0.3 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $30.52 per share. As of June 27, 2026, unrecognized stock-based compensation expense of $52.5 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 1.8 years.

Historically, we have maintained two plans under which employees could purchase our common stock - the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the non-executive Stock Purchase and Matching Plan (“SPMP”). Following the February 14, 2026 ESPP purchase, the ESPP was indefinitely suspended, and the maximum payroll contribution limit to the SPMP was increased from 25% to 33%. During the six months ended June 27, 2026, 0.1 million shares were purchased under the ESPP. At the Company’s 2026 annual meeting of stockholders, the stockholders approved an increase of 0.7 million shares of common stock reserved for issuance under the matching component of the SPMP, which, along with the corresponding increase of 0.7 million shares of common stock reserved for issuance under the purchase component of the SPMP, will go into effect for the three-month purchase period commencing August 8, 2026 and ending on November 7, 2026.

The SPMP allows eligible employees to purchase shares of our common stock through payroll deductions of up to 33% of their eligible compensation. Eligible employees have the right to (a) purchase under the purchase component the maximum number of whole shares of common stock that can be purchased with the elected payroll deductions during each offering period for which the employee is enrolled at a purchase price equal to the closing price of our common stock on the last day of such offering period and (b) receive under the matching component an equal number of shares of our common stock that are subject to a risk of forfeiture in the event the employee terminates employment within the one year period immediately following the purchase date. The SPMP provides quarterly offering periods from February 8th through May 7th, May 8th through August 7th, August 8th through November 7th and November 8th through February 7th of each year, with a maximum of 0.35 million shares allocated per purchase period for the combination of the purchase and matching components. As of June 27, 2026, there were 2.5 million shares available for issuance under the both the SPMP purchase and matching components of the SPMP. During the six months ended June 27, 2026, 0.6 million shares were purchased and issued. As of June 27, 2026, unrecognized stock-based compensation expense of $17.8 million related to the SPMP is expected to be recognized over a remaining weighted-average service period of 0.8 years.


	Three Months Ended				Six Months Ended
	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025
Cost of revenue	$	634	$	764	$	1,529	$	1,544
Sales and marketing	5,631		11,047		12,280		17,516
Research and development	5,253		5,890		11,142		10,971
General and administrative	5,172		7,912		12,344		15,326
	$	16,690	$	25,613	$	37,295	$	45,357
Income tax benefit recognized	$	3,564	$	3,664	$	5,977	$	5,157

We maintain a common stock repurchase program. Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. The specific timing, price and size of the purchases depends on prevailing stock prices, general economic and market conditions and other considerations consistent with our capital allocation strategy. The repurchase program does not obligate us to acquire a particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at our discretion. During 2026, our Board of Directors authorized a $225.0 million increase to this program. During the three months ended June 27, 2026, we purchased 1.6 million shares of common stock for an aggregate purchase price of $69.4 million at an average price per share of $42.48. During the six months ended June 27, 2026, we purchased 5.0 million shares of common stock for an aggregate purchase price of $240.2 million at an average price per share of $48.42. As of June 27, 2026, the remaining authorized balance under this program was $94.1 million.