v3.26.1
Debt
 6 Months Ended
Jun. 29, 2026
Debt Disclosure [Abstract]  
Debt Debt
Term Loan
On August 23, 2021, the Company entered into a credit agreement with JP Morgan Chase Bank, N.A. (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) to provide an initial term loan of $120.0 million (the “Initial Term Loan”). The original Credit Agreement also provided for a revolving credit facility of $25.0 million (the “Initial Revolving Credit Facility”) with a swingline loan sublimit of $5.0 million (the “Swingline Facility”) to provide funding for working capital and general corporate purposes. The Initial Term Loan has been amended and restated on several occasions. Most recently, on May 8, 2026, the Company entered into a fifth amendment to the Credit Agreement to, among other things, facilitate the reorganization in connection with the IPO.
Revolving Credit Facility
The Third Amendment to Credit Agreement provided for a $15.0 million increase to the Initial Revolving Credit Facility (the “Revolving Credit Facility”) to provide funding for working capital and general corporate purposes. At the execution of the Third Amendment to Credit Agreement, the aggregate commitment amount of the Revolving Credit Facility totaled $40.0 million.
All outstanding principal and accrued and unpaid interest on the Term Loan is due and payable on August 23, 2029 and accrues daily interest at a per annum rate equivalent to, (i) a base rate plus the applicable margin set forth below under the caption “Base Rate Loan” or (ii) an adjusted term SOFR rate plus a term SOFR adjustment equal to 0.10%, 0.15% or 0.25%, depending on the interest period of the applicable borrowing, plus the applicable margin set forth below under the caption “Term Benchmark Loan / RFR Loan”, in each case, based upon the condensed consolidated net leverage ratio as of the most recent date of determination. All interest and applicable fees chargeable shall be computed on the basis of a three hundred and sixty (360) day year (or 365 or 366 days, as the case may be, in the case of base rate loans based on the prime rate), in each case, for the actual number of days elapsed in the period during which the interest or fees accrue. The accrued and unpaid interest on the Term Loan shall be due and payable on the earliest of maturity date, change of control, the sale of all or substantially all assets of the Company or the date of the acceleration. The Company is required to make principal payments on a quarterly basis of 0.25% of the aggregate principal amount of the Term Loan.
All outstanding principal and accrued and unpaid interest on the Revolving Credit Facility is due and payable on August 23, 2028 and accrues daily interest at a per annum rate equivalent to, (i) a base rate plus the applicable margin set forth below under the caption “Base Rate Loan” or (ii) an adjusted term SOFR rate plus a term SOFR adjustment equal to 0.10%, 0.15% or 0.25%, depending on the interest period of the applicable borrowing, plus the applicable margin set forth below under the caption “Term Benchmark Loan / RFR Loan”, in each case, based upon the condensed consolidated net leverage ratio as of the most recent date of determination. All interest and applicable fees chargeable shall be computed on the basis of a three hundred and sixty (360) day year (or 365 or 366 days, as the case may be, in the case of base rate loans based on the prime rate). The accrued and unpaid interest on the revolving loans are due and payable on the earliest of maturity date, change of control, the sale of all or substantially all assets of the Company or the date of the acceleration. The Revolving Credit Facility also has a commitment fee which accrues at a per annum rate equal to 0.50% on the average daily unused revolving commitment. All commitment fees are computed on the basis of a year of 360 days and are payable for the actual number of days elapsed (including the first day but excluding the last day). The commitment fee may be reduced based on certain calculations of the Company’s net leverage ratio.
Delayed Draw Term Loan
On January 13, 2026, the Company entered into a fourth amendment to the Credit Agreement, providing for a $15.0 million delayed draw term loan commitment. There have been no draws on this term loan as of June 29, 2026.
Debt Extinguishment in connection with the IPO
In connection with the IPO, the Company repaid a portion of its outstanding borrowings under the Credit Agreement using the net proceeds from the offering. The Company repaid approximately $101.3 million of the principal balance outstanding under the Term Loan, and $40.0 million outstanding balance under the Revolving Credit Facility. In connection with these prepayments, the Company paid a contractual prepayment premium of approximately $1.0 million and accrued interest of approximately $0.4 million.
The Company recognized a loss on extinguishment of debt of approximately $2.3 million in the second quarter of fiscal 2026, which consisted of the $1.0 million prepayment premium and approximately $1.3 million in unamortized deferred financing costs. The unamortized deferred financing costs written off were those attributed to the extinguished portion of the Term Loan. The repayment of the Revolving Credit Facility balance did not result in a write-off of related debt issuance costs, as the facility remains available for future borrowings.
Our debt instruments consisted of the following for the periods presented:
Debt Instrument
($ in thousands)		Interest RateMaturity DateJune 29, 2026December 29, 2025
Term loan
Term SOFR + 5.50%
8/23/2029$164,900 $267,540 
Revolving credit facility
Term SOFR + 5.50%
8/23/2028— 40,000 
Delayed draw term loan
Prime + 4.50%
8/23/2028— — 
Current portion of long-term debt— (2,740)
Total long-term debt, less current portion164,900 304,800 
Less: unamortized discount and debt issuance costs (1,949)(3,643)
Carrying amount of long-term debt$162,951 $301,157 
As of June 29, 2026, aggregate future principal payments required in accordance with the terms of the Term Loan, are as follows:
Fiscal Years EndingAmount
($ in thousands)
Remainder of 2026$— 
20272,740 
20282,740 
20292,740 
2030156,680 
Total$164,900 
The Company has incurred deferred financing costs of $6.9 million in total related to the Term Loan, which have been presented net of proceeds on the condensed consolidated balance sheets. The Company amortizes these costs over the life of the Term Loan which amounted to $0.2 million during both the three months ended June 29, 2026 and June 30, 2025.
The Company recognized interest expense on the Term Loans and Revolving Credit Facility of $5.2 million and $7.2 million during the three months ended June 29, 2026 and June 30, 2025, respectively. The Company has made $142.0 million and $0.7 million of principal payments on the Term Loan during the three months ended June 29, 2026 and June 30, 2025, respectively. As of June 29, 2026 and June 30, 2025, the Company had drawn none and $20.0 million, respectively, on the Revolving Credit Facility respectively. As of June 29, 2026, the Company had total debt outstanding of $164.9 million which approximates its fair value and had no borrowings outstanding under its Revolving Credit Facility, with $40.0 million of availability.
The Credit Agreement requires the Company to maintain a condensed consolidated net leverage ratio below 5.50 to 1.00 for each quarter from March 2026 through December 2026, 4.50 to 1.00 for each quarter from March 2027 through December 2027, and 3.50 to 1.00 for each quarter from March 2028 thereafter. The Company is in compliance with its debt covenant. The Company’s Term Loan and Revolving Credit Facility are secured by first-priority liens on substantially all of the assets of the Company, subject to customary exceptions and permitted liens.