The Company leases retail stores, manufacturing, distribution, engineering, and research and development facilities, office space, equipment, and automobiles under operating lease agreements. Leases have remaining lease terms of one to 14 years, inclusive of renewal options that the Company is reasonably certain to exercise.

On October 15, 2025, the Company entered into a new operating Lease Agreement (the "Glendale Lease") in Glendale, Arizona. The Glendale Lease commenced on February 1, 2026, with an initial term of 122 calendar months with two three-year extension options. The Glendale Lease provides for an initial monthly base rent of $103, subject to annual fixed escalators of 3.5%. In addition to base rent, the Company is responsible for its pro rata share of real property taxes, utilities, and insurance expenses, which are accounted for as variable lease costs. The renewal options have not been included in the measurement of the right-of-use asset and lease liability as the Company has determined it is not reasonably certain to exercise such options at this time.

Upon commencement of the Glendale Lease on February 1, 2026, the Company recognized an operating lease right-of-use asset of $10.1 million and a corresponding operating lease liability of approximately $10.1 million. The right-of-use asset and lease liability were measured at the present value of future lease

payments over the initial 122 calendar month lease term, discounted using the Company's incremental borrowing rate of 7.5% at the commencement date, as the rate implicit in the Glendale Lease was not readily determinable.

The following table summarizes operating lease assets and obligations, and provides information associated with the measurement of operating lease obligations.


	As of
	June 28, 2026			December 31, 2025
Assets:
Operating right of use assets	$	40,872		$	33,415
Liabilities:
Current operating lease liabilities - Accrued liabilities	6,527			5,841
Long-term operating lease liabilities - Other noncurrent liabilities	36,164			28,686
Total lease liabilities	$	42,691		$	34,527
Lease term and discount rate
Weighted average remaining lease term (in years)	6.3			5.6
Weighted average discount rate	6.68		%	6.51		%


	For the thirteen weeks ended				For the twenty-six weeks ended
	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Components of lease expense:
Operating lease expense	$	1,925	$	1,876	$	4,035	$	3,864
Variable lease expense	55		62		102		444
Short-term lease expense	149		186		316		288
Total lease expense	$	2,129	$	2,124	$	4,453	$	4,596
Supplemental cash flow information related to leases:
Cash paid for amounts included in measurement of operating lease liabilities	$	2,263	$	1,897	$	4,208	$	3,781
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	1,115	10,400		1,125
Decapitalization of right-of-use assets upon lease termination or modification	—		31		—		31


2026 (excluding the twenty-six weeks ended June 28, 2026)	$	4,563
2027	9,189
2028	8,686
2029	7,786
2030	7,050
Thereafter	15,035
Total lease payments	52,309
Less imputed interest	(9,618)
Present value of lease liabilities	$	42,691