v3.26.1
Stockholders' Equity
 6 Months Ended
Jul. 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 July 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 18, 2026, stockholders approved a proposal to increase the number of shares under the Equity Plan by 3,900,000 shares, for a total of 26,705,000 shares. As of July 3, 2026, there were 4,139,002 shares available for grant under the Equity Plan.

Note 11 — Stockholders’ Equity (Continued)

Stock-Based Compensation

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 3, 2026

 

 

June 27, 2025

 

 

July 3, 2026

 

 

June 27, 2025

 

Employee stock options

 

$

867

 

 

$

1,683

 

 

$

2,001

 

 

$

4,045

 

Restricted stock

 

 

—

 

 

 

145

 

 

 

—

 

 

 

302

 

RSUs

 

 

3,107

 

 

 

3,345

 

 

 

5,385

 

 

 

6,308

 

PSUs

 

 

2,196

 

 

 

2,211

 

 

 

3,389

 

 

 

2,607

 

Nonemployee stock options

 

 

273

 

 

 

165

 

 

 

376

 

 

 

302

 

Nonemployee RSUs

 

 

117

 

 

 

253

 

 

 

232

 

 

 

253

 

Total stock-based compensation expense

 

$

6,560

 

 

$

7,802

 

 

$

11,383

 

 

$

13,817

 

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 3, 2026

 

 

June 27, 2025

 

 

July 3, 2026

 

 

June 27, 2025

 

Cost of sales

 

$

286

 

 

$

90

 

 

$

510

 

 

$

380

 

General and administrative

 

 

3,292

 

 

 

4,643

 

 

 

4,945

 

 

 

7,326

 

Selling and marketing

 

 

1,254

 

 

 

1,309

 

 

 

2,490

 

 

 

2,586

 

Research and development

 

 

1,728

 

 

 

1,760

 

 

 

3,438

 

 

 

3,525

 

Total stock-based compensation expense, net

 

 

6,560

 

 

 

7,802

 

 

 

11,383

 

 

 

13,817

 

Amounts capitalized as part of inventory

 

 

105

 

 

 

192

 

 

 

218

 

 

 

504

 

Total stock-based compensation expense, gross

 

$

6,665

 

 

$

7,994

 

 

$

11,601

 

 

$

14,321

 

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

 

 

 

July 3, 2026

 

Stock options

 

$

2,914

 

RSUs and PSUs

 

 

28,401

 

Total unrecognized stock-based compensation cost

 

$

31,315

 

 

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

 

 

Six Months Ended

 

 

 

July 3, 2026

 

 

June 27, 2025

 

 

July 3, 2026

 

 

June 27, 2025

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

62

%

 

 

60

%

 

 

62

%

 

 

60

%

Risk-free interest rate

 

 

4.23

%

 

 

4.03

%

 

 

4.06

%

 

 

4.09

%

Expected term (in years)

 

 

4.86

 

 

 

5.05

 

 

 

4.86

 

 

 

5.05

 

 

Note 11 — Stockholders’ Equity (Continued)

Stock Options

A summary of stock option activity under the Equity Plan for six months ended July 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

 

 

66

 

 

 

25.48

 

 

 

 

 

 

 

Exercised

 

 

(88

)

 

 

15.93

 

 

 

 

 

 

 

Forfeited or expired

 

 

(123

)

 

 

40.03

 

 

 

 

 

 

 

Outstanding at July 3, 2026

 

 

1,571

 

 

$

46.04

 

 

 

5.64

 

 

$

2,282

 

Exercisable at July 3, 2026

 

 

1,374

 

 

$

48.18

 

 

 

5.29

 

 

$

1,873

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

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

 

 

 

RSUs

 

 

PSUs

 

Unvested at January 2, 2026

 

 

1,459

 

 

 

802

 

Granted

 

 

510

 

 

 

460

 

Vested

 

 

(533

)

 

 

(281

)

Forfeited or expired

 

 

(256

)

 

 

(178

)

Unvested at July 3, 2026

 

 

1,180

 

 

 

803