LEASES

6 Months Ended

Jul. 03, 2026

NOTE 5: LEASES

The components of lease expense are as follows:


	Three Months Ended				Six Months Ended
(in thousands)	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Operating lease cost	$	1,441	$	1,778	$	3,077	$	3,444
Variable lease cost		359		296		721		553
Total lease cost	$	1,800	$	2,074	$	3,798	$	3,997

Supplemental cash flow information related to leases are as follows:


	Three Months Ended				Six Months Ended
(in thousands)	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Cash paid for operating lease liabilities	$	1,666	$	1,460	$	3,334	$	2,983
Right-of-use assets obtained in exchange for operating lease obligations	$	1,705	$	—	$	1,705	$	1,388

During the second quarter of fiscal year 2026, the Company recorded additional lease-related impairment and other charges of $0.4 million. The charges consisted of $0.1 million in right-of-use asset impairments and $0.3 million related to the fair value of other unrecoverable facility costs. These adjustments were driven by changes in underlying assumptions, including updated estimates of space utilization, sublease recoverability, and expected cost obligations.