v3.26.1
Income Taxes
 12 Months Ended
Jul. 03, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of (loss) income before income taxes and income tax provision (benefit) were as follows:
Fiscal Years
202620252024
(Loss) income before income taxes:
United States$(7,055)$(53,335)$(183,263)
Foreign(21,834)2,911 (6,012)
$(28,889)$(50,424)$(189,275)
Tax (benefit) provision:
Federal:
Current$(2,742)$(609)$(19,791)
Deferred3,451 (10,212)(21,274)
709 (10,821)(41,065)
State:
Current(231)392 (3,016)
Deferred117 (2,306)(7,937)
(114)(1,914)(10,953)
Foreign:
Current189 175 95 
Deferred— 40 288 
189 215 383 
$784 $(12,520)$(51,635)
The Company's income tax payments, net of tax refunds by jurisdiction were as follows:
Year Ended July 3, 2026
United States federal$500 
United States state and local:
New Hampshire212 
Texas95 
Maryland86 
Other97 
United States state and local490 
Foreign:
United Kingdom179 
Other5 
Foreign184 
Total cash paid for income taxes, net of refunds$1,174 
Cash paid for income taxes, net of refunds, was $365 and $(9,315) in fiscal 2025 and 2024, respectively (as previously disclosed, prior to the adoption of ASU 2023-09).
The following is the reconciliation between the federal statutory income tax rate and the Company’s effective income tax rate for fiscal 2026, after the adoption of ASU 2023-09:
Year Ended July 3, 2026
AmountPercentage
United States federal statutory income tax rate$(6,078)(21.0)%
State income tax, net of federal tax benefit(434)(1.5)
Foreign tax effects
Switzerland
Changes in valuation allowance2,992 10.3 
Rate differential1,654 5.7 
Other foreign jurisdictions60 0.3 
Tax credits
Research and development tax credits(75)(0.3)
Non-taxable or non-deductible items
Non-deductible compensation5,698 19.7 
Excess tax benefit related to stock compensation(2,542)(8.8)
Changes in unrecognized tax benefits(558)(1.9)
Other67 0.2 
Effective tax rate$784 2.7 %
The following is the reconciliation between the federal statutory income tax rate and the Company’s effective income tax rate for fiscal 2025 and fiscal 2024, prior to the adoption of ASU 2023-09:
Fiscal Years
20252024
Tax benefit at federal statutory rates(21.0)%(21.0)%
State income tax, net of federal tax benefit(6.5)(5.9)
Research and development tax credits(2.0)(3.7)
Provision to return1.2 (0.1)
Excess tax provision related to stock compensation0.7 1.4 
Foreign income tax rate differential(0.3)0.2 
Non-deductible compensation4.6 0.9 
Reserves for unrecognized income tax benefits(3.0)0.2 
Valuation allowance(0.9)0.7 
Foreign derived intangible income(0.3)— 
Global intangible low-taxed income1.3 — 
Other1.4 — 
(24.8)%(27.3)%
The effective tax rate for fiscal 2026 differed from the federal statutory rate primarily due to nondeductible compensation and valuation allowances recorded, partially offset by tax benefits related to stock compensation.
The effective tax rate for fiscal 2025 differed from the federal statutory rate primarily due to federal and state research and development tax credits, releases to reserves for unrecognized income tax benefits and state taxes, partially offset by tax provisions related to stock compensation.
The effective tax rate for fiscal 2024 differed from the federal statutory rate primarily due to federal and state research and development tax credits and state taxes, partially offset by tax provisions related to stock compensation.
The components of the Company’s net deferred tax assets (liabilities) were as follows:
As of
July 3, 2026June 27, 2025
Deferred tax assets:
Inventory valuation and receivable allowances$30,748 $26,968 
Accruals14,355 13,138 
Stock compensation5,404 4,477 
Federal and state research and development tax credit carryforwards18,503 18,605 
Research and development expenditures27,672 57,997 
Interest expense carryforward8,474 11,620 
Federal and state net operating loss carryforward

20,725 3,277 
Foreign net operating loss carryforward6,463 3,435 
Operating lease liabilities15,487 17,493 
Deferred revenue4,043 2,951 
Other443 316 
152,317 160,277 
Valuation allowance(19,412)(17,416)
Total deferred tax assets132,905 142,861 
Deferred tax liabilities:
Property and equipment(5,331)(9,861)
Intangible assets(46,255)(48,280)
Operating lease right-of-use assets, net(12,339)(14,164)
Other(1,792)(1,540)
Total deferred tax liabilities(65,717)(73,845)
Net deferred tax assets$67,188 $69,016 
At July 3, 2026, the Company has gross state research and development tax credit carryforwards of $15,435, $12,193 net of federal benefit, of which a portion will expire each fiscal year through fiscal year 2041. The Company maintains a valuation allowance on the majority of the Company’s state research and development tax credit carryforwards. The Company has gross federal research and development tax credit carryforwards of $6,067, of which a portion will expire starting in fiscal year 2043.
At July 3, 2026, the Company has gross interest expense carryforwards of $31,269, which have an indefinite life, gross state net operating loss carryforwards of $129,229, which will expire starting in fiscal year 2040 and gross foreign net operating loss carryforwards of $42,737 which will expire starting in fiscal year 2029. The Company maintains a valuation allowance on all foreign net operating loss carryforwards.
The Company is subject to taxation in the U.S. (federal and state) and various foreign jurisdictions that it operates in. The Company has established income tax reserves for potential additional income taxes based upon management’s assessment, including recognition and measurement. All income tax reserves are analyzed quarterly, and adjustments are made as events occur and warrant modification.
The changes in the Company’s income tax reserves for gross unrecognized income tax benefits, including interest and penalties, are summarized as follows:
Fiscal Years
20262025
Unrecognized tax benefits, beginning of period$4,046 $7,713 
Increases for tax positions taken during the current period280 518 
Decreases for tax positions taken related to a prior period(285)(3,094)
Decreases as a result of a lapse of the applicable statute of limitations(554)(1,091)
Unrecognized tax benefits, end of period$3,487 $4,046 
The Company has $3,487 of unrecognized income tax benefits as of July 3, 2026. If released, all $3,487 of these unrecognized income tax benefits would reduce the Company’s income tax provision.
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. The total amount of interest and penalties accrued was $887 and $878 as of July 3, 2026 and June 27, 2025, respectively, and the amount of interest and penalties accrued (released) and recognized was $9 and $(496) during July 3, 2026 and June 27, 2025, respectively.
The Company’s major tax jurisdiction is the U.S. (Federal and state) and the open tax years are fiscal 2020 through 2026.