Income Taxes (Tables)

12 Months Ended

Jul. 03, 2026

Components of Income Before Income Taxes and Income Tax Expense (Benefit)

The components of (loss) income before income taxes and income tax provision (benefit) were as follows:


	Fiscal Years
	2026		2025		2024
(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)
Deferred	3,451		(10,212)		(21,274)
	709		(10,821)		(41,065)
State:
Current	(231)		392		(3,016)
Deferred	117		(2,306)		(7,937)
	(114)		(1,914)		(10,953)
Foreign:
Current	189		175		95
Deferred	—		40		288
	189		215		383
	$	784	$	(12,520)	$	(51,635)

Schedule of Cash Flow, Supplemental Disclosures

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 Hampshire	212
Texas	95
Maryland	86
Other	97
United States state and local	490
Foreign:
United Kingdom	179
Other	5
Foreign	184
Total cash paid for income taxes, net of refunds	$	1,174

Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations

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
	Amount		Percentage
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 allowance	2,992		10.3
Rate differential	1,654		5.7
Other foreign jurisdictions	60		0.3
Tax credits
Research and development tax credits	(75)		(0.3)
Non-taxable or non-deductible items
Non-deductible compensation	5,698		19.7
Excess tax benefit related to stock compensation	(2,542)		(8.8)
Changes in unrecognized tax benefits	(558)		(1.9)
Other	67		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
	2025		2024
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 return	1.2		(0.1)
Excess tax provision related to stock compensation	0.7		1.4
Foreign income tax rate differential	(0.3)		0.2
Non-deductible compensation	4.6		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 income	1.3		—
Other	1.4		—
	(24.8)	%	(27.3)	%

Components of Net Deferred Tax Assets (Liabilities)

The components of the Company’s net deferred tax assets (liabilities) were as follows:


	As of
	July 3, 2026		June 27, 2025
Deferred tax assets:
Inventory valuation and receivable allowances	$	30,748	$	26,968
Accruals	14,355		13,138
Stock compensation	5,404		4,477
Federal and state research and development tax credit carryforwards	18,503		18,605


Research and development expenditures	27,672		57,997

Interest expense carryforward	8,474		11,620
Federal and state net operating loss carryforward	20,725		3,277
Foreign net operating loss carryforward	6,463		3,435
Operating lease liabilities	15,487		17,493


Deferred revenue	4,043		2,951
Other	443		316
	152,317		160,277
Valuation allowance	(19,412)		(17,416)
Total deferred tax assets	132,905		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

Summary of Reserves for Unrecognized Income Tax Benefits

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
	2026		2025
Unrecognized tax benefits, beginning of period	$	4,046	$	7,713

Increases for tax positions taken during the current period	280		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