v3.26.3
Stockholders' Equity
 9 Months Ended
Oct. 02, 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, performance stock options (“PSOs”), 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 October 2, 2026, the Company had outstanding grants of stock options, PSOs, 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 PSOs generally vest based on service, performance, or a combination of both. 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 October 2, 2026, there were 3,730,108 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

 

 

Nine Months Ended

 

 

 

October 2, 2026

 

 

September 26, 2025

 

 

October 2, 2026

 

 

September 26, 2025

 

Stock options

 

$

793

 

 

$

1,566

 

 

$

2,794

 

 

$

5,611

 

PSOs

 

 

203

 

 

 

—

 

 

 

203

 

 

 

—

 

Restricted stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

302

 

RSUs

 

 

2,495

 

 

 

3,382

 

 

 

7,880

 

 

 

9,690

 

PSUs

 

 

1,699

 

 

 

2,478

 

 

 

5,088

 

 

 

5,085

 

Nonemployee stock options

 

 

188

 

 

 

124

 

 

 

564

 

 

 

426

 

Nonemployee RSUs

 

 

139

 

 

 

608

 

 

 

371

 

 

 

861

 

Total stock-based compensation expense

 

$

5,517

 

 

$

8,158

 

 

$

16,900

 

 

$

21,975

 

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 2, 2026

 

 

September 26, 2025

 

 

October 2, 2026

 

 

September 26, 2025

 

Cost of sales

 

$

296

 

 

$

48

 

 

$

806

 

 

$

428

 

General and administrative

 

 

2,772

 

 

 

5,026

 

 

 

7,717

 

 

 

12,352

 

Selling and marketing

 

 

1,275

 

 

 

1,492

 

 

 

3,765

 

 

 

4,078

 

Research and development

 

 

1,174

 

 

 

1,592

 

 

 

4,612

 

 

 

5,117

 

Total stock-based compensation expense, net

 

 

5,517

 

 

 

8,158

 

 

 

16,900

 

 

 

21,975

 

Amounts capitalized as part of inventory

 

 

103

 

 

 

64

 

 

 

321

 

 

 

568

 

Total stock-based compensation expense, gross

 

$

5,620

 

 

$

8,222

 

 

$

17,221

 

 

$

22,543

 

As of October 2, 2026, total unrecognized compensation cost and the weighted-average period of recognition related to non-vested stock-based compensation arrangements were as follows (dollars in thousands):

 

 

 

Unrecognized Compensation Costs

 

 

Weighted-Average Recognition Period (in Years)

 

Stock options

 

$

3,936

 

 

 

1.9

 

PSOs

 

 

4,502

 

 

 

3.2

 

RSUs

 

 

17,870

 

 

 

1.9

 

PSUs

 

 

6,503

 

 

 

1.2

 

Total unrecognized stock-based compensation cost

 

$

32,811

 

 

 

1.9

 

 

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model applying 15% estimated forfeiture rate based on historical forfeiture experience and applying the weighted-average assumptions noted in the following table. The fair value of each PSO is estimated on the date of grant using a Monte Carlo simulation model and 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 risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

 

Note 11 — Stockholders’ Equity (Continued)

Assumptions (Continued)

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

October 2, 2026

 

 

September 26, 2025

 

 

October 2, 2026

 

 

September 26, 2025

 

Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

62

%

 

 

60

%

 

 

62

%

 

 

60

%

Risk-free interest rate

 

 

4.39

%

 

 

3.83

%

 

 

4.29

%

 

 

4.07

%

Expected term (in years)

 

 

4.86

 

 

 

5.05

 

 

 

4.86

 

 

 

5.05

 

Performance Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

Expected dividend yield

 

 

0

%

 

 

—

 

 

 

0

%

 

 

—

 

Expected volatility

 

 

57

%

 

 

—

 

 

 

57

%

 

 

—

 

Risk-free interest rate

 

 

4.63

%

 

 

—

 

 

 

4.63

%

 

 

—

 

Expected term (in years)

 

 

5.96

 

 

 

—

 

 

 

5.96

 

 

 

—

 

 

Stock Options and Performance Stock Options

A summary of stock option and PSO activity under the Equity Plan for nine months ended October 2, 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

 

 

504

 

 

 

25.75

 

 

 

 

 

 

 

Exercised

 

 

(88

)

 

 

15.94

 

 

 

 

 

 

 

Forfeited or expired

 

 

(161

)

 

 

41.68

 

 

 

 

 

 

 

Outstanding at October 2, 2026

 

 

1,971

 

 

$

41.52

 

 

 

6.36

 

 

$

1,223

 

Exercisable at October 2, 2026

 

 

1,385

 

 

$

47.71

 

 

 

5.05

 

 

$

1,065

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of RSU and PSU activity under the Equity Plan for the nine months ended October 2, 2026 is presented below (shares in thousands):

 

 

 

RSUs

 

 

PSUs

 

Unvested at January 2, 2026

 

 

1,459

 

 

 

802

 

Granted

 

 

594

 

 

 

423

 

Vested

 

 

(595

)

 

 

(350

)

Forfeited or expired

 

 

(307

)

 

 

(141

)

Unvested at October 2, 2026

 

 

1,151

 

 

 

734

 

 

Share Repurchase Program

In September 2026, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common stock. During the quarter ended October 2, 2026, the Company did not repurchase any of its shares under the share repurchase program.