v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 27, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value on a recurring basis
As of
September 27,
2026		December 31,
2025
(In thousands)
Assets:
Cash equivalents: money-market funds (<90 days)
$25,636 $71,987 
Cash equivalents: U.S. Treasuries (<90 days)
— 20,506 
Available-for-sale securities: U.S. Treasuries (1)
64,462 19,985 
Total financial assets$90,098 $112,478 
Liabilities:
Earnout contingent consideration (2)
5,380 — 
Total financial liabilities$5,380 $— 
_________________________
(1)Included in short-term investments on our unaudited condensed consolidated balance sheets.

(2)Included in other non-current liabilities on our unaudited condensed consolidated balance sheets.

Our short-term investments in cash equivalents and marketable securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. As of September 27, 2026 and December 31, 2025, assets and liabilities measured as Level 2 fair value were not material and there were no financial assets measured as Level 3 fair value.

Earnout contingent consideration

Earnout contingent consideration recognized through the Aloe Care acquisition is measured at the fair value on a recurring basis and is classified within Level 3 of the fair value hierarchy because the measurement requires the use of significant unobservable inputs. The fair value of the earnout contingent consideration was estimated using income and market-based valuation techniques and discounted to present value at closing of the acquisition.

Subsequent to the acquisition, we utilized a Monte Carlo simulation to re-assess the fair value of earnout contingent consideration each quarter. The fair value measurement was based on significant unobservable inputs which include projected revenue, profitability, and the timing of achieving the earnout targets. We applied a revenue discount rate of 6.7% to the projected revenue inputs and a discount rate of 8.8% to present value the resulting payment as of September 27, 2026.

The contingent consideration liability is included in other non-current liabilities on the unaudited condensed consolidated balance sheets. Changes in the fair value of the contingent consideration liability are recognized in other operating expense on the unaudited condensed consolidated statements of operations and comprehensive income. For the three months ended September 27, 2026, change in the fair value of earnout contingent consideration was de minimis.

Fair value on a non-recurring basis

Our non-financial assets, such as property and equipment, goodwill, and intangible assets are assessed for impairment annually or whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable.
Sale of long-term investment

During the first fiscal quarter of 2026, we sold our investment in connection with a privately held company’s acquisition by a public company. This investment was accounted for as an equity security without a readily determinable fair value and was measured at cost, less impairment, adjusted for observable price changes in orderly transactions for the identical or similar investment in the same issuer in accordance with ASC 321, Investments-Equity Securities. Upon completion of the sale, we received total cash proceeds of $18.9 million and recognized a realized gain of $6.4 million, representing the excess of proceeds received over the carrying value of the investment. The gain from the sale of the investment is included in other income, net on the unaudited condensed consolidated statements of operations and comprehensive income. Our Chief Executive Officer served on the board of directors of the privately held company and, as a result, the investee is considered a related party and the sale of our investment is a related party transaction.