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Stock-Based Compensation | 12 Months Ended
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Sep. 28, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation 2018 Equity Incentive Plan In July 2018, the Board of Directors (the "Board") adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering ("IPO"). The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's the Board. As of September 28, 2024, there were 40,953,108 shares reserved for future issuance under the 2018 Plan. Stock Options Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The option price, number of shares and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant. The Company’s policy for issuing stock upon stock option exercise is to issue new common stock. The summary of the Company’s stock option activity is as follows:
| Number of Options |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
|  |  |  |  | (In years) |  | (In thousands)
Outstanding at September 30, 2023 | 8,549,957 |  | $ | 13.99 |  |  | 3.6 |  | $ | 1,689 |
Exercised | (1,346,552) |  | $ | 12.67 |  |  |  |  |
Forfeited / expired | (121,016) |  | $ | 14.24 |  |  |  |  |
Outstanding at September 28, 2024 | 7,082,389 |  | $ | 14.24 |  |  | 2.8 |  | $ | 210 |
The Company granted no options in fiscal 2024, 2023, and 2022. As of September 28, 2024 and September 30, 2023, respectively, all outstanding stock options had been vested and the Company had no unrecognized stock-based compensation expense related to stock options. Restricted Stock Units Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. RSUs generally vest quarterly over the service period, which is generally four years with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows:
| Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
|  |  |  |  | (In thousands)
Outstanding at September 30, 2023 | 7,662,035 |  | $ | 19.42 |  |  | $ | 98,917 |
Granted | 9,437,212 |  | $ | 11.89 |  |  |
Released | (4,720,562) |  | $ | 16.33 |  |  |
Forfeited | (1,615,587) |  | $ | 15.34 |  |  |
Outstanding at September 28, 2024 | 10,763,098 |  | $ | 14.79 |  |  | $ | 130,772 |
At September 28, 2024 |  |  |  |  |
Units expected to vest | 9,215,498 |  | $ | 14.86 |  |  | $ | 111,968 |
As of September 28, 2024 and September 30, 2023, the Company had $115.4 million and $111.6 million of unrecognized stock-based compensation expense related to RSUs, each of which are expected to be recognized over a weighted-average period of 2.4 years. Performance Stock Units Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of shares vested at the end of the performance period are based on the extent to which the corresponding performance goals have been achieved. The number of shares vested during the twelve months ended September 28, 2024, includes performance achievement adjustments of a net reduction of 25,057 units. The summary of the Company’s PSU activity is as follows:
| Number of Units |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
|  |  |  |  | (In thousands)
Outstanding at September 30, 2023 | 265,191 |  | $ | 21.27 |  |  | $ | 3,424 |
Granted | 499,716 |  | $ | 17.64 |  |  |
Released | (80,827) |  | $ | 23.35 |  |  |
Outstanding at September 28, 2024 | 684,080 |  | $ | 18.37 |  |  | $ | 8,312 |
As of September 28, 2024 and September 30, 2023, the Company had $0.2 million and $0.3 million of unrecognized stock-based compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.5 and 1.2 years, respectively. Stock-based Compensation Total stock-based compensation expense by function category was as follows:
| September 28, 2024 |  | September 30, 2023 |  | October 1, 2022
(In thousands) |  |  |  |  |
Cost of revenue | $ | 2,614 |  |  | $ | 2,038 |  |  | $ | 1,620 |
Research and development | 37,913 |  |  | 35,530 |  |  | 30,724 |
Sales and marketing | 17,499 |  |  | 15,677 |  |  | 15,335 |
General and administrative | 26,268 |  |  | 23,612 |  |  | 27,961 |
Total stock-based compensation expense | $ | 84,294 |  |  | $ | 76,857 |  |  | $ | 75,640 |

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