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Stockholders' Equity
 6 Months Ended
Jun. 27, 2025
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, 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 June 27, 2025, the Company had outstanding grants of stock options, 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, 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 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 19, 2024, stockholders approved a proposal to increase the number of shares under the Equity Plan by 2,600,000 shares, for a total of 22,805,000 shares. As of June 27, 2025, there were 731,032 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

 

 

Six Months Ended

 

 

 

June 27, 2025

 

 

June 28, 2024

 

 

June 27, 2025

 

 

June 28, 2024

 

Employee stock options

 

$

1,640

 

 

$

3,518

 

 

$

4,045

 

 

$

6,691

 

Restricted stock

 

 

145

 

 

 

170

 

 

 

302

 

 

 

198

 

RSUs

 

 

3,345

 

 

 

3,053

 

 

 

6,308

 

 

 

5,343

 

PSUs

 

 

2,211

 

 

 

2,119

 

 

 

2,607

 

 

 

2,804

 

Nonemployee stock options

 

 

208

 

 

 

151

 

 

 

302

 

 

 

292

 

Nonemployee RSUs

 

 

253

 

 

 

31

 

 

 

253

 

 

 

53

 

Total stock-based compensation expense

 

$

7,802

 

 

$

9,042

 

 

$

13,817

 

 

$

15,381

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 27, 2025

 

 

June 28, 2024

 

 

June 27, 2025

 

 

June 28, 2024

 

Cost of sales

 

$

90

 

 

$

363

 

 

$

380

 

 

$

661

 

General and administrative

 

 

4,643

 

 

 

4,981

 

 

 

7,326

 

 

 

8,056

 

Selling and marketing

 

 

1,309

 

 

 

1,319

 

 

 

2,586

 

 

 

2,529

 

Research and development

 

 

1,760

 

 

 

2,379

 

 

 

3,525

 

 

 

4,135

 

Total stock-based compensation expense, net

 

 

7,802

 

 

 

9,042

 

 

 

13,817

 

 

 

15,381

 

Amounts capitalized as part of inventory

 

 

192

 

 

 

440

 

 

 

504

 

 

 

777

 

Total stock-based compensation expense, gross

 

$

7,994

 

 

$

9,482

 

 

$

14,321

 

 

$

16,158

 

As of June 27, 2025, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):

 

 

 

June 27, 2025

 

Stock options

 

$

9,026

 

RSUs and PSUs

 

 

40,468

 

Total unrecognized stock-based compensation cost

 

$

49,494

 

The cost is expected to be recognized over a weighted-average period of approximately two years.

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model 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 Company has calculated a 8% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 27, 2025

 

 

June 28, 2024

 

 

June 27, 2025

 

 

June 28, 2024

 

Expected dividend yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

Expected volatility

 

 

60

%

 

 

59

%

 

 

60

%

 

 

59

%

Risk-free interest rate

 

 

4.03

%

 

 

4.45

%

 

 

4.09

%

 

 

4.19

%

Expected term (in years)

 

 

5.05

 

 

 

5.29

 

 

 

5.05

 

 

 

5.29

 

 

Note 11 — Stockholders’ Equity (Continued)

Stock Options

A summary of stock option activity under the Equity Plan for the six months ended June 27, 2025 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 December 27, 2024

 

 

2,808

 

 

$

45.72

 

 

 

 

 

 

 

Granted

 

 

112

 

 

 

17.53

 

 

 

 

 

 

 

Exercised

 

 

(53

)

 

 

7.23

 

 

 

 

 

 

 

Forfeited or expired

 

 

(433

)

 

 

47.71

 

 

 

 

 

 

 

Outstanding at June 27, 2025

 

 

2,434

 

 

$

44.87

 

 

 

5.04

 

 

$

1,238

 

Exercisable at June 27, 2025

 

 

1,928

 

 

$

47.18

 

 

 

4.07

 

 

$

1,200

 

 

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the six months ended June 27, 2025 is presented below (shares in thousands):

 

 

 

Restricted
Stock

 

 

RSUs

 

 

PSUs

 

Unvested at December 27, 2024

 

 

16

 

 

 

695

 

 

 

406

 

Granted

 

 

—

 

 

 

1,234

 

 

 

849

 

Vested

 

 

(16

)

 

 

(248

)

 

 

(20

)

Forfeited or expired

 

 

—

 

 

 

(151

)

 

 

(417

)

Unvested at June 27, 2025

 

 

—

 

 

 

1,530

 

 

 

818

 

Share Repurchase Program

In May 2025, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $30 million of its outstanding common stock. Under the program, the Company may repurchase shares in the open market, through privately negotiated transactions, by entering into structured repurchase agreements with third parties, by making block purchases, and/or pursuant to Rule 10b5-1 trading plans. The timing, manner, price, and amount of any repurchases under the program will be determined by the Company in its discretion, subject to market conditions, legal requirements, and other considerations. The Company is not obligated to repurchase any specific number of shares, and the program may be modified, suspended, or discontinued at any time, without prior notice. During the quarter ended June 27, 2025 the Company purchased 260,515 shares for an aggregate of $4,479,000 pursuant to its share repurchase program. As of June 27, 2025, $25,521,000 remained available for repurchases pursuant to the program. Subsequent to the end of the quarter, during the period June 28, 2025 to August 1, 2025, the Company purchased an additional 115,115 shares for a total of $1,982,000 pursuant to its share repurchase program.

 

Repurchased shares are held in treasury stock. Treasury stock purchases are accounted for under the cost method whereby the cost of the acquired stock is recorded as treasury stock.