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STOCK - BASED COMPENSATION | 9 Months Ended
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Sep. 28, 2025
Share-Based Payment Arrangement [Abstract] |
STOCK - BASED COMPENSATION | STOCK-BASED COMPENSATION 2021 Equity Incentive Plan During the fiscal year ended December 26, 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”), which allows for issuance of stock options (including incentive stock options and non-qualified stock options), restricted stock units (“RSUs”), including performance-based awards, and other types of awards. The maximum number of shares of common stock that may be issued under the 2021 Plan is 35,166,753, which is the sum of (i) 11,500,000 new shares, plus (ii) an additional number of shares consisting of (a) shares that were available for the issuance of awards under any prior equity incentive plans in place (which shall include the Prior Stock Plans (as defined below)) prior to the time the Company’s 2021 Plan became effective and (b) any shares of the Company’s common stock subject to outstanding stock options or other stock awards granted under the Prior Stock Plans that on or after the Company’s 2021 Plan became effective, terminate or expire prior to the exercise or settlement; are not issued because the award is settled in cash; are forfeited because of the failure to vest; or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price. Options granted during, or prior to, the thirteen and thirty-nine weeks ended September 28, 2025 generally have vesting terms between twelve months and four years and have a contractual life of 10 years. The Company issues shares of Class A common stock upon the vesting and settlement of RSUs and upon the exercises of stock options under the 2021 Plan. The 2021 Plan is administered by the Company’s board of directors (the “Board”), or a duly authorized committee of the Board. Options granted to members of the Board generally vest immediately. 2009 Stock Plan and 2019 Equity Incentive Plan Prior to the Company’s IPO, the Company granted stock options, RSUs and performance-based restricted stock awards (“PSUs”) to its employees, as well as non-employees (including directors and others who provide substantial services to the Company) under the Company’s 2009 Stock Plan and 2019 Equity Incentive Plan (collectively, the “Prior Stock Plans”). Under the Prior Stock Plans, the Company was permitted to grant incentive stock options to the Company’s employees and non-qualified stock options to the Company’s employees and non-employees, as well as stock appreciation rights, restricted stock awards, RSUs (including PSUs), and other forms of stock awards to the Company’s employees, directors and consultants and any of the Company’s affiliated employees and consultants. Options granted in the fiscal year ended December 26, 2021 and prior generally have vesting terms between one year and four years and have a contractual life of 10 years. No further stock awards will be granted under the Prior Stock Plans now that the 2021 Plan is effective; however, awards outstanding under the Prior Stock Plans continue to be governed by their existing terms. Spyce Acquisition In conjunction with the Company’s acquisition of Spyce in September 2021, the Company issued shares of restricted stock that were issued to certain Spyce employees. As the value is fixed, the grant date fair value of these shares represents the fair value of the shares on the acquisition date. 2021 Employee Stock Purchase Plan In conjunction with the IPO, the Board adopted, and the Company’s stockholders approved, the Company’s 2021 employee stock purchase plan (the “ESPP”). The Company’s ESPP authorizes the issuance of 3,000,000 shares of common stock under purchase rights granted to the Company’s employees or to the employees of any of its designated affiliates. The number of shares of the Company’s common stock reserved for issuance will automatically increase on January 1 of each year for a period of 10 years, which began on January 1, 2023, by the lesser of (i) 1% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year; and (ii) 4,300,000 shares, except before the date of any such increase, the Board may determine that such increase will be less than the amount set forth in clauses (i) and (ii). On January 1, 2023, the ESPP authorized shares to be increased by 1,111,331 to 4,111,331 in accordance with the above. The Board delegated the authority to manage the ESPP to the Compensation Committee of the Board, which determined that there would be no increase in the share reserve under the ESPP in 2024 or 2025. As of September 28, 2025, there had bee n no offering period or purchase period under the ESPP, and no such period will begin unless and until determined by the administrator. Stock Options The Company grants stock options to its employees, as well as nonemployees (including directors and others who provide substantial services to the Company) under the 2021 Plan. The following table summarizes the Company’s stock option activity for the thirty-nine weeks ended September 28, 2025 and September 29, 2024:
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted Average Exercise Price Per Share |  | Weighted-Average Remaining Contractual Term (In Years) |  | Aggregate Intrinsic Value
Balance—December 29, 2024 | 13,169,869 |  | $ | 9.88 |  |  | 6.04 |  | $ | 297,037 |
Options granted | 2,141,347 |  | 18.23 |  |  |  |  |
Options exercised | (380,345) |  | 8.04 |  |  |  |  |
Options forfeited | (834,943) |  | 18.77 |  |  |  |  |
Options expired | (60,737) |  | 18.03 |  |  |  |  |
Balance—September 28, 2025 | 14,035,191 |  | $ | 10.65 |  |  | 5.65 |  | $ | 18,446 |
Exercisable—September 28, 2025 | 10,704,215 |  | $ | 8.54 |  |  | 4.61 |  | $ | 18,339 |
Vested and expected to vest—September 28, 2025 | 14,035,191 |  | $ | 10.65 |  |  | 5.65 |  | $ | 18,446 |
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted Average Exercise Price Per Share |  | Weighted-Average Remaining Contractual Term (In Years) |  | Aggregate Intrinsic Value
Balance—December 31, 2023 | 13,219,388 |  | $ | 7.77 |  |  | 5.97 |  | $ | 53,758 |
Options granted | 2,256,183 |  | 19.02 |  |  |  |  |
Options exercised | (1,507,226) |  | 6.44 |  |  |  |  |
Options forfeited | (316,223) |  | 14.81 |  |  |  |  |
Options expired | (44,574) |  | 18.16 |  |  |  |  |
Balance—September 29, 2024 | 13,607,548 |  | $ | 9.59 |  |  | 6.16 |  | $ | 358,760 |
Exercisable—September 29, 2024 | 10,041,326 |  | $ | 7.46 |  |  | 5.20 |  | $ | 286,048 |
Vested and expected to vest—September 29, 2024 | 13,607,548 |  | $ | 9.59 |  |  | 6.16 |  | $ | 358,760 |
The weighted-average fair value of options granted during the thirty-nine weeks ended September 28, 2025 and September 29, 2024 was $9.23 and $9.32, respectively. The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option-pricing model. The Company has elected to account for forfeitures as they occur. During thirteen weeks ended September 28, 2025, the Company approved a modification to certain stock option awards in connection with the transition of a former executive from an employee to a non-employee consultant. The modification provided for (i) accelerated vesting of unvested awards, (ii) continued vesting of certain awards during the consulting period, and (iii) an extension of the post-termination exercise period, pertaining to a total of 924,097 options. The incremental expense related to each modified option has been estimated as of the modification date using the Black-Scholes option-pricing model and will be recognized as additional stock-based compensation expense over the remaining requisite service period. For the thirteen weeks ended September 28, 2025, the incremental expense was immaterial, and thus, no additional expense was recorded during the current quarter and the impact of the modification is not reflected in the tables presented above. The forfeiture of the old awards and concurrent grant of new awards is not reflected in the table above. These options have a weighted-average exercise price of $10.39. The Company expects to recognize the remaining incremental stock option expense of $1.8 million related to this modification across the six month consulting period. As of September 28, 2025, there was $26.9 million in unrecognized compensation expense related to unvested stock-based compensation arrangements and is expected to be recognized over a weighted average period of 2.12 years. Restricted Stock Units and Performance Stock Units Restricted stock units The following table summarizes the Company’s RSU activity for the thirty-nine weeks ended September 28, 2025 and September 29, 2024:
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted-Average Grant Date Fair Value
Balance—December 29, 2024 | 910,024 |  |  | $ | 17.72 |
Granted | 458,281 |  |  | 15.74 |
Released | (639,522) |  |  | 19.21 |
Forfeited | (164,972) |  |  | 17.22 |
Balance—September 28, 2025 | 563,811 |  |  | 14.57 |
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted-Average Grant Date Fair Value
Balance—December 31, 2023 | 951,517 |  |  | $ | 17.41 |
Granted | 518,177 |  |  | 20.36 |
Released | (369,355) |  |  | 20.63 |
Forfeited | (84,042) |  |  | 18.46 |
Balance—September 29, 2024 | 1,016,297 |  |  | $ | 17.67 |
During thirteen weeks ended September 28, 2025, the Company approved a modification to certain restricted stock units awards in connection with the transition of a former executive from an employee to a non-employee consultant. The modification provided for (i) continued vesting of certain awards during the consulting period and (ii) immediate vesting of any remaining unvested restricted stock units at the completion of the consulting period. The fair value of each modified RSU has been estimated using the current stock price as of the modification date. The incremental expense will be recognized as additional stock-based compensation expense over the remaining requisite service period. For the thirteen weeks ended September 28, 2025, the incremental expense related to RSUs was immaterial, and thus, no additional expense was recorded during the current quarter. Accordingly, the impact of the modification is not reflected in the tables presented above. The Company expects to recognize the remaining incremental restricted stock unit expense of $0.1 million related to this modification across the six month consulting period. The fair value of shares released as of the vesting date during the thirty-nine weeks ended September 28, 2025 was $12.3 million. As of September 28, 2025, unrecognized compensation expense related to RSUs was $7.5 million and is expected to be recognized over a weighted average period of 2.12 years. Performance stock units As of December 29, 2024, there were 4,500,000 performance stock units outstanding with a weighted-average grant date fair value of $15.62. There was no PSU activity during the thirty-nine weeks ended September 28, 2025. In October 2021, the Company granted 2,100,000 PSUs to each founder (the “founder PSUs”) for a total of 6,300,000 PSUs, under the 2019 Equity Incentive Plan. The founder PSUs vest upon the satisfaction of a service condition and the achievement of certain stock price goals. As of September 28, 2025, unrecognized compensation expense related to the founder PSUs was $1.9 million and is expected to be recognized over a weighted average period of 0.32 years. Subsequent to the Company’s IPO, the Company issued 321,428 PSUs to the Spyce founders (“Spyce PSUs”) based on three separate performance-based milestone targets. During the thirty-nine weeks ended September 29, 2024, the Company modified the number of shares underlying these grants and the vesting terms to remove the performance-based component, resulting in the total number of shares decreasing to 85,395, all of which vested on March 15, 2025. The expense related to these RSUs is included within the RSU section above. The following table summarizes the Company’s PSU activity for the thirty-nine weeks ended September 29, 2024:
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted-Average Grant Date Fair Value
Balance—December 31, 2023 | 6,621,428 |  |  | $ | 15.56 |
Granted | — |  |  | — |
Released | (900,000) |  |  | 18.55 |
Forfeited | (321,428) |  |  | — |
Balance—September 29, 2024 | 5,400,000 |  |  | $ | 15.99 |
A summary of stock-based compensation expense recognized during the thirteen and thirty-nine weeks ended September 28, 2025 and September 29, 2024 is as follows:
| Thirteen weeks ended |  | Thirty-nine weeks ended
(dollar amounts in thousands) | September 28, 2025 |  | September 29, 2024 |  | September 28, 2025 |  | September 29, 2024
Stock-options | $ | 2,790 |  |  | $ | 3,107 |  |  | $ | 8,601 |  |  | $ | 8,401 |
Restricted stock units | 1,040 |  |  | 1,909 |  |  | 7,591 |  |  | 6,645 |
Performance stock units | 1,981 |  |  | 4,669 |  |  | 7,840 |  |  | 15,168 |
Total stock-based compensation | $ | 5,811 |  |  | $ | 9,685 |  |  | $ | 24,032 |  |  | $ | 30,214 |

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