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STOCK - BASED COMPENSATION | 6 Months Ended
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Jun. 28, 2026
Share-Based Payment Arrangement [Abstract] |
STOCK - BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock options (including incentive stock options and non-qualified stock options), restricted stock units ("RSUs"), performance stock units ("PSUs"), and other types of awards under the 2021 Equity Incentive Plan (the "2021 Plan"). No further awards are granted under the Company's 2009 Stock Plan and 2019 Equity Incentive Pla n; however, awards outstanding under such plans continue to be governed by their existing terms. Options granted during, or prior to, the thirteen and twenty-six weeks ended June 28, 2026 generally have vesting terms between twelve months and four years and have a contractual life of 10 years. 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 twenty-six weeks ended June 28, 2026 and June 29, 2025:
(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 28, 2025 | 14,070,559 |  | $ | 10.35 |  |  | 5.30 |  | $ | 12,769 |
Options granted | 1,417,862 |  | 5.76 |  |  |  |  |
Options exercised | (11,599) |  | 5.01 |  |  |  |  |
Options forfeited | (490,510) |  | 20.82 |  |  |  |  |
Options expired | (348,290) |  | 13.22 |  |  |  |  |
Balance—June 28, 2026 | 14,638,022 |  | $ | 9.49 |  |  | 4.98 |  | $ | 29,803 |
Exercisable—June 28, 2026 | 11,215,186 |  | $ | 8.94 |  |  | 3.76 |  | $ | 24,180 |
Vested and expected to vest—June 28, 2026 | 14,638,022 |  | $ | 9.49 |  |  | 4.98 |  | $ | 29,803 |
(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 | 1,524,847 |  | 22.09 |  |  |  |  |
Options exercised | (323,369) |  | 8.43 |  |  |  |  |
Options forfeited | (552,630) |  | 17.48 |  |  |  |  |
Options expired | (26,467) |  | 17.47 |  |  |  |  |
Balance—June 29, 2025 | 13,792,250 |  | $ | 10.95 |  |  | 5.82 |  | $ | 64,407 |
Exercisable—June 29, 2025 | 10,425,334 |  | $ | 8.23 |  |  | 4.81 |  | $ | 60,880 |
Vested and expected to vest—June 29, 2025 | 13,792,250 |  | $ | 10.95 |  |  | 5.82 |  | $ | 64,407 |
The weighted-average fair value of options granted during the twenty-six weeks ended June 28, 2026 and June 29, 2025 was $4.04 and $11.16, 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 fiscal year 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 was estimated as of the modification date using the Black-Scholes option-pricing model and was recognized as additional stock-based compensation expense over the remaining requisite service period. For the twenty-six weeks ended June 28, 2026, the Company recognized the remaining $1.4 million of incremental expense related to this modification, which was recorded within total stock-based compensation expense for the period. As of June 28, 2026, there was $17.5 million in unrecognized compensation expense related to unvested stock-based compensation arrangements and is expected to be recognized over a weighted average period of 2.42 years. Restricted Stock Units and Performance Stock Units Restricted stock units The following table summarizes the Company’s RSU activity for the twenty-six weeks ended June 28, 2026 and June 29, 2025:
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted-Average Grant Date Fair Value
Balance—December 28, 2025 | 783,226 |  |  | $ | 12.71 |
Granted | 1,425,463 |  |  | 6.54 |
Released | (331,327) |  |  | 12.34 |
Forfeited | (91,609) |  |  | 14.19 |
Balance—June 28, 2026 | 1,785,753 |  |  | $ | 7.78 |
(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 | 308,281 |  |  | 19.31 |
Released | (524,848) |  |  | 19.20 |
Forfeited | (120,070) |  |  | 15.73 |
Balance—June 29, 2025 | 573,387 |  |  | $ | 17.65 |
During fiscal year 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 was estimated using the current stock price as of the modification date. The incremental expense was recognized as additional stock-based compensation expense over the remaining requisite service period. During the twenty-six weeks ended June 28, 2026, the Company recognized the remaining $0.2 million of incremental expense related to this RSU modification, which was recorded within total stock-based compensation expense for the period. The fair value of shares released as of the vesting date during the twenty-six weeks ended June 28, 2026 was $2.5 million. As of June 28, 2026, unrecognized compensation expense related to RSUs was $11.6 million and is expected to be recognized over a weighted average period of 2.90 years. Performance stock units 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 June 28, 2026 all compensation expense related to the founder PSUs was fully recognized. During the second quarter of fiscal year 2026, the Company granted 400,000 PSUs to its Chief Executive Officer under the 2021 Plan. These PSUs are subject to market and service conditions and vest based on the Company's total shareholder return relative to the Russell 2000 Index over the performance period from December 29, 2025 through December 31, 2028. The grant-date fair value of $6.05 was estimated using a Monte Carlo simulation. Total stock-based compensation expense of $2.4 million related to this award will be recognized on a straight-line basis over the requisite service period. As of June 28, 2026, unrecognized compensation expense related to this award was $2.2 million and is expected to be recognized over the remaining period of 2.51 years. The following table summarizes the Company’s PSU activity for the twenty-six weeks ended June 28, 2026:
(dollar amounts in thousands except per share amounts) | Number of Shares |  | Weighted-Average Grant Date Fair Value
Balance—December 28, 2025 | 4,500,000 |  |  | $ | 15.62 |
Granted | 400,000 |  |  | 6.05 |
Released | — |  |  | — |
Forfeited | — |  |  | — |
Balance—June 28, 2026 | 4,900,000 |  |  | $ | 14.84 |
There was no PSU activity during the twenty-six weeks ended June 29, 2025. A summary of stock-based compensation expense recognized during the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025 is as follows:
| Thirteen weeks ended |  | Twenty-six weeks ended
(dollar amounts in thousands) | June 28, 2026 |  | June 29, 2025 |  | June 28, 2026 |  | June 29, 2025
Stock-options | $ | 2,124 |  |  | $ | 3,193 |  |  | $ | 5,765 |  |  | $ | 5,811 |
Restricted stock units | 2,854 |  |  | 2,344 |  |  | 4,358 |  |  | 6,552 |
Performance stock units | 200 |  |  | 2,463 |  |  | 859 |  |  | 5,858 |
Total stock-based compensation | $ | 5,178 |  |  | $ | 8,000 |  |  | $ | 10,982 |  |  | $ | 18,221 |

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