Convertible Senior Notes and Related Transactions (Tables)

9 Months Ended

Nov. 01, 2025

The 2028 Notes consist of the following (in thousands):


	Nov 1, 2025		Feb 1, 2025





Initial 2028 Notes
Principal	$	275,000	$	275,000
Unamortized debt discount and issuance costs1,2	(4,908)		(6,290)
Net carrying amount	$	270,092	$	268,710
Fair value, net3	$	268,235	$	249,339
Additional 2028 Notes
Principal	$	76,947	$	76,947
Unamortized debt discount and issuance costs1	(9,094)		(11,590)
Embedded derivative4	6,590		2,460
Net carrying amount	$	74,443	$	67,817
Fair value, net3	$	73,923	$	62,397
Net carrying amount of Initial and Additional 2028 Notes	$	344,535	$	336,527

______________________________________________________________________

Notes:

1The unamortized debt discount related to the Initial 2028 Notes is due to the result of the modification accounting for a portion of the exchanged notes. This discount represents both an increase in the fair value of the embedded conversion feature, which is calculated as the difference between the fair value of the embedded conversion feature immediately before and after the exchange, and cash paid to modified noteholders. The change in conversion feature value reduces the carrying amount of the convertible debt instrument with a corresponding increase in paid-in capital. The additional cash paid to modified noteholders increased the debt discount. This debt discount is being amortized to interest expense over five years.

2For each of the three and nine months ended November 1, 2025 and November 2, 2024, the weighted average effective interest rate including amortization of debt discount and issuance costs was 4.5% for the Initial 2028 Notes and 9.3% for the Additional 2028 Notes.

3The fair value of the Notes is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy. See Note 16 - Fair Value Measurements for further information regarding the fair value measurement of the Notes.

4The fair value of the embedded derivative is measured using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. See Note 16 - Fair Value Measurements for further information regarding the fair value measurement of the embedded derivative.

Schedule of Interest Expense on Convertible Notes

Interest expense for the Notes for the three and nine months ended November 1, 2025 and November 2, 2024 consists of the following (in thousands):


	Three Months Ended				Nine Months Ended
	Nov 1, 2025		Nov 2, 2024		Nov 1, 2025		Nov 2, 2024
2024 Notes
Coupon interest	$	—	$	—	$	—	$	334
Amortization of debt discount and issuance costs	—		—		—		28
Total	$	—	$	—	$	—	$	362
Initial 2028 Notes
Coupon interest	$	2,579	$	2,578	$	7,735	$	7,734
Amortization of debt discount and issuance costs	461		435		1,382		1,307
Total	$	3,040	$	3,013	$	9,117	$	9,041
Additional 2028 Notes
Coupon interest	$	721	$	721	$	2,164	$	2,088
Amortization of debt discount and issuance costs	832		774		2,496		2,211
Total	$	1,553	$	1,495	$	4,660	$	4,299