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Leases | 3 Months Ended
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Sep. 27, 2025
Leases [Abstract] |
Leases | Leases The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years. The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability. For operating leases, discount rates assumed range from 4.0% to 9.5% . The weighted average discount rate is disclosed in the tables below. The components of lease cost for the three months and nine months ended September 27, 2025 and September 28, 2024 were (in thousands):
|  | Three Months Ended |  |
|  | September 27, 2025 |  | September 28, 2024 |  |
Lease cost | Classification |  |  |
Operating lease cost | Cost of sales | $ | 1,687 |  |  | $ | 1,339 |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 183 |  |  | $ | 184 |  |  |
Financing lease cost | Cost of sales | $ | 150 |  |  | $ | 1,306 |  |  |
Financing lease cost | Selling, general and administrative expenses | $ | 7 |  |  | $ | 54 |  |  |
Total lease cost |  | $ | 2,027 |  |  | $ | 2,883 |  |  |
Fixed lease cost |  | $ | 1,593 |  |  | $ | 2,574 |  |  |
Short-term lease cost |  | 434 |  |  | 309 |  |  |
Total lease cost |  | $ | 2,027 |  |  | $ | 2,883 |  |  |
Amounts reported in the Consolidated Balance Sheet as of September 27, 2025 and June 28, 2025 were (in thousands, except weighted average lease term and discount rate):
|  | September 27, 2025 |  | June 28, 2025
Operating Leases: |  |  |  |
Operating lease right of use assets |  | $ | 25,996 |  |  | $ | 11,347
Operating lease liabilities (1) |  | $ | 25,996 |  |  | $ | 11,347
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  | 7.82 |  | 3.29
Weighted-average discount rate |  |  |  |
Operating leases |  | 7.81% |  | 4.07%
Financing Leases (2): |  |  |  |
Financing lease right of use assets |  | $ | 5,201 |  |  | $ | 2,244
Financing lease liabilities |  | $ | 4,051 |  |  | $ | 1,912
Weighted-average remaining lease term (in years) |  |  |  |
Financing leases |  | 2.72 |  | 2.35
Weighted-average discount rate |  |  |  |
Financing leases |  | 8.81% |  | 10.11%
(1) The current portion of the total operating lease liabilities of $5.6 million is classified under Other Current Liabilities resulting in $20.3 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet. (2) The total finance lease right of use assets of $5.2 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $1.8 million is classified under Current portion of debt, net, resulting in $2.3 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet. Future lease payments under non-cancellable leases as of September 27, 2025 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases |  | Finance Leases
2026 (1) |  | $ | 4,331 |  |  | $ | 1,417 |
2027 |  | 5,004 |  |  | 1,403 |
2028 |  | 4,922 |  |  | 1,636 |
2029 |  | 3,901 |  |  | — |
2030 |  | 3,383 |  |  | — |
Thereafter |  | 13,872 |  |  | — |
Total undiscounted lease payments |  | $ | 35,413 |  |  | $ | 4,456 |
Less: present value discount |  | (9,417) |  |  | (405) |
Total lease liabilities |  | $ | 25,996 |  |  | $ | 4,051 |
(1) Represents estimated lease payments for the remaining nine-month period ending June 27, 2026. As of September 27, 2025, we have finance leases for commercial properties and equipment that have not yet commenced with future lease payments of approximately $5.1 million.
Leases | Leases The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years. The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability. For operating leases, discount rates assumed range from 4.0% to 9.5% . The weighted average discount rate is disclosed in the tables below. The components of lease cost for the three months and nine months ended September 27, 2025 and September 28, 2024 were (in thousands):
|  | Three Months Ended |  |
|  | September 27, 2025 |  | September 28, 2024 |  |
Lease cost | Classification |  |  |
Operating lease cost | Cost of sales | $ | 1,687 |  |  | $ | 1,339 |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 183 |  |  | $ | 184 |  |  |
Financing lease cost | Cost of sales | $ | 150 |  |  | $ | 1,306 |  |  |
Financing lease cost | Selling, general and administrative expenses | $ | 7 |  |  | $ | 54 |  |  |
Total lease cost |  | $ | 2,027 |  |  | $ | 2,883 |  |  |
Fixed lease cost |  | $ | 1,593 |  |  | $ | 2,574 |  |  |
Short-term lease cost |  | 434 |  |  | 309 |  |  |
Total lease cost |  | $ | 2,027 |  |  | $ | 2,883 |  |  |
Amounts reported in the Consolidated Balance Sheet as of September 27, 2025 and June 28, 2025 were (in thousands, except weighted average lease term and discount rate):
|  | September 27, 2025 |  | June 28, 2025
Operating Leases: |  |  |  |
Operating lease right of use assets |  | $ | 25,996 |  |  | $ | 11,347
Operating lease liabilities (1) |  | $ | 25,996 |  |  | $ | 11,347
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  | 7.82 |  | 3.29
Weighted-average discount rate |  |  |  |
Operating leases |  | 7.81% |  | 4.07%
Financing Leases (2): |  |  |  |
Financing lease right of use assets |  | $ | 5,201 |  |  | $ | 2,244
Financing lease liabilities |  | $ | 4,051 |  |  | $ | 1,912
Weighted-average remaining lease term (in years) |  |  |  |
Financing leases |  | 2.72 |  | 2.35
Weighted-average discount rate |  |  |  |
Financing leases |  | 8.81% |  | 10.11%
(1) The current portion of the total operating lease liabilities of $5.6 million is classified under Other Current Liabilities resulting in $20.3 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet. (2) The total finance lease right of use assets of $5.2 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $1.8 million is classified under Current portion of debt, net, resulting in $2.3 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet. Future lease payments under non-cancellable leases as of September 27, 2025 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases |  | Finance Leases
2026 (1) |  | $ | 4,331 |  |  | $ | 1,417 |
2027 |  | 5,004 |  |  | 1,403 |
2028 |  | 4,922 |  |  | 1,636 |
2029 |  | 3,901 |  |  | — |
2030 |  | 3,383 |  |  | — |
Thereafter |  | 13,872 |  |  | — |
Total undiscounted lease payments |  | $ | 35,413 |  |  | $ | 4,456 |
Less: present value discount |  | (9,417) |  |  | (405) |
Total lease liabilities |  | $ | 25,996 |  |  | $ | 4,051 |
(1) Represents estimated lease payments for the remaining nine-month period ending June 27, 2026. As of September 27, 2025, we have finance leases for commercial properties and equipment that have not yet commenced with future lease payments of approximately $5.1 million.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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