Income Taxes

12 Months Ended

Jun. 27, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of (loss) income before income taxes and income tax (benefit) provision were as follows:

	Fiscal Years
	2025		2024		2023
(Loss) income before income taxes:
United States	$	(53,335)	$	(183,263)	$	(42,864)
Foreign	2,911		(6,012)		(5,678)
	$	(50,424)	$	(189,275)	$	(48,542)
Tax (benefit) provision:
Federal:
Current	$	(609)	$	(19,791)	$	33,898
Deferred	(10,212)		(21,274)		(54,010)
	(10,821)		(41,065)		(20,112)
State:
Current	392		(3,016)		10,054
Deferred	(2,306)		(7,937)		(10,200)
	(1,914)		(10,953)		(146)
Foreign:
Current	175		95		104
Deferred	40		288		(53)
	215		383		51
	$	(12,520)	$	(51,635)	$	(20,207)

The following is the reconciliation between the federal statutory income tax rate and the Company’s effective income tax rate:

	Fiscal Years
	2025		2024		2023
Tax benefit at federal statutory rates	(21.0)	%	(21.0)	%	(21.0)	%
State income tax, net of federal tax benefit	(6.5)		(5.9)		(5.4)
Research and development tax credits	(2.0)		(3.7)		(15.1)
Provision to return	1.2		(0.1)		(0.7)
Excess tax provision related to stock compensation	0.7		1.4		2.6
Foreign income tax rate differential	(0.3)		0.2		0.2
Non-deductible compensation	4.6		0.9		1.0
Reserves for unrecognized income tax benefits	(3.0)		0.2		(6.9)
Valuation allowance	(0.9)		0.7		3.8
Foreign derived intangible income	(0.3)		—		(1.4)
Global intangible low-taxed income	1.3		—		—
Other	1.4		—		1.3
	(24.8)	%	(27.3)	%	(41.6)	%

The effective tax rate for fiscal 2025 differed from the federal statutory rate primarily due to federal and state research and development tax credits, releases to reserves for unrecognized income tax benefits and state taxes, partially offset by tax provisions related to stock compensation.

The effective tax rate for fiscal 2024 differed from the federal statutory rate primarily due to federal and state research and development tax credits and state taxes, partially offset by tax provisions related to stock compensation.

The effective tax rate for fiscal 2023 differed from the federal statutory rate primarily due to federal and state research and development tax credits, releases to reserves for unrecognized income tax benefits and state taxes, partially offset by valuation allowances recorded and tax provisions related to stock compensation.

The components of the Company’s net deferred tax assets (liabilities) were as follows:

	As of
	June 27, 2025		June 28, 2024
Deferred tax assets:
Inventory valuation and receivable allowances	$	26,968	$	23,799
Accruals	13,138		10,852
Stock compensation	4,477		6,700
Federal and state research and development tax credit carryforwards	18,605		17,762
Research and development expenditures	57,997		68,728
Interest expense carryforward	11,620		5,289
Federal and state net operating loss carryforward	3,277		2,357
Foreign net operating loss carryforward	3,435		4,004
Operating lease liabilities	17,493		20,107
Deferred revenue	2,951		1,135
Other	316		204
	160,277		160,937
Valuation allowance	(17,416)		(17,575)
Total deferred tax assets	142,861		143,362
Deferred tax liabilities:
Property and equipment	(9,861)		(13,647)
Intangible assets	(48,280)		(50,935)
Operating lease right-of-use assets, net	(14,164)		(16,493)
Other	(1,540)		(3,675)
Total deferred tax liabilities	(73,845)		(84,750)
Net deferred tax assets	$	69,016	$	58,612

At June 27, 2025, the Company has gross state research and development tax credit carryforwards of $16,443, $12,990 net of federal benefit, of which a portion will expire each fiscal year through fiscal year 2040. The Company maintains a valuation allowance on the majority of the Company’s state research and development tax credit carryforwards. The Company has gross federal research and development tax credit carryforwards of $5,351, of which a portion will expire starting in fiscal year 2039.

At June 27, 2025, the Company has gross interest expense carryforwards of $42,877, which have an indefinite life, gross state net operating loss carryforwards of $47,591, which will expire starting in fiscal year 2040 and gross foreign net operating loss carryforwards of $21,226 which will expire starting in fiscal year 2028. The Company maintains a valuation allowance on all foreign net operating loss carryforwards.

The Company is subject to taxation in the U.S. (federal and state) and various foreign jurisdictions that it operates in. The Company has established income tax reserves for potential additional income taxes based upon management’s assessment, including recognition and measurement. All income tax reserves are analyzed quarterly, and adjustments are made as events occur and warrant modification.

The changes in the Company’s income tax reserves for gross unrecognized income tax benefits, including interest and penalties, are summarized as follows:

	Fiscal Years
	2025		2024
Unrecognized tax benefits, beginning of period	$	7,713	$	5,165
Increases for tax positions taken related to a prior period	—		3,371
Increases for tax positions taken during the current period	518		3,083
Decreases for tax positions taken related to a prior period	(3,094)		(2,971)
Decreases as a result of a lapse of the applicable statute of limitations	(1,091)		(935)
Unrecognized tax benefits, end of period	$	4,046	$	7,713

The Company has $4,046 of unrecognized tax benefits as of June 27, 2025. If released, all $4,046 of these unrecognized income tax benefits would reduce the Company's income tax provision.

The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. The total amount of interest and penalties accrued was $878 and $1,374 as of June 27, 2025 and June 28, 2024, respectively, and the amount of interest and penalties (released) accrued and recognized was $(496) and $791 during June 27, 2025 and June 28, 2024, respectively.

The Company’s major tax jurisdiction is the U.S. (Federal and state) and the open tax years are fiscal 2019 through 2025.