Income Taxes (Tables)

12 Months Ended

Jun. 27, 2025

Components of Income Before Income Taxes and Income Tax Expense (Benefit)

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)

Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations

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)	%

Components of Net Deferred Tax Assets (Liabilities)

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

Summary of Reserves for Unrecognized Income Tax Benefits

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