Stock Based Compensation

12 Months Ended

Jun. 29, 2025

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation

The Plan is administered by the Compensation Committee or such other Board committee (or the entire Board) as may be designated by the Board.

The amounts of stock-based compensation expense recognized within operating income (1) in the periods presented are as follows:

	Years Ended
	June 29, 2025		June 30, 2024		July 2, 2023
	(in thousands)
Stock options	$	4,729	$	4,422	$	2,536
Restricted stock awards	7,162		6,266		5,798
Total	11,891		10,688		8,334

(1)Stock-based compensation expense has not been allocated among business segments, but is reflected as part of Corporate overhead (See Note 17 - Business Segments for details).

Stock-based compensation expense is recorded within the following line items of operating expenses:

	Years Ended
	June 29, 2025		June 30, 2024		July 2, 2023
	(in thousands)
Marketing and sales	$	5,470	$	4,916	$	3,818
Technology and development	951		855		698
General and administrative	5,470		4,917		3,818
Total	$	11,891	$	10,688	$	8,334

Stock Options

The weighted average fair value of stock options on the date of grant, and the assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model, were as follows:

	Years Ended
	June 29, 2025	June 30, 2024	July 2, 2023
Weighted average fair value of options granted	$3.25	$6.09	$5.13
Expected volatility	58%	56%	52%
Expected life (in years)	7	7	7.5
Risk-free interest rate	4.3%	3.9%	4.3%
Expected dividend yield	—%	—%	—%

The expected volatility of the option is determined using historical volatilities based on historical stock prices. The Company estimated the expected life of options granted based upon the historical weighted average. The risk-free interest rate is determined using the yield available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the option. The Company has never paid a dividend, and as such the dividend yield is 0.0%.

The following table summarizes stock option activity during the year ended June 29, 2025:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
				(in years)	(in thousands)
Outstanding beginning of period	3,185,537	$	9.07
Granted	460,972	$	5.24
Exercised	(32,743)	$	8.59
Forfeited/Expired	(284,048)	$	8.59
Outstanding end of period	3,329,718	$	8.59	7.93	$	—
Exercisable at June 29, 2025	1,497,253	$	8.80	7.28	$	—

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal 2025 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 29, 2025. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised during the years ended June 29, 2025, June 30, 2024, and July 2, 2023, were $0.0 million, $0.1 million, and $0.0 million, respectively.

As of June 29, 2025, the total future compensation cost related to non-vested options not yet recognized in the statement of operations was $6.7 million and the weighted average period over which these awards are expected to be recognized was 2.6 years.

Restricted Stock

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock).

The following table summarizes the activity of non-vested restricted stock during the year ended June 29, 2025:

	Shares	Weighted Average Grant Date Fair Value
Non-vested – beginning of period	1,704,449	$	12.09
Granted	1,839,476	$	7.74
Vested	(645,090)	$	10.56
Forfeited	(788,179)	$	8.86
Non-vested - end of period	2,110,656	$	9.98

The fair value of shares vested was $5.0 million, $4.2 million, and $3.2 million during fiscal 2025, 2024, and 2023, respectively. The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of June 29, 2025, there was $13.3 million of total unrecognized compensation cost related to non-vested, restricted, stock-based compensation to be recognized over a weighted-average period of 2.3 years.