The Company grants stock awards in the form of restricted stock units (“RSUs”) and performance stock units (“PSUs”) to its employees as part of the Company’s long-term equity compensation plan. These stock awards are granted to employees with a unit purchase price of zero dollars and typically vest over three years, subject to the employee’s continued service with the Company and, in the case of PSUs, subject to achieving certain performance goals and market conditions. The Company also grants common stock to its board members in the form of restricted stock awards (“RSAs”), which vest on the earlier of the next Annual Shareholder Meeting, or 365 days from date of grant. The aggregate number of shares authorized for issuance under the plan is 12.6 million.

Stock-based compensation expense includes compensation costs related to estimated fair values of awards granted. The estimated fair value of the Company’s equity-based awards is amortized on a straight-line basis over the awards’ vesting period and is adjusted for performance as it relates to PSUs.

The following table shows the Company's stock-based compensation expense included in the Consolidated Statements of Operations:


	Year Ended
(In millions)	December 26, 2025		December 27, 2024		December 29, 2023
Cost of revenues (1)	$	1.4	$	1.6	$	1.3
Research and development	0.5		0.3		0.3
Sales and marketing	1.7		1.9		1.5
General and administrative	15.6		13.6		9.0
Total stock-based compensation	$	19.2	$	17.4	$	12.1

As of December 26, 2025, there was $29.1 million of unrecognized compensation cost related to employee awards which is expected to be recognized on a straight-line basis over a weighted average period of approximately 1.9 years, and will be adjusted for subsequent changes in future grants.

For each of the fiscal years ended 2025, 2024 and 2023, vested shares of 0.1 million were withheld to satisfy withholding tax obligations, resulting in the net issuance of 0.4 million, 0.5 million and 0.5 million shares, respectively.


	Number of Shares	Aggregate Intrinsic Value (In millions)
Unvested restricted stock units and restricted stock awards at December 29, 2023	1.4	$	46.1
Granted	0.7
Vested	(0.5)
Forfeited	(0.2)
Unvested restricted stock units and restricted stock awards at December 27, 2024	1.4	$	52.0
Granted	1.2
Vested	(0.5)
Forfeited	(0.5)
Unvested restricted stock units and restricted stock awards at December 26, 2025	1.6	$	42.3
Vested and expected to vest restricted stock units and restricted stock awards	1.6	$	42.3

During the fiscal year ended December 26, 2025, the Company approved and granted 1.0 million RSUs to employees, with a total grant date fair value of $23.4 million and a weighted average grant date fair value of $23.27 per share. During the same period, the Company approved and granted 142 thousand PSUs, with a total grant date fair value of $3.4 million and a weighted average grant date fair value of $23.66 per share.The total fair value of shares vested during the fiscal year 2025 was $9.5 million for RSUs and no PSUs vested during the year.

During the fiscal year ended December 27, 2024, the Company approved and granted 0.6 million RSUs to employees, with a total grant date fair value of $22.8 million and a weighted average grant date fair value of 40.83 per share. During the same period, the Company approved and granted 0.1 million PSUs, with a total grant date fair value of $5.3 million and a weighted average grant date fair value of $42.23 per share. The total fair value of RSUs that vested during fiscal 2024 was $17.5 million, and the total fair value of PSUs that vested was $0.7 million.

Under the current PSU program, the number of PSUs earned and eligible to vest at the end of the performance period is determined based on the achievement of specified performance objectives. Performance is measured over a three-year performance period and is evaluated on an annual basis.

The number of PSUs earned is calculated by applying performance results to the participant’s target award. Performance is based on (i) the Company's average annual GAAP revenue goal attainment percentage, (ii) a relative total shareholder return (“TSR”) modifier percentage, and (iii) an average annual operating margin modifier percentage. The relative TSR modifier is based on the Company’s stock price performance compared to a designated peer group, and the operating margin modifier reflects the average annual difference between non-GAAP operating margin achieved and the applicable operating plan.

The percentage of the target award earned may range from zero to 200%, depending on the level of performance achieved and the impact of the applicable performance modifiers. One-third of the target award is allocated to each year of the three-year performance period.

At the end of the three-year performance period, the total number of PSUs earned, if any, reflects the application of the performance formula to the target award, subject to a maximum payout cap of 200% of the target PSUs granted. Earned PSUs vest and are settled in shares of the Company’s common stock in accordance with the terms of the applicable award agreements.

Recipients of PSU awards generally must remain employed by the Company on a continuous basis through the end of the three-year performance period in order to receive any amount of the PSUs covered by that award. In events such as death, disability or retirement, the recipient may be entitled to pro-rata amounts of PSUs as defined in the Plan. Target shares subject to PSU awards do not have voting rights of common stock until earned and issued following the end of the three-year performance period.

For awards that contain market conditions, compensation expense is measured using a Monte Carlo simulation model and recognized over the requisite service period based on the expected market performance as of the grant date. For the PSU

awards, the Company used the following inputs for the Monte Carlo simulation:


	Year Ended
	December 26, 2025			December 27, 2024			December 29, 2023
Stock price	$	22.17		$	40.82		$	28.19
Term	2.69 years			2.68 years			2.68 years
Expected volatilities	53.9		%	50.6		%	57.4		%
Risk-free rate	3.8		%	4.8		%	3.9		%

In fiscal year 2025, the Company granted 1,310 shares of common stock to a board member under the 2003 Incentive Plan, with a weighted average grant-date fair value of $24.96 per share. The total fair value of shares vested during the fiscal year 2025 was $0.5 million for RSAs. There was no unamortized expense related to the Company’s unvested RSAs as of December 26, 2025.

The ESPP permits employees to purchase common stock at a discount through payroll withholdings at certain specified dates (purchase period) within a defined offering period. The purchase price is 85% of the fair market value of the common stock at the end of the purchase period and is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. The aggregate number of shares authorized for issuance under the plan is 1.1 million.

The Company recorded $0.9 million, $0.7 million and $0.4 million of stock-based compensation expense related to ESPP for fiscal years 2025, 2024 and 2023, respectively.