INCOME TAXES

9 Months Ended

Sep. 28, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision

reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions.

	For the thirteen weeks ended						For the thirty-nine weeks ended
	September 28, 2025			September 29, 2024			September 28, 2025			September 29, 2024
Income tax expense (benefit)	$	1,269		$	(1,484)		$	5,848		$	(320)
Effective tax rate	274.1		%	19.1		%	31.2		%	(2.2		%)

For the 13-week period ended September 28, 2025, the Company's effective tax rate of 274.1% differed from the 21% federal statutory tax rate primarily due to permanent differences related to changes in fair value of the warrant and earn-out liabilities recognized during the period, state taxes, and the impact of foreign taxes in higher rate jurisdictions. These items had a greater impact on the effective tax rate for the13-week period ended September 28, 2025 due to the low pre-tax net income result. For the 13-week period ended September 29, 2024, the Company’s effective tax rate of 19.1% differed from the 21% federal statutory rate primarily due to permanent differences related to changes in fair value of the warrant and earn-out liabilities recognized during the period and the impact of foreign taxes in higher tax rate jurisdictions.

For the 39-week period ended September 28, 2025, the Company's effective tax rate of 31.2% differed from the 21% federal statutory tax rate primarily due to permanent differences related to changes in fair value of the warrant and earn-out liabilities recognized during the period, state taxes, the impact of foreign taxes in higher tax rate jurisdictions, and excess tax deficiencies from share-based compensation recognized during the period. For the 39-week period ended September 29, 2024, the Company’s effective tax rate of (2.2)% differed from the 21% federal statutory rate primarily due to permanent differences related to changes in fair value of the warrant and earn-out liabilities recognized during the period, federal research and development tax credits, and the impact of foreign taxes in higher tax rate jurisdictions. In addition, the Company incurred expenses related to product rationalization that were determined to be significant and infrequent in nature; therefore, the full tax benefit of these expenses were recorded during the year as a discrete adjustment.

On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”) that includes several U.S. corporate tax provisions, including the restoration of 100% bonus depreciation on qualified property, the current deductibility of domestic research and experimental expenditures, and changes to the interest expense limitation. The provisions of the OBBBA did not have a material impact to our income tax expense or effective tax rate. We expect the provisions of OBBBA to result in a reduction to current tax expense for 2025.