Fair Value Measures

6 Months Ended

Mar. 29, 2025

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measures

The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:

Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market

Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability

Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability

The following table presents the Company’s financial assets measured and recorded at fair value on a recurring basis using the above input categories as of March 29, 2025 and September 28, 2024 (in thousands):

	March 29, 2025								September 28, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	831,898	$	—	$	—	$	831,898	$	712,958	$	—	$	—	$	712,958
Warrant fair value	—		16,789		—		16,789		—		12,308		—		12,308
Total assets	$	831,898	$	16,789	$	—	$	848,687	$	712,958	$	12,308	$	—	$	725,266

The Company had no liabilities measured and recorded at fair value on a recurring basis as of March 29, 2025 and September 28, 2024.

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At March 29, 2025, the fair value of the warrant issued as described in Note 12, Derivative Instruments, is classified as Level 2. Level 2 securities are priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities.