Stockholders' Equity

12 Months Ended

Jan. 02, 2026

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 12 — Stockholders’ Equity

Incentive Plan

The Company maintains an Amended and Restated Omnibus Equity Incentive Plan, as amended (the “Equity Plan”). The Equity Plan allows for awards of stock options, stock appreciation rights, restricted stock, RSUs, PSUs and other stock- and cash-based awards, including awards that are subject to service-based and performance-based vesting conditions. As of January 2, 2026, the Company had outstanding grants of stock options, RSUs and PSUs.

Stock options granted under the Equity Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board, and expire over periods not exceeding 10 years from the date of grant. Certain stock options and stock-based awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Equity Plan). Grants of restricted stock outstanding under the Equity Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Equity Plan generally vest based on service, performance, or a combination of both. On June 15, 2023, the Company’s stockholders approved a proposal to increase the number of shares that may be issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by 2,170,000 shares. On June 19, 2024, the Company’s stockholders approved a proposal to increase the number of shares that may be issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by 2,600,000 shares. As a result of such increases, a total of 22,805,000 shares may be issued pursuant to stock-based awards granted under the Equity Plan. As of January 2, 2026, there were 1,310,727 shares available for grants of stock-based awards under the Equity Plan.

Stock-Based Compensation

The following table represents the fair value of stock-based compensation granted during the year ended 2025 (in thousands):

	Fair Value
Stock options	$	1,214
RSUs		22,560
PSUs		14,463
Total stock-based compensation expense	$	38,237

The Company recorded stock-based compensation expense by award as follows (in thousands):

	Years Ended
	2025		2024		2023
Employee stock options	$	7,190	$	13,824	$	12,842
Restricted stock		302		512		548
RSUs		13,382		11,623		7,213
PSUs		7,645		568		1,270
Nonemployee stock options		553		567		869
Nonemployee RSUs		1,516		116		774
Total stock-based compensation expense	$	30,588	$	27,210	$	23,516

The Company recorded stock-based compensation expense in the following categories (in thousands):

	Years Ended
	2025		2024		2023
Cost of sales	$	665	$	1,192	$	716
General and administrative		17,615		14,122		12,125
Selling and marketing		5,306		4,583		4,083
Research and development		7,002		7,313		6,592
Total stock-based compensation expense, net		30,588		27,210		23,516
Amounts capitalized as part of inventory		702		1,408		1,672
Total stock-based compensation expense, gross	$	31,290	$	28,618	$	25,188

Note 12 — Stockholders’ Equity (Continued)

Stock-Based Compensation (Continued)

As of January 2, 2026, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Equity Plan were as follows (in thousands):

	2025
Stock options	$	5,068
Restricted stock, RSUs and PSUs		26,848
Total unrecognized stock-based compensation cost	$	31,916

This cost is expected to be recognized over a weighted-average period of approximately two years.

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of stock options granted is derived from the historical exercises and post-vesting cancellations, and represents the period of time that stock options granted are expected to be outstanding. The Company has calculated a 8% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

	Years Ended
	2025			2024			2023
Expected dividend yield		0	%		0	%		0	%
Expected volatility		60	%		59	%		60	%
Risk-free interest rate		4.07	%		4.17	%		3.98	%
Expected term (in years)		5.05			5.29			5.05

Stock Options

A summary of stock option activity under the Equity Plan for the year ended January 2, 2026 was as follows:

	Shares (in 000’s)			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in 000’s)
Outstanding at December 27, 2024		2,808		$	45.72
Granted		121			18.22
Exercised		(221	)		15.66
Forfeited or expired		(992	)		50.48
Outstanding at January 2, 2026		1,716		$	44.85		6.13	$	2,263
Exercisable at January 2, 2026		1,370		$	48.02		5.53	$	1,604

A summary of unvested stock options activity under the Equity Plan for the year ended January 2, 2026 was as follows:

Note 12 — Stockholders’ Equity (Continued)

Stock Options (Continued)

	Shares (in 000’s)			Weighted-Average Grant-Date Fair Value
Unvested at December 27, 2024		982		$	23.62
Granted		121			10.04
Forfeited or expired		(370	)		24.42
Vested		(387	)		24.13
Unvested at January 2, 2026		346		$	17.90

The weighted average grant date fair value of stock options granted under the Equity Plan and the total intrinsic value of stock options exercised were as follows:

	Years Ended
	2025		2024		2023
Weighted-average grant-date fair value	$	10.04	$	21.12	$	28.36
Intrinsic value of options exercised (in thousands)	$	2,027	$	4,150	$	17,041

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the year ended January 2, 2026 was as follows:

	Restricted Stock					Restricted Stock Units					Performance Stock Units
	Units (in 000’s)			Weighted-Average Grant-Date Fair Value		Units (in 000’s)			Weighted-Average Grant-Date Fair Value		Units (in 000’s)			Weighted-Average Grant-Date Fair Value
Outstanding at December 27, 2024		16		$	40.11		695		$	43.33		406		$	39.99
Granted		—			—		1,281			17.61		849			17.04
Vested		(16	)		40.11		(321	)		42.41		(20	)		74.80
Forfeited		—			—		(196	)		33.48		(433	)		35.93
Outstanding at January 2, 2026		—		$	—		1,459		$	22.29		802		$	17.04

The weighted average grant date fair value of restricted stock, RSU and PSU awards granted under the Equity Plan and the total fair value of awards vested were as follows:

	Years Ended
	2025		2024		2023
Weighted-average grant-date fair value	$	17.38	$	37.73	$	52.98
Fair value of awards vested (in thousands)	$	7,280	$	6,283	$	7,715

Share Repurchase Program

In May 2025, the Company’s Board of Directors authorized a share repurchase program under which the Company may repurchase up to $30 million of its outstanding common stock. Under the program, the Company may repurchase shares in the open market, through privately negotiated transactions, by entering into structured repurchase agreements with third parties, by making block purchases, and/or pursuant to Rule 10b5-1 trading plans. The timing, manner, price, and amount of any repurchases under the program will be determined by the Company in its discretion, subject to market conditions, legal requirements, and other considerations. The Company is not obligated to repurchase any specific number of shares, and the program may be modified, suspended, or discontinued at any time, without prior notice. During fiscal 2025 the Company purchased 375,630 shares, for an aggregate of $6,461,000, pursuant to its share repurchase program. As of January 2, 2026, $23,539,000 remained available for repurchases pursuant to the program.