Leases

9 Months Ended

Mar. 28, 2026

Leases [Abstract]

Leases

Leases

The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years.

The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability.

For operating leases, discount rates assumed range from 4.0% to 9.5% . The weighted average discount rate is disclosed in the tables below.

The components of lease cost for the three months and nine months ended March 28, 2026 and March 29, 2025 were (in thousands): 

		Three Months Ended				Nine Months Ended
		March 28, 2026		March 29, 2025		March 28, 2026		March 29, 2025
Lease cost	Classification
Operating lease cost	Cost of sales	$	1,478	$	654	$	4,704	$	2,827
Operating lease cost	Selling, general and administrative expenses	$	194	$	33	$	561	$	132
Financing lease cost	Cost of sales	$	629	$	1,268	$	935	$	3,868
Financing lease cost	Selling, general and administrative expenses	$	21	$	183	$	45	$	549
Total lease cost		$	2,322	$	2,138	$	6,245	$	7,376
Fixed lease cost		$	2,133	$	1,078	$	5,216	$	4,936
Short-term lease cost		189		1,060		$	1,029	$	2,440
Total lease cost		$	2,322	$	2,138	$	6,245	$	7,376

Amounts reported in the Consolidated Balance Sheet as of March 28, 2026 and June 28, 2025 were (in thousands, except weighted average lease term and discount rate):

	March 28, 2026		June 28, 2025
Operating Leases:
Operating lease right of use assets	$	27,810	$	11,347
Operating lease liabilities (1)	$	27,810	$	11,347
Weighted-average remaining lease term (in years)
Operating leases	7.08		3.29
Weighted-average discount rate
Operating leases	7.88%		4.07%
Financing Leases (2):
Financing lease right of use assets	$	10,428	$	2,244
Financing lease liabilities	$	8,402	$	1,912
Weighted-average remaining lease term (in years)
Financing leases	2.70		2.35
Weighted-average discount rate
Financing leases	8.47%		10.11%

(1) The current portion of the total operating lease liabilities of $6.7 million is classified under Other Current Liabilities resulting in $21.2 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet.

(2) The total finance lease right of use assets of $10.4 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $3.8 million is classified under Other Current Liabilities, resulting in $4.6 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of March 28, 2026 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2026 (1)	$	1,713	$	957
2027	6,489		3,639
2028	5,866		3,075
2029	4,468		1,529
2030	3,963		50
Thereafter	14,314		—
Total undiscounted lease payments	$	36,813	$	9,250
Less: present value discount	(9,003)		(848)
Total lease liabilities	$	27,810	$	8,402

(1) Represents estimated lease payments for the remaining nine-month period ending June 27, 2026.

Leases

Leases

The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years.

The Company has some leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability.

For operating leases, discount rates assumed range from 4.0% to 9.5% . The weighted average discount rate is disclosed in the tables below.

The components of lease cost for the three months and nine months ended March 28, 2026 and March 29, 2025 were (in thousands): 

		Three Months Ended				Nine Months Ended
		March 28, 2026		March 29, 2025		March 28, 2026		March 29, 2025
Lease cost	Classification
Operating lease cost	Cost of sales	$	1,478	$	654	$	4,704	$	2,827
Operating lease cost	Selling, general and administrative expenses	$	194	$	33	$	561	$	132
Financing lease cost	Cost of sales	$	629	$	1,268	$	935	$	3,868
Financing lease cost	Selling, general and administrative expenses	$	21	$	183	$	45	$	549
Total lease cost		$	2,322	$	2,138	$	6,245	$	7,376
Fixed lease cost		$	2,133	$	1,078	$	5,216	$	4,936
Short-term lease cost		189		1,060		$	1,029	$	2,440
Total lease cost		$	2,322	$	2,138	$	6,245	$	7,376

Amounts reported in the Consolidated Balance Sheet as of March 28, 2026 and June 28, 2025 were (in thousands, except weighted average lease term and discount rate):

	March 28, 2026		June 28, 2025
Operating Leases:
Operating lease right of use assets	$	27,810	$	11,347
Operating lease liabilities (1)	$	27,810	$	11,347
Weighted-average remaining lease term (in years)
Operating leases	7.08		3.29
Weighted-average discount rate
Operating leases	7.88%		4.07%
Financing Leases (2):
Financing lease right of use assets	$	10,428	$	2,244
Financing lease liabilities	$	8,402	$	1,912
Weighted-average remaining lease term (in years)
Financing leases	2.70		2.35
Weighted-average discount rate
Financing leases	8.47%		10.11%

(1) The current portion of the total operating lease liabilities of $6.7 million is classified under Other Current Liabilities resulting in $21.2 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet.

(2) The total finance lease right of use assets of $10.4 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $3.8 million is classified under Other Current Liabilities, resulting in $4.6 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of March 28, 2026 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2026 (1)	$	1,713	$	957
2027	6,489		3,639
2028	5,866		3,075
2029	4,468		1,529
2030	3,963		50
Thereafter	14,314		—
Total undiscounted lease payments	$	36,813	$	9,250
Less: present value discount	(9,003)		(848)
Total lease liabilities	$	27,810	$	8,402

(1) Represents estimated lease payments for the remaining nine-month period ending June 27, 2026.