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Stock-Based Compensation and Warrants
 3 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation and Warrants Stock-Based Compensation and Warrants
The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations (in thousands):
Three Months Ended
December 28, 2024December 30, 2023
RSUs (service-based and performance-based)$25,823 $28,987 
Employee stock purchase plan950 475 
Total stock-based compensation expense$26,773 $29,462 
Effect of stock-based compensation expense on income by line item (in thousands):
Three Months Ended
December 28, 2024December 30, 2023
Cost of revenue, Systems$3,148 $2,715 
Cost of revenue, Software maintenance and support97 175 
Cost of revenue, Operation services464 541 
Research and development10,554 12,297 
Selling, general, and administrative12,510 13,734 
Total stock-based compensation expense$26,773 $29,462 
Warrants
GreenBox Warrant
On July 23, 2023, the Company issued the GreenBox Warrant, which allows Sunlight to acquire up to an aggregate of 11,434,360 shares of the Company’s Class A Common Stock, subject to certain vesting conditions. The GreenBox Warrant had a grant date fair value of $19.90 per share. The GreenBox Warrant may vest in connection with conditions defined by the terms of the GreenBox Warrant, as GreenBox makes additional expenditures to the Company in connection with the Framework Agreement. There are up to eight tranches in the GreenBox Warrant based on increments of expenditures where
approximately 1,429,295 additional shares may vest per tranche, subject to certain conditions defined by the terms of the GreenBox Warrant. Upon vesting, warrant shares may be acquired at an exercise price of $41.9719. The warrant contains customary anti-dilution, down-round, and change-in-control provisions. The right to purchase shares in connection with the GreenBox Warrant expires 36 months following the end of the initial term of the Framework Agreement which is July 23, 2027, or if applicable, the extension term of the Framework Agreement, which is July 23, 2029. As of December 28, 2024, none of the GreenBox Warrant shares had vested.
Walmart Warrant
On May 20, 2022, in connection with its entry into the 2nd Amended and Restated MAA, the Company issued Walmart a warrant to acquire up to an aggregate of 258,972 Legacy Warehouse Class A Units (“May 2022 Warrant”), subject to certain vesting conditions. The May 2022 Warrant had a grant date fair value of $224.45. In connection with the closing of the Company’s initial public offering in June 2022, the May 2022 Warrant was converted into a new warrant to acquire up to an aggregate of 15,870,411 common units of Symbotic Holdings (“June 2022 Warrant” and, the common units of Symbotic Holdings issuable thereunder, the “Warrant Units”). The June 2022 Warrant vested in the second quarter of fiscal year 2023, as the installation commencement date for certain Systems which the Company is installing in Walmart’s 42 regional distribution centers had occurred. In December 2023, Walmart elected to gross exercise the vested warrants for $158.7 million. As a result of this gross exercise, 15,870,411 shares of Class V-1 Common Stock were issued to Walmart.