EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2025

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested equity-settled RSUs and the stock to be issued under the Company’s ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share of common stock as follows:


	For the Years Ended December 31,
	2025		2024		2023
Numerator for basic and diluted earnings per share:
Net income	$	377,678	$	454,533	$	417,083
Numerator for basic and diluted earnings per share	$	377,678	$	454,533	$	417,083

Denominator:
Weighted average common shares for basic earnings per share	55,893		57,288		57,829
Net effect of dilutive equity awards and stock issuable under the ESPP	340		695		1,256
Weighted average common shares for diluted earnings per share	56,233		57,983		59,085

Net Income per share:
Basic	$	6.76	$	7.93	$	7.21
Diluted	$	6.72	$	7.84	$	7.06

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 1,106 thousand, 896 thousand and 415 thousand for the years ended December 31, 2025, 2024 and 2023, respectively.