NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2025

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive.

The following table presents the computation of basic and diluted net income (loss) per share for the periods presented:


	Three Months Ended March 31,
		2025		2024

		(In thousands, except per share data)
Numerator:
Net income (loss)		$	29,730	$	(16,097)

Notes due 2028 and Notes due 2026 financing costs, net		605		—

Adjusted net income (loss)		$	30,335	$	(16,097)

Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding		131,869		135,891

Shares used in diluted per share amounts:
Weighted average common shares outstanding used for basic calculation		131,869		135,891
Effect of dilutive securities:
Employee stock-based awards		264		—





Notes due 2026		2,057		—

Notes due 2028		2,018		—

Weighted average common shares outstanding for diluted calculation		136,208		135,891

Basic and diluted net income (loss) per share
Net income (loss) per share, basic		$	0.23	$	(0.12)
Net income (loss) per share, diluted		$	0.22	$	(0.12)

Diluted earnings per share for the three months ended March 31, 2025 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, Notes due 2025, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2026 and Notes due 2028. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share.

Further, the Company under the relevant sections of the indentures, irrevocably may elect to settle principal in cash and any excess in cash or shares of the Company’s common stock for the Notes due 2026 and Notes due 2028. If and when the Company makes such election, there will be no adjustment to the net income and the Company will use the average share price for the period to determine the potential number of shares to be issued based upon assumed conversion to be included in the diluted share count.

The Company's Notes due 2025 were convertible at any time from October 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date of March 1, 2025. Upon

conversion, the Notes due 2025 were required to be settled using a combination settlement method, whereby the principal amount was paid in cash, and any excess conversion value was settled in shares of the Company's common stock. As a result of this settlement, no adjustment to net income was required for the three months ended March 31, 2025. For purposes of calculating diluted earnings per share, the Company utilized the average share price during the period from January 1, 2025 through March 1, 2025 to determine the potential number of shares issuable upon conversion and be included in the diluted share count.

The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive:


	Three Months Ended March 31,
		2025	2024

		(In thousands)



Employee stock-based awards		3,071	1,656

Notes due 2025		323	1,253
Notes due 2026		—	2,057
2026 Warrants		10,879	4,958
Notes due 2028		—	2,018
2028 Warrants		10,675	4,865
Total		24,948	16,807