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Earnings per Common Share

9 Months Ended

Sep. 30, 2025

Earnings per Common Share

Earnings Per Common Share

14. Earnings Per Common Share

Basic earnings per common share is computed using the two-class method, which is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic earnings per common share is determined by dividing net income, after deducting amounts allocated to participating securities, by the weighted-average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock-settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses.

Diluted earnings per common share is computed using the weighted-average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding performance-based and time-based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would have been anti-dilutive.

The following table shows the calculation of net income attributable to common stockholders, which is used in the calculation of basic and diluted earnings per common share, potential shares of common stock that were included in computing diluted earnings per common share and the potential shares of common stock issuable that were excluded from computing diluted earnings per common share as their inclusion would have been anti-dilutive:


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(in thousands)		2025			2024			2025			2024
Net income		$	71,248		$	37,516		$	205,518		$	112,473
Less: Allocation of earnings to participating securities			(544)			(430)			(2,434)			(1,607)
Net income attributable to common stockholders		$	70,704		$	37,086		$	203,084		$	110,866

Allocation of earnings to cash or share settled restricted stock units⁽¹⁾			—			(129)			1			(352)
Diluted net income attributable to common stockholders		$	70,704		$	36,957		$	203,085		$	110,514

Weighted-average common shares outstanding used in basic earnings per common share			174,619			165,847			174,549			158,205
Effect of dilutive securities:
Performance-based restricted stock units			278			325			295			306
Time-based restricted stock units			14			—			5			—
ESPP shares			2			1			6			7
Weighted-average common shares outstanding used in diluted earnings per common share			174,913			166,173			174,855			158,518

(1) Excludes the income effect of participating liability awards that permit share settlement as the effect would be anti-dilutive.