Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2025

9. Net Income (Loss) per Share

Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards, using the treasury stock method, and outstanding convertible notes, using the if-converted method.

A reconciliation of the numerators and the denominators of the basic and dilutive net income per common share computations are as follows (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income	$	25,682	$	12,197
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes		2,345		—
Net income, diluted	$	28,027	$	12,197

Denominator:
Weighted average basic common shares outstanding		33,721,603		32,760,190
Effect of dilutive securities:
Convertible senior notes		4,893,805		—
Options to purchase common stock		1,200,858		1,773,345
Restricted stock units		98,221		126,797
Warrants to purchase common stock		—		11,379
Restricted stock awards		—		7,184
Weighted average dilutive common shares outstanding		39,914,487		34,678,895
Net income per share:
Basic	$	0.76	$	0.37
Diluted	$	0.70	$	0.35

The Company excluded the following potential common shares, presented based on weighted average shares outstanding, from the computation of diluted net income per share because including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
	2025		2024
Convertible senior notes		—		4,893,848
Options to purchase common stock		900,069		577,604
Employee stock purchase plan		38,011		24,413
Restricted stock units		167,193		1,356
Restricted stock awards		4,128		—
		1,109,401		5,497,221