Net Income (Loss) per Share

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator:
Net income	$	24,319	$	4,216	$	84,908	$	28,607
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes		2,580		—		7,234		—
Net income, diluted	$	26,899	$	4,216	$	92,142	$	28,607

Denominator:
Weighted average basic common shares outstanding		34,112,452		33,441,394		33,917,006		33,108,253
Effect of dilutive securities:
Convertible senior notes		4,893,805		—		4,893,805		—
Options to purchase common stock		1,452,078		1,975,523		1,381,851		1,895,962
Restricted stock units		287,855		266,861		211,626		202,800
Warrants to purchase common stock		—		—		—		4,635
Restricted stock awards		997		174		545		4,270
Employee stock purchase plan		836		—		5,375		2,836
Weighted average dilutive common shares outstanding		40,748,023		35,683,952		40,410,208		35,218,756
Net income per share:
Basic	$	0.71	$	0.13	$	2.50	$	0.86
Diluted	$	0.66	$	0.12	$	2.28	$	0.81

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Convertible senior notes		—		4,893,848		—		4,893,848
Options to purchase common stock		316,497		37,035		606,681		323,905
Employee stock purchase plan		—		16,310		12,531		13,584
Restricted stock units		12,964		1,002		65,387		3,949
Restricted stock awards		—		317		1,361		106
		329,461		4,948,512		685,960		5,235,392