Earnings Per Share

9 Months Ended

Sep. 30, 2025

12. Earnings Per Share

The Company has two classes of common stock authorized: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time or automatically upon certain events described in the Company’s fourth amended and restated certificate of incorporation, including upon either the death or voluntary termination of the Company’s Executive Chair. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one‑to‑one basis when computing net income per share. As a result, basic and diluted net income per share of Class A common stock and per share of Class B common stock are equivalent.

During the three months ended September 30, 2025, no shares of Class B common stock were converted into Class A common stock. During the nine months ended September 30, 2025, 770,495 shares of Class B common stock were converted into Class A common stock. During the three and nine months ended September 30, 2024, 241,935 shares of Class B common stock were converted into Class A common stock. During the year ended December 31, 2024, 1,012,428 shares of Class B common stock were converted into Class A common stock.

Basic net income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The Company computes the weighted-average number of common shares outstanding during the reporting period using the total number of shares of Class A common stock and Class B common stock outstanding as of the last day of the previous year plus the weighted-average of any additional shares issued and outstanding during the reporting period, less the weighted-average of any shares repurchased during the period.

Diluted net income (loss) per share (“Diluted EPS”) gives effect to all potentially dilutive securities. Diluted EPS is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period using (i) the number of shares of common stock used in the Basic EPS calculation as indicated above, and (ii) if dilutive, the incremental weighted-average common stock that the Company would issue upon the exercise of stock options and the vesting of restricted stock units. The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method.

For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator
Net income (loss)	$	44,717	$	22,511	$	106,105	$	(24,909	)
Denominator
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — basic		98,170,081		103,321,988		100,033,516		104,769,518
Dilutive effect of share equivalents resulting from stock options		13,157		108,869		16,314		—
Dilutive effect of share equivalents resulting from unvested restricted stock units		1,539,337		1,628,426		1,590,360		—
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — diluted		99,722,575		105,059,283		101,640,190		104,769,518
Net income (loss) per share attributable to common stockholders
Basic	$	0.46	$	0.22	$	1.06	$	(0.24	)
Diluted	$	0.45	$	0.21	$	1.04	$	(0.24	)

For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, potentially dilutive common stock equivalents that have been excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Stock options outstanding		360,751		506,554		360,751		701,884
Restricted stock units outstanding		36,165		512,198		82,588		6,264,428