Earnings Per Share

6 Months Ended

Jun. 30, 2026

11. 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 and six months ended June 30, 2026, 452,637 shares of Class B common stock were converted into Class A common stock. During the three months ended June 30, 2025, no shares of Class B common stock were converted into Class A common stock. During the six months ended June 30, 2025 and year ended December 31, 2025, 770,495 shares of Class B common stock were converted into Class A common stock.

Consolidated basic net income per share (“Basic EPS”) is computed by dividing consolidated net income 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.

Consolidated diluted net income per share (“Diluted EPS”) gives effect to all potentially dilutive securities. Diluted EPS is computed by dividing consolidated net income 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.

Continuing basic and diluted net income per share and discontinued basic and diluted net income per share are calculated using the same methodology as described above, as applicable. Diluted earnings per share from discontinued operations is calculated using net income from continuing operations to determine the denominator, in accordance with applicable guidance.

For the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2026 and 2025, a reconciliation of the numerator and denominator used in the calculation of continuing, discontinued, and consolidated basic and diluted net income (loss) per share was as follows:


	Three Months Ended June 30,					Six Months Ended June 30,
	2026		2025			2026		2025
						(dollars in thousands)
Numerator
Net income from continuing operations	$	49,193	$	48,989		$	81,421	$	91,063
Net loss from discontinued operations	$	—	$	(26,646	)	$	—	$	(29,675	)
Consolidated net income	$	49,193	$	22,343		$	81,421	$	61,388

Denominator
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — basic		90,131,442		98,889,893			92,082,411		100,980,676
Dilutive effect of share equivalents resulting from stock options		—		15,167			2,481		17,893
Dilutive effect of share equivalents resulting from unvested restricted stock units		945,007		1,279,007			990,565		1,615,872
Weighted-average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders — diluted		91,076,449		100,184,067			93,075,457		102,614,441
Net income (loss) per share attributable to common stockholders
Basic
Continuing operations	$	0.55	$	0.50		$	0.88	$	0.90
Discontinued operations	$	—	$	(0.27	)	$	—	$	(0.29	)
Consolidated	$	0.55	$	0.23		$	0.88	$	0.61
Diluted
Continuing operations	$	0.54	$	0.49		$	0.87	$	0.89
Discontinued operations	$	—	$	(0.27	)	$	—	$	(0.29	)
Consolidated	$	0.54	$	0.22		$	0.87	$	0.60

For the three months ended June 30, 2026 and 2025 and for the six months ended June 30, 2026 and 2025, 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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock options outstanding		360,751		360,751		360,751		360,751
Restricted stock units outstanding		177,107		153,272		195,103		105,799