Net Income/(Loss) per Common Share

9 Months Ended

Sep. 30, 2025

12. Net Income/(Loss) per Common Share

Basic net income/(loss) per share is calculated by dividing the net income or loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted net income/(loss) per share is computed by dividing the net income or loss by the weighted-average number of shares of common stock, plus potentially dilutive securities outstanding for the period, as determined in accordance with the treasury stock, if-converted, or contingently issuable accounting methods, depending on the nature of the security. For purposes of the diluted net income/(loss) per share calculation, stock options, restricted stock units (“RSUs”), shares potentially issuable in connection with the Company’s employee stock purchase plan ("ESPP") and convertible notes are considered potentially dilutive securities and included to the extent that their addition is not antidilutive.

The following table presents the calculation of basic and diluted net income/(loss) per common share (amounts in thousands, except per share amounts):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024			2025		2024
Basic net income/(loss) per share
Numerator:
Net income/(loss)	$	215,715	$	(57,445	)	$	81,339	$	(161,525	)
Denominator:
Weighted-average number of common shares used in net income/(loss) per common share - basic		126,424		124,234			125,971		123,698
Net income/(loss) per common share - basic	$	1.71	$	(0.46	)	$	0.65	$	(1.31	)

Diluted net income/(loss) per share
Numerator:
Net income/(loss)	$	215,715	$	(57,445	)	$	81,339	$	(161,525	)
Adjustment - Interest expense on Convertible Notes		903		—			2,704		—
Adjusted net income/(loss)	$	216,618	$	(57,445	)	$	84,043	$	(161,525	)
Denominator:
Weighted-average number of common shares used in net income/(loss) per common share - basic		126,424		124,234			125,971		123,698
Convertible notes		2,379		—			2,379		—
Stock options to purchase common stock		899		—			994		—
Unvested restricted stock units		350		—			287		—
Shares expected to be purchased under employee stock purchase plan		15		—			22		—
Weighted-average number of common shares used in net income/(loss) per common share - diluted		130,067		124,234			129,653		123,698
Net income/(loss) per common share - diluted	$	1.67	$	(0.46	)	$	0.65	$	(1.31	)

The following table presents securities excluded from the calculation of diluted net income/(loss) per share due to their anti-dilutive effect (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Convertible notes		—		2,379		—		2,379
Stock options to purchase common stock		7,230		8,063		6,284		8,063
Unvested restricted stock units		3,942		4,017		4,328		4,017
Total		11,172		14,459		10,612		14,459