XML 31 R19.htm IDEA: XBRL DOCUMENT v3.25.3
Basic and Diluted Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
Basic and Diluted Net Income (Loss) Per Share
Note 13. Basic and Diluted Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and convertible preferred stock, to the extent dilutive. For the three and nine months ended September 30, 2024, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.
The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share of common stock (in thousands, except per share data):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Numerator
Net income (loss)$17,559 $(7,853)$20,424 $(51,100)
Denominator
Weighted-average common shares outstanding for basic net income (loss) per share90,141 91,892 90,619 92,590 
Effect of dilutive securities:
Shares of common stock issuable under equity incentive awards outstanding1,080 — 949 — 
Shares of common stock related to convertible preferred stock$743 $— $743 $— 
Weighted-average common shares outstanding for diluted net income (loss) per share91,964 91,892 92,311 92,590 
Basic net income (loss) per share$0.19 $(0.09)$0.23 $(0.55)
Diluted net income (loss) per share$0.19 $(0.09)$0.22 $(0.55)
The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
 2025202420252024
Shares of common stock issuable under equity incentive plans outstanding6,841 10,493 7,016 10,083 
Shares of common stock related to convertible preferred stock— 743 — 743 
Potential common shares excluded from diluted net loss per share6,841 11,236 7,016 10,826 
Pursuant to the terms of the 2026 Convertible Notes Indenture, effective January 1, 2022, the Company made an irrevocable election to, upon conversions of the 2026 Convertible Notes, settle the principal portion of such converted 2026 Convertible Notes only in cash, with the conversion premium to be settled in cash or shares at the Company’s election.
The Company calculates the potential dilutive effect of the 2026 Convertible Notes under the if-converted method. Under this method, only the amounts settled in excess of the principal will be considered in diluted earnings per share, in line with the terms of the 2026 Convertible Notes Indenture.