Net Income Per Share

9 Months Ended

Sep. 30, 2025

Basic net income per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding for the period.

Diluted net income per share is computed by dividing the diluted net income by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming dilutive effect of outstanding common stock options, restricted stock units, common stock warrants, and shares issuable under the employee stock purchase plan. In periods when the Company has incurred a net loss, diluted net loss per share is the same as basic net loss per share because dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

A reconciliation of net income and the number of shares in the calculation of basic and diluted net income per share is as follows (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Basic net income per common share:
Numerator:
Net income	$	13,864	$	10,421	$	46,035	$	43,804

Denominator:
Weighted-average shares used in computing basic net income per share	86,017,342		90,067,675		85,780,156		91,650,576
Basic net income per share	$	0.16	$	0.12	$	0.54	$	0.48

Diluted net income per common share:
Numerator:
Net income	$	13,864	$	10,421	$	46,035	$	43,804

Denominator:
Weighted-average shares used in computing basic net income per share	86,017,342		90,067,675		85,780,156		91,650,576
Effect of dilutive securities
Options to purchase common stock	3,180,162		3,377,946		3,173,480		3,624,530
Shares issuable under ESPP	1,463		12,708		1,232		6,931
Warrants to purchase common stock	—		283,620		—		237,630
Restricted stock units	1,027,311		79,863		929,553		238,862
Total effect of dilutive securities	4,208,936		3,754,137		4,104,265		4,107,953
Weighted-average shares used in computing diluted net income per share	90,226,278		93,821,812		89,884,421		95,758,529
Diluted net income per share	$	0.15	$	0.11	$	0.51	$	0.46

The following weighted-average outstanding shares of potentially dilutive securities were excluded from the computation of diluted income per share for the period presented because including them would have been antidilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Options to purchase common stock	15,082,135	14,229,102	14,961,035	13,405,518
Shares issuable under ESPP	1,079	2,780	3,248	2,935
Restricted stock units	1,488,223	2,793,955	1,558,517	1,919,893
Total	16,571,437	17,025,837	16,522,800	15,328,346