Earnings per Share

3 Months Ended

Dec. 31, 2024

Note 15 - Earnings per Share

Prior to the preferred stock conversion, we calculated basic and diluted earnings per common share (“EPS”) pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective

rights to receive dividends. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. As noted above in Note 14, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date.

The following table summarizes the computation of basic and diluted EPS and the anti-dilutive shares excluded:


	Three Months Ended
	December 31,
	2024		2023
Basic earnings per common share:
Net income	$	22,153	$	10,389
Less: Preferred stock dividend declared	—		(1,097)
Net income available for distribution	22,153		9,292
Income allocated to participating securities	—		(2,855)
Net income available to common shareholders	$	22,153	$	6,437

Weighted average basic shares outstanding	53,987		36,434

Basic income per share	$	0.41	$	0.18

Diluted earnings per common share:
Net income available to common shareholders	$	22,153	$	6,437

Weighted average basic shares outstanding	53,987		36,434
Dilutive effect related to employee stock plans	1,419		1,005
Weighted average diluted shares outstanding	55,406		37,439

Diluted income per common share	$	0.40	$	0.17

Anti-dilutive shares excluded:
Outstanding stock-based grants	111		166

Total anti-dilutive shares excluded	111		166