NET INCOME PER SHARE

9 Months Ended

Sep. 26, 2025

NOTE 9: NET INCOME PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s restricted stock units, shares issuable under the ESPP, and the if-converted method for the 2024 Notes.

As noted in Note 6, “Debt,” the principal amount of the 2024 Notes was settled in cash while the conversion spread value was settled in shares.

The following table sets forth the computation of the basic and diluted net income per share:


	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	September 26, 2025		September 27, 2024			September 26, 2025		September 27, 2024
Numerator:
Net income	$	2,694	$	21,718	$	11,505	$	1,097
Denominator:
Weighted average number of shares outstanding:
Basic		112,982		116,403		114,221		114,594
2024 Notes		—		—		—		1,914
Restricted stock units		341		940		376		869
Stock purchase rights under the ESPP		—		15		5		8
Diluted		113,323		117,358		114,602		117,385
Net income per share:
Basic	$	0.02	$	0.19	$	0.10	$	0.01
Diluted	$	0.02	$	0.19	$	0.10	$	0.01

The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income per share, because their effects were anti-dilutive:


	Three Months Ended				Nine Months Ended
(in thousands)	September 26, 2025		September 27, 2024		September 26, 2025		September 27, 2024
Restricted stock units		894		165		1,022	676
Stock purchase rights under the ESPP		374		—		241	—
Total		1,268		165		1,263	676