NET INCOME PER SHARE

12 Months Ended

Dec. 31, 2025

NOTE 12: 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 stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the convertible Notes.

As noted in Note 8, “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:


	Year Ended December 31,
(in thousands, except per share amounts)	2025		2024		2023
Numerator:
Net income from continuing operations	$	1,216	$	50,718	$	88,338
Net loss from discontinued operations		(44,526)		(11,501)		(4,344)
Net income	$	(43,310)	$	39,217	$	83,994
Denominator:
Weighted average number of shares outstanding:
Basic		113,660		115,120		111,651
2024 Notes		—		1,435		4,320
Restricted stock units		500		921		1,355
Stock purchase rights under ESPP		22		6		33
Diluted		114,182		117,482		117,359
Net income (loss) per share:
Basic:
Continuing operations	$	0.01	$	0.44	$	0.79
Discontinued operations		(0.39)		(0.10)		(0.04)
Basic earnings per share	$	(0.38)	$	0.34	$	0.75

Diluted:
Continuing operations	$	0.01	$	0.43	$	0.75
Discontinued operations		(0.39)		(0.10)		(0.03)
Diluted earnings per share	$	(0.38)	$	0.33	$	0.72

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


	Year Ended December 31,
(in thousands)	2025		2024		2023
Restricted stock units		990		539		276
Stock purchase rights under the ESPP		186		—		—