NET INCOME (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2026

Basic net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding plus dilutive potential common shares outstanding during the period.

Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options, the vesting of RSUs and PSUs and the purchase of shares from the ESPP (using the treasury stock method), if applicable. Potential common shares associated with convertible senior notes are treated under the if-converted method. Adjustments are made to the diluted net income (loss) per common share calculation as if the Company had converted the convertible senior notes on the first day of each period presented. Adjustments to the numerator are made to add back the interest expense associated with the convertible senior notes on a post-tax basis. Adjustments to the denominator reflect the number of shares assumed to be convertible at the beginning of the period.

Potential common shares are excluded from the diluted net income (loss) per common share computation to the extent they would be antidilutive.

The following table sets forth the computation of basic and diluted net income (loss) per common share for the three and six months ended June 30, 2026 and 2025 (in thousands, except per common share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income (loss)	$	4,653	$	(4,847)	$	7,569	$	(35)








Denominator:
Weighted average common shares outstanding—basic	39,462		45,459		39,961		45,867
Computation of diluted securities:

Dilutive effect of stock options	30		—		21		—
Dilutive effect of RSUs	808		—		623		—


Weighted average common shares outstanding—diluted	40,300		45,459		40,605		45,867
Net income (loss) per common share:
Basic and diluted net income (loss) per common share	$	0.12	$	(0.11)	$	0.19	$	(0.00)

The following table summarizes the outstanding stock options, RSUs, ESPP share options and convertible senior notes that were excluded from the diluted net income (loss) per common share calculation because the effects of including these potential shares were antidilutive in the periods presented (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Weighted average number of stock options	5,956	6,858	6,029	6,921
2025 Notes	—	2,821	—	2,821
Weighted average number of RSUs	2,256	4,703	2,127	4,417

Weighted average ESPP share options	83	101	83	102
Total	8,295	14,483	8,239	14,261

The table above does not include contingent shares associated with the 2029 Notes being convertible at a premium, nor does it include PSUs as their performance targets have not yet been achieved.