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Earnings Per Share

12 Months Ended

Dec. 31, 2024

Earnings Per Share

Earnings Per Share

6. Earnings Per Share

Basic earnings per share is calculated by dividing the net income or loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted earnings per share is computed by dividing the net income or loss by the weighted-average number of shares of common stock, plus potentially dilutive securities outstanding for the period, as determined in accordance with the treasury stock, if-converted, or contingently issuable accounting methods, depending on the nature of the security. For purposes of the diluted earnings per share calculation, stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), and shares potentially issuable in connection with the employee stock purchase plan and convertible senior notes are considered potentially dilutive securities and included to the extent that their addition is not antidilutive.

The following table presents the computations of basic and dilutive earnings (loss) per common share:


	Years Ended December 31,
	2024			2023			2022
Numerator:
Net income (loss)	$	69,190		$	48,155		$	(25,002)
Adjustment for interest expense recognized on convertible senior notes, net of tax		5,863			5,889			—
Net income (loss) — diluted	$	75,053		$	54,044		$	(25,002)
Denominator:
Weighted-average shares outstanding — basic		32,273,850			33,741,213			33,829,495
Effect of dilutive securities:
Stock options		369,662			271,540			—
Restricted stock units		1,064,851			714,190			—
Performance share units		109,512			267,761			—
Convertible senior notes		6,606,305			6,793,421			—
Weighted average shares outstanding — diluted		40,424,180			41,788,125			33,829,495

Earnings (loss) per share — basic	$	2.14		$	1.43		$	(0.74)
Earnings (loss) per share — diluted	$	1.86		$	1.29		$	(0.74)

The Company has the option to settle the conversion obligation for its convertible senior notes in cash, shares or a combination of the two. The Company uses the if-converted method for the convertible senior notes.

The following table presents dilutive securities excluded from the calculation of diluted earnings per share:


	Years Ended December 31,
	2024		2023		2022
Stock options	130,344		259,405		1,683,805
Restricted stock units	232,269		31,050		2,047,571
Performance share units	232,572		308,680		447,770
Employee stock purchase plan	17,946		18,591		—
Convertible senior notes	—		—		4,925,134

For PSUs, these securities were excluded from the calculation of diluted earnings per share as the performance-based or market-based vesting conditions were not met as of the end of the reporting period. All other securities presented in the table above were excluded from the calculation of diluted earnings per share as their inclusion would have had an antidilutive effect.