XML 24 R11.htm IDEA: XBRL DOCUMENT

Earnings Per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share

Earnings Per Share

5. 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 Company’s 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 per common share:


	Three Months Ended March 31,
	2025			2024
Numerator:
Net income	$	2,417		$	27,713
Adjustment for interest expense recognized on convertible senior notes		—			1,622
Net income - diluted	$	2,417		$	29,335
Denominator:
Weighted-average shares outstanding — basic		31,793,739			32,326,589
Effect of dilutive securities:
Stock options		249,447			468,057
Restricted stock units		796,967			1,134,716
Convertible senior notes		—			7,509,104
Weighted average shares outstanding — diluted		32,840,153			41,438,466

Earnings per share — basic	$	0.08		$	0.86
Earnings per share — diluted	$	0.07		$	0.71

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


	Three Months Ended March 31,
	2025		2024
Stock options	130,344		—
Restricted stock units	228,999		1,050
Performance share units	313,642		511,680
Employee stock purchase plan	32,579		17,320
Convertible senior notes	6,606,305		—

For PSUs, these securities were excluded from the calculation of diluted earnings per share as the 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.