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Earnings Per Share
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 9. Earnings Per Share

 

Basic earnings per share is calculated by dividing Net income by the weighted-average number of shares of the Company's common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the AccuTrade acquisition, the Company may have had to pay up to $15.0 million of the contingent consideration in shares of the Company's common stock at a future date. The performance period associated with this contingent consideration ended in February 2025, and given the contingency was not met, no shares were issued and have been excluded from the table below. As part of the DealerClub Acquisition, the Company may pay up to $88.0 million of the contingent consideration in shares of the Company's stock at a future date if mutually agreed upon. Those potential shares have been excluded from the computations below as they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period. The computation of earnings per share is as follows (in thousands, except per share amounts):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income

$

7,658

 

 

$

18,719

 

 

$

12,654

 

 

$

30,884

 

Basic weighted-average common shares outstanding

 

61,708

 

 

 

66,107

 

 

 

63,133

 

 

 

66,319

 

Effect of dilutive stock-based compensation awards (1)

 

1,362

 

 

 

1,559

 

 

 

711

 

 

 

1,271

 

Diluted weighted-average common shares outstanding

 

63,070

 

 

 

67,666

 

 

 

63,844

 

 

 

67,590

 

Earnings per share, basic

$

0.12

 

 

$

0.28

 

 

$

0.20

 

 

$

0.47

 

Earnings per share, diluted

 

0.12

 

 

 

0.28

 

 

 

0.20

 

 

 

0.46

 

 

(1)
There were 1,124 and 28 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively, and 1,548 and 34 potential common shares excluded from diluted weighted-average common
shares outstanding for the nine months ended September 30, 2025 and 2024, respectively, as their inclusion would have had an anti-dilutive effect.