Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2025

5. NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Potentially dilutive shares are excluded from the computation of diluted net loss per share when their inclusion would have an anti-dilutive effect. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income (loss) per share calculation.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income (loss) per share computation (in thousands):


	For the Thirteen Weeks Ended					For the Thirty-Nine Weeks Ended
	September 30, 2025		October 1, 2024			September 30, 2025		October 1, 2024
Numerator:
Net income (loss)	$	465	$	(2,927	)	$	36,165	$	21,953
Denominator:
Weighted-average shares outstanding – basic		21,893		23,111			22,265		23,246
Dilutive effect of equity awards		590		—			645		618
Weighted-average shares outstanding – diluted		22,483		23,111			22,910		23,864

Net income (loss) per share:
Basic	$	0.02	$	(0.13	)	$	1.62	$	0.94
Diluted	$	0.02	$	(0.13	)	$	1.58	$	0.92

For each of the thirteen weeks ended September 30, 2025 and October 1, 2024, there were approximately 0.7 million and 1.0 million, respectively, of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive. For each of the thirty-nine weeks ended September 30, 2025 and October 1, 2024, there were approximately 0.6 million and 1.0 million, respectively, of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive.