EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

For periods of net income, and when the effects are not anti-dilutive, diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, shares to be purchased under the 2016 Employee Stock Purchase Plan (“ESPP”), and performance stock units, using the more dilutive of the treasury stock or the two-class method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.

Unvested restricted shares and Series A convertible preferred stock shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings (loss) per share excludes from the numerator net income (but not net loss) attributable to the unvested restricted shares and the common shares assumed converted from the preferred shares and excludes the impact of those shares from the denominator. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. As the Company has reported a net loss for the three and nine months ended September 30, 2024, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders for this period.

Earnings per share for the three and nine months ended September 30, 2024 and 2023 are calculated for basic and diluted earnings per share as follows:


	Basic				Diluted				Basic				Diluted
(in thousands, except per share amounts)	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023		2024		2023		2024		2023
Net (loss) income available to common shareholders	$	(24,572)	$	9,534	$	(24,572)	$	9,534	$	(9,465)	$	16,405	$	(9,465)	$	16,405
Earnings allocated to participating securities	—		(891)		—		(881)		—		(1,629)		—		(1,615)
Net (loss) income available to common shareholders	$	(24,572)	$	8,643	$	(24,572)	$	8,653	$	(9,465)	$	14,776	$	(9,465)	$	14,790
Basic Weighted-Average Shares Outstanding	19,404		18,883		19,404		18,883		19,275		17,663		19,275		17,663
Dilutive effect of common stock options, ESPP, and performance stock units					—		242						—		160
Diluted Weighted-Average Shares Outstanding					19,404		19,125						19,275		17,823

(Loss) earnings per share	$	(1.27)	$	0.46	$	(1.27)	$	0.45	$	(0.49)	$	0.84	$	(0.49)	$	0.83

The number of shares of potentially dilutive securities excluded from the computation of diluted net loss per share attributable to common stockholders was 2.7 million and 2.3 million for the three and nine months ended September 30, 2024, respectively, because including them would have been anti-dilutive. The Company has also excluded approximately 4.3 million shares from the computation of diluted net loss per share for the three and nine months ended September 30, 2024, representing the maximum number of conversion shares from the Convertible Senior Notes.

The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, was 2.1 million and 2.4 million for the three and nine months ended September 30, 2023, respectively.