Weighted Average Common Shares

12 Months Ended

Dec. 31, 2025

15. WEIGHTED AVERAGE COMMON SHARES

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock Method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock units were settled for common shares during the period.

The weighted average number of common shares used to compute basic and diluted net income per share for the years ended December 31, 2025, 2024 and 2023 were as follows:


	For the Year Ended December 31,
	2025		2024		2023
Basic common shares outstanding		64,805		65,646		66,468
Common stock equivalents		1,351		1,596		1,358
Diluted common shares outstanding		66,156		67,242		67,826

Certain unexercised stock option awards are excluded from our computations of diluted earnings per share, as these shares were out-of-the-money and their effect would have been anti-dilutive. There were no anti-dilutive options for each of the years ended December 31, 2025 and 2024. For the year ended December 31, 2023, fewer than 0.1 million anti-dilutive shares were excluded from the calculation of diluted earnings per share.

In addition to the common stock issued upon the exercise of employee stock options and the vesting of restricted stock units to be settled in stock, we issued less than 0.1 million shares for each of the years ended December 31, 2025, 2024 and 2023, pursuant to our employee stock purchase plan.