Net Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2025

Note 15. Net Earnings (Loss) per Share

For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net earnings (loss) per share (in thousands, except for per-share amounts):


	Year Ended December 31,
	2025			2024		2023
Numerator:
Net income (loss)	$	(10,847	)	$	40,838	$	(43,366	)
Denominator:
Weighted average common shares outstanding, basic		29,283			27,953		26,752
Dilutive effect of:
Stock plans		—			1,518		—
Convertible notes		—			—		—
Weighted average common shares outstanding, diluted		29,283			29,471		26,752

Net earnings (loss) per share — basic	$	(0.37	)	$	1.46	$	(1.62	)
Net earnings (loss) per share — diluted	$	(0.37	)	$	1.39	$	(1.62	)

Basic net earnings (loss) per share is calculated using our net income and our weighted average outstanding common shares.

Diluted net earnings (loss) per share is calculated using our net income (loss) attributable to common stockholders with interest charges applicable to our convertible debt added back under the if converted method, if dilutive, and our weighted average outstanding common shares including the dilutive effect of stock awards and employee stock purchase plan shares as determined under the treasury stock method and of our convertible notes using the if converted method, if dilutive. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards and the potential share settlement impact related to our convertible notes from the diluted loss per share calculation as their inclusion would have an antidilutive effect.

The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net earnings (loss) per share as of the dates presented because their effect would have been antidilutive (in thousands):


	Year Ended December 31,
	2025		2024		2023
Stock options		438		—		1,466
RSUs, MSUs and PSUs		990		349		1,252
Employee stock purchase plan shares		—		—		51
2021 Notes		878		2,589		2,589
2025 Notes		711		—		—