EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2026

Basic earnings per share attributable to the Company’s stockholders is computed by dividing net income or loss attributable to the Company’s stockholders by the weighted average number of shares of common stock outstanding for the period. The Company does not have any equity instruments that are dilutive, except for employee stock-based awards and the 2027 Convertible Notes.

The table below shows the reconciliation of the number of shares used in the computation of basic and diluted earnings per share (in thousands):


	Three Months Ended March 31,
	2026	2025
Weighted average number of shares used in computation of basic earnings per share	60,960	60,559
Additional shares from the assumed exercise of employee stock awards	547	281
Additional shares related to the effect of dilutive convertible senior notes	469	—
Weighted average number of shares used in computation of diluted earnings per share	61,976	60,840

The number of stock-based awards that could potentially dilute future earnings per share and that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive was 89.6 thousand, and 139.6 thousand for the three months ended March 31, 2026 and 2025, respectively.

As per ASU 2020-06, the if-converted method is required for calculating any potential dilutive effect from convertible instruments. For the three months ended March 31, 2026, the average price of the Company's common stock exceeded the per share conversion price of the 2027 Convertible Notes of $90.27, and as such, their dilutive effect is included in the number of shares used for computation of diluted earnings per share for the aforementioned period. The average price of the Company's common stock did not exceed the per share conversion price of the 2031 Convertible Notes of $140.4, and other requirements for these notes to be convertible were not met and as such, there was no dilutive effect from the 2031 Convertible Notes in respect with the aforementioned period.