EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2025

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested equity-settled RSUs and the stock to be issued under the Company’s ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share of common stock as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator for basic and diluted earnings per share:
Net income	$	106,816	$	136,346	$	268,324	$	351,234
Numerator for basic and diluted earnings per share	$	106,816	$	136,346	$	268,324	$	351,234

Denominator:
Weighted average common shares for basic earnings per share	55,557		56,910		56,214		57,445
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP	260		515		320		721
Weighted average common shares for diluted earnings per share	55,817		57,425		56,534		58,166

Net income per share:
Basic	$	1.92	$	2.40	$	4.77	$	6.11
Diluted	$	1.91	$	2.37	$	4.75	$	6.04

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 1,156 thousand and 1,184 thousand during the three and nine months ended September 30, 2025, respectively.

The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 1,426 thousand and 1,056 thousand during the three and nine months ended September 30, 2024, respectively.