Basic and Diluted Net Loss Per Share

12 Months Ended

Dec. 31, 2025

Earnings Per Share [Abstract]

Basic and Diluted Net Loss Per Share

Note 14. Basic and Diluted Net Loss Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and convertible preferred stock, to the extent dilutive. For the years ended December 31, 2024 and 2023, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share of common stock (in thousands, except per share data):

	Year Ended December 31,
	2025		2024		2023
Numerator
Net income (loss)	$	43,391	$	(58,288)	$	(165,240)
Denominator
Weighted-average common shares outstanding for basic net income (loss) per share	89,481		92,110		94,912
Effect of dilutive securities:
Shares of common stock issuable under equity incentive awards outstanding	990		—		—
Shares of common stock related to convertible preferred stock	743		—		—
Weighted-average common shares outstanding for diluted net income (loss) per share	91,214		92,110		94,912
Basic net income (loss) per share	$	0.48	$	(0.63)	$	(1.74)
Diluted net income (loss) per share	$	0.48	$	(0.63)	$	(1.74)

The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):

	Year Ended December 31,
	2025	2024	2023
Shares of common stock issuable under equity incentive plans outstanding	6,910	9,860	9,999
Shares of common stock related to convertible preferred stock	—	743	743
Potential common shares excluded from diluted net loss per share	6,910	10,603	10,742

Pursuant to the terms of the 2026 Convertible Notes Indenture, effective January 1, 2022, the Company made an irrevocable election to, upon conversions of the 2026 Convertible Notes, settle the principal portion of such converted 2026 Convertible Notes only in cash, with the conversion premium to be settled in cash or shares at the Company’s election.

The Company calculates the potential dilutive effect of the 2026 Convertible Notes under the if-converted method. Under this method, only the amounts settled in excess of the principal will be considered in diluted earnings per share, in line with the terms of the 2026 Convertible Notes Indenture.