Net Income per Common Share

9 Months Ended

Sep. 30, 2025

Basic net income per share is computed based on the weighted-average number of common shares outstanding. Diluted net income per share is computed based on the weighted-average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. Performance stock units are excluded from the calculation of dilutive potential common shares until the performance conditions have been satisfied. Anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding and were 214,801 and 466,127 for the three months ended September 30, 2025 and 2024, respectively, and 380,740 and 450,275 for the nine months ended September 30, 2025 and 2024, respectively.

The table below sets forth the computation of basic and diluted net income per share:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share amounts)	2025		2024		2025		2024
Net income	$	7,216	$	7,189	$	15,242	$	16,997

Basic - weighted-average shares outstanding:	23,889,157		24,980,536		23,974,054		25,304,985
Effect of dilutive securities:
Employee stock options and other	301,882		41,949		275,615		77,295
Diluted - weighted-average shares outstanding:	24,191,039		25,022,485		24,249,669		25,382,280
Net income per share:
Basic	$	0.30	$	0.29	$	0.64	$	0.67
Diluted	$	0.30	$	0.29	$	0.63	$	0.67