Net Earnings per Share Available to Common Stockholders

3 Months Ended

Mar. 31, 2026

Net Earnings per Share Available to Common Stockholders

The Company adopted ASC 260, Earnings per share, guidance from inception. Earnings per share (“EPS”) is the amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share.

We calculate basic earnings per share by dividing net income attributable to common stockholders (the “numerator”) by the weighted average number of common shares outstanding (the “denominator”) during the reporting period. Diluted earnings per share is calculated similarly but reflects the potential impact of outstanding stock options and awards, shares issued in conjunction with the Company’s ESPP by applying the treasury stock method, and other commitments to issue common stock, including shares issuable upon the conversion of convertible notes by applying the if-converted method, except where the impact would be anti-dilutive. For diluted earnings per share, we also adjust the numerator for interest expense on convertible debt, net of the related income tax effect, when assuming conversion under the if-converted method.

The following table provides a reconciliation of the numerator and the denominator used in computing basic and diluted earnings per share attributable to common stockholders (in thousands, except net earnings per share data):


	Three Months Ended
	March 31,
	2026		2025

Numerator for basic earnings per share:
Net income (loss) attributable to common stockholders	$	70,653	$	(23,814)
Net income (loss), numerator—basic	$	70,653	$	(23,814)

Numerator for diluted earnings per share:
Net income (loss) attributable to common stockholders	$	70,653	$	(23,814)
Add: debt interest cost, net of taxes	4,200		—
Net income (loss), numerator—diluted	$	74,853	$	(23,814)

Denominator for basic earnings per share:
Weighted average common shares outstanding	281,719		230,210

Denominator for diluted earnings per share:
Weighted average common shares outstanding—basic	281,719		230,210
Effect of dilutive securities:
Convertible notes	21,371		—
Stock options and awards	16,618		—
Weighted average common shares outstanding—diluted	319,708		230,210

Net earnings per share available to common stockholders:
Basic	$	0.25	$	(0.10)
Diluted	$	0.23	$	(0.10)

The following common stock equivalents were excluded from the computation of our earnings per share available to common stockholders, diluted, for the three months ended March 31, 2025, as their inclusion would have been antidilutive (in thousands):


												Three Months Ended March 31,

												2025

Convertible notes												59,955

Stock options and awards												7,265
												67,220