Basic and Diluted Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2025

Basic and Diluted Net Income (Loss) Per Share [Abstract]

Basic and Diluted Net Income (Loss) Per Share

6. Basic and Diluted Net Income (Loss) Per Share

Basic net income (loss) per share

We calculated our basic net income (loss) per share for the three and six months ended June 30, 2025 and 2024 by dividing our net income (loss) by our weighted-average number of common shares outstanding during the period.

Diluted net income (loss) per share

For the three months ended June 30, 2025, we recorded net income. As a result, we computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period. We calculated our diluted net income per share as follows (in thousands, except per share amounts):

		Income	Shares		Amount
Three Months Ended June 30, 2025		(Numerator)	(Denominator)		Per Share
Net income	$	123,551	159,137	$	0.78
Effect of dilutive securities:
Shares issuable upon exercise of stock options		-	21
Shares issuable upon vesting of restricted stock awards		-	1,449
Shares issuable related to our Employee Stock Purchase Plan		-	86
Shares issuable related to 1.75 percent convertible senior notes		3,215	10,702
Shares issuable related to 0 percent convertible senior notes		792	10,936
Diluted net income	$	127,558	182,331	$	0.70

For the six months ended June 30, 2025 and three and six months ended June 30, 2024, we incurred a net loss; therefore, we did not include dilutive common equivalent shares in the computation of diluted net loss per share because the effect would have been anti-dilutive. Common stock from the following would have had an anti-dilutive effect on net loss per share:

●    1.75 percent convertible senior notes, or 1.75% Notes;

●    0 percent convertible senior notes, or 0% Notes;

●    Note hedges related to the 0% Notes;

●    Dilutive stock options;

●    Unvested restricted stock units, or RSUs;

●    Unvested performance restricted stock units, or PRSUs; and

●    Employee Stock Purchase Plan, or ESPP.

For the three and six months ended June 30, 2024, common stock underlying the 0.125 percent convertible senior notes, or 0.125% Notes, and note hedges related to the 0.125% Notes would also have had an anti-dilutive effect on net loss per share.

As of June 30, 2025, we had warrants related to our 0% Notes outstanding. As of June 30, 2024, we had warrants related to our 0% and 0.125% Notes outstanding. We will include the shares issuable under these warrants in our calculation of diluted earnings per share when the average market price per share of our common stock for the reporting period exceeds the strike price of the warrants.