Earnings Per Share

6 Months Ended

Jun. 30, 2025

4. Earnings Per Share

Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of restricted stock units, incremental common shares issuable upon exercise of stock options and employee stock purchases. The dilutive effect of outstanding shares is reflected in diluted earnings per share using the treasury stock method, as applicable. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

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


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share amounts)	2025		2024		2025		2024
Net income per share:
Numerator:
Net income	$	57,935	$	36,056	$	118,238	$	68,954
Denominator:
Weighted-average shares outstanding - basic		107,586		107,721		107,412		107,906
Effect of potentially dilutive common shares		934		1,326		1,227		1,722
Weighted-average shares outstanding - diluted		108,520		109,047		108,639		109,628
Basic net income per share	$	0.54	$	0.33	$	1.10	$	0.64
Diluted net income per share	$	0.53	$	0.33	$	1.09	$	0.63