Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2025

EARNINGS (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding. Diluted net income (loss) per share is computed by also considering the impact of potential common stock on both net income (loss) and the weighted average number of shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding time-based and market-based restricted stock units, using the treasury stock method, and the effect of our convertible debt using the if-converted method. Our potential common stock is included in the diluted earnings per share calculation when adding such potential common stock would not be anti-dilutive. Market-based awards are included in the computation of diluted earnings per share only to the extent that the underlying conditions (and any applicable market condition) (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. When we report a net loss for the period presented, the calculation of diluted net loss per share excludes our potential common stock, as the effect would be anti-dilutive.

The outstanding convertible notes were excluded from the computation of diluted earnings per share for the periods presented because the conversion price exceeded the average market price of the common stock, rendering the convertible notes nonconvertible.

A reconciliation of the number of common shares used in the calculation of basic and diluted net income (loss) per share per share is presented as follows (in thousands, except per share data):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income (loss)	$	906	$	(7,267)


Denominator:
Weighted average shares - Basic	19,052		19,047

Dilutive RSUs	680		—
Weighted average shares - Diluted	19,732		19,047
Net income (loss) per share - Basic	$	0.05	$	(0.38)
Net income (loss) per share - Diluted	$	0.05	$	(0.38)