Earnings Per Share

3 Months Ended

Mar. 31, 2025

We calculate basic and diluted earnings per share using the two-class method. Earnings per share under the two-class method is calculated using net income attributable to common stockholders, which is net income reduced by the earnings allocated to participating securities. Our participating securities include share-based payment awards that contain a non-forfeitable right to receive dividends and are considered to participate in undistributed earnings with common shareholders. Participating securities excluded from weighted average common shares outstanding were 184,000 for the three months ended March 31, 2025, and 205,000 for the three months ended March 31, 2024.

The table below presents the computation of earnings per share, including the reconciliation of basic and diluted weighted average shares outstanding (in thousands, except per share data):


	Three Months Ended
	March 31,
	2025		2024
Net income	$	53,545	$	78,885
Amounts allocated to participating securities	(263)		(413)
Net income attributable to common stockholders	$	53,282	$	78,472

Weighted average common shares outstanding:
Basic	37,460		38,205
Effect of dilutive securities:
Stock options and employee stock purchase plan	170		262
Diluted	37,630		38,467

Earnings per share attributable to common stockholders:
Basic	$	1.42	$	2.05
Diluted	$	1.42	$	2.04

Anti-dilutive stock options excluded from diluted earnings per share computations (1)	118		57

(1)Since these options have exercise prices that are higher than the average market prices of our common stock, including them in the calculation would have an anti-dilutive effect on earnings per share.