Earnings Per Share
Basic earnings per share is computed in accordance with ASC 260, Earnings per Share, based on weighted average outstanding common shares. Diluted earnings per share is computed based on basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, RSUs, and certain contingently issuable shares for which performance targets have been achieved.

The following table reconciles the weighted average share amounts used to compute both basic and diluted earnings per share (in thousands):
 
Years Ended December 31,
 
202520242023
Weighted average shares outstanding:
Basic weighted average shares outstanding
103,956 105,491 108,497 
Add: Dilutive effect of stock options, RSUs, and contingently issuable shares
849 1,002 360 
Diluted weighted average shares outstanding
104,805 106,493 108,857 

The diluted earnings per share computation excludes 1.7 million, 1.1 million, and 1.3 million options to purchase shares, RSUs, and contingently issuable shares during the years ended December 31, 2025, 2024, and 2023, respectively, as their effect would be anti-dilutive.

Common stock outstanding as of December 31, 2025 and 2024, was 102,712,071 and 105,254,913, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Mar 1, 2019
2017Feb 27, 2018
2016Mar 1, 2017
2015Feb 26, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.