Note 12. Net Income per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts):

 

 

 

Year Ended January 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$

115,383

 

 

$

244,621

 

 

$

129,032

 

Accretion and dividend on series A convertible preferred stock

 

 

(17,138

)

 

 

(17,143

)

 

 

(17,105

)

Undistributed earnings attributable to preferred stockholders

 

 

(11,192

)

 

 

(25,911

)

 

 

(12,780

)

Net income attributable to common stockholders, basic and diluted

 

$

87,053

 

 

$

201,567

 

 

$

99,147

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used to compute net income per share attributable to common stockholders, basic

 

 

144,195

 

 

 

144,228

 

 

 

144,203

 

Dilutive effect of awards issued under employee equity plans

 

 

3,460

 

 

 

3,434

 

 

 

3,549

 

Dilutive effect of shares related to the convertible senior notes

 

 

1,500

 

 

 

981

 

 

 

834

 

Weighted-average number of shares used to compute net income per share attributable to common stockholders, diluted

 

 

149,155

 

 

 

148,643

 

 

 

148,586

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to common stockholders, basic

 

$

0.60

 

 

$

1.40

 

 

$

0.69

 

Net income per share attributable to common stockholders, diluted

 

$

0.58

 

 

$

1.36

 

 

$

0.67

 

 

The dilutive effect was computed using the if-converted method for convertible instruments and the treasury stock method for all other potential common shares.

The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive (in thousands):

 

 

 

Year Ended January 31,

 

 

 

2026

 

 

2025

 

 

2024

 

Options to purchase common stock

 

 

 

 

 

 

 

 

7

 

Restricted stock units

 

 

210

 

 

 

3

 

 

 

57

 

Employee stock purchase plan

 

 

 

 

 

107

 

 

 

664

 

Shares related to convertible preferred stock

 

 

18,566

 

 

 

18,540

 

 

 

18,587

 

Shares related to the convertible senior notes

 

 

 

 

 

227

 

 

 

 

Total

 

 

18,776

 

 

 

18,877

 

 

 

19,315

 

Historical Timeline

Fiscal YearFiled
2026Mar 9, 2026Showing above
2025Mar 10, 2025
2024Mar 11, 2024
2023Mar 13, 2023

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.