Net Income (Loss) Per Common Share
The computation of basic and diluted net income (loss) per common share for the periods indicated was as follows (in thousands, except per share data):
 Years Ended December 31,
2025 2024 2023
Numerator:
Net income (loss)$17,884 $(29,747)$29,325 
Denominator:
Weighted-average common shares — basic66,041 65,879 65,980 
Effect of dilutive potential common shares3,264 — 3,340 
Weighted-average common shares — diluted69,305 65,879 69,320 
Basic net income (loss) per common share$0.27 $(0.45)$0.44 
Diluted net income (loss) per common share$0.26 $(0.45)$0.42 
Potentially dilutive shares excluded, weighted-average7,059 12,057 4,688 
Unvested restricted stock awards are included in the calculation of basic weighted-average shares for all periods presented with net income because such shares are participating securities; however, the impact was immaterial.
Potentially dilutive shares have been excluded from the computation of diluted net income per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2016Feb 28, 2017

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.