Net (Loss) Income Per Share
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Years Ended December 31,
202520242023
Basic
Numerator:
Net (loss) income$(103,421)$(837,068)$18,180 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
107,484 103,300 116,504 
Net (loss) income per share, basic
$(0.96)$(8.10)$0.16 
Diluted
Numerator:
Net (loss) income$(103,421)$(837,068)$18,180 
Convertible senior notes activity, net of tax
— — (61,694)
Net loss, diluted
$(103,421)$(837,068)$(43,514)
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
107,484 103,300 116,504 
Shares related to convertible senior notes— — 12,065 
Weighted average shares used to compute net loss per share, diluted107,484 103,300 128,569 
Net loss per share, diluted
$(0.96)$(8.10)$(0.34)

The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):
Years Ended December 31,
202520242023
Shares related to stock plan activity3,786 7,206 8,442 
Shares related to convertible senior notes2,069 9,234 — 
Total common stock equivalents5,855 16,440 8,442 

Historical Timeline

Fiscal YearFiled
2025Mar 9, 2026Showing above
2024Feb 24, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 22, 2022

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.