18. EARNINGS PER SHARE

The table below presents the information used to compute basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023:

 Year Ended December 31,
(In thousands, except per share data)202520242023
Net income$77,480 $53,412 $58,669 
Weighted-average shares outstanding for basic earnings per share26,931,761 27,057,329 27,027,681 
Add: Dilutive effect of employee stock options and awards113,409 99,791 52,837 
Weighted-average shares outstanding for diluted earnings per share27,045,170 27,157,120 27,080,518 
Basic earnings per share$2.88 $1.97 $2.17 
Diluted earnings per share$2.86 $1.97 $2.17 
Anti-dilutive employee stock options and awards— 58 19,030 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 26, 2025
2023Feb 21, 2024
2022Feb 24, 2023
2021Feb 23, 2022
2020Feb 23, 2021
2019Feb 25, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Mar 1, 2017
2015Feb 25, 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.