NOTE 2: EARNINGS PER SHARE
The following table reconciles the number of common shares used to compute basic and diluted earnings per common share:
Fiscal Year Ended September 30,
(in thousands, except per share amounts)202520242023
Basic earnings per common share:
Net Income - Basic$109,613 $83,095 $38,463 
Weighted shares outstanding - Basic57,466 54,935 55,586 
Basic earnings per common share$1.91 $1.51 $0.69 
Diluted earnings per common share:
Net Income - Basic$109,613 $83,095 $38,463 
Add: Convertible Notes interest expense, net of tax*8,792 9,947 4,327 
Net Income - Diluted$118,405 $93,042 $42,790 
Weighted shares outstanding - basic57,466 54,935 55,586 
Equity-based compensation awards - effect of dilution**1,681 1,651 1,482 
Convertible Notes - effect of dilution***
24,236 27,862 23,797 
Weighted Shares Outstanding - Diluted83,383 84,448 80,865 
Diluted earnings per common share$1.42 $1.10 $0.53 
Potential common shares excluded from the calculation of diluted earnings per share above:
Convertible Notes***
— — 5,596 
Restricted stock****1,428782 801 
Total1,4287826,397
*    Effective January 1, 2024, we were required to combination settle the 2024 Convertible Notes. Only the first quarter of 2024 interest expense is included for the year ended September 30, 2024. The year ended September 30, 2023 includes $5.4 million gain on the partial extinguishment of debt, associated with the 2025 Convertible Notes, which was recorded to “Interest expense” in our consolidated statement of operations. See Note 8: Debt for additional information.
**    Includes time-based share-based awards and performance-based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions.
***    Approximately 3.8 million of weighted average shares were included for the year ended September 30, 2025 due to the settlement of the 2025 Convertible Notes. As we were required to combination settle the 2024 Convertible Notes effective January 1, 2024, only weighted average shares of 883,283 were included until settlement on July 1, 2024. On July 1, 2024, the $34.4 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand and 77,328 shares of Class A Common Stock, equal to the accreted value, were issued as part of the 2024 Convertible Notes conversion. The 2024 Convertible Notes were considered anti-dilutive in the sequencing calculation for the fiscal year ended September 30, 2023. See Note 8: Debt for conversion price, initial conversion rate and additional information on the 2024 Convertible Notes, 2025 Convertible Notes and 2029 Convertible Notes.
****    Includes antidilutive share-based awards and performance-based share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period.

Historical Timeline

Fiscal YearFiled
2025Nov 13, 2025Showing above
2024Nov 13, 2024
2023Nov 15, 2023
2020Dec 14, 2020
2019Dec 5, 2019
2018Nov 14, 2018
2017Nov 15, 2017
2016Dec 14, 2016
2015Dec 24, 2015

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.