WEIGHTED AVERAGE SHARE COUNTS
The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the years ended June 30, 2025, 2024, and 2023:
Year ended June 30,
(000s)202520242023
Shares used in basic earnings per share calculation14,67817,70418,200
Effect of dilutive securities:
Employee stock-based compensation21881199
Warrant652470495
TRG Conversion177
Total effects of dilutive securities1,047551694
Shares used in dilutive earnings per share calculation15,72518,25518,893
Shares considered anti-dilutive using the treasury method(209)(549)(367)
Net income was adjusted as follows:

Year ended June 30,
($000s)202520242023
Net income$36,864 $33,655 $31,582 
Convertible debt - interest expense, net of tax178 — — 
Numerator for diluted EPS$37,042 $33,655 $31,582 

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.