EARNINGS PER SHAREThe following table sets forth a reconciliation of the information used in computing basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023 (in thousands, except per share amounts): | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Numerator for basic and diluted EPS: | | | | | |
| Income from continuing operations | $ | 102,830 | | | $ | 121,053 | | | $ | 89,143 | |
| Income (loss) from discontinued operations, net of tax | (22) | | | (1,157) | | | 1,507 | |
| Net income | $ | 102,808 | | | $ | 119,896 | | | $ | 90,650 | |
| Denominator for basic and diluted EPS: | | | | | |
| Weighted average shares outstanding - Basic | 34,735 | | | 33,601 | | | 33,320 | |
| Dilutive effect of share-based awards | 309 | | | 514 | | | 438 | |
| Dilutive impact of convertible notes | 550 | | | 1,534 | | | — | |
| Denominator for diluted EPS | 35,594 | | | 35,649 | | | 33,758 | |
| | | | | |
| Basic earnings per share: | | | | | |
| Income from continuing operations | $ | 2.96 | | | $ | 3.60 | | | $ | 2.68 | |
| Income (loss) from discontinued operations | — | | | (0.03) | | | 0.05 | |
| Basic earnings per share | 2.96 | | | 3.57 | | | 2.72 | |
| | | | | |
| Diluted earnings per share: | | | | | |
| Income from continuing operations | $ | 2.89 | | | $ | 3.40 | | | $ | 2.64 | |
| Income (loss) from discontinued operations | — | | | (0.03) | | | 0.04 | |
| Diluted earnings per share | 2.89 | | | 3.36 | | | 2.69 | |
The diluted weighted average share calculations do not include the following securities for the years ended December 31, 2025, 2024 and 2023, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands): | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Time-vested stock options, restricted stock and restricted stock units | 184 | | | 1 | | | 1 | |
| Performance-vested restricted stock units | 80 | | | 31 | | | 84 | |
| Common Stock issuable upon conversion of convertible notes | 412 | | | — | | | — | |
During the year ended December 31, 2025 and December 31, 2023, the potential conversion of the 2030 Convertible Notes and 2028 Convertible Notes, respectively, were not included in the diluted earnings per share calculation because the average closing price of the Company's common stock for the applicable periods, which is used as the basis for determining the dilutive effect on earnings per share, was less than the applicable conversion prices.
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.