14. Net Income Per Common Share

The following is a reconciliation of the weighted average common shares outstanding used to compute basic and diluted net income per common share:

 

 

2025

 

 

2024

 

 

2023

 

Basic weighted average common
    shares outstanding

 

 

35,417,235

 

 

 

35,221,758

 

 

 

35,093,963

 

Effect of dilutive securities - equity
   compensation awards

 

 

675,925

 

 

 

487,024

 

 

 

868,815

 

Diluted weighted average common
   shares outstanding

 

 

36,093,160

 

 

 

35,708,782

 

 

 

35,962,778

 

Equity compensation awards for which total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net income, and accordingly, are excluded from diluted weighted average common shares outstanding. Anti-dilutive equity instruments of 804,104; 1,037,975; and 431,392 common shares were excluded from the computation of diluted net income per share for the years ended December 31, 2025, 2024, and 2023, respectively.

No cash dividends were declared or paid as of December 31, 2025, 2024, and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2018Feb 13, 2019
2017Feb 23, 2018
2016Feb 28, 2017
2015Feb 29, 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.