Earnings Per Share
A reconciliation of the number of shares in the calculation of basic and diluted earnings per share follows:
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
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| (in thousands) |
| Basic earnings per share: | | | | | |
| Numerator: | | | | | |
| Net (loss) income | $ | (17,032) | | | $ | 30,958 | | | $ | 23,412 | |
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| Denominator: | | | | | |
| Weighted-average common shares outstanding used in computing basic earnings per share | 187,819 | | | 185,277 | | | 182,371 | |
| Basic earnings per share | $ | (0.09) | | | $ | 0.17 | | | $ | 0.13 | |
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| Diluted earnings per share: | | | | | |
| Numerator: | | | | | |
| Net (loss) income | $ | (17,032) | | | $ | 30,958 | | | $ | 23,412 | |
| Denominator: | | | | | |
| Weighted-average shares used in computing basic earnings per share | 187,819 | | | 185,277 | | | 182,371 | |
| Add dilutive impact of employee equity plans | — | | | 3,149 | | | 3,609 | |
| Weighted-average shares used in computing diluted earnings per share | 187,819 | | | 188,426 | | | 185,980 | |
| Diluted earnings per share | $ | (0.09) | | | $ | 0.16 | | | $ | 0.13 | |
The dilutive impact of employee equity awards was not applicable to the calculation of diluted net loss per share for the year ended December 31, 2025, as the effect would have been anti-dilutive.
The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of the diluted net income per share attributable to common stockholders for the periods presented because their effect would have been anti-dilutive or for which the performance condition had not been met at the end of the period:
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| | | Year Ended December 31, |
| | | 2024 | | 2023 |
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| | | (in thousands) |
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| Restricted stock units | | | 19 | | | 30 | |
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| Total anti-dilutive shares | | | 19 | | | 30 | |
The calculation of diluted earnings per share requires us to make certain assumptions related to the use of proceeds that would be received upon the assumed exercise of stock options, purchase of restricted stock or proceeds from the employee stock purchase plan.
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.