Net Income (Loss) Per Basic and Diluted Share
The Company computes EPS in conformity with the two-class method required for participating securities. The following table provides a reconciliation of the numerators and denominators of the basic and diluted per share computations for net income (loss) attributable to common stockholders:
(in millions, except per share amounts)
Year Ended December 31,202520242023
Numerator:
Net income (loss) attributable to common stockholders–basic and diluted
$48.7 $30.4 $(11.8)
Denominator:
Weighted-average shares of common stock–basic
74.3 76.5 76.7 
Effect of dilutive RSUs, stock options and ESPP shares
1.6 2.4 — 
Weighted-average shares of common stock–diluted
75.9 78.9 76.7 
Net income (loss) per share attributable to common stockholders:
Basic$0.66 $0.40 $(0.15)
Diluted$0.64 $0.38 $(0.15)
The following common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive:
(in millions)
Year Ended December 31,202520242023
Shares subject to outstanding stock options and RSUs
4.8 4.1 8.9 
ESPP
0.1 — 0.3 

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.