NET INCOME (LOSS) PER SHARE
Basic net income (loss) per common share is computed by dividing the net income (loss) relevant to the common stockholders by the weighted-average number of shares outstanding during the year. Diluted net income (loss) per common share uses the same net income (loss) divided by the sum of the weighted-average number of shares of common stock outstanding during the period, plus dilutive effects of options, performance stock units (“PSUs”) and restricted stock units (“RSUs”) outstanding during the period calculated using the treasury method and the potential dilutive effects of preferred stocks (if any) calculated using the if-converted method.
| | | | | | | | | | | | | | | | | |
| (in thousands, except for per share data) | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Numerator (both basic and diluted) | | | | | |
| Net income (loss) relevant to common stockholders | $ | 824 | | | $ | (137,859) | | | $ | 85,634 | |
| | | | | |
| Denominator | | | | | |
| Denominator for basic net income (loss) per share | 103,838 | | | 105,469 | | | 113,004 | |
| Dilutive effect of stock options | — | | | — | | | — | |
| Dilutive effect of performance stock units | 502 | | | — | | | 42 | |
| Dilutive effect of restricted stock units | 1,058 | | | — | | | 370 | |
| Denominator for diluted net income (loss) per share | 105,398 | | | 105,469 | | | 113,416 | |
| | | | | |
| Basic net income (loss) per common share | 0.01 | | | (1.31) | | | 0.76 | |
| Diluted net income (loss) per common share | 0.01 | | | (1.31) | | | 0.76 | |
As shown in the table below, the following stock options, RSUs and PSUs outstanding as of December 31, 2025, 2024, and 2023 have not been included in the calculation of diluted income (loss) per common share for the years ended December 31, 2025, 2024, and 2023 because they would be anti-dilutive to the calculation of diluted net income (loss) per common share:
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| (in thousands) | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | 164 | | | 179 | | | 286 | |
| Restricted stock units | 14 | | | 1 | | | 82 | |
| Performance stock units | 463 | | | — | | | 411 | |
| Total | 641 | | | 180 | | | 779 | |
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.