Note O—Net Income Per Share
The calculation of net income per share for the years ended December 31, 2025, 2024 and 2023, is reflected in the following table (in thousands, except per share amounts):
Year Ended December 31,
 202520242023
Net income$132,990 $251,598 $411,146 
Basic:
       Weighted average shares100,116 102,661 105,530 
Diluted:
        Weighted average shares100,116 102,661 105,530 
        Dilutive effect of potential common shares196 367 544 
        Diluted weighted average shares100,312 103,028 106,074 
Net income per share:
        Basic $1.33 $2.45 $3.90 
        Diluted $1.33 $2.44 $3.88 
Potential common shares include the dilutive effect of unvested performance-based restricted stock, restricted stock which contains forfeitable rights to dividends and stock units.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2021Feb 14, 2022

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.