EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | | | | | | | | | | | | | | | | | |
| | Year ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net income | $ | 711,922 | | | $ | 349,960 | | | $ | 407,641 | |
| Denominator: | | | |
| Weighted-average shares used in computing basic earnings per share | 60,480 | | | 60,454 | | | 60,435 | |
| Add—dilutive potential common shares: | | | | | |
| | | | | |
| Restricted stock units | 54 | | | 4 | | | 16 | |
| Weighted-average shares used in computing diluted earnings per share | 60,534 | | | 60,458 | | | 60,451 | |
| Net income per share of common stock: | | | |
| Basic | $ | 11.77 | | | $ | 5.79 | | | $ | 6.75 | |
| Diluted | $ | 11.76 | | | $ | 5.79 | | | $ | 6.74 | |
The Company excludes potentially dilutive securities from its diluted earnings per share calculation when their effect would be anti-dilutive to earnings per share amounts. The following table summarizes the total potential shares of common stock that were excluded from the diluted per share calculation, because to include them would have been anti-dilutive for the period (in thousands):
| | | | | | | | | | | | | | | | | |
| | Year ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Restricted stock units | 9 | | | 80 | | | 2 | |
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.