EARNINGS (LOSS) PER SHARE
Basic earnings per share (EPS) is computed by dividing net income, or loss, by the weighted average number of common shares outstanding for the period. Diluted EPS reflects potential dilution that could occur if securities to issue common stock were exercised or converted into common stock. Diluted EPS includes the dilutive effect of stock-based compensation outstanding after application of the treasury stock method.
 Year Ended December 31,
(In thousands, except per share data)202520242023
Net income (loss)$77,882 $34,684 $(22,573)
Weighted average common shares outstanding31,559 31,485 31,084 
Add: Dilutive impact of stock options14 19 — 
Add: Dilutive impact of restricted stock units and performance share units247 463 — 
Diluted weighted average common shares outstanding31,820 31,967 31,084 
Earnings (loss) per share
Basic$2.47 $1.10 $(0.73)
Diluted$2.45 $1.08 $(0.73)
The following table summarizes the weighted average of anti-dilutive securities excluded from the diluted EPS calculation.
Year Ended December 31,
(In thousands)202520242023
Anti-dilutive restricted stock units and performance share units20 
Total20 

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.