Basic net income per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding unvested RSUs and stock options. Diluted net income per share is based upon the weighted average shares of common stock outstanding for the period plus dilutive potential shares of common stock, including unvested RSUs and stock options using the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended March 31,
	2025		2024
Net income	$	18,688	$	16,121
Shares used to compute basic net income per share	34,890		35,591
Dilutive potential common shares
Stock options	—		84
Unvested restricted stock awards	432		391

Shares used to compute diluted net income per share	35,322		36,066
Basic net income per share	$	0.54	$	0.45
Diluted net income per share	$	0.53	$	0.45

Dilutive shares included in the calculation	827		1,357
Anti-dilutive shares excluded from the calculation	2,125		665