Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options, vesting of RSUs and PSUs or purchases under the ESPP. The treasury stock method is used to calculate the potential dilutive effect of these common stock equivalents. Contingently issuable PSU awards are included in the computation of diluted earnings (loss) per share when the applicable performance criteria would be met and the common shares would be issuable if the end of the reporting period were the end of the contingency period. However, potentially dilutive shares are excluded from the computation of diluted loss per share when their effect is antidilutive.

The following table shows the computation of basic and diluted earnings (loss) per share for the following three and six months ended June 30, 2025 and 2024 (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Numerator:
Net income (loss)	$	4,523	$	8,920	$	(21,325)	$	6,386

Denominator:
Weighted-average common shares outstanding, basic	28,914		27,646		28,763		27,566
Assumed exercise of stock options	361		440		—		441
Assumed vesting of RSUs	186		546		—		427
Assumed vesting of PSUs	84		98		—		98
Assumed issuance of shares under the ESPP	—		8		—		10
Weighted-average common shares outstanding, diluted	29,545		28,738		28,763		28,542

Earnings (loss) per share:
Basic	$	0.16	$	0.32	$	(0.74)	$	0.23
Diluted	$	0.15	$	0.31	$	(0.74)	$	0.22

Due to the Company reporting a net loss attributable to common stockholders for the six months ended June 30, 2025, all potentially dilutive securities are antidilutive and are excluded from the computations of diluted loss per share.

The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted earnings (loss) per share for the three and six months ended June 30, 2025 and 2024 because to do so would be antidilutive. With regard to the PSUs, we assume that the associated performance targets will be met at the target level of performance for purposes of calculating diluted earnings per common share until such time that it is probable that actual performance will be above or below target (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Stock options	2,466	2,487	2,965	2,493
RSUs and PSUs	2,958	892	4,053	877
ESPP	123	216	150	233
Total	5,547	3,595	7,168	3,603