Net (Loss) Income per Share

6 Months Ended

Jun. 30, 2025

Net (Loss) Income per Share

Net (Loss) Income per Share

Note 9. Net (Loss) Income per Share

The computation of basic net (loss) income per share of common stock is based on the weighted-average number of shares of common stock outstanding during each period. The computation of diluted net (loss) income per share of common stock is based on the weighted-average number of shares of common stock outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, RSUs, PSUs, the Company’s employee stock purchase plan (“ESPP”), and warrants.

In periods in which the Company reports a net loss, all common stock equivalents are deemed anti-dilutive such that basic net loss per share of common stock and diluted net loss per share of common stock are equal. In periods when the Company has net income, the dilutive effect of all potentially outstanding shares is computed using the treasury stock method.

The following table reconciles the numerator and denominator used to calculate diluted net (loss) income per share of common stock (in thousands, except share and per share data):


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2025			2024			2025			2024
Numerator:
Net (loss) income		$	(34,771)		$	(30,616)		$	(46,426)		$	176,724
Denominator:
Weighted-average shares of common stock, basic			63,510,537			61,305,289			63,238,682			61,080,489
Dilutive effect of common stock equivalents			—			—			—			2,829,144
Weighted-average shares of common stock, dilutive			63,510,537			61,305,289			63,238,682			63,909,633
Net (loss) income per share of common stock
Basic net (loss) income per share of common stock		$	(0.55)		$	(0.50)		$	(0.73)		$	2.89
Diluted net (loss) income per share of common stock		$	(0.55)		$	(0.50)		$	(0.73)		$	2.77

Approximately 9.5 million potentially dilutive shares of common stock (consisting of shares subject to outstanding stock options, RSUs, PSUs, and under the ESPP) were excluded from the diluted net loss per share of common stock computation for the three and six months ended June 30, 2025 due to the Company’s net losses for these periods. Approximately 9.9 million potentially dilutive shares of common stock (consisting of shares subject to outstanding stock options, RSUs, PSUs, and under the ESPP) were excluded from the diluted net loss per share of common stock computation for the three months ended June 30, 2024 due to the Company’s net loss for the period. Approximately 3.4 million potentially dilutive shares of common stock (consisting of shares subject to outstanding stock options, RSUs, PSUs, and under the ESPP) were excluded from the diluted net income per share of common stock computation for the six months ended June 30, 2024 because their effect was anti-dilutive.