Basic net income (loss) per share is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that could occur if options, RSUs, PRSUs, warrants, or other securities with features that could result in the issuance of common stock were exercised or converted to common stock using the treasury-stock method.

In connection with the June 2025 Convertible Notes, the Company applied the if-converted method under ASC 260, Earnings Per Share, to calculate diluted earnings per share. Since the June 2025 Convertible Notes require principal settlement in cash and only the premium is potentially settled in shares, the Company includes the incremental dilutive shares (the conversion spread) in the denominator only when the average stock price exceeds the conversion price.

For the three and six months ended June 30, 2025, the June 2025 Convertible Notes were not dilutive, and therefore no incremental shares were included in diluted EPS.

The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except share and per share information):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income (loss)	$	7,006	$	(10,964)	$	11,384	$	(20,741)
Weighted-average shares outstanding:
Basic	76,797,385		70,760,080		76,254,119		69,647,853
Dilutive effect of outstanding options, RSUs and warrants	7,678,663		—		7,726,576		—
Diluted	84,476,048		70,760,080		83,980,695		69,647,853
Net income (loss) per share:
Basic	$	0.09	$	(0.15)	$	0.15	$	(0.30)
Diluted	$	0.08	$	(0.15)	$	0.14	$	(0.30)

Certain potential shares of common stock were excluded from the diluted net income (loss) per share calculation as their inclusion would have been antidilutive. Excluded shares are as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024

Issuances under stock incentive plan, stock options	—	6,027,441	—	6,027,441
Issuances upon exercise of common stock warrants	—	7,761	—	7,761
Issuances upon vesting of restricted stock units	24,150	5,892,461	28,814	5,892,461
Issuances upon conversion of convertible notes	5,236,448	—	5,236,448	—
Total	5,260,598	11,927,663	5,265,262	11,927,663