Basic and Diluted Net Income per Share

3 Months Ended

Mar. 31, 2026

3 — Basic and Diluted Net Income per Share

Basic net income per share is based upon the weighted-average number of shares of Company common stock, par value $0.0001 per share (“common stock”), outstanding during the period. Diluted net income per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Stock options, restricted stock units and performance-based restricted stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares of common stock outstanding.

The following table presents the computation of basic and diluted net income per share of common stock:


	Three Months Ended March 31,
	2026		2025
(in thousands, except per share data)	(unaudited)
Net income	$	5,818	$	4,687
Weighted-average shares outstanding — Basic	12,783		12,714
Effect of dilutive securities:

Restricted stock units	45		53
Performance-based restricted stock units	42		59
Weighted-average shares outstanding — Diluted	12,870		12,826
Basic net income per share	$	0.46	$	0.37
Diluted net income per share	$	0.45	$	0.37

Restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows:


	Three Months Ended March 31,
(in thousands)	2026	2025
	(unaudited)
Anti-dilutive restricted stock units	5	—