Basic earnings per share (“EPS”) measures the performance of an entity over the reporting period. Diluted earnings per share measures the performance of an entity over the reporting period while giving effect to all potentially dilutive shares of Common Stock that were outstanding during the period. The Company uses the treasury stock method to determine the potential dilutive effect of vesting of its outstanding RSUs and PSUs. The Company does not use the two-class method.

The following table reflects the allocation of net income (loss) to common stockholders and EPS computations for the period indicated based on a weighted average number of shares of Common Stock outstanding for the three months ended March 31, 2026 and 2025 (in thousands, except per share data):


	Three Months Ended March 31,
	2026			2025
Numerator:
Net income (loss)	$	(47,264	)	$	1,219
Denominator:
Basic weighted average shares outstanding		124,626			118,245
Dilutive potential of restricted stock units		—			402
Dilutive potential of performance share units		—			1,100
Diluted weighted average shares outstanding	$	124,626		$	119,747

Basic EPS attributable to holders of Common Stock	$	(0.38	)	$	0.01
Diluted EPS attributable to holders of Common Stock	$	(0.38	)	$	0.01

We had a net loss for the three months ended March 31, 2026. Accordingly, our diluted loss per share calculation was equivalent to our basic loss per share calculation since diluted loss per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period.

The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:


	Three Months Ended March 31,
(in thousands)	2026		2025
RSUs excluded		1,848		980
PSUs excluded		651		485

The tables above do not include any potential dilutive impact from conversion of the convertible senior notes as the notes were not convertible during the reporting period. Refer to Note 17- Subsequent Events- Convertible Notes Issuance for additional information.