Basic net income per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding for the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards, using the treasury stock method, and outstanding convertible notes, using the if-converted method.

A reconciliation of the numerators and the denominators of the basic and dilutive net income per common share computations are as follows (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	7,315	$	25,682
Add: Interest expense, net of tax, attributable to assumed conversion of convertible senior notes		—		2,345
Net income, diluted	$	7,315	$	28,027

Denominator:
Weighted average basic common shares outstanding		34,384,207		33,721,603
Effect of dilutive securities:
Convertible senior notes		—		4,893,805
Options to purchase common stock		1,496,026		1,200,858
Restricted stock units		307,303		98,221
Restricted stock awards		515		—
Employee stock purchase plan		5,972		—
Weighted average dilutive common shares outstanding		36,194,023		39,914,487
Net income per share:
Basic	$	0.21	$	0.76
Diluted	$	0.20	$	0.70

The Company excluded the following potential common shares, presented based on weighted average shares outstanding, from the computation of diluted net income per share because including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
	2026		2025
Convertible senior notes		4,893,805		—
Options to purchase common stock		130,948		900,069
Employee stock purchase plan		—		38,011
Restricted stock units		11,922		167,193
Restricted stock awards		—		4,128
		5,036,675		1,109,401