EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2026

Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the ESPP, unvested RSUs and contingent issuances of common stock related to the Company’s convertible debt.

The following table sets forth the computation of basic and diluted earnings per common share (common shares in thousands):


	Three Months Ended March 31,
		2026		2025
Numerator:
Net income, basic		$	105,527	$	185,686
Add: Interest expense, net of tax, on the Company's convertible debt		1,834		1,833
Net income, diluted		$	107,361	$	187,519
Denominator:
Weighted-average common shares outstanding, basic		192,497		190,967
Effect of dilutive securities:
Common stock issuable under the Company's equity incentive plans		809		1,142
Common stock issuable under the Company’s convertible debt		4,365		4,365
Weighted-average common shares outstanding, diluted		197,671		196,474
Earnings per common share, basic		$	0.55	$	0.97
Earnings per common share, diluted		$	0.54	$	0.95

In addition to the equity instruments included in the table above, the table below presents potential shares of common stock that were excluded from the computation of diluted earnings per common share as they were anti-dilutive (in thousands):


	Three Months Ended March 31,
		2026	2025
Common stock issuable under the Company's equity incentive plans		13,803	11,686