The Company computes basic net income per common share 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 senior 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:


	Three months ended
	March 31,
	2026		2025
	(in thousands, except per share data)
Numerator:
Net income	$	15,679	$	11,011

Denominator:
Weighted average basic common shares outstanding		22,801		22,570
Effect of dilutive securities:
Options to purchase common stock		174		259
Restricted stock units		24		39
Performance-based restricted stock units		32		31
Weighted average dilutive common shares outstanding		23,031		22,899

Net income per share:
Basic	$	0.69	$	0.49
Diluted	$	0.68	$	0.48

The Company computed the if-converted method to calculate diluted net income per common share regarding the Senior Convertible Notes, noting there was no dilutive effect on the calculations for the three months ended March 31, 2026 and 2025.

The Company has excluded potential dilutive securities from the computation of diluted earnings per common share that would be anti-dilutive to net income per common share. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income per common share attributable to common shareholders for the periods indicated because including them would have an anti-dilutive effect:


	Three months ended
	March 31,
	2026		2025
	(in thousands)
Convertible senior notes		1,443		1,441
Options to purchase common stock		296		126
Restricted stock units		—		32
Performance-based restricted stock units		—		10
		1,739		1,609